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brugroffil posted:FDIC insured?
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Jun 13, 2022 16:26
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man, this seems like a good month to be a bankruptcy attorney who has an odd amount of knowledge about crypto. gonna have to start billing my posting on this subject to business development.
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Jun 13, 2022 16:28
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Neito posted:isn't this fractional reserve banking, the very thing many coiners rally against? they might call it that but i'm pretty sure it's the bitcoin standard fictional reserve banking
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Jun 13, 2022 16:29
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Neito posted:isn't this fractional reserve banking, the very thing many coiners rally against? yes. for a real bank in a real financial system the assets would be backstopped by the FDIC and they would be able to fully pay out if there was a run. but in clown world the money's just gone
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Jun 13, 2022 16:31
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The_Franz posted:https://twitter.com/Bitfinexed/status/1536362258741219335?s=20&t=g5piwN5_RKuO2De2--5SOg so i have trouble figuring out how he got this conclusion from the graphs, but pretend it is true what that probably means is that all the suckers who deposited american dollars on bitfinex are about to discover that they have, in fact, decided to purchase bitcoins when this loan gets called. usually, the exchange would sell the collateral - but bitfinex, as a crypto company, is inherently long on crypto so they'll probably do a more sophisticated version of gox's "internet issues" and just decline to liquidate the bitcoins for the lenders. it would not mean bitfinex, itself, is going to get caught holding the bag unless it, too, invests money in this "p2p lending market"
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Jun 13, 2022 16:35
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May: all my monkeys gone June: all my moneys gone
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Jun 13, 2022 16:36
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The_Franz posted:https://twitter.com/Bitfinexed/status/1536362258741219335?s=20&t=g5piwN5_RKuO2De2--5SOg What does "print margin loans" mean also are all the people currently dumping their shitcoins selling them for casino chips or actual real money
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Jun 13, 2022 16:37
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getting near to 23000
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Jun 13, 2022 16:39
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it went below that already but bounced back up. here's hoping it resumes going down
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Jun 13, 2022 16:44
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Zamujasa posted:it went below that already but bounced back up. here's hoping it resumes going down it always bounces off of round numbers as more true believers line up to hold bags and whales prop things up
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Jun 13, 2022 16:46
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Boxturret posted:the traditional F..I.A.T. banking industry is bad because the banks don't actually keep all your money in a big pile, they led it out and do who knows what with it, bitcoin lets you be your own bank and always have control over all your money-bitcoiners in 2009 no you see, you are your own bank unfortunately the only way to do anything with your dunning-krugerrands is to stop being your own bank put them into an exchange...aaaaand they're gone.
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Jun 13, 2022 16:48
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that means they have to get it to the roundest number, 0, for the biggest bounce
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Jun 13, 2022 16:48
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Sapozhnik posted:What does "print margin loans" mean i think that poster is positing that the bitcoin buyer is a fake agent, controlled by bitfinex, that bitfinex is loaning infinity tethers to. i'm not sure why they're calling it a "margin" loan - maybe just because that's the normal type of loan that brokers offer to their customers, and that's the fiction that's relevant here. that would only be different from directly printing tethers in that there's this additional layer of fiction involved. instead of simply printing my currency and handing it out, i extend an unlimited line of credit (in my currency) to this one guy here who i've never met before in my life, i swear, and so i promise you that his checks (denominated in my currency) are good.
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Jun 13, 2022 16:54
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refleks posted:It was Coinbase that sneakily added to a recent SEC filling that "By the way guys, your funds are not ring-fenced and you will be considered a creditor in case of bankruptcy? yes, and the CEO's attempt to tweet through it by saying "yes it does technically say that your deposits are not safe in the event of bankruptcy, minor technical oversight, we're gonna fix that" only made it clearer that this was Chekov's 10-Q filing, bound to make a reappearance at the eventual climax of this stupid story https://twitter.com/brian_armstrong/status/1524233885860515841
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Jun 13, 2022 17:01
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Sapozhnik posted:What does "print margin loans" mean what this guy is alleging is that bitfinex is letting this account, possibly a sock puppet, to buy the coins even though they don't have the cash on hand to pay for the purchases. so basically selling your coins to the exchange is the same as selling something in a video game to a shopkeeper. the game keeps track of all the numbers and you can look at the numbers on the screen and they tell you you own a bunch of cash, but it's all just make-believe numbers in a wee database and doesn't represent actual money in the real world
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Jun 13, 2022 17:01
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k but to sell something is to exchange a thing for money (or """money"""). what are the sellers receiving as consideration. is it a "dollar" balance in a bitfinex account which bitfinex is refusing to cash out?
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Jun 13, 2022 17:04
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https://twitter.com/josephfcox/status/1536367323594084353 all my jobs gone
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Jun 13, 2022 17:04
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I am in the middle of hodling the crypto crash about to buy the dip, and my bra-less wife brings my ape a slurp juice (not asked for) as I invest our child's college fund in LUNA 2.0. So how is your day going? 
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Jun 13, 2022 17:04
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Gazpacho posted:Where the gently caress do people get this idea that banks have to care and be their friends, it’s a contractual relationship with look I don’t know how fast and loose you do things but when me and my buddies go to chilis, I make sure that we have a binding arbitration setup for when we get the appetizers, and in case of any disputes on how to split the check.
