841–850 of 1001 posts
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A normal savings account does not have zero risk.
What risk are you taking on with a normal savings account? If you are saying the global collapse of the financial system, crypto will be the first to fall in that case. Crypto like BTC is pretty much a more volatile market tracker.
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Ah I see, so the [token holder] hires a [builder] to build something, and uses that to then hire [intellectual] to scam the ['pragmatic user']? To take this a little more seriously, this is computer programming, very famously you don't need massive gobs of VC capital to build something. The only reason for the [builder] needs [token holder] is to hire [intellectual] to scam [user]. Oh and of course, [token holder] [b…
The funny thing is that people are betting on a profile with anime pictures against the ECB representing 500 million people. And yet when they want to actually buy a Lambo they need hard currency...
Or tbh you can just buy it with crypto card issued in Hong Kong / Singapore even if you buying it in the US.
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> and launder it whenever Again, there is no "LaunderBTCAndTurnIntoUSD" function in the Bitcoin protocol... > get it out of the banking system into crypto And please describe how you do so without involved A) banks who look the other way and B) registered companies who handle the on/off-ramping from/to BTC. When people argue that it makes it so much easier to launder money, please spend at least a minute to actually…
Ok you seem to be pretty outdated I won't blame you for that so I'll catch you up to speed and when I refer to bitcoin I generally refer to any tier 1 crypto currency: There is actually a BitcoinToUSDPipeline. The real problem is that the exchange crypto transactions are NON REFUNDABLE as you know, that means once it leaves the banking system (via making victim register a coinbase or kraken account, or register it fo…
[0] https://en.wikipedia.org/wiki/2016_Bitfinex_hack#Laundering
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I always thought it was actually an ingenious solution to elections. There's absolutely no reason that a driver's license can't derive a hash that can only be proven and not reversed (for identity); and provides a one-time contribution to a blockchain that contains your vote - which you then receive your block's information when you finish voting. ANYONE can calculate the sums, anyone can verify and proof hashes, ide…
Who validates the driver's license? How do you stop inauthentic licenses? Perhaps some sort of central authority? This is the main problem with most of the blockchain/crypto issues is that its all fine until a dispute, and then we all fall back to the state to sort it out (ie the legal system)
There are ways to decentralize that as well; and it probably wouldn't be a bad idea. Decentralization is empowerment, it innately builds a freedom of choice, forcing of transparency, AND a flexibility for more direct and meaningful checks and balances on both an individual level, and a collective level.
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A normal savings account does not have zero risk.
What risk are you taking on with a normal savings account? If you are saying the global collapse of the financial system, crypto will be the first to fall in that case. Crypto like BTC is pretty much a more volatile market tracker.
There’s still some risk short of a global financial collapse where the FDIC rules are weakened, perhaps by making the $250k limit per individual for example, and then there being some bank failures. Or changing to only covering a certain % of deposits etc.
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>The rest of the higher profile coins are, at the very least, tools to make money. Make money from what?
Make money from the next greater fool who walks in the door. That's the essence of crypto, magic beans and greater fools.
I want to buy something and use BTC as a medium for exchange. I take $10,000, buy BTC, send BTC to the seller, the seller takes the BTC and exchanges it for $10,000
However, we are not the only buyers and sellers and it takes time for the transfer to go through. So you have a variable amount of $ being held against the fixed amount of BTC, albeit with a variable amount available for purchase.
so i buy some BTC to make my trade, the amount of BTC decreases, the cost to buy more goes up. another person buys for the same reason. they spend more $ per BTC, but it doesnt matter - the value of what they are buying is the same so they buy less BTC. this happens for many people all concurrently.
the seller receives my BTC and then one of two things happens.. if trading volume has increased since i sent it to them then the BTC is more valuable and they make extra money. or if the trading volume has decreased since i sent it to them then the make a little bit less money.
there is a minor gaming of the system that happens with people trying to buy while trading volume is on the rise and then sell back while trading volume starts to decrease. this is why it looks like an MLM / scam - because this obviously doesnt scale, it isnt objectively valuable to increase competition for the resource while its needed to then try to release all that was purchased back into the trading pool while no one needs it. It is just a situation that is gameable in small doses if only a few actors do it.
People buying BTC for no reason other than to sell it back creates a gap in value on the other side for the sellers who need to sell the BTC they received in exchange for goods they valued at a specific $ value. The burden will be distributed across all the late sellers as trading volume decreases.
However, they dont need to sell the BTC if they would take a loss. They could just hold it until trading volume goes back up again, assuming trading volume is just fluctuating with standard customer behavior and not a change in belief of the stability of the currency.
Ultimately, the burden only really needs to be felt by those people who are buying the coin near its peaks who are trying to flip it and then missing their sell window. Actual vendors have wiggle room, as they only lose their COGS - even though they have their Revenue tied up in BTC, so they are still making profit if they sell, just a little bit less. the traders trying to game the system short term, however, are the ones who have more at risk as they have bought the BTC with after-tax liquid funds and need to sell it at enough of a higher price so that they make more profit after transaction fees as compared to alternative investments. As the price of BTC drops, they are the ones who are forced to sell at a minor loss and move the funds to other investments they believe are gaining value to avoid keeping the value tied up beyond their investment window waiting for the price to come back up.
The value proposition for holding BTC long term is basically a claim that the use of digital currency as an exchange of value will be so much more common in the future and BTC will be used for it, such that even times of "low trading volume" then will make current all time highs (in active trading volume) look tiny, even when accounting for the increase in tradable BTC that will come with all the BTC not currently in circulation do to people holding and waiting for that time to come.
So the traders rug pulling each other is kind of just a subplot going on with crypto and completely avoidable while still investing in crypto.
I worked at a crypto exchange and after I came to the conclusion that 99% of crypto was scams and rugpulls, I sold all my crypto and vowed to have nothing to do with it. It's more of a religion than a financial instrument and absolutely nothing has shown to me that crypto is anything more than a speculative gamble, basically tulips with the religious promise of a better world. The number of employees that lost money…
I've found that looking at some people's approach towards tech as a new religion helps me to understand their irrational/criticism-free opinions of them - also helps me understand that I'm not going to change their minds on any of it, and limits my desire to debate it with them. The religion of the Social Graph/global connectivity, the religion of the Cryptocurrency, the religion of AI (and the separate religion of A…
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What risk are you taking on with a normal savings account? If you are saying the global collapse of the financial system, crypto will be the first to fall in that case. Crypto like BTC is pretty much a more volatile market tracker.
Inflation risk.