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Tether is the lie that everyone agreed as being true because it papered over a lot of the criticisms about cryptocurrencies, including but not limited to transaction speed, transaction fees, the ability to cash out and convert your funny money into filthy wretched FIAT MONIES, and so on.
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May 12, 2022 20:40
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BigRed0427 posted:I get that Tether was a scam at the end of the day, but I read a few articles about it and still do not understand how it was suppose to work and how that relates to bitcoin. The idea is simple, you give them one dollar, they give you one Tether, you give them one Tether they give you one dollar. The problem is if they give out Tether for less than a dollar (or zero), or if they take the money and invest it in risky assets (Chinese corporate debt is rumored, but no one knows). It relates to bitcoin because the market treats 1 Tether the same as 1 dollar, so if they aren't actually backed 100%, they may eventually go bust and take down Bitcoin. My personal hot take is they are somewhere between 25-75% backed and we wont really see any signs of trouble until there are enough redemptions that they start being unable or unwilling to process them. Every undercollateralized scheme can pay out for a while but not forever.
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May 12, 2022 20:41
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Leon Sumbitches posted:Neccroing this post from 5 years ago to say "told ya so" They weren't wrong necessarily. I mean they were definitely wrong about it being a real thing with valid uses but they weren't wrong about some people making a shitload of money. A guy I grew up with bought a bunch of property from his crypto winnings. I have a few hundred bucks in crypto because it seemed like a good way to bet on the world getting stupider. I'll be happy if it goes to 0 but I don't think it will, not yet anyway. I'm gonna bail next time it's up now that I've learned how much of BTC's value isn't even propped up by idiots and gamblers but by just straight up fraudulently printing Tether. Also yes I did lose a bunch of money on Beanie Babies when I was a pre-teen, why do you ask?
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May 12, 2022 20:44
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priznat posted:What is this “grinding” they speak of anyway. Working a real job like a scrub
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May 12, 2022 20:47
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BigRed0427 posted:I get that Tether was a scam at the end of the day, but I read a few articles about it and still do not understand how it was suppose to work and how that relates to bitcoin. The link below has a really good detailed explanation alnilam posted:A friend linked me to a really good article (imo) on what the ever living gently caress terra/luna actually is, good read for anyone who has no loving clue what is going on other than lmaos.
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May 12, 2022 20:48
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BigRed0427 posted:I get that Tether was a scam at the end of the day, but I read a few articles about it and still do not understand how it was suppose to work and how that relates to bitcoin. It’s to prop it up, as bitcoin requires constant capital injection. Fake tethers account for a majority of the inflows.
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May 12, 2022 20:49
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HappyHippo posted:Working a real job like a scrub also its toxic positive and Stockholming yourself into thinking capitalist propaganda is true. "unions are bad, I got to hustle more, universal healthcare/insurance is bad. etc."
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May 12, 2022 20:50
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drk posted:The idea is simple, you give them one dollar, they give you one Tether, you give them one Tether they give you one dollar. Further, the "why Tether instead of a dollar" question would be answered by a little history: Early on when people first started to arbitrage the price differences between exchanges, they would have to move their money or coins from one to another. This was possible by just sending money from one exchange's wallet to another, but because Bitcoin is so goddamn slow for a single confirmation, let alone for the multiple confirmation any exchange would want before adding funds, you would completely miss any opportunity for making money while waiting. That's the goal of tether, to make up for bitcoins shortcomings for trading Bitcoin
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May 12, 2022 20:53
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text editor posted:Further, the "why Tether instead of a dollar" question would be answered by a little history: I thought tether was created to cover literally hacked dollars from a lovely exchange with bad security.
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May 12, 2022 20:55
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Deptfordx posted:The link below has a really good detailed explanation This is for UST, not tether
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May 12, 2022 20:56
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drk posted:My personal hot take is they are somewhere between 25-75% backed and we wont really see any signs of trouble until there are enough redemptions that they start being unable or unwilling to process them. Every undercollateralized scheme can pay out for a while but not forever. I think you are being generous. Given how hard the money printer has been running in the past two years, I think it's closer to .1% backed. My guess is they have funds in the $20-$50 million range (or "had") and since tether claims to have close to $100 billion (they might have crossed that line running the printer in the past few days) they have the smallest reserve in financial history. Remember that they pay all of the debts with tether and restrict how much actual cash you can get for it, so they can cover things for for quite a while. I also think any money coming into crypto for the past year has been exiting nearly as quickly for the insiders to cash out, so it's not like they've been building up cash reserves. I fully expect the accounts to have been looted for a while and kept at a level so they can barely function.
