361–370 of 382 posts
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You are right. How are they useful?
You can send them to people and/or exchange them for stuff. Which is exactly what you'd want to do with a currency.
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You are right. How are they useful?
When you put money in the bank, it's backed by 1% real assets (go fractional reserve money!) So let's say I don't want to put my money into something that is only 1% backed (See the Greek dept crisis). I could store cash under my mattress, but that also has some major risks. With a stablecoin like UST, you 100% own it. Governments can't confiscate it. It's 100% backed by the asset behind it (not talking about Tether…
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> Just to be clear, you're alleging a massive fraud by these people I'm more familiar with the people behind Tether, where I'm fairly confident they are crooks. I know nothing specifically about USDC except that the issuance patterns look similar. > You can get huge yields on stablecoins right now (like 40%+), so a lot of people are taking money they would normally put in the stock market and are farming yields with…
I don't think we actually disagree too much, let me try to update your view: > I'm more familiar with the people behind Tether, where I'm fairly confident they are crooks. I know nothing specifically about USDC except that the issuance patterns look similar. I think Tether are probably crooks that won't ever get caught, because I don't think their scheme will collapse, but I agree. The main difference in issuance bet…
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Like you I've predicted 20 of the last 3 crashes. I know people that bought at the peak in 2019 at $20k despite me laughing at them. They sold them last year, more than doubled their money and had a nice holiday. Don't know many that bought last year other than those that just buy every month come rain-or-shine. Everyone knows bitcoin is nothing more than greater-fool gambling with a side effect of enabling a lot of…
Thank goodness criminal computer activity didn't exist before cryptocurrency--had me worried. But once we get rid of cryptocurrency (soon), those problems are solved thankfully.
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I guess if the price of BTC goes up, then it makes it more "worth it" to throw more energy at mounting a double-spend attack, and therefore the energy needed to protect the network against such an attack also goes up?
> I guess if the price of BTC goes up, then it makes it more "worth it" to throw more energy at mounting a double-spend attack Close, but not correct. As the price of BTC goes up, so does the expected reward for mining any given block, making it profitable to spend more electricity in pursuit of the rewards. This results in a net increase in electricity usage as everyone spends more in an attempt to capture the risin…
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> I guess if the price of BTC goes up, then it makes it more "worth it" to throw more energy at mounting a double-spend attack Close, but not correct. As the price of BTC goes up, so does the expected reward for mining any given block, making it profitable to spend more electricity in pursuit of the rewards. This results in a net increase in electricity usage as everyone spends more in an attempt to capture the risin…
That's one way of looking at it. Another consideration for each miner is to look for cheaper and more abundant energy sources. Despite what the born-again eco-warriors have to say about consumption and the environment, Bitcoin can actually be an incentive for safe energy sources.
And thereby offsetting other inelastic demand for electricity, forcing them to count on non-renewables instead.
Bitcoin might be renewable if every single miner pinky swears to turn their rigs off the moment renewables stop over-producing, but come on, nobody believes that'll happen.
> Despite what the born-again eco-warriors have to say about consumption and the environment, Bitcoin can actually be an incentive for safe energy sources.
Interesting you've got to put an ad hominem in there about people who care about the environment. Probably not a good sign for the second half of this sentence, and it makes me wonder if you're representing other's positions in good faith.
Also, oops: https://e360.yale.edu/digest/bitcoin-miners-resurrect-fossil...
Sure, bitcoin miners will use cheap renewables if they're available. They'll also happily use whatever the hell is available too given the opportunity, since they need to use so much of the stuff. They're particularly notorious for driving up electricity rates locally as they turn previously abundant renewable hydro energy into a over-subscribed resource, requiring towns to import electricity from, yes, fossil fuel plants.
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It's very standard for bitcoin and won't be going away for a while as the asset is still realizing its value across all global liquidity. It's scary and why the SEC dragging their feet on a spot ETF approval i.e. an investment vehicle that a non-crypto fanboy can use (yours truly) is criminal.
Yes, it’s truly criminal that the SEC hasn’t approved more ways for speculation in cryptocurrency. It’s not as if an Average Joe can just go out and buy cryptocurrency or something. Can you imagine what the market volatility would be if cryptocurrency proponents were allowed to convince naïve people to invest their money, too?
Retail is already all the way in. Institutions have mandates that restrict them to trading venues, types of instruments, jurisdictions (some can only invest domestically, and so cannot use foreign ETFs), and so on and so on.
There is a reason why MSTR was able to raise mountains of debt to buy Bitcoin.
It's all institutional money.
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That was perhaps about Ethereum, whose Blockchain seems to be so unwieldy that one very few companies manage to process it directly, and everybody else uses their API.
Ethereum's blockchain is not at all unwieldy - there are 5,000+ nodes. Most companies rely on hosted nodes across the entire crypto space, not just within the Ethereum one. That has more to do with wanting a highly-reliable node provider with a low likelihood of experiencing down time, for business critical applications, than running a node being difficult.
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When you put money in the bank, it's backed by 1% real assets (go fractional reserve money!) So let's say I don't want to put my money into something that is only 1% backed (See the Greek dept crisis). I could store cash under my mattress, but that also has some major risks. With a stablecoin like UST, you 100% own it. Governments can't confiscate it. It's 100% backed by the asset behind it (not talking about Tether…
So this stable coin is "100% backed by the asset behind it", like a dollar, which is "backed by 1% real assets (go fractional reserve money!)". What did I miss?
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You're clearly really into this planet destroying ponzi scheme. You keep referring to something as a "sale". You have no way to compare the current price to the future price. Perhaps you portfolio is still tulip/beanie baby heavy too. Bitcoin last year required something in the region of 134TWhs to maintain, for 4 transaction per second ( https://news.ycombinator.com/item?id=29769892 ). Some nuclear pose stations gen…
I am long BTC, ETH among other things. No tulips though.