Bitcoin Thread

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hexagon said:
BTC is not fungible. Unless every transaction is using coin mixers intelligently, it will (eventually, once enough data is gathered) be possible to trace transactions to "tainted" coins that passed through Russian hands during this period.
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Yes indeed, and the volumes needed to make the payments will involve many transactions, so it will even be possible to have transactions blocked.
 
notayoba said:
Looks like there's a bank run on Tether. If it succeeds this whole thing is coming down to something close to zero. If it fails, it might be good for crypto. Watching with morbid fascination.
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yeah likely the most trying time right now
 
Pho3nix said:
Some arguing not an issue as it unpegs during volition moments sometimes. In a couple shorts at the moment
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That might have been true before the whole UST LUNA debacle. Now the seed has been planted in people's minds that it can go to zero. We'll soon see if Bitfinex has been swimming naked or not.
 
Damn, a quick trip down to 94.5 cents. This will be an epic battle.
 
notayoba said:
Looks like there's a bank run on Tether. If it succeeds this whole thing is coming down to something close to zero. If it fails, it might be good for crypto. Watching with morbid fascination.
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Interesting times. The way the peg is being supported is very like the way central banks act to support fiat.
 
Wary GOM said:
Indeed; and one that has played out many times, albeit for slightly different reasons, in fiat currencies.
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You'd have to think their insufficient reserves will run out at some point. There is blood in the water and the sharks are circling.
 
Praemon said:
Peg already restoring on USDT. My limit order just missed at 0.957 :crying:
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They have reserves to prop up the drop and it's predictably being used. The issue is if this run continues their reserves will run out and the whole thing will collapse.

At the very least this will hurt confidence gong forward so i imagine there should be quite a bit of interest in other stable coins. Best case scenario is this leads to less reliance on tether.
 
Zyzzyva said:
They have reserves to prop up the drop and it's predictably being used. The issue is if this run continues their reserves will run out and the whole thing will collapse.

At the very least this will hurt confidence gong forward so i imagine there should be quite a bit of interest in other stable coins. Best case scenario is this leads to less reliance on tether.
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They only have something like 2.9% in true reserve. The rest is paper that will take a while to redeem.
 
notayoba said:
That might have been true before the whole UST LUNA debacle. Now the seed has been planted in people's minds that it can go to zero. We'll soon see if Bitfinex has been swimming naked or not.
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UST was/is Algorithmic while USDT isn't. Lots of people putting money on shorting that and SOL etc since there is blood on the wall if I take a quick look at Twitter and Discord.
 
Pho3nix said:
Central banks print more money to do this. How will they support it unless they have unlimited funds?
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basically the same thing, they're increasing the rate of mining and putting more tokens in circulation i.e. printing money
cointelegraph.com

Terra founder Do Kwon shares plan to save the UST stablecoin peg

Money-printing and rallying the troops behind a confident CEO could be a way out for the beleaguered Terraform Labs company.
cointelegraph.com cointelegraph.com

can't imagine that'll work at all, it should in fact accelerate the fall of UST as people wake up to the fact that it is all fuzzy math, cooking the books, bullshyte

EDIT: I see now the original comment was on USDT's peg rather than UST, my reply is not related to USDT of course

fun times if the Tether peg gets nuked, much wider impact than Terra
 
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