Cryptocurrency

nocsious3

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Aug 23, 2013
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The bloodbath.

The tentacles of Sam Bankman-Fried FTX, Gary Gensler at the SEC, the girl CEO's father was Gary's boss at MIT , Epstein, Clinton Foundation, Sam's mom and dad connections to levers of power, Alameda capital was a money laundering operation and on and on and on. Who knows how deep this pit goes. The fact is, nobody really knows what exchanges are frauds and what are not. Consensys paid off the SEC and Ftx was working to do the same. Almost all of it is a scam. Now Congress has an excuse to bring it all under the banking umbrella and pick the winners and losers. If you still believe in a project, please self custody. Anything that involves staking at this point should be automatically assumed to be fraudulent. A bunch of other exchanges look ready to fall. Does Tether finally blow. Nobody with a shred of credibility believes their asset attestations.
Yes Credit Suisse and Deutsche likely are toast. Maybe that's the beginning.
 
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iowastatefan1929

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Oct 26, 2006
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Its a bloodbath.
FTX tentacles were far and wide and darlings like BlockFi are now going down. No exchanges are safe.
Fortunes are being lost and the whole industry is doing the federal reserve a huge favor.
Nothing like some blowups and bankruptcies to clear up inflation
 

nocsious3

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Aug 23, 2013
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Do Kwan -free
Alex Machinsky -free
Sam Bankman-Fried - free
Su Zhu - free
Kyle Davies -free
Voyager CEO - free
Guess these boys were all in the club.

Meanwhile, tornado cash guy wrote some open source software , and he's locked up with the key thrown away.

Stealing from you is fine. Stealing from them will get you whacked. As long as Bitcoin is useful to them , it lives, but always remember it's their game and their rules.

You still think Kevin O'Leary vetted FTX? He vetted the people, and knew whom they had access. He lost money because he still thought those pretty power brokers were in control. They aren't but that's a conversation for another day.
 

nocsious3

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Aug 23, 2013
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Fed is doing dollar swap lines with them.
With Swiss central bank yes. Providing dollar liquidity has given them a chance to fire sale assets, but I don't think it's enough. It bought time. The dollar getting whacked Thursday was interesting. Japan has been forced to defend the yen at the expense of buying all their own bonds. That can't continue. For the first time in history the Fed is substantially negative cash flow, and their Treasury portfolio massively underwater. We may be very close to a new world. Which one do we get?
 
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nocsious3

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Aug 23, 2013
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At this point I wouldn't even rule out a debt jubilee and the revival of the Keynes bancor as the neutral reserve. How much each sovereign nation gets and who decides is the rub. Nuclear war might be the other option. Might be binary scenario. Impossible things become possible sometimes.
 

nocsious3

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Aug 23, 2013
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FTX FACES POTENTIAL HACK, SEES MYSTERIOUS OUTFLOWS TOTALING MORE THAN $600M: COINDESK

Sure a hack. Why reinvent the exit liquidity wheel when first pioneered by Mt Gox?
 

nocsious3

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Aug 23, 2013
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Not that anybody cares but here's a far-fetched future world monetary system .

A international settlement token, for world wholesale exchange, managed by maybe the IMF and delegated to countries similar to the bancor as envisioned by Keynes, the modern version of which is called the SDR (special drawing rights). This eSDR would reside on a Blockchain with a fixed value to gold or a basket of commodities. As world economic output shifts, the allocation would need to be updated periodically. This currency could not be spent in the traditional sense, only used to intermediate currency.

Each country would then issue currency however it liked, but doing so on a trackable Blockchain and backed by gold or other assets would provide stability where a fiat currency would get shunned. Some countries could issue draconian cbdc's and enslave their population, or others could have a wholesale internal currency, yet have the individual banks issue private money to keep the government out of it, yet still backed by the wholesale cbdc that the banks use to settle between themselves.

A scenario like this solves the Triffin dilemma, creates a level playing field between nations, makes financing wars undesirable, and make money laundering and illegal activities through banking virtually impossible. It maintains similar privacy to today's system, if the individual banks issue the dollars, and wipes out most of the fees for transferring , currency arbitrage, and the need for nostro vostro accounts. Furthermore, countries with questionable human rights records can still be as draconian as they want for their currencies.

Everybody wins except the old banking system.


Can't wait to accept my Nobel Peace prize.
 

iowastatefan1929

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Oct 26, 2006
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With Swiss central bank yes. Providing dollar liquidity has given them a chance to fire sale assets, but I don't think it's enough. It bought time. The dollar getting whacked Thursday was interesting. Japan has been forced to defend the yen at the expense of buying all their own bonds. That can't continue. For the first time in history the Fed is substantially negative cash flow, and their Treasury portfolio massively underwater. We may be very close to a new world. Which one do we get?
The Fed being negative cash flow doesnt matter much on their balance sheet, they just mark it as a deferred asset, but could effect congress ability to spend because their positive cash flow goes back to the treasury for spending, or so I hear. Operation twist is coming from the treasury, sell TBills and buy TBonds, but I think they are waiting for the Euro bond market to implode first. The dollar is likely not done mooning, and how ironic considering the thread we are in.
 

CascadeClone

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Oct 24, 2009
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TLDR, he is butthurt he was wrong. Cyrpto is a scam, who would have guessed.
Its not a scam per se. But a LOT of people got burned trying to get rich quick by jumping on the bandwagon of something they didnt understand at all. And there were people taking advantage of that "greater fool" and greed to make money off them.

Never invest in something you dont understand.
 

BCClone

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Sep 4, 2011
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Not exactly sure.
Its not a scam per se. But a LOT of people got burned trying to get rich quick by jumping on the bandwagon of something they didnt understand at all. And there were people taking advantage of that "greater fool" and greed to make money off them.

Never invest in something you dont understand.
I don’t understand my wife most times, does that mean I can close her accounts?
 

iowastatefan1929

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Oct 26, 2006
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I have seen this with the penny stocks, bitcoin and ethereum probably survive but they will go lower than anyone thought and stay down for longer than people think. But again does grandma know how to buy it? can any exchange be trusted after ftx? So there is no trusted way to even buy bitcoin now. Likely all the exchanges get runs now. and regulation will give the dollar supremacy once again and give the power to the big banks.
 

iowastatefan1929

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Oct 26, 2006
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Bitcoin as the maxis are saying needs to return to a true p2p utility, but then it will be boring boring boring like physical gold and silver, simply an insurance policy. Centralization brought the excitement to bitcoin. And like physical gold and silver, by the time its worth a ton, there will be nothing to buy.
 
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