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Tether starting to lose its peg too, after Terra did

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Re: Tether starting to lose its peg too, after Terra did

#431

Post by throwawaymaths »

jkepler wrote: post #324
alangibson wrote: post #292

Earlier quoted context omitted.

This. Bitcoin is essentially the USD + US stock market in 1922. Hard money and unregulated securities markets already broke the world once. The crypto wizards somehow managed to forget a century of hard won lessons.

It was hardly "hard money" in 1922, as the Fed was created in 1913, and the dollar started plummeting. If you want to see what a hard money world looks like, look at the 40 years or so prior to 1913, when most civilized nations were on a gold standard.

You mean a half century of closing the wealth gap (while healing from the labor disruption of freeing the slaves), and somehow still managing to go from being a war torn country to world superpower?

Re: Tether starting to lose its peg too, after Terra did

#432

Post by [deleted] »

stevekemp wrote: post #186
outside1234 wrote: post #135

Earlier quoted context omitted.

We have been saying it - but have been dismissed as being "anti-crypto"

Yeah it's a tricky one. It seems obvious that "digital money" is going to be very useful in a lot of ways, and in the future is almost certain to appear. There was a very brief period when bitcoin might have been the start of such a thing. When companies were adding support for it, and people were spending 200+ bitcoin on pizza, actually doing useful things like transferring money internationally, etc. But these days…

[deleted]

Re: Tether starting to lose its peg too, after Terra did

#433

Post by kqr »

austhrow743 wrote: post #120
someotherperson wrote: post #62

Earlier quoted context omitted.

> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere This is victim blaming. Nobody deserves to be exploited, robbed or otherwise for any reason.

Financial speculation is a zero sum game. These "victims" were hoping to gain from the loss of others just like the supposed crypto VCs that have made out well. They're not victims just the losers.

I think the people who we would describe as victims here don't have a sophisticated mental model enough to understand that financial speculation is a zero sum game. (Or indeed that in a liquid enough market, the risk-adjusted expectation of any deal is zero.)

Re: Tether starting to lose its peg too, after Terra did

#434

Post by charcircuit »

irjustin wrote: post #291
charcircuit wrote: post #221

Earlier quoted context omitted.

The big fear with stable coins is for them to go into a death spiral and become worthless. Stablecoin are only worth $1 if people believe they are worth $1. When fear sets in and people no longer believe they are worth $1 it can cause the price to tank. Having a stablecoin be backed means that you can trust your stablecoins to not become worthless because they can be redeemed at anytime at a $1 price point even if th…

Ah so in theory I should be able to ask the USDT foundation for a dollar and they should be able to give it to me?

USDT is the worst in this regard since you have to deal in massive volume. The minimum withdrawal is $100k and fee on that is the greater of $1000 or 0.1%.

https://tether.to/en/fees/

Re: Tether starting to lose its peg too, after Terra did

#435

Post by charcircuit »

zelag wrote: post #235
22c wrote: post #220

Earlier quoted context omitted.

It essentially means they were moving large amounts of USDT supply around. Presumably there was not enough liquidity on Ethereum and Avalanche mainnets. Imagine you have multiple games of monopoly in progress but all the monopoly money is managed by a single monopoly money bank. Two monopoly games (Ethereum and Avalanche) both needed more monopoly money for the game to go on smoothly, so the banker transferred some m…

I'm curious: why does the banker use Tron as their main bank?

For reference there is 42.7B on Tron and 39.8B on Ethereum. Tron is not a "main bank", there is just more demand for Tether there. Compared to Ethereum Tron has 0 transaction fees for USDT and has much shorter block times.

Re: Tether starting to lose its peg too, after Terra did

#436

Post by throwawaymaths »

DebtDeflation wrote: post #408
jkepler wrote: post #324

Earlier quoted context omitted.

It was hardly "hard money" in 1922, as the Fed was created in 1913, and the dollar started plummeting. If you want to see what a hard money world looks like, look at the 40 years or so prior to 1913, when most civilized nations were on a gold standard.

>look at the 40 years or so prior to 1913 Constant booms, busts, and panics. The period of the most financial instability in history occurred under the gold standard.

We have constant booms and busts now, even though we have more liquidity, people who should know better, math to describe what's going on, 'tools' to try to prevent it...

Re: Tether starting to lose its peg too, after Terra did

#437

Post by DebtDeflation »

https://finance.yahoo.com/news/tether-reduced-exposure-comme...

The CTO of Tether issued a statement earlier today stating that Tether has significantly reduced its exposure to commercial paper and now holds the majority of its reserves in US Treasuries. That should be super easy to verify, yet he refuses to release any details, saying to just wait for their next quarterly update on reserves (which in the past has just been a one pager someone typed into Excel).

Re: Tether starting to lose its peg too, after Terra did

#438

Post by marcinzm »

unmole wrote: post #378
marcinzm wrote: post #374

Earlier quoted context omitted.

The government via FDIC.

FDIC is insurance, it's not a backing asset. And it's limited to 250k USD.

And without it you get occasional massive runs on banks since they don't have actual full backing. Moreover the government will bail banks out if needed providing another but non-guaranteed layer of protection.

Maybe a better way to say it would have been that banks are safer because they're backed by the government including FDIC, bailouts, regulations, oversight, etc.

Re: Tether starting to lose its peg too, after Terra did

#439

Post by cto_of_antifa »

corndoge wrote: post #105
someotherperson wrote: post #62

Earlier quoted context omitted.

> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere This is victim blaming. Nobody deserves to be exploited, robbed or otherwise for any reason.

"Deserves" is a word with variable meanings. You learn early on not to touch hot stoves. Do you morally deserve to get burned if you touch the stove anyway? Arguably no, but in the other meaning of "you should've known better", you kinda do deserve it.

No post body was provided.

Re: Tether starting to lose its peg too, after Terra did

#440

Post by shawabawa3 »

adastra22 wrote: post #429
sdgdfgsfdfgsdfg wrote: post #230

Earlier quoted context omitted.

The high buy volume at $0.98 is due to arbitrage. This is to be expected before the final crash. People are using the opportunity to net an instant 2% return. Buy $10M USDT at $0.98, redeem at Tether for $1, take home $200K of profit instantly. Thing is, this will only last until Tether runs out of liquidity. Then all bets are off.

> redeem at Tether Find me one person that has ever done this. Just one. I will wait.

Not with tether directly but I think bitfinex lets you convert usdt to usd and withdraw to a bank account (until it doesn't)
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