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What I Think of Bitcoin

bridgewater.com

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Re: What I Think of Bitcoin

#61

Post by Mc_Big_G »

CyberDildonics wrote: post #58
lalaland1125 wrote: post #24

This post should be mostly discounted because Ray doesn't really seem to be aware of the true risk of the Tether scam, the biggest component of and risk to Bitcoin's value. For those not aware, Tether is a "stable coin" that issues tokens that supposedly represent dollars and can be used as a medium of exchange. However, it's widely suspected that Tether is unbacked and printing fake dollars and even Tether itself ha…

Everyone who invests in bitcoin is breaking the cardinal rule of investing: don't invest in something you don't understand. If people realized that bitcoin's -average- transaction fee is around $25 USD because it is restricted (for no technical reason) to a few transactions per second (less throughput than 240p youtube videos) they would at least move on to other cryptocurrencies. If people realized that a sudden dro…

The value of Bitcoin doesn't lie in how many transactions it can do per second, nor the cost per transaction.

Re: What I Think of Bitcoin

#63

Post by paulgb »

herodotus wrote: post #37

I could not read this article because first I had to agree to this: "I am entering this website only to obtain general information regarding Bridgewater Associates, LP and not for any other purpose." but that was not at all why I was trying to enter the website. So I will probably never know what Ray Dalio thinks of Bitcoin.

Isn’t Ray Dalio’s opinion information regarding Bridgewater Associates?

This is likely a way to assert that the site is not intended to market Bridgewater’s investment products to non-accredited investors. I don’t know if the SEC explicitly requires a click-wrap warning but it’s generally an area that firms want to avoid toeing the line on.

Re: What I Think of Bitcoin

#64

Post by reitzensteinm »

andrepd wrote: post #50
lalaland1125 wrote: post #24

This post should be mostly discounted because Ray doesn't really seem to be aware of the true risk of the Tether scam, the biggest component of and risk to Bitcoin's value. For those not aware, Tether is a "stable coin" that issues tokens that supposedly represent dollars and can be used as a medium of exchange. However, it's widely suspected that Tether is unbacked and printing fake dollars and even Tether itself ha…

Excuse me, how is this different from banks, which have money to cover ~1% of their deposit liabilities? Scratch that, US and UK banks, for example, now have 0% reserve requirements.

Banks still have assets to cover the liabilities, they're just not liquid.

Are you claiming Tether has other assets that are not being counted?

Re: What I Think of Bitcoin

#65

Post by jdmoreira »

leereeves wrote: post #26
colincooke wrote: post #14

Earlier quoted context omitted.

I agree, there was a nice article in the economist about this concept (bitcoin as a store of value) [0]. More specialized than gold, investors have realized that bitcoin acts as a great hedge on uncertainty. When the market is uncertain to it's future (initial lockdowns for example) bitcoin goes up. It also goes up for less direct reasons (at least that I'm aware of). This makes it a less than ideal traditional store…

Another way of saying "gold-like asset" or "store of value" is that Bitcoin codifies wealth inequality in an algorithm with a rigidity similar to physical assets, creating mathematical obstacles to block democratic attempts at redistribution away from an elite class of early adopters. Thus "protecting wealth" from the rest of humanity. However profitable, useful, or entertaining one might find that as a fringe commod…

I don’t understand why you are being downvoted because in my opinion you are right. Fiat money is the real trick that removes people from poverty and increases everyone's standard of living.

This is really easy to understand from first principles. If the total value of the world increases and there is only a fixed amount of either gold or bitcoin, or any finite thing to represent it, it's obvious that whoever has that asset today has to do nothing for it to grow. Just sit on it indefinitely and people will give you more value for the same amount.

On the other hand if the value of the world is represented in USD and the feds keep print more money, you can’t just sit on the money you have today and expect it to be worth more. You have to put it back in the value creation system for it to grow in value.

Bitcoin and gold suck at representing value. Fiat currency is much better because you can print more money to keep up with the world's total value.

Re: What I Think of Bitcoin

#66

Post by T0Bi »

lalaland1125 wrote: post #44
thesausageking wrote: post #34

Earlier quoted context omitted.

Tether FUD always returns when there's an influx of a lot newcomers to Bitcoin. It's been debunked over and over. Here's one by Nic Carter that explains why these "takedowns" are completely wrong: https://medium.com/@nic__carter/assessing-bitcoins-liquidity...

