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Crypto crash deepens, stocks slip

reuters.com

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Re: Crypto crash deepens, stocks slip

#631

Post by [deleted] »

ulzeraj wrote: post #202
greg7mdp wrote: post #75

Earlier quoted context omitted.

Ethereum will solve both issues, removing miners and the energy use by moving to Proof of Stake at the end on this year, and increasing the transaction throughput by 100x factors with level 2 solutions.

How does PoS solves anything when people will just stake on exchanges so that it literally replicates the current financial system with central banks and permissioned cartels? How new PoS coins will be generated and distributed? The stock has to be generated somehow right? How does this not resemble a central bank? This is an honest question. It looks like PoS is a full circle towards the same centralized system we h…

[deleted]

Re: Crypto crash deepens, stocks slip

#632

Post by vmception »

tastyfreeze wrote: post #606
vmception wrote: post #579

Earlier quoted context omitted.

It isnt tricker at all. Very simple math.

Yes, if you record the USD value of both sides at the time of trade. If you only record the execution price of your BTC/USDT trade you will need to later find the price of BTC/USD and USDT/USD at the time of execution. Trickier in the sense that it requires more attention than simply recording the execution price and fees of a BTC/USD trade.

Most charting and accounting services do this for any time period if you need to look it up, or do it automatically

Only more annoying when you have to use an AMM’s info site and the chart isnt very granular or go back far enough. Pancakeswap’s info site doesnt even work.

So yes best to keep track at that exact time of trade

Re: Crypto crash deepens, stocks slip

#633

Post by b0ner_t0ner »

zild3d wrote: post #373
Grim-444 wrote: post #357

Earlier quoted context omitted.

For context: - The stock market crash of 1929 was a ~25% crash - The dot com bubble crash was also roughly a ~25% drop - The 2008 market crash was a roughly 20-30% drop Various coins have now lost 10-30% of their value in the course of a couple of days. But it's just steam being let off? No big deal? Business as usual? If the same thing happened to the actual markets it would be another historic event.

For additional context though: BTC price was $9426 a year ago today. It's down 30-40% on a month view, but up 400% on a year view The stock market 4Xing in a year would be quite historic

> It's down 30-40% on a month view, but up 400% on a year view

When in doubt, zoom out.

Re: Crypto crash deepens, stocks slip

#634

Post by wallacoloo »

icyfox wrote: post #249
johnwheeler wrote: post #145

Earlier quoted context omitted.

To me, the argument that fixed supply is a good thing has always been worrisome. People just parrot that viewpoint without asking whether some amount of Keynesian economics is useful, because you know, government is evil. It got us out of the Great Recession and it’s been 12 years. Maybe the consequences haven’t fully manifest, but another Great Depression would have been guaranteed hell.

Keynesian economics got us out of the actual Great Depression as well, if you consider FDR's decision to get off the gold standard and start trading dollars as a floating currency on the market. Fixed monetary supply might be one thing in theory, but fixed credit supply is the death knell to an economy. And the two are usually complimentary. Monetary supply can fill in the potholes of weakening credit supply when the…

2008 is remembered by most through phrases like “trickle down economics” and “bailouts” to the irresponsible men who built the house of cards, including “golden parachutes”. In other words, whether reasonable or not, a very large number of people don’t feel great about how our flexible monetary supply was made use of. Bitcoin is literally a direct reaction to that (e.g. view the coinbase for the Bitcoin genesis block).

Newer cryptocurrencies have more sophisticated governance structures than Bitcoin (see: Tezos). Some of them could allow for an elastic monetary supply. The downside of these systems is that it takes a lot of work to properly encode the specific set of rules which decide when to increase the supply, and how to distribute the new supply. The upside is that these rules actually exist and are unambiguous.

Re: Crypto crash deepens, stocks slip

#635

Post by dgjnvhhb »

waych wrote: post #497
koonsolo wrote: post #470

Earlier quoted context omitted.

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

IRS considers cryptocurrency as property, and exchanging one for another is a taxable event. See "Q16. Will I recognize a gain or loss if I exchange my virtual currency for other property?" [1]: A16. Yes. If you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss. For more information on capital gains and…

Not if you move to Puerto Rico.

