Cryptocurrency

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JustAnotherTimeline

Well-Known Member
Jul 29, 2021
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But we already see this technology driven deflation. It used to cost thousands of dollars for a 36" color CRT TV. Now that TV, if you can even find one, is an order of magnitude cheaper. You can say the same for thousands of products. The "problem" is that as technological progress occurs, people expect to consume the benefits from that progress rather than the low prices of older tech. If we "locked in" technology at today's performance, we WOULD see deflation.

Yes, I would agree with all of this. I was just saying the example I was responding to would result in btc deflation and that depending on the economic school of thought you come from that either matters or it doesn't. If I comment much further I would be out of my depth in terms of my knowledge of economic theory.
 

nocsious3

Well-Known Member
Aug 23, 2013
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Which one are you referring to? I am not aware of this.
It was a small one I've never heard of before. I'm looking in my Twitter feed and can't find it.

I have brand new information. A judge ruled today that Tether must disclose it's treasury holdings. As the world turns.
 

nocsious3

Well-Known Member
Aug 23, 2013
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7.6 billion in Tether has been redeemed since beginning of last week.

Only a handful of coins survive the crypto apocalypse.
 

nocsious3

Well-Known Member
Aug 23, 2013
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There is a great irony in the center of the crypto and other novel asset markets.

People buy crypto as a hedge against central banks manipulating the supply of money. This looks sound in theory because nobody can manipulate the supply of digital tokens, right?

The problem is that crypto and similar markets are a "sponge" for excess liquidity. The Fed prints, the money has to go somewhere, and besides more traditional liquidity sponges (mostly real estate and equities, etc. ) now they can go into crypto markets, too. Therefore, crypto isn't actually a way to hedge against central bank and monetary policy profligacy, but rather leaves you *more* exposed to it than before.

I think the situation now and the past two years is bearing this situation out.
This was one of the reasons Bitcoin was created.
 

JustAnotherTimeline

Well-Known Member
Jul 29, 2021
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It was a small one I've never heard of before. I'm looking in my Twitter feed and can't find it.

I have brand new information. A judge ruled today that Tether must disclose it's treasury holdings. As the world turns.

Yeah, it's dei. Another Algo stable. Not noteworthy at all though. Tiny.

Tether has been under attack for years. Will this time be any different? I think tether is probably $hit.

Usdc, gusd, and bsud are all on the up and up. Bring on the tether crash! Been a long time coming!
 

nocsious3

Well-Known Member
Aug 23, 2013
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Yeah, it's dei. Another Algo stable. Not noteworthy at all though. Tiny.

Tether has been under attack for years. Will this time be any different? I think tether is probably $hit.

Usdc, gusd, and bsud are all on the up and up. Bring on the tether crash! Been a long time coming!
Just curious what you think the ramifications would be, if it's made public that Tether only have a fraction of the assets necessary to back the reserves?
 

JustAnotherTimeline

Well-Known Member
Jul 29, 2021
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Just curious what you think the ramifications would be, if it's made public that Tether only have a fraction of the assets necessary to back the reserves?

Crypto would completely implode in the short term.

Then hopefully we would see stablecoin regulation in the states. Wouldn't take much considering there are already very compliant stables like usdc and gusd.

This brings more legitimately to the space. I'm happy whenever we can separate the wheat from the chaff. If tether is legit, Great, prove it! And let's move along. Otherwise gtfo.

My guess is we kick the tether can down the road again. But if not, and tether is trash, crypto would recover like the Phoenix like it always does imo.
 

Big Daddy Kang

Well-Known Member
Mar 20, 2021
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Paolo Ardoino, telling the Financial Times: “We don’t want to give our secret sauce.”

There have long been fears as to Tether’s ability to honour all redemptions. The company had once said it backed its currency with “US dollars”, a claim the New York attorney general said in 2021 “was a lie”. Now, it simply claims its currency is “backed 100% by Tether’s reserves”.
 

Sigmapolis

Minister of Economy
SuperFanatic
SuperFanatic T2
Aug 10, 2011
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Waukee
This was one of the reasons Bitcoin was created.

Of course it was.

It's just not doing a very good job of it in the real world.

An asset that people fly to when they fear inflation will also inflate.

Kind of defeats the purpose of the supposed hedge.
 

agrabes

Well-Known Member
Oct 25, 2006
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Yeah, crypto winter is here. I think this news was a nice little catalyst to this dump we have been expecting. I worry for those in over their heads. Not your keys, not your crypto.


How do you manage your keys? Do you have a hardware wallet, etc? As much as I don't believe the Web3/Metaverse future will ever come to pass, I do think that at least in the medium term BTC & ETH will rebound from this. I think this may be a buying opportunity to put a little money in crypto just in case it all goes sky high again.

I am interested in figuring out the best way to buy. Before I would have said I'll just buy on Coinbase and let everything stay there but with the way things are going, I feel like I need to do more research. I don't really trust the idea of keeping your own private keys, sort of like I don't really trust putting cash under the mattress, but it's interesting.