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$130B wiped off crypto markets in 24 hours

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Re: $130B wiped off crypto markets in 24 hours

#371

Post by immibis »

matheusmoreira wrote: post #322
immibis wrote: post #318

Earlier quoted context omitted.

Deflationary currencies cannot be deflationary forever. Think for 5 seconds: if that was true, then the person who sold the pizza for bitcoin will eventually have enough value to buy everything on the planet. So will the person whose CPU was mining to keep the pizza warm. Can there be two planets of value on the planet?

The value on the planet is not increasing as a result of bitcoin. Available bitcoins with which to buy valuable things are decreasing. There is a finite amount and people constantly lose bitcoins which takes them out of circulation.

People speak of the value of bitcoins increasing, as if it's some kind of universal law. If it was a universal law, you could just hold onto 1 BTC for long enough and then buy the entire planet. It's not.

Re: $130B wiped off crypto markets in 24 hours

#372

Post by mavhc »

immibis wrote: post #371
matheusmoreira wrote: post #322

Earlier quoted context omitted.

The value on the planet is not increasing as a result of bitcoin. Available bitcoins with which to buy valuable things are decreasing. There is a finite amount and people constantly lose bitcoins which takes them out of circulation.

People speak of the value of bitcoins increasing, as if it's some kind of universal law. If it was a universal law, you could just hold onto 1 BTC for long enough and then buy the entire planet. It's not.

Not a law, but it's part of the design, because "omg inflation is bad, the government are taking your money!" theories from people who left before Economics 102

Re: $130B wiped off crypto markets in 24 hours

#373

Post by matheusmoreira »

immibis wrote: post #371
matheusmoreira wrote: post #322

Earlier quoted context omitted.

The value on the planet is not increasing as a result of bitcoin. Available bitcoins with which to buy valuable things are decreasing. There is a finite amount and people constantly lose bitcoins which takes them out of circulation.

People speak of the value of bitcoins increasing, as if it's some kind of universal law. If it was a universal law, you could just hold onto 1 BTC for long enough and then buy the entire planet. It's not.

It's not the value of BTC that's increasing. It's the value of USD and all other fiat currencies that are decreasing. Governments print trillions of them while fractional reserve banking and loans create even more. If you have a steadily decreasing supply of bitcoin and a steadily increasing supply of fiat, it's only reasonable to expect that more fiat will buy less bitcoin over time.

Re: $130B wiped off crypto markets in 24 hours

#374

Post by immibis »

dandare wrote: post #361
immibis wrote: post #320

Earlier quoted context omitted.

You can send them to people and/or exchange them for stuff. Which is exactly what you'd want to do with a currency.

But why would you do that? When you can do exactly that with a traditional currency but much safer, much cheaper, much faster and much more conveniently.

Sending traditional currencies has more roadblocks, in any form, whether you're talking physical or digital traditional currency.

The CBDC idea might bring the best of both worlds.

Re: $130B wiped off crypto markets in 24 hours

#375

Post by immibis »

matheusmoreira wrote: post #373
immibis wrote: post #371

Earlier quoted context omitted.

People speak of the value of bitcoins increasing, as if it's some kind of universal law. If it was a universal law, you could just hold onto 1 BTC for long enough and then buy the entire planet. It's not.

It's not the value of BTC that's increasing. It's the value of USD and all other fiat currencies that are decreasing. Governments print trillions of them while fractional reserve banking and loans create even more. If you have a steadily decreasing supply of bitcoin and a steadily increasing supply of fiat, it's only reasonable to expect that more fiat will buy less bitcoin over time.

This is false. 10000 bitcoins used to buy $10 or a pizza. If USD's value was decreasing, 10000 bitcoins would buy $100 or a pizza. But no. Actually 10000 bitcoins buys $300,000,000 or 30,000,000 pizzas.

Re: $130B wiped off crypto markets in 24 hours

#376

Post by llampx »

lilSebastian wrote: post #370
llampx wrote: post #353

Earlier quoted context omitted.

I am long BTC, ETH among other things. No tulips though.

So, just the stuff that's really bad for the environment. Gotcha

I've made money through 2020 and 2021 with oil and uranium too. It offset the losses from my solar stocks.

Re: $130B wiped off crypto markets in 24 hours

#377

Post by Ekaros »

koonsolo wrote: post #336
dandare wrote: post #302

Earlier quoted context omitted.

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…

How can't a government confiscate the currency hold by stable coin provider? They are the government, they can do any tyrannical move they want.

Re: $130B wiped off crypto markets in 24 hours

#378

Post by matheusmoreira »

immibis wrote: post #375
matheusmoreira wrote: post #373

Earlier quoted context omitted.

It's not the value of BTC that's increasing. It's the value of USD and all other fiat currencies that are decreasing. Governments print trillions of them while fractional reserve banking and loans create even more. If you have a steadily decreasing supply of bitcoin and a steadily increasing supply of fiat, it's only reasonable to expect that more fiat will buy less bitcoin over time.

This is false. 10000 bitcoins used to buy $10 or a pizza. If USD's value was decreasing, 10000 bitcoins would buy $100 or a pizza. But no. Actually 10000 bitcoins buys $300,000,000 or 30,000,000 pizzas.

It's not false, it just means there must also be other factors influencing the price.

Re: $130B wiped off crypto markets in 24 hours

#379

Post by dandare »

koonsolo wrote: post #369
dandare wrote: post #362

Earlier quoted context omitted.

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?

1 dollar is backed by 1 dollar. 1 dollar in the bank is backed by 0.01 dollar.

And 1 stable coin is backed by 1 dollar in the bank. That means one stable coin is backed by 0.01 real dollar.

Re: $130B wiped off crypto markets in 24 hours

#380

Post by koonsolo »

dandare wrote: post #379
koonsolo wrote: post #369

Earlier quoted context omitted.

1 dollar is backed by 1 dollar. 1 dollar in the bank is backed by 0.01 dollar.

And 1 stable coin is backed by 1 dollar in the bank. That means one stable coin is backed by 0.01 real dollar.

UST is not backed by dollars in any way, it's backed by assets that have a corresponding value in dollars.

So no, your statement is incorrect.

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