That doesn't deal with the fake $500 million per day that is being pushed in by Tether. That money has to be artificially inflating the price of Bitcoin. Unless you actually think $500 million per day of real dollars are being acquired by Tether, a company that has never been audited and is under investigation, when there are many legitimate stable coin alternatives such as USDC? You would have to assume that there i…

You have no sources for any of your claims.

Re: What I Think of Bitcoin

#67

Post by hntrader »

thesausageking wrote: post #34
lalaland1125 wrote: post #24

This post should be mostly discounted because Ray doesn't really seem to be aware of the true risk of the Tether scam, the biggest component of and risk to Bitcoin's value. For those not aware, Tether is a "stable coin" that issues tokens that supposedly represent dollars and can be used as a medium of exchange. However, it's widely suspected that Tether is unbacked and printing fake dollars and even Tether itself ha…

Tether FUD always returns when there's an influx of a lot newcomers to Bitcoin. It's been debunked over and over. Here's one by Nic Carter that explains why these "takedowns" are completely wrong: https://medium.com/@nic__carter/assessing-bitcoins-liquidity...

Isn't this just saying that the BTC buying volume generated by Tether is less than what was claimed?

That's important to note, but where does he argue that the central and most important claim - i.e., that Tether isn't fully backed and is therefore liable to collapse like a house of cards - is false?

Re: What I Think of Bitcoin

#68

Post by bl557 »

lalaland1125 wrote: post #44
thesausageking wrote: post #34

Earlier quoted context omitted.

Tether FUD always returns when there's an influx of a lot newcomers to Bitcoin. It's been debunked over and over. Here's one by Nic Carter that explains why these "takedowns" are completely wrong: https://medium.com/@nic__carter/assessing-bitcoins-liquidity...

That doesn't deal with the fake $500 million per day that is being pushed in by Tether. That money has to be artificially inflating the price of Bitcoin. Unless you actually think $500 million per day of real dollars are being acquired by Tether, a company that has never been audited and is under investigation, when there are many legitimate stable coin alternatives such as USDC? You would have to assume that there i…

Study finding no correlation between stablecoin issuance and BTC price - https://voxeu.org/article/stable-coins-dont-inflate-crypto-m...

Re: What I Think of Bitcoin

#69

Post by Jasper_ »

thesausageking wrote: post #34
lalaland1125 wrote: post #24

This post should be mostly discounted because Ray doesn't really seem to be aware of the true risk of the Tether scam, the biggest component of and risk to Bitcoin's value. For those not aware, Tether is a "stable coin" that issues tokens that supposedly represent dollars and can be used as a medium of exchange. However, it's widely suspected that Tether is unbacked and printing fake dollars and even Tether itself ha…

Tether FUD always returns when there's an influx of a lot newcomers to Bitcoin. It's been debunked over and over. Here's one by Nic Carter that explains why these "takedowns" are completely wrong: https://medium.com/@nic__carter/assessing-bitcoins-liquidity...

According to Tether's own transparency page [0], there's $30 billion of USD sitting in some random bank, somewhere. No, they haven't told anybody where it is, and they have never released an audit. Yes, they are still delaying the NY Attorney General's investigation [1]. We know that at least $850 million has been seized and lost for good [2]. No, they don't report that on the transparency page.

[0] https://wallet.tether.to/transparency [1] https://mobile.twitter.com/bitcoinlawyer/status/135164200602... [2] https://modernconsensus.com/cryptocurrencies/tether/feds-jus...

Re: What I Think of Bitcoin

#70

Post by CyberDildonics »

lalaland1125 wrote: post #56
thebean11 wrote: post #30

Earlier quoted context omitted.

Ray isn't the only one, the market is pricing in zero risk of tether collapsing. It trades at no discount to real dollars, anybody with a Coinbase account could convert pretty high volumes of tether to real dollars. I really have no idea why, it seems sketchy.

Tether is almost certainly holding on to a couple billion real dollars to maintain the peg. This is very similar to how the Bank of England maintained an artificial value for the pound that wasn't broken until George Soros came around.

I think it is much more likely that tether is backed by bitcoin and is a ponzi scheme.

Price rises seems to be driven heavily by more tether being created out of nothing, leading to another speculation and news frenzy, leading their btc being more valuable and safety from default despite creating more tether.

If bitcoin goes down rapidly or people start exchanging lots of tether for bitcoin (because you can't actually get USD from it) I think it will end up exposed, since as btc goes down their backing value goes down.

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