Merged Bitcoin - Part 3

Gord_in_Toronto said:
This does not sound good:

Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds

https://fortune.com/2022/05/11/coinbase-bankruptcy-crypto-assets-safe-private-key-earnings-stock/



I guess if this happens we will find out exactly what a unit of crypto is actually "worth". Maybe they can be traded for plugged nickels? :eek:
Click to expand...

Sounds like a starter pistol for a run on the bank. Anyone reading that should be getting their coins out of Coinbase and into a another exchange or a cold wallet that won't get liquidated in a bankruptcy. At least anything they aren't actively trading shouldn't be stored there.
 
psionl0 said:
I know the entire thread is too long for you to go through but you are making the same remarks that hundreds have made before you going back more than 12 years.

Like them, you are trying to conflate crypto exchanges with cryptos themselves.
Click to expand...

Still .. crypto exchange going bankrupt ? How ? I mean of course, you can just take the money and run ..
 
psionl0 said:
I know the entire thread is too long for you to go through but you are making the same remarks that hundreds have made before you going back more than 12 years.

Like them, you are trying to conflate crypto exchanges with cryptos themselves.
Click to expand...

I'm not sure when/if I last posted in this thread but I have been following it since it began. Though, admittedly, in a rather desultory way. But without an exchange how do you convert the currency into something useful in the real world? Does the expression, "House of Cards", have any resonance with you?
 
Gord_in_Toronto said:
I'm not sure when/if I last posted in this thread but I have been following it since it began. Though, admittedly, in a rather desultory way. But without an exchange how do you convert the currency into something useful in the real world? Does the expression, "House of Cards", have any resonance with you?
Click to expand...

No no no, you have to discuss crypto in some abstract way derived from first principles, not by actually describing how it exists in real life.

The fact that crypto as it exists is a raging dumpster fire has nothing to do with crypto, don't you see?
 
psionl0 said:
I know the entire thread is too long for you to go through but you are making the same remarks that hundreds have made before you going back more than 12 years.

Like them, you are trying to conflate crypto exchanges with cryptos themselves.
Click to expand...

Bitcoin is still toooooooootally viable guys............................guys?
 
Dr.Sid said:
Still .. crypto exchange going bankrupt ? How ? I mean of course, you can just take the money and run ..
Click to expand...

Sure you can take your money, just not during "scheduled maintenance" that happened while Tether's peg went back up 2 cents to $1USD.

Binance.US Will Perform Scheduled Maintenance for 17 Networks & Temporarily Suspend Deposits & Withdrawals

1 hour ago Updated
Follow
Binance.US will perform scheduled wallet maintenance on multiple networks starting on May 12, 2022 from approximately 3:30 a.m. to 5:30 a.m. EDT. The scheduled maintenance will take approximately two hours to complete, though this duration is subject to change.

Please note:

Deposits & withdrawals on affected networks will be temporarily suspended starting on May 12, 2022 at 3 a.m. EDT. Trading will remain available and unaffected by the scheduled maintenance.

Deposits & withdrawals will be reopened after the maintenance is completed and wallet operations are deemed to be stable. No further announcement will be issued.

If depositing crypto, please take into account the time it takes for deposits to clear, to ensure all transactions are confirmed before deposits are temporarily suspended.
Click to expand...
 
Gord_in_Toronto said:
I'm not sure when/if I last posted in this thread but I have been following it since it began. Though, admittedly, in a rather desultory way. But without an exchange how do you convert the currency into something useful in the real world? Does the expression, "House of Cards", have any resonance with you?
Click to expand...
If you are referring to buying and selling bitcoin then an exchange is the most convenient way to do it but there is a difference between storing bitcoins in your own wallet and leaving it in the exchange. Ditto for any money exchanged for bitcoin.
 
Gord_in_Toronto said:
I'm not sure when/if I last posted in this thread but I have been following it since it began. Though, admittedly, in a rather desultory way. But without an exchange how do you convert the currency into something useful in the real world? Does the expression, "House of Cards", have any resonance with you?
Click to expand...

