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Binance freezes withdrawals of stablecoin USDC as investors pull $2B

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Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#281

Post by kayamon »

spicymaki wrote: post #156
kayamon wrote: post #118

Earlier quoted context omitted.

Bitcoin has continued clearing transactions throughout, just as it always has since its creation. Crypto != Bitcoin.

> Crypto != Bitcoin Please explain your reasoning.

You can print more crypto. You can't print more Bitcoin.

You could make a competitor to Bitcoin, and thereby print money that way, but it takes energy. It takes energy to make new Bitcoins. And people can't use their energy for two things at once, they have to pick one. Only one blockchain can (in the long term) maintain and secure a position, the one with the longest proof-of-work chain. The others won't remain stable.

Mathematics takes time and energy. The more Bitcoin secures itself the more the other crypto gets pushed out of the mining market.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#282

Post by KMag »

KMag wrote: post #217
graeme wrote: post #203

Earlier quoted context omitted.

Not volatile? The point of stablecoins is they’re supposed to match the USD in value. By definition they are more volatile than usd as they are pegged to it and vary in price

> By definition they are more volatile than usd as they are pegged to it and vary in price I understand your reasoning, and you're correct in this case (assuming your numeraire is USD). However, if your numeraire is something like a GDP-weighted basket of USD, EUR, JPY, and CNH, it's possible for a USD-pegged asset to be less volatile than USD (since your unit of account isn't USD).

Note that if the above is the case, that would imply that the tracking error of your USD-pegged asset is correlated to the non-USD components of your numeraire. In a risk-off/flight-to-quality environment (depending on the exact circumstances, but in general) you'd expect EUR and CNH to drop in relation to the USD and often JPY to rise in relation to USD. The opposite would be expected in a risk-on scenario.

Presumably, your USD-pegged asset would drop in relation to the USD in a risk-off scenario and rise in a risk-on scenario, so in that case it would seem that your tracking error would tend to be correlated to the non-USD components of your numeraire basket. So, if macro risk-on/risk-off are the primary drivers of your pegged asset's tracking error, it would seem that your pegged asset would tend to have less volatility than USD if a GDP-weighted basket of major currencies is your unit of account.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#283

Post by mrep »

rvz wrote: post #176
bellip wrote: post #94

Earlier quoted context omitted.

Yes, it's digital already. However banks manage the whole system and they can do whatever they want with your money if you are nobody. I have been waiting for 2 and a half months for an international payment via SWIFT, I worked long hours for that money and I needed it urgently. The money left the sender's account 2 and a half months ago. Neither of us has the money in our accounts while the bank tells us to just wai…

> Maybe you are privileged enough to never have this kind of issues, but some of us do. Correct. The eternal hate for crypto is by a screaming minority who are too privileged to even bother realising the majority of people are worse off in countries like Argentina, Nigeria, and Turkey which their currencies have lost over 80% of their value and is quite frankly worthless. Using USDC as a cheap, fast, global way of se…

> The eternal hate for crypto is by a screaming minority who are too privileged to even bother realising the majority of people are worse off in countries like Argentina, Nigeria, and Turkey which their currencies have lost over 80% of their value and is quite frankly worthless.

So like 5% of the world population in your examples...

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#284

Post by 9935c101ab17a66 »

crypt1d wrote: post #168

USDC withdrawals have been enabled again, but I don't suppose that's HN front-page worthy as much as the panic inducing titles. https://twitter.com/binance/status/1602708590271385600?s=20&...

? Withdrawals working isn’t newsworthy — that should always be the case. But when a “financial institution” in a notoriously unstable market segment prevents users from withdrawing their own funds, then of course its going to be a big story (as it should be!).

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#285

Post by 9935c101ab17a66 »

latchkey wrote: post #155
jjulius wrote: post #135

Earlier quoted context omitted.

I... never said that you did? I know you don't, your first post suggests that you and I both want to see crypto go up in flames. That said, defending Binance isn't a prerequisite for spreading FUD. What I'm saying is that you are wrong about this withdrawal freeze being a "pre-announced downtime for a hardfork on their BSC chain" - it is an entirely separate freeze . Here's a really condensed version of what's happen…

> You: "Stop spreading FUD, this was just a planned downtime." Certainly, except that isn't all that I said. After the above, you dropped: * You: Here is a bunch of links of people getting withdrawals no problem.

To give you a third-party’s perspective:

You’re 100% the one spreading misinformation.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#286

Post by 9935c101ab17a66 »

latchkey wrote: post #121
jqpabc123 wrote: post #115

Earlier quoted context omitted.

That's right, HN has authority ... and you are a real psychologist.

ad hominem.

It’s not an ad hominem because you present an explanation of complicated user behaviour as fact. Not only is it a completely ridiculous explanation offered with no evidence, but it is also directly contradicted by, you know, reality?

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#287

Post by govg »

nordsieck wrote: post #119
govg wrote: post #106

Earlier quoted context omitted.

In terms of the Euro, I find it more useful to view the Eurozone as somewhat similar to the US. There's one central monetary policy for really large economies that in a different environment, would have liked to do things independently. It's especially relevant now as US states have GDPs comparable to the Eurozone constituent nations.

> In terms of the Euro, I find it more useful to view the Eurozone as somewhat similar to the US. There's one central monetary policy for really large economies that in a different environment, would have liked to do things independently. It's especially relevant now as US states have GDPs comparable to the Eurozone constituent nations. There is an enormous difference, though: internal mobility/identity. Germans tend…

I can't comment on Europe simply because I haven't lived there, but in my experience the US isn't at all like you mention. Sure, there might be states where people are willing to move, but if you think of cultural regions more and states less, people never leave certain areas their entire lives. I'm talking about areas like PNW, New England, Upper Midwest, Southern states and so on. This is very similar to your case, it is just that the US is far more fragmented in some sense, and some states can be similar to others.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#288

Post by klodolph »

notch656a wrote: post #85
nordsieck wrote: post #84

Earlier quoted context omitted.

> America decided dollars should float in the 70s, and most of the world followed. Except that a bunch of countries in Europe went back to pegged currency with the Euro[1]. Part of the reason the 2008 crisis hit countries like Italy, Greece, and Ireland so hard. --- 1. Yes - the Euro is not technically pegged; but effectively, it's the same thing. Each individual country in the Eurozone can't engage in independent mo…

Euro floats.

Comment is saying that having Euro as your currency is, in some ways the same as pegging your currency to the Euro. As in “1 Ireland Euro” equals “1 German Euro”.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#289

Post by klodolph »

govg wrote: post #287
nordsieck wrote: post #119

Earlier quoted context omitted.

> In terms of the Euro, I find it more useful to view the Eurozone as somewhat similar to the US. There's one central monetary policy for really large economies that in a different environment, would have liked to do things independently. It's especially relevant now as US states have GDPs comparable to the Eurozone constituent nations. There is an enormous difference, though: internal mobility/identity. Germans tend…

I can't comment on Europe simply because I haven't lived there, but in my experience the US isn't at all like you mention. Sure, there might be states where people are willing to move, but if you think of cultural regions more and states less, people never leave certain areas their entire lives. I'm talking about areas like PNW, New England, Upper Midwest, Southern states and so on. This is very similar to your case,…

Just to pick an example like “PNW”, if you look at a city like, say, Portland, less than half (44%) of the residents are from Oregon at all.

https://worldpopulationreview.com/us-cities/portland-or-popu...

If you look at where people migrate from,

https://depts.washington.edu/moving1/Oregon.shtml

California and Washington are the major sources (of course!) but (1) California is not PNW, and (2) places other than CA/WA contribute many more migrants.

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