I put 1/4th of my savings into Bitcoin the day before it was announced 1.5 billion was invested, it was a good return but it is quite confusing trying to time the actual crash. I get that a lot of people speculating aren't actual financial advisors or so-called experts but before I was hearing cash out around April - October but now I hear cash out in December 2021 - January 2022 and now I hear people on here saying it's about to happen in the next 3-5 months but I don't know man lmao this shit gets confusing when I try to generally time it. Just don't wanna absolutely demolish all my shekels but I am prepared somewhat.
I am mainly waiting to see what the next stimulus package will do to the market and crypto, until then I am keeping my mouth shut on legitimate bitcoin predictions.
Yeah, I guess I didn't think about it like that. It's a shame that political figures don't even want to actually in-depth mention Crypto out of fear of retribution or their careers I assume.In theory the central banks can keep this kabuki theater going indefinitely. I am just not buying it though. The surge in speculative assets, get rich quick pump and dumps and so on resemble the dot com bust alarmingly. And unlike back then we have since so overly securitized everything that so many things have exposure. Nothing was learned for the great recession sadly, except that there is apparently no such thing as moral hazard.
I might sound like a Norman or a bone marrow baby when I say this but how would someone run off with the money of a stable coin? Especially if the tether is like a 30 billion market cap I don't think you could actually just run off with that.TheFLORIDAman CountDooku, I think there is no way to predict the timing of
correctioncrash. Crypto markets are driven by small group of insiders using less-than-legal practices (obfuscated "stable" coins, DeFi with insane yields in monopoly money, straight-up scams etc.). That shit is unpredictable on itself, now add regulators into equation and you'll understand why some older traders won't touch crypto with 10-foot pole. Yes, you absolutely can make money in this environment, but the risk is high. So, don't keep your coins on exchange's wallets, avoid stablecoins and hope for the best.
Alright, I guess I have to write Tether post anyway.I might sound like a Norman or a bone marrow baby when I say this but how would someone run off with the money of a stable coin? Especially if the tether is like a 30 billion market cap I don't think you could actually just run off with that.
Well, up for a great start. What are "Reserves"? In theory, USD deposits, securities and other assets. In practice, Tether Inc. is some shady company that:Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens
Here's the reason why USDT isn't traded on (((regulated))) exchanges with US Clients on them. While it seems detrimental at first, it's actually beneficial, because USD and USDT aren't traded against each other and their "ecosystems" are air gapped. You can't tell if 1:1 USD:USDT peg is real if you can't trade both against each other on the same platform and let market forces to reveal the real price. If this is not a red flag, I don't know what is.Any individual who is a U.S. Person and any entity that is a U.S. Person is prohibited from using the Site or any Services, including but not limited to using a Digital Tokens Wallet on the Site. Exceptions to this policy may be made by Tether, in its sole discretion, for Eligible Contract Participants only, which shall be customers solely of TLTD.
I will upload when this bubble inevitable burst at 70k lol.Alright, I guess I have to write Tether post anyway.
1) "Should've read the ToS, bro"
Let's start with their ToS | archive:
Well, up for a great start. What are "Reserves"? In theory, USD deposits, securities and other assets. In practice, Tether Inc. is some shady company that:
Yeah, and both Tether and Bitfinex are now under NY AG investigation. The latter brings us to:
- was founded by CSO and CFO of Bitfinex. Conflict of interest? No such thing on a True and Honest Free Market!;
- has very limited access to banking (kinda like Josh but for much more nefarious reasons);
- have never provided a financial audit. Crazy conspiracy theorists like me think that Tether Reserves are mostly crypto, DeFi contracts or IoU notes from unregulated exchanges (those of you who had witnessed MtGox fiasco should start getting flashbacks at this point).
Here's the reason why USDT isn't traded on (((regulated))) exchanges with US Clients on them. While it seems detrimental at first, it's actually beneficial, because USD and USDT aren't traded against each other and their "ecosystems" are air gapped. You can't tell if 1:1 USD:USDT peg is real if you can't trade both against each other on the same platform and let market forces to reveal the real price. If this is not a red flag, I don't know what is.
2) How to get rich quick on the Internet
Here's how money are made with USDT (to put it simply):
This scheme works as long there is USD influx in the system. There are two issues:
- USDT is minted, lent to exchanges (with crypto or IoU as collateral);
- Exchanges sell USDT to clients for their BTC, and/or use USDT as a collateral for margin trading (THAT margin trade in crypto, where retail investor can get more leverage than any GigaJew.Inc can get IRL. Power to the People you say?) and DeFi, thus pumping the BTC price nominated in USDT;
- Because of 1:1 peg, BTC price nominated in USD is also pumped;
- BTC accumulated by Tether and exchanges are sold on Coinbase or other (((regulated))) exchange for USD
- goto 1.
And now you start getting articles like this:
- You can run out of retards eager to change their Fiat to Fiat(tm). Hence the endless shilling of #DigitalGold, #HaveFunStayingPoor etc. The world's first decentralized pyramid scheme needs you!
- Uncle Sam finally slamming Tether and other "stablecoins" with regulations/lawsuits. Google "STABLE Act", "NY AG investigation on USDT". The thing is, USDT basically undermines US Currency. Do you think the government will let it fly? Hell no.
The rally in Bitcoin that took the digital token to a fresh peak over the weekend could face a test from declining liquidity in the market for the largest cryptocurrency.www.bnnbloomberg.ca
Quite an experience to live in fear, isn't it?
Anyone selling now.
I am holding. Selling pressure doesn't seem to justify my belief that the collapse has come.
All your airline gains are fucked.This is because Musk opened his Gob again and everyone rushed to be the first out the door. I would not sell personally. Honestly thinking of buying.
*edit* and tether getting yeeted by NY state. Rough water ahead. Glad I am in ETH but alas its getting shat on too atm
If a stablecoin is not properly backed (and now we know that at least USDT wasn't backed 1-to-1 in 2017-2018, see their settlement agreement. And they haven't provided complete audit since then), it'll create digital "bank run" when people will get scared and decide to cash out. At first, exchanges/token issuers will impose redemption limits in hope of waiting out liquidity crisis. If the panic continues, desperate people will start buying crypto with stablecoins, so they can later sell that crypto for USD. As a result, crypto priced in stablecoin will skyrocket, while the price nominated in USD will plummet. This will drive the market further into the ground as the trust in "1-to-1 peg" is lost. At this point, exchanges/issuers will face a choice: to become insolvent and hold their customers' bags filled with useless stablecoins they can't redeem, or enter damage control mode, freeze customers' wallets and buy tickets to an undisclosed island in Caribbean. Given the fact most of them are already located on said islands, what makes you think they will choose the first option?Why tho?
Would you say BUSD (Binance USD) is a good one to start using instead? Supposedly unlike Tether it is NYDFS-approved and audited at least once a month with reports made publicly available.This is the worst case scenario, of course. Some stablecoins may survive the crash, you should be looking for those that comply with US regulations.