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May 12, 2022 20:57
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BigRed0427 posted:I get that Tether was a scam at the end of the day, but I read a few articles about it and still do not understand how it was suppose to work and how that relates to bitcoin. I liked one description that pointed out that everytime you try to describe or understand Tether, you hit a point where it sounds so completely stupid that your brain faults and you think that you must have it wrong. It's like a Dunning-Kreuger failsafe. But no, it is actually exactly that stupid.
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May 12, 2022 20:58
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Guze posted:Its very hard to feel sorry for the people that mocked their grandparents for getting tricked by a Nigerian prince when they lost everything thinking Alon Moosk would double their computer money I'm in my "it's funny and Im tired of pretending that its not" mode right now regarding all these. So many of these people were arrogant and insular, and harming others by dragging them into their delusions and false promises. It sucks that a lot of innocent people (family members mainly) are going to suffer from this, but it's still schadenfreude seeing the cryptobros get hosed. This thread on buttcoin does a good job of explaining that it's misplaced empathy and deflection (that only serves the crypto scammers to scam again) to not mock the arrogant cryptobros when they lose out big: https://www.reddit.com/r/Buttcoin/comments/uo1xdb/about_the_be_compassionate_posts_that_are/
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May 12, 2022 21:03
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So Thethers are traded just like any other crypto currency? Just that it's (supposedly) backed by real cash?
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May 12, 2022 21:04
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I work at an electric utility and would come across these bizarre accounts about once a week with massive monthly charges, like $2,000+. It would just be a regular house in a normal area and often times they would melt panels or meters with the crazy amount of power consumption. Took me way too long to realize they were bitcoin mining. After the last crash they stopped showing up as often. I hope this crash makes them go away completely.
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May 12, 2022 21:06
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They needed a cryptocurrency that could actually be used as a currency to facilitate trades
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May 12, 2022 21:07
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https://twitter.com/Bitfinexed/status/1524842312207061009 Hey, this is your bank speaking. We are delaying your debit card withdrawal by 2 days, but no worries your funds are safe! We'll get that 300 bucks to you a little later
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May 12, 2022 21:07
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CongoJack posted:I work at an electric utility and would come across these bizarre accounts about once a week with massive monthly charges, like $2,000+. It would just be a regular house in a normal area and often times they would melt panels or meters with the crazy amount of power consumption. Took me way too long to realize they were bitcoin mining. After the last crash they stopped showing up as often. I hope this crash makes them go away completely. its basically a point of pride in the home mining community to start an electrical fire
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May 12, 2022 21:13
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Random Stranger posted:I think you are being generous. Given how hard the money printer has been running in the past two years, I think it's closer to .1% backed. My guess is they have funds in the $20-$50 million range (or "had") and since tether claims to have close to $100 billion (they might have crossed that line running the printer in the past few days) they have the smallest reserve in financial history. The US alone printed five thousand billion dollars of stimulus in the past couple years much of which went directly or indirectly to individuals. Is is so wildly unlikely that a tiny amount of that money ended up in crypto? We all know a guy who wouldnt shut up about crypto last year, and posts about losing major amounts of money are hardly uncommon. edit: I also posted a page or two ago that Alameda (one of the largest crypto trading firms) claims to have done redemptions today and about a billion tether were burned. I guess its possible that they gave Tether hundreds of millions of Tether and got nothing in return, but that seems unlikely. drk fucked around with this message at 21:18 on May 12, 2022 |
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May 12, 2022 21:16
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drk posted:The US alone printed five thousand billion dollars of stimulus in the past couple years much of which went directly or indirectly to individuals. Is is so wildly unlikely that a tiny amount of that money ended up in crypto? We all know a guy who wouldnt shut up about crypto last year, and posts about losing major amounts of money are hardly uncommon. Read a paper that found that 47% of all money for the paycheck protection program went to investors and owners as dividends
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May 12, 2022 21:18
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CongoJack posted:I work at an electric utility and would come across these bizarre accounts about once a week with massive monthly charges, like $2,000+. It would just be a regular house in a normal area and often times they would melt panels or meters with the crazy amount of power consumption. Took me way too long to realize they were bitcoin mining. After the last crash they stopped showing up as often. I hope this crash makes them go away completely. I too, hope this get rich quick fad dies so it stops wrecking local power grids.
