BITCOIN

Scottex99

Malthusian said:

Scottex99 said:

PLUS you get 6-10% APY in a lot of places whilst you hold

Ah, the bro in New York with his magic money printing machine again.

Noobs: "Why would I hold USDC instead of USD"

Bros: "Because you can get 6-10% annual interest thanks to a guy in New York who has a magic money machine that generates guaranteed yields of 6-10% in USD after all his costs. So you can trust an obscure LLC when they say that they have enough real USDs to allow everyone to cash out their USDC (although nobody is to know how many that is). Even though this requires a return of 6-10% to be generated on fiat dollars to allow the USD backing USDC to keep pace with the returns being paid on USDC."

Noobs: "If he's got a magic money machine that generates a guaranteed 6-10% on real USD, allowing him to back a promise to pay out 1 USD for every USDC in circulation to people who are getting 6-10% yields on USDC, where are the profits coming from, and why is he faffing about with crypto instead of taking investment in USD and becoming a billionaire?"

Bros: "Do your own research bro, I'm not going to Google it for you."

Noobs: "..."

Bros: "Wait, come back, why do you like being poor so much?"

Plus if I'm in Barbados and you're in Tokyo, I can send you 1m USDT in 3 minutes for the gas price of ETH.

Assuming the bro in Tokyo actually wants $1 million worth of crypto backed by $29,000 of actual dollars.

Perfectly fine if it's two bros trading points between each other, but if I've got a house in Osaka worth $1 million I want to sell I'll probably stick with the guy who's offering $1 million of actual dollars.

Nice try but nah. The 6-10% doesn't get paid by Tether (BitFinex) or Circle. 

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account. We trade at least a mil tether every day and we trade it against GBP/EUR/USD at a rate equivalent to 1 dollar. Could it lose its peg? Possibly. Will it? Unlikely.

Malthusian

Scottex99 said:

Nice try but nah. The 6-10% doesn't get paid by Tether (BitFinex) or Circle.

Irrelevant. If Bro A is promising to guarantee 6-10% interest on digitial dollars and Bro B is promising to pay out 1 fiat dollar for every 1 digital dollar, then at least one of those guarantees is built on thin air.

If neither of them actually has a magic money machine that generates returns of 6-10%pa on real dollars, then when investors try to withdraw their money, one of two things can happen: 1) it turns out that Bro A doesn't have enough digital dollars to pay everyone or 2) Bro A hands everyone their due amount in digitial dollars created out of thin air, but when they try to turn it back into fiat, it turns out that Bro B doesn't have enough real dollars to pay everyone. Or a combination of the two.

If the case for buying USDC instead of USD is "you can use it to invest in somebody's shonky investment scheme paying 6-10%pa" it's not much of an incentive, as there are plenty of shonky investment schemes offering 6-10%pa that accept USD. If you're claiming it's not shonky the onus is on you to explain what the magic money machine does to generate returns of 6-10%pa plus costs on real dollars. "Google it" and "Transaction fees [shuffling punters' money around]" are not explanations of how to generate consistent returns of 6-10%pa plus costs on real dollars.

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account.

Providing you can find someone who is willing to hand you 1 million real dollars for 1 million in digital dollars and overlook the fact that 1) there are allegedly only $29,000 of real dollars backing that $1 million in digital dollars 2) Tether claims that counting up a load of corporate bank accounts to check how many real dollars are in them is too scary for the likes of KPMG and PWC to handle.

Scottex99

Malthusian said:

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account.

Providing you can find someone who is willing to hand you 1 million real dollars for 1 million in digital dollars and overlook the fact that 1) there are allegedly only $29,000 of real dollars backing that $1 million in digital dollars 2) Tether claims that counting up a load of corporate bank accounts to check how many real dollars are in them is too scary for the likes of KPMG and PWC to handle.

Wait until you see the LP pools on Uni/Sushi/PS that pay 250-300% or more. 

I don't need to find them, I have 20 people/firms asking me to do it for them everyday and paying decent spreads for the pleasure. Some banks are anti, some are pro, we've got 9 bank accounts right now for the firm and put millions through them every day, all txns related to crypto trading

HansOndabush

Scottex99 said:

Malthusian said:

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account.

