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Coinbase suspending USDC:USD conversions over the weekend

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Re: Coinbase suspending USDC:USD conversions over the weekend

#251

Post by alphanullmeric »

mtlmtlmtlmtl wrote: post #250
alphanullmeric wrote: post #243

Earlier quoted context omitted.

The point of crypto is to you from making rules about other people’s money. The state sponsored looting stunt the canadian government pulled off last year would be impossible with crypto. Likewise would PDT laws and similar regulations governing what other people can choose to risk.

Random, unsourced, singular examples do not an argument make. Try again. Btw how invested are you in crypto? Valid question, y'know, enumerating biases.

https://www.businessinsider.com/trudeau-canada-freeze-bank-a...

https://www.investopedia.com/terms/p/patterndaytrader.asp

It’s as valid of a question as asking you if you hold USD.

Re: Coinbase suspending USDC:USD conversions over the weekend

#252

Post by acomar »

me_again wrote: post #248
acomar wrote: post #239

Earlier quoted context omitted.

no but expect the US to start invading weaker countries that depeg from the dollar. the US is, at present, the world's reserve currency. that status is what creates the petrodollar. as countries move towards Russia or China, that hegemony is threatened.

What countries peg to the dollar that you think are in danger of being invaded?

a lot of the African nations moving closer to China come to mind

Re: Coinbase suspending USDC:USD conversions over the weekend

#253

Post by HWR_14 »

pclmulqdq wrote: post #182
espadrine wrote: post #75

Earlier quoted context omitted.

What could the Federal Reserve learn? The structure of risk is similar for both Tether and Circle, AFAICT. While USD risk is heavily distributed across many regulated banks and there are measures in place to mitigate bankruptcy, USDC/T is fairly centralized and the fall of a single bank can put the entire currency at risk, cause sudden and extreme inflation (as is the case now), and potentially stop being accepted by…

Perhaps they could learn that doing consecutive 50-75 bps rate hikes for an entire year will bring with it a lot of adverse effects in a world where they are expected to hike 25 bps at a time? Nobody pricing interest rate risk would have priced what happened last year correctly - it would have been considered a one-in-a-million event, not a routine response to high inflation.

I don't know anyone who expected sub 50 bps raises each quarter for a while now.

Re: Coinbase suspending USDC:USD conversions over the weekend

#254

Post by Scoundreller »

FabHK wrote: post #235
Scoundreller wrote: post #92

Earlier quoted context omitted.

https://wap.business-standard.com/article-amp/international/... https://amp.scmp.com/business/banking-finance/article/300879... https://enterprise.press/stories/2022/10/09/major-local-bank... https://www.aljazeera.com/amp/economy/2022/2/3/lebanon-us-do... > No withdrawals were allowed from accounts denominated in U.S. dollars, unless the owner agreed to convert the funds into pesos. https://en.m.wikipedia.org/wiki/Co…

These appear to be cases where government regulation was imposed to limit access to foreign currency. Not, as you seemed to be insinuating ("but don’t properly hold reserves for them"), any problem with banks carrying insufficient reserves. So, there was neither a technological problem moving fiat in our out of the country that would be amenable to a technological fix, nor unintended weaknesses in the regulatory regi…

> These appear to be cases where government regulation was imposed to limit access to foreign currency.

It’s not « access to foreign currency », it’s « access to your own deposits ».

Cuz the banks and/or the central banks spent/seized the foreign currency before you, the depositor, could spend them. So much for trying to protect your assets by holding them in foreign currency.

Re: Coinbase suspending USDC:USD conversions over the weekend

#255

Post by mitthrowaway2 »

pclmulqdq wrote: post #182
espadrine wrote: post #75

Earlier quoted context omitted.

What could the Federal Reserve learn? The structure of risk is similar for both Tether and Circle, AFAICT. While USD risk is heavily distributed across many regulated banks and there are measures in place to mitigate bankruptcy, USDC/T is fairly centralized and the fall of a single bank can put the entire currency at risk, cause sudden and extreme inflation (as is the case now), and potentially stop being accepted by…

Perhaps they could learn that doing consecutive 50-75 bps rate hikes for an entire year will bring with it a lot of adverse effects in a world where they are expected to hike 25 bps at a time? Nobody pricing interest rate risk would have priced what happened last year correctly - it would have been considered a one-in-a-million event, not a routine response to high inflation.