You can sell it to another person directly, or trade it for goods and services. Just like any other means of exchange. Exchanges aren't that meaningful w/r/t it's use as a currency.

A lack of exchanges would, however, cripple bitcoin as a speculative investment because it relies on more and more people putting in more and more useful currency and without exchanges making that easy people just aren't going to use it.
 
As long as the crypto coin owners trade among themselves they may speculate as much as they wish. However, if, after I have accumulated the equivalent of $1,000,000 in my ethereal coin wallet and want to buy a house, I have to either convert it to "real" money or find someone who will accept it as payment for a house. If he does, since the "value" the next day may just as well be $800,000 as $1,200,000, the seller will have joined the crowd of speculators. Volatility is the killer. Someone a bit better rooted in reality will want real, cold, hard cash. I'll have to find an exchange that will do this conversion. If there are any that have not gone bankrupt due to a run on them.

YMMV
 
Oh. Ho. This can't be good!

A 'short attack' caused UST de-peg, Luna's 97% price collapse, so who was responsible?

https://www.kitco.com/news/2022-05-...97-price-collapse-so-who-was-responsible.html

A short attack triggered Terra's LUNA to crash more than 97 percent over the past few days. This caused a corresponding fall in the price of UST, which fell to 2 cents early Thursday.
Click to expand...


Too late to sell? Er . . . dump and take my loses?

Hmm. May be last week.

Reflecting on the lessons for crypto investors, AngSiy said, "[To] see [LUNA and UST] taken down in two days, right, it just has to make you step back and reevaluate what's actually safe in cryptocurrency. Is the whole thing a giant startup with an incredible risk profile, normally reserved to venture capitalists?"
Click to expand...

Nice live graph here: https://coinmarketcap.com/currencies/terra-luna/ and the comments are interesting/amusing. :boxedin:
 
carlitos said:
Sure you can take your money, just not during "scheduled maintenance" that happened while Tether's peg went back up 2 cents to $1USD.
Click to expand...


Not your keys, not your coin.

a2e10c5b2eb0ec40daeb0d8fc16858c8.jpg
 
An analysis from one of Canada's blockchain gurus.

Shouldn’t stablecoins be stable? What’s behind TerraUSD’s collapse

https://globalnews.ca/news/8830474/stablecoin-terrausd-luna-collapse-cryptocurrency-explained/

“In many respects, the collapse of UST is basically an old-fashioned bank run for the digital currency era, which makes it kind of fascinating that we’re replaying some of the kinds of crises that we’ve had in the traditional analog financial world in the digital world,” he says.
Click to expand...

and

But he also says the coin’s collapse could be a reflection of what happens to unproven assets when market conditions worsen, something he turns to a popular quote from investing magnate Warren Buffett to describe: “When the tide goes out, you see who’s swimming naked.”
Click to expand...
 
On the bright side, by the time many of you read this there will be trillions of new $LUNA coins freshly minted. Get a digital wheelbarrow and scoop some up, cheap.

ETA - never mind, Binance suspended trading.
 
Gord_in_Toronto said:
As long as the crypto coin owners trade among themselves they may speculate as much as they wish. However, if, after I have accumulated the equivalent of $1,000,000 in my ethereal coin wallet and want to buy a house, I have to either convert it to "real" money or find someone who will accept it as payment for a house. If he does, since the "value" the next day may just as well be $800,000 as $1,200,000, the seller will have joined the crowd of speculators. Volatility is the killer. Someone a bit better rooted in reality will want real, cold, hard cash. I'll have to find an exchange that will do this conversion. If there are any that have not gone bankrupt due to a run on them.

YMMV
Click to expand...
If you ever get the time, go through the old bitcoin threads. These issues have been discussed many times. The short answer is the bitcoin is not useful as an everyday currency because of its price volatility and also because of a hard limit of only a few thousand transactions per block. The proof-of-work algorithm is also a big no no (since it is basically an electricity burning competition).

Bitcoin is basically useful only for hodling or transferring vast sums of wealth around the world rapidly and without authoritarian interference.
 
Last edited:
You must log in or register to reply here.

Back
Top Bottom