Crypto Currency

[Atomic Wedgy]

UKL pension funds almost went insolvent today. https://www.ft.com/content/756e81d1-...4-206386353c4e "Central bank to spend £5bn a day for 13 days over ‘material risk to UK financial stability’ and threat to pensions." They have learned absolutely nothing from 2008 housing bubble. Its pretty much the same scenario. Almost had cascading insolvency. GBP is debasing. If you are asking yourself how this is relevant to cryptocurrency... start reading up on it.

[Atomic Wedgy]

I wonder how rich MrGuru is. He started this thread and started buying bitcoin around 3k lol

It isnt impossible for BTC to give that price again. However, I think there would be far too much buy pressure (at 10k) to get that low. Anything could happen though. Certainly is interesting times.

[doulos]

UKL pension funds almost went insolvent today. https://www.ft.com/content/756e81d1-...4-206386353c4e "Central bank to spend £5bn a day for 13 days over ‘material risk to UK financial stability’ and threat to pensions." They have learned absolutely nothing from 2008 housing bubble. Its pretty much the same scenario. Almost had cascading insolvency. GBP is debasing. If you are asking yourself how this is relevant to cryptocurrency... start reading up on it.

the UK is basically being run by incompetent criminals at the moment lol

[audiopile]

the UK is basically being run by incompetent criminals at the moment lol

you can remove UK and insert quite a few countries in that statement

[doulos]

you can remove UK and insert quite a few countries in that statement

True enough. They are just speedrunning it right now.

[Canucks_fan18]

What to make of today's dip/crash?

[Atomic Wedgy]

Liquidity crisis for FTX over the last couple weeks causing much fear in the market. FTX was no better than the banks. Rehypothecating their deposits and over leveraging themselves. CZ ****ed them in two tweets and then bought up the pieces that were left. Friggin savage. Companies always get greedy when they see the potential dollar signs. CZ buying the leftovers might mean that FTX users might see their investments again. That would be great if that happened. CZ is calling for exchange transparency, which would be awesome if he does it.

The one take away from all of this is..... dont keep your investments on an exchange. Move them there when you want to make a trade and then get out.

Caveat: As I write this, most of my holdings are being staked on Binance. LOL. I do often wonder if gambling my money by staking it on Binance is a good decision (and for how long).

If you start seeing crazy offers for staking (like 20%+) alarm bells should start ringing.

If you were waiting to buy, today is a pretty good day.

[Canucks_fan18]

Liquidity crisis for FTX over the last couple weeks causing much fear in the market. FTX was no better than the banks. Rehypothecating their deposits and over leveraging themselves. CZ ****ed them in two tweets and then bought up the pieces that were left. Friggin savage. Companies always get greedy when they see the potential dollar signs. CZ buying the leftovers might mean that FTX users might see their investments again. That would be great if that happened. CZ is calling for exchange transparency, which would be awesome if he does it.

The one take away from all of this is..... dont keep your investments on an exchange. Move them there when you want to make a trade and then get out.

Caveat: As I write this, most of my holdings are being staked on Binance. LOL. I do often wonder if gambling my money by staking it on Binance is a good decision (and for how long).

If you start seeing crazy offers for staking (like 20%+) alarm bells should start ringing.

If you were waiting to buy, today is a pretty good day.

That's what I figured. People are spooked that they can see their investments just disappear like that because of exchanges defaulting. I mean there are so many options, some with a lot better reputations, I am not that worried keeping them on certain exchanges. For instance, I only invest in ADA, BTC and ETH, all through Wealthsimple. I am not worried about Wealthsimple suddenly defaulting. I use to be on Binance but since I don't deal with any fringe crypto's anymore I decided not to bother.

[blayze]

Lots of renowned institutions in North America who invested hundreds of millions into FTX are taking heat today.

You've got pension funds investing for teacher retireees who wrote billion dollar cheques on FTX and other crypto investments - clearly got caught up in the hype and didn't do their due diligence. I expect we'll see a lot of high profile job terminations at these institutions as crypto continues its crash.

"Only when the tide goes out do you discover who's been swimming naked" - Buffet

[doulos]

How much of the Ontario Teachers Pension Fund was in FTX? Like 0.1%?

Given how well diversified they are I doubt they have much to worry about and I wonder how that fund compares overall to other funds that size.