Re: Crypto crash deepens, stocks slip

#636

Post by rebelos »

aparsons wrote: post #609
nroets wrote: post #482

Earlier quoted context omitted.

It's a fad[1]. It won't last. [1]: https://Bitcoin.IsNot.Money

Not sure why you’re downvoted

There's a sizable cabal of delusional crypto fanatics that lurk HN. And they're extra salty after this latest correction.

Re: Crypto crash deepens, stocks slip

#637

Post by abriosi »

jerf wrote: post #400
broighbrobroigh wrote: post #338

Earlier quoted context omitted.

A failure of imagination to do something useful with crystalized math is more a commentary on the failure of imagination vs. the utility of math. If you compare any esoteric financial instrument against the melted rock utility test that you mention, the laity will err on the side of melted rocks.

"A failure of imagination to do something useful with crystalized math" I don't think I could possibly describe BitCoin as "crystallized math". It's not like it is somehow convertible into some useful solution to some other math problem. It's a solution to a math problem that is essentially designed to not be useful for anything else on the grounds that said "utility" would be a potential mechanism for cracking the h…

I read crystallized meth every time

Re: Crypto crash deepens, stocks slip

#638

Post by jasonlaramburu »

inter_netuser wrote: post #602
jasonlaramburu wrote: post #591

Earlier quoted context omitted.

>Surprise, commercial banks that lend to you, like mortgage or car lease are actually creating money out of thin air. Unlike tether which is fully backed. In the US commercial banks are required to maintain a certain % of cash reserves relative to all deposits. They are also FDIC insured. Tether is neither insured nor required to maintain any reserves. Their recent filings show that less than 3% of tethers are actual…

It's backed better than your bank. Currently the required cash reserve by the Fed is __zero percent__. Yes, ZERO. Please check with your own eyes: https://www.federalreserve.gov/monetarypolicy/reservereq.htm Please observe that 3% is actually much higher than 0%. The rest of bank's book is usually assorted IOUs as well: commercial paper (aka bonds issued by companies) and mortgages. All of these assets that the Fed b…

The zero reserve requirement is temporary due to covid. It is normally 10-20% depending on size of the bank.

If tether is all above board then why not disclose more about the commercial paper they hold? Other stablecoins seemingly have no issue there.

Asking valid questions is not FUD.

Re: Crypto crash deepens, stocks slip

#639

Post by sumedh »

cma wrote: post #490
sumedh wrote: post #210

Earlier quoted context omitted.

Why not have 5% or less in BTC, if it does well, good for you, if it does not, its just 5% of your portfolio.

Why not 10% in comic books or any other limited non-productive asset? If we could just convince everyone to put in 10% of their savings into comic book collections, comic books too would become incredibly valuable.

> If we could just convince everyone to put in 10% of their savings into comic book collections

Satoshi did the hard work for Crypto, you can try putting the same effort for comic books. If it catches on, sure why not.

Re: Crypto crash deepens, stocks slip

#640

Post by arcticbull »

inter_netuser wrote: post #559
arcticbull wrote: post #524

Earlier quoted context omitted.

> Missed a couple of early opportunities to buy eh? I was referring to the above. You are incorrect. I'm thoroughly enjoying myself, and this particular advocacy is making the world a better place.

making the world a better place = deny billions access to any financial lifeline they may have. Those silly Zimbabweans, Venezuelans and Turks, why are they losing their life savings? Can't they just do smart things like you, and login to an SIPC insured account to short Bitcoin right at the top without any counter-party risk, while their financial advisors manage the rest of their portfolios? Duh. It finally makes s…

In those countries a single BTC transaction fee can be a month's wage. Venezuelans know this - they moved 66% of domestic transactions to USD, not crypto. [1] And of course they did, it's strictly a better currency. In every meaningful way.

I'm from the "don't tell them it's cake when it's a sawdust to pump your bags" camp.

[1] https://www.bloomberg.com/news/articles/2021-01-13/venezuela...

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