Now that FTX has been chalked up as the latest ponzi-ish corner of the crypto universe, it is very likely more implosions are brewing behind the scenes.
Nice catch...I like this from the Sequoia letter to investors posted on their social media:
" Dear Limited Partner.
We are reaching out to share an update on our investment in FTX. In recent days, a liquidity crunch has created solvency risk for FTX. The full nature and extent of this risk is not known at this time. Based on our current understanding, we are marking our investment down to $0." - https://twitter.com/sequoia/status/1590522718650499073
I honestly don't know where crypto goes from here. I hear a lot now about needing to create an alternative system to get away from the Western techno-fascist fiat system, but the problem of crypto is it requires the internet. So how do we truly trust an "alternative system" that requires a presence on a shared ecosystem with the thing we're trying to separate from?
Some conflation in your comment between "internet', "Internet protocol", nodes, hosting, server architecture, closed source, open source, financial systems, and more. We all live in the jungle...doesn't mean we have to live in the Tiger's mouth or stay away from water.
If we are headed towards the Chinese Internet firewall model, if you have an IP address you aren't safe, even in crypto. They could lock up your access to the network (or your counter party in a transaction who is less secure) and then you are as Peter Schiff says "only one person on an island with a million dollars." Your currency is worthless in that scenario.
I don’t live in China; pretty sure I don’t live in North Chinalina also. Aside from the civil scenario you described, at least for BTC node architecture is important, and it’s not as easy to internet police the btc network as you may be suggesting. The Chinese miner crackdown was primarily physically enforced and tracked through people and electricity usage. That’s was not a shutting down of the btc network. (As far as gold- can’t have it both ways; Roosevelt ‘outlawing gold’ was enforced at the banks, not in the homes. Was it worthless?).
Didn't say gold. I'm talking local, like goods and services your neighbors want and need. The "Currency" of real relationships and helping one another to get and have the stuff of life.
There's also the added risk of EMP, solar flares, etc. Those are REAL risks to crypto, fiat, and everything else. This debate doesn't exist in a world with power outage problems. If things get bad enough our governments will turn on their own citizens. They've done it before.
Just because something feels inconceivable now doesn't mean you shouldn't at least prepare your mind for the "what if"s.
Something significant has happened with Bitcoin's price that has never happened before, which is that it's price is now lower than it was at it's prior peak 5 years ago. That puts the handful of Hodlers who had horrible timing and that are still hanging on with their diamond hands in the red. It wouldn't have to go a lot lower before a lot more Hodlers are sitting on losses. Something which they were all convinced could never happen. Just food for thought.
govs use crypto to launder money, simple dimple. any democratizing efforts, whether in money or otherwise will be exploited by govs / politicians / bigs. I don't understand why ppl think it is an "investment" or "store of value", it is programmable and it depends upon the internet, which can be altered, filtered, or simply shut down. most ppl have emergency cash on hand, hard to spend emergency crypto tho.
Bitcoin is not "crypto" -- Bitcoin is the most pristine asset human civilization has ever conceived of. It is the purest form of money that exists and it will be the reserve money of the world, replacing gold, for thousands of years to come. Everything else is just an unregistered security. All roads lead to Bitcoin.
"Bitcoin is not crypto" ? So those gif files illustrating beautiful thick gold coins with gorgeous dollar sign holograms are actually real, well shit, I am in.
"Crypto" as it has come to be known encompasses all the other "coins" that are NOT Bitcoin. That is what people refer to when they talk about "crypto." Bitcoin is not a part of that and never has been.
All other "crypto currency" as they are called -- are securities. They all pass the Howie Test. They all were created by a small, centralized team to raise money for a project.
Bitcoin is the only crypto that is actually a cryptocurrency. It does not pass the Howie Test. There is no central organization behind it. There was no money raised for a project. It is the largest, most secure, most consistent monetary system in the world.
Bitcoin is the most pristine money humanity has ever devised in its entire history. So no it is not "crypto" as it is referred to.
Bitcoin is money. And it is the best money mankind has ever known. It is perfection encompassed. It has solved all the problems that gold has, while encompassing the money characteristics of gold (but better -- because while people can always find more gold, they cannot find more Bitcoin, which makes Bitcoin the hardest money in existence -- and as history shows THE HARDEST MONEY ALWAYS WINS end of story).
Mr SBF is a huge donor to the Democratic Party. If it is determined that he misappropriated funds, will those funds be returned?
His mother, a Stanford law professor, has a left wing pac called Mind The Gap. This fund raised millions. Will she be asked if her son donated funds, and, if so, will the funds be returned?
I admittedly don't know a lot about bitcoin so I'm sure someone will tell me I'm an idiot for asking this but what if energy moons? I saw a headline the other day that said some miners were losing money/shutting down because the cost of the energy to mine the coins are more than what the coins are worth. Is there still a network if energy costs triple and bitcoin goes sub 5k?
Back in 2015, I was having a conversation with a friend of mine. