Ray Dalio Says He ‘Might Be Missing Something’ About Bitcoin

[Sprout]

True, but Cryptos are in infant stage. Plus stable coins printing like USDT is a huge issue. I am shocked how many people never even heard of them.

Are familiar with YFI and Curve? Curve uses a proprietary algo that derives yield off a basket of stablecoins. YFI generates yield off of a extensible basket of crypto assets which includes a synthetic that tracks BTC.

Crypto assets are collateral that can also generate earnings as interest.

 

[RedDuke]

Gents, you can use all fancy logic and etc. But the fact remains that BitFinex with USDT and who knows who else, can just create stable coins out of thin air and use them to purchase Bitcoins, where the rest of us must use our hard earned cash.

It is really this simple. Wonder why most have no issue with this, on top of it most do not even know about this.

 

[johnarb]

On USDT, while many say it's propping up BTC I disagree. USDT for better or worse is the fundamental digital rails on which arbitrage across multiple exchanges are done. Even in the presence of other stablecoins which are growing. It is by far the largest.

I would guess without the stabilizing effect of USDT in order to get prices somewhat in line across global exchanges, BTC would be even higher as there would be no shorts in the book.

Your post is very important (imho) and this ties to Sprout's point re: DeFi and stablecoin yields. I'm sharing a video below on the subject of Securities Lending which I never knew about until I invested in Celsius

[Extreme Disclosure: CEL is the biggest holding in my crypto portfolio and I would not recommend buying it now since it's gone up over 4000% in the last 52 weeks and is at ATH]

I wish RedDuke would watch the video and understand the importance of USDT (stablecoins) to this new financial system, I shared it at the point of the Sec Lending discussion.

 

[tsznecki]

Gents, you can use all fancy logic and etc. But the fact remains that BitFinex with USDT and who knows who else, can just create stable coins out of thin air and use them to purchase Bitcoins, where the rest of us must use our hard earned cash.

It is really this simple. Wonder why most have no issue with this, on top of it most do not even know about this.

BFX already has an active case in New York District Court and has admitted to not being fully backed 1:1 on USDT. That is the worst case scenario already. Yet USDT usage has increased not decreased.

You making the argument that stablecoins that simply be created is just a shit argument. You don't have anything else better.

Hard earned cash? The cash that the FED prints? LOL. #Ridiculous

 

[TimMykes]

Bubble will only pop when the last degenerate bull is dead

In this case, there are still millions of them around, and the welfare checks they get are still invested in crypto

 

[RedDuke]

Your post is very important (imho) and this ties to Sprout's point re: DeFi and stablecoin yields. I'm sharing a video below on the subject of Securities Lending which I never knew about until I invested in Celsius

[Extreme Disclosure: CEL is the biggest holding in my crypto portfolio and I would not recommend buying it now since it's gone up over 4000% in the last 52 weeks and is at ATH]

I wish RedDuke would watch the video and understand the importance of USDT (stablecoins) to this new financial system, I shared it at the point of the Sec Lending discussion.

Vey interesting. Thanks for sharing

 

[RedDuke]

BFX already has an active case in New York District Court and has admitted to not being fully backed 1:1 on USDT. That is the worst case scenario already. Yet USDT usage has increased not decreased.

You making the argument that stablecoins that simply be created is just a shit argument. You don't have anything else better.

Hard earned cash? The cash that the FED prints? LOL. #Ridiculous

yes, that hard earned cash that pays for mortgage, cars, education and etc.

I understand why true believers just shrug of the reality of USDT, our human brains are programmed to ignore facts that contrary to our beliefs.

 

[tsznecki]

yes, that hard earned cash that pays for mortgage, cars, education and etc.

I understand why true believers just shrug of the reality of USDT, our human brains are programmed to ignore facts that contrary to our beliefs.

USDT -> some fiat -> buy something. Not sure why that is so hard to comprehend if you have more brain cells than a rock. Are you telling us the FED isn't currently printing? L O L

Do you have any actual arguments or do you just dodge the questions and make flippant statements? Oh wait, I guess your brain is programmed to ignore facts that are contrary to your beliefs! #RedDukesBrainCantProcess

 

[RedDuke]

USDT -> some fiat -> buy something. Not sure why that is so hard to comprehend if you have more brain cells than a rock. Are you telling us the FED isn't currently printing? L O L

Do you have any actual arguments or do you just dodge the questions and make flippant statements? Oh wait, I guess your brain is programmed to ignore facts that are contrary to your beliefs! #RedDukesBrainCantProcess

once again, why should investors use cash to buy Bitcoin (apart from pure gamble) and BitFinex be allowed to just creates tethers to do the same. Please answer this question.

how about you and I partner and create ET coin and try to use it to buy bitcoins? Wouldn’t that be awesome. We create virtual shit to buy cryptos.

 

[tsznecki]

once again, why should investors use cash to buy Bitcoin (apart from pure gamble) and BitFinex be allowed to just creates tethers to do the same. Please answer this question.

how about you and I partner and create ET coin and try to use it to buy bitcoins? Wouldn’t that be awesome. We create virtual shit to buy cryptos.

Your post shows a fundamental lack of understanding on how crypto works.

Ok let's create a coin. Do we create our own blockchain? If not, on what blockchain do we use? Private or public? How do we deal with cross chain operations? Which exchanges will list our coin as a trading pair vs BTC? How do we create enough of a community to provide liquidity for our coins? How do we settle trades?

I'll bet you can't even answer one of those questions. I have created coins. It's not as easy as you think. The hamster powering your brain isn't tired, he is on permanent vacation.

Let's see you answer any of those questions before I even go and explain what BFX is doing with USDT. Hint: they aren't actually buying BTC.