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May 12, 2022 21:19
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Booyah- posted:https://twitter.com/Bitfinexed/status/1524842312207061009 holy poo poo man i love decentralized currency!!!
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May 12, 2022 21:21
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BigRed0427 posted:So Thethers are traded just like any other crypto currency? Just that it's (supposedly) backed by real cash? Right. It's basically the Monopoly money that's used to handle transactions so they can avoid using cash (note: this does not avoid tax liabilities). If you want to sell your bitcoin, you'd likely get it's "value" in tether rather than an actual account with real money in it. Then you'd have to sell your tether for actual money. Of course, what usually happened was people sold one coin for tether and then spent that tether on another coin. So no real money actually changed hands. Billions of dollars in tether get suddenly printed every time there's a downturn. For the past few, it's been when bitcoin hits $30k but it seems like they're having trouble holding the price there. Shortly after a new freight train of fake cash gets invented out of nothing, crypto prices rebound, thus proving how great crypto is and please don't think about it any harder than that. The obvious implication being that the fake money is created to pump crypto so people who are allowed to cash out can dump it again. drk posted:The US alone printed five thousand billion dollars of stimulus in the past couple years much of which went directly or indirectly to individuals. Is is so wildly unlikely that a tiny amount of that money ended up in crypto? We all know a guy who wouldnt shut up about crypto last year, and posts about losing major amounts of money are hardly uncommon. I'm sure some did. Just not that much, not coincidentally timed exactly when they needed a cash injection to stop free falling crypto prices, and I think it's all been taken back out by the insiders with connections. Random Stranger fucked around with this message at 21:29 on May 12, 2022 |
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May 12, 2022 21:25
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CommieGIR posted:Why go to the moon when you can go straight to hell. Just wanna say this is lovely
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May 12, 2022 21:27
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May 12, 2022 21:30
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Someone is bad at math.
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May 12, 2022 21:39
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Just the most incredible brains around.
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May 12, 2022 21:39
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Crypto can't fail, it will simply convince other coins to fail in its place. Blood sacrifices to keep the machine running.
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May 12, 2022 21:43
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If this weren't about crypto I would believe this person is too stupid to be real.
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May 12, 2022 21:44
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ReidRansom posted:If this weren't about crypto I would believe this person is too stupid to be real. we trained him wrong...as a joke.
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May 12, 2022 21:46
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May 12, 2022 21:47
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https://www.youtube.com/watch?v=JZYZoQQ6LJQ Hodl Gang Hodl Gang Hodl Gang
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May 12, 2022 21:47
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Sure I lost everything, but if you think about it it didn’t have far to go
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May 12, 2022 21:48
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Proud Christian Mom posted:lottery tickets are less of a stupidity tax than this I wonder the percentage of people willing to pay the occasional dollar for the dream of suddenly being rich vs the people spending thousands on the lottery.
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May 12, 2022 21:49
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ghostwritingduck posted:I wonder the percentage of people willing to pay the occasional dollar for the dream of suddenly being rich vs the people spending thousands on the lottery. there were definitely a lot of people casually trading bitcoin back when it was mainly digital drug money but I feel like the last several years of glassy-eyed freakazoids yelling gibberish about how their mutant snot monkey is going to give them diamond hands have been way too offputting for any even vaguely normal person to get into it as a casual hobby
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May 12, 2022 22:06
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Proud Christian Mom posted:its basically a point of pride in the home mining community to start an electrical fire I assume half the electrical fires in the US are this guy at work https://forums.somethingawful.com/showthread.php?threadid=1844470&perpage=40&pagenumber=1
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May 12, 2022 22:09
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Mods, please let GhostTTY post through this exciting moment on the buttcoin rollercoaster.
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May 12, 2022 22:11
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It’s fascinating to me that they don’t seem to understand how Twitter has been absolutely central to keeping the coin and meme stock grifts going. Of course you’d rather own Twitter, that means you can influence the next round of scams!
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May 12, 2022 22:11
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Shinjobi posted:Just wanna say this is lovely We'll call it DanteCoin.
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May 12, 2022 22:15
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wonderful
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