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Crypto crash deepens, stocks slip

reuters.com

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Re: Crypto crash deepens, stocks slip

#461

Post by jasonlaramburu »

fsagx wrote: post #238
jasonlaramburu wrote: post #155

Earlier quoted context omitted.

I wonder what % of our Economic stimulus was used to buy crypto, and how much of that money has simply disappeared over the past 24 hours.

Does it matter? The economic stimulus money "simply appeared" when checks were printed or payments were direct deposited.

Yes, we will struggle with the inflation and currency devaluation caused by the stimulus for years to come. If that money actually made its way into the US economy it might not matter, but some nonzero percentage was used to buy crypto at a peak, the value of which is now gone.

Re: Crypto crash deepens, stocks slip

#463

Post by miracle2k »

jakeva wrote: post #408
intotheabyss wrote: post #376

Earlier quoted context omitted.

It means that ETH which is a decentralized cryptocurrency can be used as a collateral for an algorithmic stablecoin called RAI that adjusts its price based on the price of ETH from a Uniswap price feed and a PID controller and arbitrage. To mint RAI you need to deposit ETH. The goal of RAI is to create a stablecoin which dampens the price movements of ETH over long periods of time.

The fact the community felt the need to invent a "stablecoin" isn't terribly reassuring

On the contrary, decentralized stablecoins are some of the most exciting things in the space. The MakerDAO system, which issues the DAI stablecoin, is earning 2.5 million every year, distributed to token holders. It has survived multiple market crashes. Algorithmic stablecoins attempt the same thing w/o collateral, and seem to have done well in this drawdown as well.

Re: Crypto crash deepens, stocks slip

#464

Post by thebean11 »

thehappypm wrote: post #448
thebean11 wrote: post #185

Earlier quoted context omitted.

how can you possibly make the claim that BTC was diluted vs the market cap of other coins being net new value?

Everyone who is buying Dogecoin right now is not buying BTC. That reduces the value of BTC.

Everyone who is buying x is not buying y. That reduces the value of y.

Re: Crypto crash deepens, stocks slip

#465

Post by lamp_book »

Clewza313 wrote: post #262
woeirua wrote: post #184

Everyone should take some time now to learn about Tether, the high likelihood that it is in fact a Ponzi scheme, and that it poses a big systemic risk to the crypto exchanges and therefore the markets themselves [1]. People have been sounding the alarm on Tether for a long time now, but we’re finally getting some hard evidence now to back the allegations [2]. Don’t say you weren’t warned. [1] https://mobile.twitter.c…

Here's a good, up to date primer: https://www.singlelunch.com/2021/05/19/the-tether-ponzi-sche...

Yoga instructor selling her house to throw it into bitcoin feels like the '21 spiritual successor of the Las Vegas stripper who owned several condos/houses that became the '08 housing market crash meme.

Wild prediction: this BTC crash pops the USDT bubble, cratering crypto in general. TSLA holders (frequently BTC/doge buyers themselves) begin to panic sell, triggering an ARKK bank run. ARKK implosion sparks wide selloff of big tech stocks (essentially their holdings) which depresses the S&P (where tech is the main driver of growth). Everyone is now forced to be conservative; cost to borrow skyrockets; demand chills, and coupled with supply chain disruptions and high commodity and materials costs, some businesses begin to fail. New homeowners who went for broke to buy at the top of their market are immediately underwater, and some of them are now losing their jobs. Fed is now between a rock and a hard place - needs to raise to interest rates but also needs to encourage spending - what to do?

Anyway, there is my daily dose of doom-and-gloom, and I have a vague understanding of any of it, so enjoy.

Re: Crypto crash deepens, stocks slip

#466

Post by vmception »

marcusverus wrote: post #375
vmception wrote: post #358

Earlier quoted context omitted.

USDC, DAI, USDT are all used more than ever, orders of magnitude more People dont have to talk about them as currencies because they just work No different than cellular reception in an underground subway, you dont have to think about it anymore

> USDC, DAI, USDT are all used more than ever, orders of magnitude more Even these cryptos aren't being used as currencies per se. They're popular, sure, but they're popular because A) they allow traders to move funds between crypto 'investments' without converting to fiat (i.e. without triggering cap gains), and B) They allow investors to "avoid market volatility" (but in a manner far riskier than fiat, given that e…

I’ve paid many people with stablecoins, even make in-kind investments (not like-kind)

You dont have a way of quantify if people are tax cheats (as what you described does not prevent capital gains liability), stores of value, or buying hamburgers

Re: Crypto crash deepens, stocks slip

#467

Post by cm2187 »

divs1210 wrote: post #454
pradn wrote: post #292

Earlier quoted context omitted.

It doesn't seem like anyone believes cryptos are supposed to be currencies any more. All the talk around them is around them being a new, exciting, and potentially very lucrative investment class. If you go to Coinbase's front page, you see that you can buy and sell them, like you can with Robinhood. It's not trying to be a PayPal. The currency-ness does serve an important purpose. It helps bring in investment for th…

I have used crypto (LTC, BUSD, XLM, XMR) to pay internet strangers so many times I've lost count. Looks like you just haven't tried it yet.

Perhaps he doesn't consume the same sort of products than you!

Re: Crypto crash deepens, stocks slip

#468

Post by bhk »

intotheabyss wrote: post #376
echelon wrote: post #354

Earlier quoted context omitted.

What does that even mean?

It means that ETH which is a decentralized cryptocurrency can be used as a collateral for an algorithmic stablecoin called RAI that adjusts its price based on the price of ETH from a Uniswap price feed and a PID controller and arbitrage. To mint RAI you need to deposit ETH. The goal of RAI is to create a stablecoin which dampens the price movements of ETH over long periods of time.

Are you talking about the RAI that traded at $0.0186 a few days ago and that you can now sell for $0.00022 ? That's a "stablecoin"?

https://atomars.com/trading/RAIUSDT

Re: Crypto crash deepens, stocks slip

#469

Post by okareaman »

krrrh wrote: post #260
Nursie wrote: post #243

Earlier quoted context omitted.

> I do not understand how every time cryptocurrency comes up armchair HN users come along and comment when they, very apparently, have almost no understanding of the topic This in itself is a meme - "All criticism is ignorance!" Bitcoin is not a ponzi or a pyramid scheme, that's true, but it has aspects of both, with its declining emission and stacked rewards for early adopters. And Bitcoin is for settlement now is i…

> The Nakamoto Scheme is an automated hybrid of a Ponzi scheme and a pyramid scheme which has, from the perspective of operating a criminal enterprise, the strengths of both and (currently) the weaknesses of neither. https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/

Good article, but it could also be seen as a global poker game, with holders "bluffing" people to buy while they hold, looking for a top to sell at.

Re: Crypto crash deepens, stocks slip

#470

Post by koonsolo »

nikanj wrote: post #394
marcusverus wrote: post #375

Earlier quoted context omitted.

> USDC, DAI, USDT are all used more than ever, orders of magnitude more Even these cryptos aren't being used as currencies per se. They're popular, sure, but they're popular because A) they allow traders to move funds between crypto 'investments' without converting to fiat (i.e. without triggering cap gains), and B) They allow investors to "avoid market volatility" (but in a manner far riskier than fiat, given that e…

I'd be very surprised if your tax agency agrees that moving via USDT does not trigger capital gains. Then again, I'm operating under the impression most people cheat on their taxes w.r.t cryptos

US only. It seems even Puerto Rico doesn't ask capital gains on crypto.
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