Providing you can find someone who is willing to hand you 1 million real dollars for 1 million in digital dollars and overlook the fact that 1) there are allegedly only $29,000 of real dollars backing that $1 million in digital dollars 2) Tether claims that counting up a load of corporate bank accounts to check how many real dollars are in them is too scary for the likes of KPMG and PWC to handle.

Wait until you see the LP pools on Uni/Sushi/PS that pay 250-300% or more. 

I don't need to find them, I have 20 people/firms asking me to do it for them everyday and paying decent spreads for the pleasure. Some banks are anti, some are pro, we've got 9 bank accounts right now for the firm and put millions through them every day, all txns related to crypto trading

Rolleyes. They say there is one born every minute......

mooneysaver

Scott hasn't shared his pictures yet but there are some videos of the Miami conference: 

https://twitter.com/desperateSia/status/1401251494314360834?s=20

https://twitter.com/Fredilly/status/1400993824579588096

Zola.

Max Keiser is a coke head moron.

Scottex99

mooneysaver said:

Scott hasn't shared his pictures yet but there are some videos of the Miami conference: 

https://twitter.com/desperateSia/status/1401251494314360834?s=20

https://twitter.com/Fredilly/status/1400993824579588096

US embassy threw a spanner in that plan unfortunately, we did get a couple of nice days in Windsor although not quite the same!

I’ve been purposely ignoring the events but some of it has sounded a bit of a mess. We had Heat games and the Mayweather fight to go to too, plus a load of meetings with VCs etc.

Should be plenty more conferences once COVID is finally gone.

BTC now legal tender in El Salvador and DOGE is a sh11tcoin yep 

Adyinvestment

Scottex99 said:

BTC now legal tender in El Salvador 

This could be very interesting, if (not been approved yet) this comes to fruition this has got to be huge for Bitcoin.

Would that mean that Bitcoin would not be subject to capital gains tax as it would be a foreign currency? 

Reaper

Scottex99 said:

BTC now legal tender in El Salvador and DOGE is a sh11tcoin yep 

It's an utterly ridiculous announcement. I can only imagine it's PR. Bitcoin is completely wrong as a currency, not least because it is volatile and can't handle large numbers of transactions.

If he had announced a StableCoin was to be used as a national currency then I might have thought he was serious. Still unwise but serious. But Bitcoin as a nation currency is a joke.

me1000uk

What I'm not sure about is why many in the crypto space aren't just honest about what they want from it. 

Currently:
cyptopeople: Sell your  homes, sell your body, invest everything in the new gold otherwise have fun staying poor - NOT FINANCIAL ADVICE.
Translation : I have invested plenty of money in this emerging technology and needs further investment to fuel prices for my benefit. I will claim it isn't financial advice but it really really is because it benefits my finances.

low income investor: Hmm  is it worth investing in cryptocurrency? Seems a bit of a gamble but plenty seem to be doing it.
Translation: People have made so much money and these mega rich kids on twitter must be on to something, hopefully if I listen to their advice I'll get rich quick before the world catches on.

The middle ground is just obfuscation and debates related to various forms of investment.

Whilst it may have a future, and it's interesting to be involved in something ever-changing. I feel it is important to ignore the obfuscation and analogies about gold and stocks and shares or the perils of fiat currency and just be honest about what this space entails.

People want to invest a thousand hoping it'll turn to 50,000 instead of 200, is completely different to people investing a thousand hoping it'll turn to 2500 instead of 200. As decentralised as the claims are, the method of purchase/storing/transacting is done via exchanges that essentially are single points of failure with no legislative backing; there's ways to increase security but the exchanges are dominant. For exchanges to be regulated or the money to be usable it absolutely will need some form of developed government backing in which case it ceases to become what it should be and inevitably loses value? 

I'm not anti crypto conceptually and feel there is a future with it, but I guess I'd want the space to be more honest with people's livelihoods instead of the MLM style hype. I would love recommendations of educational and honest commentators on crypto rather than hype merchants (Do they even exist?). In my opinion the likes of MSE should absolutely treat it as a gamble at this stage and tell people it's an absolute gamble, and the pro-crypto people should focus on educational content rather than piggyback on the safety of government backed assets/banks/companies and claim crypto is remotely in the same ballpark.  Is it not a glaring aspect that 'cryptocurrency' isn't now a currency when it was supposed to be one?