Duke of Marmalade
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Tether/Stablecoins are the hot air inside the Bitcoin bubble...their regulation will burst it
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Duke of Marmalade
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This is what the death of a cryptocurrency looks like:
In one week TerraUSD has fallen 91%. TerraUSD made the promise to maintain a USD peg without any USD backing. This is an impossibility and the hype around its algorithms was a lie. This is like the Madoff and Ponzi schemes which were built on lies and when the lie was found out the game was up. Bitcoin is not vulnerable to the same rapid extinction as it actually is not built on a lie - it never really promised anything; mind you the cult is based on an edifice of self deception.
Tether is not Terra, it did not make alchemy like promises. Tether should still be worth $1 long after Terra is dead and buried and when bitcoin is on life support at 1% of its current price; albeit the market cap of Tether in those circumstances would similarly have fallen to 1% of its current value but simply coz folk have got their money back.
In one week TerraUSD has fallen 91%. TerraUSD made the promise to maintain a USD peg without any USD backing. This is an impossibility and the hype around its algorithms was a lie. This is like the Madoff and Ponzi schemes which were built on lies and when the lie was found out the game was up. Bitcoin is not vulnerable to the same rapid extinction as it actually is not built on a lie - it never really promised anything; mind you the cult is based on an edifice of self deception.
Tether is not Terra, it did not make alchemy like promises. Tether should still be worth $1 long after Terra is dead and buried and when bitcoin is on life support at 1% of its current price; albeit the market cap of Tether in those circumstances would similarly have fallen to 1% of its current value but simply coz folk have got their money back.
Listen to this - its almost hilarious to listen to the leadership of an entity that is effectively taking customer deposits dodge and weave. If this man owed you 500 euro, you'd assume, rightly that your 500 euro didn't exist anymore.
youtu.be
George Noble Questions Tether's CTO Paolo Ardoino On Why They Won't Complete an Audit
Recorded on May 13, 2022. George Noble has 41 years of market experience. He began his career under Peter Lynch at Fidelity, and in 1984 was chosen to run Fi...
youtu.be
Duke of Marmalade
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Absolutely brilliant! Post #96 gives a breakdown of assets and except for a small element of "others" that all looks pretty sound. Is George Noble et al suggesting that this is lies? If this is lies then Bitcoin dies with Tether IMHO.
It's an algorithmic stablecoin. The algo design hasn't proven to be robust enough to withstand an attack. For anyone who actually wants to understand how this happened, here's an explanation ->
It is a vulnerability. It hasn't been designed to withstand this type of attack - as found out in the wild. If you were to say that it could be very difficult to achieve that design, I'd agree with you. However, neither of us are qualified to say that an algorithmic stablecoin cannot be designed such that it can withstand such an attack.
Calling all algorithmic stablecoins ponzi schemes is an untruthful statement. Anyone that has spent 5 minutes investigating these stablecoins knows that they're not fully tested in the wild. To say what happened with Terra is painful is an understatement. However, nobody can claim a lack of knowledge as regards the lack of maturity of these digital assets.
In those circumstances, maybe Bitcoin goes down to $10k with a major shock to the market. A couple of years of doom and gloom - but the bad news for you Duke is that Bitcoin will not die. It has had these shocks many times before and only comes back stronger.
Now I know central bankers are your brethren Duke - so here's a photo taken earlier today of representatives from the central banks of 44 developing nations who've gathered in San Salvador ->
They're attending meetings over a number of days to learn about El Salvador's experience in adopting Bitcoin as legal tender.
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I know any friend of bitcoin, is your friend...even dictators & iliberal democracies like El Salvador.....perfect timing for them all to muse how unstable & rife with counterparty risk the whole bitcoin complex is. While also quizzing their El Salvador counterparts what its like to take $103m of REAL money out of a third world countries cash strapped treasury to "buy" a series of alphanumeric entries in disturbed public ledger established by a unknown programmer(s) 14 years ago.........and then to watch the quoted value of that $103m investment plummet to $65m in a matter of weeks......all while Fitch/Moody's/S&P reclassify your debt as junk, given your fiscal position is deteriorating (in part because of the BTC mal-investment) & also because your institutions are collapsing. Definitely loads to talk, hope there's lots of time for Q&A
https://www.newsweek.com/bitcoin-crash-el-salvador-faces-potential-default-crytocurrency-1706098
P.S.........suppose its never at all struck you @tecate how curious it is that the nations most interested in adopting bitcoin as legal tender, are the very same nations who also happen to top the worlds various indexes for corruption, bribery....in short the kleptocracy nations.....very weird, what a coincidence.....but to you its all sunshine & rainbows when BTC is involved. I get it.
