Any other Stakers?

thegentleway

What happens when a mining pool has 51% of the hashing power?

HansOndabush

darren232002 said:

HansOndabush said:

mark55man said:

How does vintage wine or art collections accrete value - no more are being created but the value goes up.  

Inflation. Fiat currencies always devalue against hard assets like the ones you mention plus housing, gold, and silver.

Are you for real? How can you acknowledge inflation and be anti BTC? Governments have printed 20%+ of GDP over the last year and gold, a 'store of value,' is up 5%.

Yes I am real; who do you think wrote the post?

Annual CPI is only a couple of percent though it is a poor measure however gold (up 5% did you say?),  would seem to have been a store of value over the same period rising a similar amount.

However Bitcoin has risen about 900% in that time so what correlation to inflation do you think it has? To me bitcoin looks more correlated to a mania or ponzi scheme than inflation. The 'money printing' has yet to feed through to actual inflation that the consumer sees.

For someone who has 'a law degree, a mathematics degree and a masters in statistics & data science (amongst other degrees)', you don't come across as very well educated on this board.

Gary1984

darren232002 said:

Thank you. I have a law degree, a mathematics degree and a masters in statistics & data science (amongst other degrees) but I really needed you to break this down with small numbers for me to understand it.

How about (e) maybe, just maybe, I understand something you don't?

Well done on your Maths degree, I have one of those too! Also in your various qualifications I'm surprised you have never found it useful to look at a very simple example to get an idea of what's going on. 

This is a public forum so I'm not sure just saying 'I'm smarter than you, look it up' it that helpful to other readers who are sceptical of your magic money tree. Your e) doesn't explain anything.

The problem with a lot of scams is people can't satisfactorily explain how the money is made at a very basic level. E. G. car space rentals etc fall apart as soon as you look at the detail. This is the same. 

grumiofoundation

darren232002 said:

Gary1984 said:

darren232002 said:

As I have said, it comes from a very legitimate and sustainable use case. 

Well that's me convinced. So I buy $100 of tokens from an exchange. The $100 of tokens are deposited with a bank to fully back the value of my tokens (let's say the bank pays $2 interest). In a year I have my original 100 tokens plus 10 more in interest. Where did my 10 tokens come from? The issuer could create them, sure. But unless they have another $8 to add to the $2 interest from the bank they're no longer fully backed.

So either a) I don't get my 10% interest after all
b) They aren't 100% backed after all, destroying their USP
c) The exchange has lost $8 and will soon go bust
d) It's a big ponzi scheme and the extra $8 is being paid by new investors to keep new deposits rolling in. At some point the issuer/exchange will withdraw all the real money nominally backing the tokens from the bank and run off with it, leaving all investors with worthless strings of 1s and 0s.

I'm going for d). 

Thank you. I have a law degree, a mathematics degree and a masters in statistics & data science (amongst other degrees) but I really needed you to break this down with small numbers for me to understand it.

How about (e) maybe, just maybe, I understand something you don't?

Well if we are waving certificates around I have a PhD but I still don’t understand how these 10% returns are “risk free” so clearly qualifications don’t automatically equal intelligence in this case...

Scottex99

The risk is counterparty risk.

I provide liquidity, they use it to make money and pay me interest. I don’t get what’s difficult about that? There’s no volatility risk if you do it with stablecoins although I do it with plenty other assets too, might as well as I’m long them anyway.

Risk is not that they don’t pay me my 10% APY, it’s that they either exit scam, get hacked or fail. None of which is impossible but Celsius have 100m flowing into them daily, we’re in a bull market, it’s not likely. I’m cool with the risk personally

thegentleway

So these so called “stable coins” are pegged to FIAT currency, e.g. dollar. Doesn’t this completely negate the inflation hedge crypto is allegedly supposed to provide?

thegentleway

As a crypto expert with lots of degrees, you might wish to update Wikipedia as it states

“Stablecoins can be prone to failure as well due to volatility and upkeep required in many cases.”

Which is in direct contradiction to your claim that so called “stablecoins” are not subject to volatility. 

Scottex99

thegentleway said:

So these so called “stable coins” are pegged to FIAT currency, e.g. dollar. Doesn’t this completely negate the inflation hedge crypto is allegedly supposed to provide?

Dude, there's 7000 different cryptos, they dont all do the same thing.

I'm not the guy with the degrees, I have a 3rd in general studies but now am the Head of Trading for an OTC desk that trades 100m per month. Late bloomer.

USDT/USDC/DAI/TUSD/PAX/BUSD, all worth a dollar, all slightly different, look them up

underground99

thegentleway said:

So these so called “stable coins” are pegged to FIAT currency, e.g. dollar. Doesn’t this completely negate the inflation hedge crypto is allegedly supposed to provide?

Just like physical commodities (e.g. oil vs gold vs pork bellies), different cryptocoins have different purposes.   You wouldn't look at a tractor or double decker bus or tank and ask, "doesn't the size, weight or gearing completely negate the ability to quickly get around a racetrack, or travel comfortably around the country with the grace, space and pace that a supercharged Jaguar is allegedly supposed to provide?"

Malthusian

darren232002 said:

The more money that comes in to the system, the greater the supply of capital and the lower the APYs will be.

"Invest now bro before it's too late. Have I ever told you the story about when Mark Zuckerberg invited four guys to his dorm room?"

If you can't spend a day looking in to something that I've told you has 10% risk free returns (and much more if you are even slightly competent) then you don't deserve those returns. 

Oh my stars and garters, I think we've just been crypto-negged.

Still no explanation about why the bro in New York with his magic money machine that allows him to back a promise to pay real dollars deposited plus 10%pa in real dollars to anyone who wants to cash in their digital dollars doesn't open up his machine to the wider financial markets, who would be queuing round the block.

BUT MUH FIVE DEGREES ON MUH BLOCKCHAIN!

A man with one degree, Mr Worthing, is learned, a man with two in different subjects is a polymath, a man with three may be a Renaissance Man, a man with at least five (law + maths + data science + an unspecified plural number) either has no idea what he wants to do with his life or is getting his degrees from the Baptist Salvation University of Bowiddlydink, Idaho.