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Jun 13, 2022 17:04
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SubG posted:bitcoin is crashing, so people are trying to sell. if nobody wants to buy, then the price goes down further until you find a greater fool with money to be parted from this isn't right bitfinex allows you to buy on margin using funds loaned by other market participants. those are the people who are (allegedly) financing this. bitfinex may be playing games with that lending platform to allow this to happen and to avoid it being liquidated, but as long as it's just using those suckers money, they're the ones who will end up holding the bag instead of bitfinex
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Jun 13, 2022 17:06
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^^^ok, well if it's on-margin then the cash still doesn't exist, right? Like 1/10th of the cash exists?SubG posted:bitcoin is crashing, so people are trying to sell. if nobody wants to buy, then the price goes down further until you find a greater fool with money to be parted from Seems like this solves the problem for a whole 5 minutes. Like, don't the sellers immediately go "OK, I successfully sold. I'd like to withdraw my cash from that sale now" and then Bitfinex goes "psych"?
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Jun 13, 2022 17:07
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Janitor Ludwich IV posted:be your own bankruptcy
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Jun 13, 2022 17:09
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Sapozhnik posted:k but to sell something is to exchange a thing for money (or """money"""). what are the sellers receiving as consideration. is it a "dollar" balance in a bitfinex account which bitfinex is refusing to cash out? Bitfinex is basically putting numbers in a database with nothing backing them. So yeah, they're just not going to let you cash out. So you have "10,000 USD" but really you have $5 and an IOU for the other 9,995. At best.
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Jun 13, 2022 17:09
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evilweasel posted:this isn't right Yeah, that's the thing: Bitcoin will continue to deflate, but its a bigger's fools bargain, SOMEONE is gonna hodl, someone is gonna buy, and they will be the losers.
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Jun 13, 2022 17:09
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PostNouveau posted:^^^ok, well if it's on-margin then the cash still doesn't exist, right? Like 1/10th of the cash exists? that's when Tibanne unplugs the router
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Jun 13, 2022 17:09
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Neito posted:drat, already owned.
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Jun 13, 2022 17:10
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Neito posted:Bitfinex is basically putting numbers in a database with nothing backing them. So yeah, they're just not going to let you cash out. So you have "10,000 USD" but really you have $5 and an IOU for the other 9,995. At best. also the $5 is actually a counterfeit bill made with crayons
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Jun 13, 2022 17:12
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that you'll still pay taxes in USD on lol
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Jun 13, 2022 17:17
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evilweasel posted:this isn't right
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Jun 13, 2022 17:21
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yeah that guy who bought all your coins, that wasn't us, that was some mysterious person we only know by their account name "xeniftib"
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Jun 13, 2022 17:23
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'im not funged' i say 'please don't tell anyone im funged'
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Jun 13, 2022 17:25
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Bluecobra posted:The Something Awful Forums > Discussion > Serious Hardware/Software Crap > YOSPOS > buttcoin: overdrawn at the be your own bank
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Jun 13, 2022 17:26
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PostNouveau posted:^^^ok, well if it's on-margin then the cash still doesn't exist, right? Like 1/10th of the cash exists?
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Jun 13, 2022 17:28
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Bluecobra posted:The Something Awful Forums > Discussion > Serious Hardware/Software Crap > YOSPOS > buttcoin: overdrawn at the be your own bank Overdrawn at the memery bank
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Jun 13, 2022 17:28
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PostNouveau posted:^^^ok, well if it's on-margin then the cash still doesn't exist, right? Like 1/10th of the cash exists? mtgox managed to survive like that for months!
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Jun 13, 2022 17:29
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Boxturret posted:mtgox managed to survive like that for months! Oh right. IIRC, they promised to make everyone whole and created a new token that was like "Mt Gox dollars" which was like dollars with a haircut on them and then immediately started allowing people to trade those.
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Jun 13, 2022 17:31
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e: ^^^ You're probably mixing up Gox and Bitfinex. Gox always claimed they were actual dollars, it was just that you couldn't access them. You could still trade them between Gox accounts even after it was clear they were bankrupt, which allowed third parties to invent their own mechanism to arbitrage "Goxbux" and actual dollars. In the case of Bitfinex that platform itself took a haircut on everyone's deposits and then "compensated" them in their own "BFX" token. Then after they acquired Tether (through N levels of indirection to make it impossible for anyone at the time to know) they "redeemed" those tokens for Tethers making everyone "whole".Boxturret posted:mtgox managed to survive like that for months! IIRC they allowed you to withdraw Bitcoin just not dollars during that period, which is partly why Bitcoin went so high since the only way to get "value" out of Gox was to buy BTC on Gox and dump it elsewhere and nobody was selling BTC on Gox because you couldn't get your dollars out (and IIRC there was also a huge spread (several hundred $$$) between Gox and every other even semi-legit exchange that allowed you to actually withdraw cash which we aren't really seeing this time because this time everyone is in on it thanks to Tether  ).
Mr.Radar fucked around with this message at 17:37 on Jun 13, 2022 |
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Jun 13, 2022 17:32
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Laffs are soon going to surge to an all time high. I can feel it! WAGLAI
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Jun 13, 2022 17:33
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mtgox was already insolvent when mccaleb handed it over to karpeles, it's just that the dollar value was several orders of magnitude smaller when coins were only worth pennies.
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Jun 13, 2022 17:35
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PostNouveau posted:Oh right. gox coins were a community thing, once mtgox blocked all outgoing trades basically people started trading coins back and forth, then once even that was blocked after the site was seized they traded accounts
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Jun 13, 2022 17:35
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