@letitroll : All ground previously covered before your disappearance late last year. How was it you came to be disappeared for six months anyway, letitroll? Very fortuitous for you that when you turn up, the Bitcoin price is weakening.
Steering this back to stablecoins, you may have missed these -> (from post # 108):
And this one -> (from post # 111):
Such an eventuality would remove the cause for complaint we both have with reserve-based stablecoins. I suppose anything that removes your cause for complaint wouldn't be of interest to you though...
Steering this back to stablecoins, you may have missed these -> (from post # 108):
And this one -> (from post # 111):
Such an eventuality would remove the cause for complaint we both have with reserve-based stablecoins. I suppose anything that removes your cause for complaint wouldn't be of interest to you though...
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Duke of Marmalade
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I develop an algorithmic stablecoin that is so robust that it can’t be depegged.
I IPO $100m worth
I have 100m real $
Subscribers have 100m crypto $
There are those who believe that this might be possible some day.
Goes to explain why there is a cult that currently think digital entries on blockchains can be worth a couple of trillion $.
I IPO $100m worth
I have 100m real $
Subscribers have 100m crypto $
There are those who believe that this might be possible some day.
Goes to explain why there is a cult that currently think digital entries on blockchains can be worth a couple of trillion $.
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Lets take your thinking on this a stage further. You 'develop an algorithmic stablecoin that is so robust that it can't be depegged'. At that stage, such USD stablecoins function as (programmable) USD do they not?
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Duke of Marmalade
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I shouldn't be let out.
If I developed an algorithmic stablecoin that is so robust that it can't be depegged from the $:
I would IPO a trillion of them at a 50% discount.
I would get 500bn in real $
The initial subscribers would immediately encash and themselves make a 500bn in real $.
The new owners would have a trillion crypto $. WIN WIN WIN
And there are those that believe that one day this might be possible and who lecture me that with my lack of vision we wouldn't have invented sliced bread.
If I developed an algorithmic stablecoin that is so robust that it can't be depegged from the $:
I would IPO a trillion of them at a 50% discount.
I would get 500bn in real $
The initial subscribers would immediately encash and themselves make a 500bn in real $.
The new owners would have a trillion crypto $. WIN WIN WIN
And there are those that believe that one day this might be possible and who lecture me that with my lack of vision we wouldn't have invented sliced bread.
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I'll answer for you Duke and you can come back and refute it if you like. If someone developed an algorithmic USD stablecoin that couldn't be depegged, then it would have utility as programmable USD. I know you get all knotted up at the thought of confirming even the mention of anything that could be postive where decentralised tech and blockchain is concerned.
Absolutely not. Isn't that the whole point - you tried to will it down and when it went the other direction, you disappeared. You brought up 'Sunshine & Rainbows'. Are these the conditions we can expect your participation in here? It's just that we're out in all weathers here - whether bull or bear...Are you suggesting that I made bitcoin & cryptos crash?
Duke of Marmalade
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There are those who faced with a program that can create USD out of nothing would use it as programmable USD whatever that means.
Maybe a corporate treasurer or a payments service provider might be able to help you with your ponderance.
Yep you nailed - and I expect to be here a lot more over the coming months...its gonna be fascinating to watch it all implode.
See when suckers get burned on a speculative mania investment & it goes deeply underwater.........those same people dont come back for a second helping of pain & suffering....and cyrpto/BTC has burned a crazy amount of its constituency this year and we havent even reached full capitulation yet......40% of investor base underwater, yikes. https://www.cnbc.com/2022/05/09/40percent-of-bitcoin-investors-underwater-glassnode-data.html
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@letitroll - we probably will have to curb this as it's going towards the general rather than stablecoin discussion. I'll just say that I don't necessarily disagree with aspects of what you bring up there. Sure, people get burnt. However, there are multiple angles that this is being approached from - with multiple constituencies. The people coming after us are all digitally native. We'll have to disagree on this beast being put down permanently. That's not my thesis. Nice quote though!
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I'm not referring to any such 'get rich quick' scheme whatsover. Other than that, I did refer to different constituencies / multiple angles. They're already in play.
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DazedInPontoon
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Do you think MicroStrategy and other institutional investors will continue accumulating or not?