61–70 of 131 posts
There are a few issues at play here: 1. A lot of newly 'minted' Tether's are being used to buy Bitcoin (so prop it up, the Bitcoin price rises). 2. Possibly as a next step, these now more valuable bitcoins are than sold for real money, and the owners of bitfinex/tether pocket this real earned money as profit. 3. It should be noted that although the total amount of tether is still rising, the total amount of all "stab…
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>There’s a difference between backed by the entire United States Indeed. The us currently has in its coffers a $29T hole [1] [1] https://www.usdebtclock.org/
That’s not really how the financial system works. Debt is an investment in the economy, like you taking out a loan to buy a pizza shop. If your pizza shop generates more revenue than cost to service your debt, then the fact you have the debt doesn’t really matter does it? After all your own a pizza shop too, right. On the US side, the system fails once the economy fails - and then we have much bigger problems. You’re…
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I think its more that Tether, the coin which provides the most liquidity in the market is an obvious scam. I know too many people are too deeply involved now to accept it...
Sure thing. The rise in bitcoins price certainly has nothing to do with the actions of central bankers. Have fun staying poor. Never leave your hackernews echo chamber.
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The US government hasn't used their military to force anyone to transact in dollars, or even threatened to do so. The dollar has value primarily because taxes inside the US are denominated in dollars. If you don't pay your taxes with dollars then eventually civilian law enforcement will show up and seize your assets.
Ah absolutely, the much more tangible short-term example of “guys with guns” is (admittedly ever more militarized) domestic law enforcement. But the implied threat towards anyone who say, started dumping US sovereign debt, or transacting petroleum in EUR, or whatever is very real. Countries have been liberated for less.
https://www.cnbc.com/2020/11/02/china-drops-us-treasurys-imp...
Russia has started transacting petroleum in EUR. They haven't been "liberated" yet.
https://www.reuters.com/article/us-rosneft-contracts-euro-id...
Petroleum transaction only make up a small fraction of worldwide dollar use. It doesn't really matter.
https://foreignpolicy.com/2009/10/07/debunking-the-dumping-t...
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The US government hasn't used their military to force anyone to transact in dollars, or even threatened to do so. The dollar has value primarily because taxes inside the US are denominated in dollars. If you don't pay your taxes with dollars then eventually civilian law enforcement will show up and seize your assets.
Besides the Iraq thing someone mentioned, Gaddafi in Libya got taken out right after he spoke about wanting to sell oil in euros. But most importantly, there's Saudi Arabia. Saudi Arabia has no military except the US military, and Saudi Arabia prices oil in dollars. It isn't conceivable that they could price oil in another currency and still receive protection from the US (i.e., continue to exist). The US kind of "ha…
https://foreignpolicy.com/2009/10/07/debunking-the-dumping-t...
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Sure thing. The rise in bitcoins price certainly has nothing to do with the actions of central bankers. Have fun staying poor. Never leave your hackernews echo chamber.
"have fun staying poor" I don't understand the notion that bitcoin is making all people rich. It is a transactional system at best. If you cash out you are taking somebody else's money who decided to buy it at higher price. It has no fantastic democratizing magic which will make all people rich. It is. It building new things. I can understand people who are invested in it wanting to perpetuate the positive story so t…
If you prefer to hold bitcoin instead of fiat and are willing to spend a little bit effort on that and digest some transaction costs, I think it is very likely you will become wealthier.
However the promise to get rich is something entirely different. Not many people in the world can be rich. You have to take out-of-normal type of risk. The more common bitcoins gets, the more normal it is and less riskier. The later you get into btc, the less likely it is that you will get risk. However it still makes sense financially.
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Oh so brave! Another hackernews commenter who hates bitcoin and thinks the price is too high! You're going to get so many upvotes!
I think its more that Tether, the coin which provides the most liquidity in the market is an obvious scam. I know too many people are too deeply involved now to accept it...
But what does that actually imply? What's the scam?
This isn't a black and white thing. Tether might not have sufficient assets to be able to redeem any USDT for USD, or Tether might actually have sufficient assets and willingness to redeem all USDT and then some... or anything in between.
Tether being dishonest is one thing, Tether not being able to maintain the USD peg is another.
Even if they started as a scam and were a few billions out of parity, 2021 gave them a lot of additional runway, allowing them to recompose their reative parity to the USD.
For instance, they could be 80% backed at the start of the year, and after 2021 cash inflows so far they could have gone up to 93% backed by simply doing nothing.
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"have fun staying poor" I don't understand the notion that bitcoin is making all people rich. It is a transactional system at best. If you cash out you are taking somebody else's money who decided to buy it at higher price. It has no fantastic democratizing magic which will make all people rich. It is. It building new things. I can understand people who are invested in it wanting to perpetuate the positive story so t…
> It has no fantastic democratizing magic which will make all people rich. It is. It building new things. If you prefer to hold bitcoin instead of fiat and are willing to spend a little bit effort on that and digest some transaction costs, I think it is very likely you will become wealthier. However the promise to get rich is something entirely different. Not many people in the world can be rich. You have to take out…
Mining Bitcoin requires energy and hardware and new Bitcoins are the way to pay for those. Next to all money from mined Bitcoins goes to energy providers and hardware manufacturers. That is how these systems are designed in their respective whitepapers.
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Oh so brave! Another hackernews commenter who hates bitcoin and thinks the price is too high! You're going to get so many upvotes!
I've seena crapload more commenters on here putting crypto in a positive light. It's only recently I've started to see some genuine opposition.