I think what really drove actors like SVB to indulge in speculative yield-chasing was central banks driving rates to zero, saying they'd be near zero for a long time, and as inflation ticked up that they weren't even "thinking about thinking about raising interest rates", and then continuing to hold them at zero while calling inflation transitory as it reached multidecadal highs.

This trained everyone to speculate that the Fed was ignoring inflation on purpose and they should allocate accordingly.

So many people unbuckled their seatbelts as the driver sped through several red lights while saying he wasn't even planning to touch the brakes. When he did eventually slam the brakes a moment later, the passengers flew through the windshield. The driver deserves blame, but blame him for speeding, not for slowing down -- the latter is the only responsible thing he did.

Re: Coinbase suspending USDC:USD conversions over the weekend

#256

Post by mtlmtlmtlmtl »

alphanullmeric wrote: post #251
mtlmtlmtlmtl wrote: post #250

Earlier quoted context omitted.

Random, unsourced, singular examples do not an argument make. Try again. Btw how invested are you in crypto? Valid question, y'know, enumerating biases.

https://www.businessinsider.com/trudeau-canada-freeze-bank-a... https://www.investopedia.com/terms/p/patterndaytrader.asp It’s as valid of a question as asking you if you hold USD.

If you want to climb down an antivaxx rabbit hole, go waste someone else's time.

As for dollars, I hold zero. Same for bitcoin, ethereum, ScamCoin, and RugPullCoin. Your turn. Defensive are we?

Re: Coinbase suspending USDC:USD conversions over the weekend

#257

Post by CydeWeys »

globalreset wrote: post #219
CydeWeys wrote: post #213

Earlier quoted context omitted.

This is a really bad misunderstanding of how governmental monopoly on violence affects the acceptance of its currency. The USD has value because you need to pay your taxes in USD, and if you don't pay your taxes, the government will take away your freedom. It has nothing to do with people in other countries transacting in that country's local currency.

That's also a myth that doesn't make sense. If it was about taxes people would just hold something else and converted some temporarily to pay their taxes leaving government with currency nobody wants. It's all about people's trust and willingness to store savings and make loans in a given current.

> If it was about taxes people would just hold something else

Not following this at all. You having to pay tax in USD means you're going to prefer holding USD and being paid in USD as well. Anything else would be strictly inferior, as now you have to worry about doing conversions all the time.

Note that it's mandatory for taxes to be withheld with each paycheck, and those withheld taxes must be paid in, you guessed it, USD, so you must be paid in USD as well.

Re: Coinbase suspending USDC:USD conversions over the weekend

#258

Post by alphanullmeric »

mtlmtlmtlmtl wrote: post #256
alphanullmeric wrote: post #251

Earlier quoted context omitted.

https://www.businessinsider.com/trudeau-canada-freeze-bank-a... https://www.investopedia.com/terms/p/patterndaytrader.asp It’s as valid of a question as asking you if you hold USD.

If you want to climb down an antivaxx rabbit hole, go waste someone else's time. As for dollars, I hold zero. Same for bitcoin, ethereum, ScamCoin, and RugPullCoin. Your turn. Defensive are we?

I don’t care what you think about vaccines. It’s a question of whether or not you believe force is only justified in response to force, which you clearly don’t. So as I was saying, crypto does a great job of keeping your fingers off of other people’s wallets.

Re: Coinbase suspending USDC:USD conversions over the weekend

#260

Post by scott00 »

andrepd wrote: post #138
rippercushions wrote: post #48

Earlier quoted context omitted.

There's something deeply ironic about a flight to safety in the form of Tether , which has famously been described as being "quilted out of red flags". But if you can't redeem it and it's not backed by anything remotely approaching normal assets, I guess you can't have a bank run on it either... until the music stops and the insiders propping it up run out of chairs.

Nobody has quite explained to me how that is different from deposits at a bank (modulo government guarantees).

Lack of redeemability, lack of transparency, and a history of fraud.

Banks contractually guarantee the right to redeem deposits for cash. Redemption of tether for USD seems to be subject to the discretion of its operators.

Banks are fairly transparent about their assets to the public, and completely trasparent to their auditors and regulators. Tether is an unaudited, unregulated black box.

IMO, tether is no longer a fraud, but it definitely was for a while when they were claiming 100% cash reserves but actually running with fractional reserves. Banks don't lie about their reserves.

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