Bitcoin Thread

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People taking a dump on USDT collateral should have a look at the over-leveraged debt being held by German banks right now.

USDT should be the least of our concerns.
 
notayoba said:
A portion of the paper is from 'related entities' so bitfinex gives Tether an IOU written on a napkin and then Tether calls it an asset. And the 'cash equivalents' include crypto, which isn't mooning right now.

If it was really fully backed they wouldn't be so cagey about what's backing it.

I'm not saying it's going to collapse today, but there is definitely a chance of it happening soon and the sharks are smelling the blood in the water.
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The best thing about the Tether believers is the idea that billions of USD are regularly sent to an unknown account at an unknown bank in the Bahamas (often on weekends) to first purchase USDT to then buy crypto when any crypto exchange would be crying out for USD liquidity.

Not that this doesn't make sense if your clients operate high speed boats under the radar and have rooms stuffed full of cash that need a place to be turned into untraceable electronic funds....
 
bromster said:
People taking a dump on USDT collateral should have a look at the over-leveraged debt being held by German banks right now.

USDT should be the least of our concerns.
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the key difference being nobody will step in to bail out Tether if/when it implodes

governments will bail out big banks with printed money and pass the inflation onto everyone else in their time honoured BS tradition
 
NarrowBandFtw said:
the key difference being nobody will step in to bail out Tether if/when it implodes

governments will bail out big banks with printed money and pass the inflation onto everyone else in their time honoured BS tradition
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Agreed here 100%. And it has already lost its peg, albeit briefly, during the last capitulation.

If we go into a recession end of June, markets could capitulate even harder and tether is very much at risk, albeit much lower risk than $UST.

I wonder if, during a massive capitulation event, people will be paying a 1.05 premium for wholly-collateralised stables like USDC.

That would be interesting.
 
The last few posts here have been related to Bitcoin in the broader sense of blockchain ecosystems so I'm tempted to raise some things that interest me. Shoot me down if too far off topic but perhaps it will rejuvenate interest will cryptocurrencies in the broad sense and spark some discussion.

Despite being the best established cryptocurrency, Bitcoin's use case as a currency (means of exchange, store of value and basis for accounting) is far from achieved. At present it is primarily a wonderful speculative asset.

Rapid and frequent price swings and prime-time use transaction time and cost make it unsuitable for everyday use as money. For my local SPAR to accept payment while I at the till will require some intermediate system that will take BTC at some numbers of eggs per BTC (OR some stablecoin) that a) doesn't take 10 minutes to clear or b)changes between ringing up the price and the RSA egg / BTC price.

The use as a store of value very largely depends on one's time frame. Knowing in mid-2019 that I would likely need at least as much as I then had to save/invest for expenses in mid-2022, 1 BTC looked very attractive given the RSA economy and politics. Fortunately I recognised my ignorance and didn't hodl and end with less than half what I now need - even the dumb old ZAR fiat hasn't left me 50% worse off. Almost certainly in the future the relative values will change dramatically, but the point is that one has to look at the time over which one is needing an asset to store value. Unless development of personality transfer to an AI or total bionic replacement of parts are realities, I won't be around when the last bitcoin is mined and prices asymptote towards infinity. So BTC isn't a meaningful store of value in my life.

Basis for accounting: a long way to go considering volatility. The magnitude of the short time changes in price (which are not perhaps crypto maximalist value, but comparative, market recognised value) shows this to be nowhere near true.

Issues such as anonymity, lack of intermediates in financial transactions and the negative aspects of inability to recover theft or mistaken transfer could serve as added areas of discussion debate and (hopefully) humorous reply.

[Disclosure: I (so far) don't own any crypto but trade ETH and BTC as an amateur - just love the volatility. How else can one lose and make money in such a very short time!? (PS hate the desperation on the faces of so many casino addicts so I a not attracted there.)]
 

Bitcoin Lightning Network will replace visa, Mastercard, American Express, diners club. All of it.

Should begin mainstream rollout towards the end of the year. Should take over the world in 3-4 years.

People will eventually figure out that the 2% credit card fees you've been paying to the banksters all your life, or the 13% Western Union charges you to send money back home to your family in Nigeria after working 90 hour work weeks as a capitalist slave in a foreign country, is all daylight robbery.

Instantaneous, free transactions for everyday goods are coming. You can pay in whatever you want, and the vendor will receive whatever currency they want. Forex will become obsolete.
 
PseuDohNom said:

Bitcoin Lightning Network will replace visa, Mastercard, American Express, diners club. All of it.

Should begin mainstream rollout towards the end of the year. Should take over the world in 3-4 years.

People will eventually figure out that the 2% credit card fees you've been paying to the banksters all your life, or the 13% Western Union charges you to send money back home to your family in Nigeria after working 90 hour work weeks as a capitalist slave in a foreign country, is all daylight robbery.

Instantaneous, free transactions for everyday goods are coming. You can pay in whatever you want, and the vendor will receive whatever currency they want. Forex will become obsolete.
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It's better to watch the full show ....

 
PseuDohNom said:

Bitcoin Lightning Network will replace visa, Mastercard, American Express, diners club. All of it.

Should begin mainstream rollout towards the end of the year. Should take over the world in 3-4 years.

People will eventually figure out that the 2% credit card fees you've been paying to the banksters all your life, or the 13% Western Union charges you to send money back home to your family in Nigeria after working 90 hour work weeks as a capitalist slave in a foreign country, is all daylight robbery.

Instantaneous, free transactions for everyday goods are coming. You can pay in whatever you want, and the vendor will receive whatever currency they want. Forex will become obsolete.
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Cool how many ebucks will I earn on R1 000 payment? Is every purchase a taxable event?
 
Wary GOM said:
:laugh: As wording in some articles indicates, yes, it will be a taxable event of a security. But surely if it reaches the usage level and acceptance PseuDonOhm expects, it will be a currency, not a security.
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The test for a security (at least in the US) is the Howey Test
  1. An investment of money
  2. In a common enterprise
  3. With the expectation of profit
  4. To be derived from the efforts of others
So I cant see levels of acceptance changing this. Its much the same as if I held all my wealth un USD and sold a portion every time I went to bootleggers for a flat white
 
Tim_vb said:
The test for a security (at least in the US) is the Howey Test
  1. An investment of money
  2. In a common enterprise
  3. With the expectation of profit
  4. To be derived from the efforts of others
So I cant see levels of acceptance changing this. Its much the same as if I held all my wealth un USD and sold a portion every time I went to bootleggers for a flat white
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This reasoning is exactly why very many pages ago I emphasised that MTI was using BTC as a security, with all the consequences that this has. It comes down to the use to which the article is put and this indicates to me that BTC could be classified for tax purposes as a currency and /or a security on the basis of the way it was used. This is (weakly) analogous to the way that profits on investment in crypto can be taxed as capital gains or income based on the purpose for which the investment was made and how long it was held.
 
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