I agree with all the comments on centralized exchanges though. Use them at your peril. The existence of Bitcoin and other cryptocurrencies came about because of the totally screwed up financial system and just making more centralized services with even more opaque intermediaries is only creating an even worse version of what already exists.

There is a reason why decentralization and self custody are key to the whole thing - here we are for the 100th time seeing it play out.

I love seeing Sam Bankman-Fried and his faux "gonna save the world with my effective altruism" get his ass handed to him. Wont feel bad if he ends up in prison.

[chuckcouples]

Thoughts on these quotes from a Nobel Prize winning economist:
https://finance.yahoo.com/news/nobel...fkWeJxfRtIGsv0

- - - Updated - - -

[BreadManPanarin]

Thoughts on these quotes from a Nobel Prize winning economist:
https://finance.yahoo.com/news/nobel...fkWeJxfRtIGsv0

- - - Updated - - -

Paul Krugman has made it abundantly clear in the past that he doesn’t understand bitcoin, and he continues to do so.

He is a Keynesian economist and fiat maximalist, so this should come as no surprise.

Always amusing to see people who were criticizing bitcoin at $50 and a decade later are still criticizing bitcoin at $16,500, still 330x higher despite a recent 75% drawdown.

You’d think at some point they’d just take the L and move on, or adopt it themselves. But I think it is quite safe to assume that Paul Krugman and Peter Schiff will still be old men yelling at the clouds when bitcoin is at $500k per coin.

[Canucks_fan18]

I have a small amount as a hedge but I echo some of his sentiment. The majority including bitcoin itself seems to have no real life usefulness. I mean I guess it's decentralized and could be used as consideration but that's only as good as the market that values it.

Time will tell but, probably useless.

[BreadManPanarin]

I have a small amount as a hedge but I echo some of his sentiment. The majority including bitcoin itself seems to have no real life usefulness. I mean I guess it's decentralized and could be used as consideration but that's only as good as the market that values it.

Time will tell but, probably useless.

The usefulness of bitcoin is pretty basic, and yet perhaps not super obvious to anyone who has lived their whole life in a reasonably well managed currency regime and semi-functional liberal democracy. It gives every internet-connected human in the world the ability to:

I) hold a fixed percentage stake of a global commodity monetary good over time because no other human (regardless of how rich or powerful they are) can dilute the supply for their own benefit at your expense.

II) self custody an unlimited amount of value in that good without taking up any physical space, and

III) send that value peer-to-peer to any other internet-connected individual in the entire world and achieve rapid settlement finality without any need for trust in or permission from any individual third party or central authority.

This unique combination of benefits has not been offered by any other commodity good in human history besides bitcoin. And this is quite revolutionary, particularly to the 4 billion people who live under extremely inflationary and predatory currency regimes which use capital controls to intentionally deprive them of access to other monetary goods besides their own state’s rapidly debasing currency.

[Canucks_fan18]

The usefulness of bitcoin is pretty basic, and yet perhaps not super obvious to anyone who has lived their whole life in a reasonably well managed currency regime and semi-functional liberal democracy. It gives every internet-connected human in the world the ability to:

I) hold a fixed percentage stake of a global commodity monetary good over time because no other human (regardless of how rich or powerful they are) can dilute the supply for their own benefit at your expense.

II) self custody an unlimited amount of value in that good without taking up any physical space, and

III) send that value peer-to-peer to any other internet-connected individual in the entire world and achieve rapid settlement finality without any need for trust in or permission from any individual third party or central authority.

This unique combination of benefits has not been offered by any other commodity good in human history besides bitcoin. And this is quite revolutionary, particularly to the 4 billion people who live under extremely inflationary and predatory currency regimes which use capital controls to intentionally deprive them of access to other monetary goods besides their own state’s rapidly debasing currency.

Thank you for your explanation. I understand that but it also makes me worry that if that adaptation isn't there than the whole principle falls apart. It's not unlike the gold standard. It was deemed something of a controlled supply that could be used as consideration for goods and servicers. If people decide that they do not want to use Bitcoin as consideration anymore than it goes back to being worthless. However, I think it's a little late for that.

What are your thought on Cardano? I have some as well based on a recommendation from a friend who is big into the space.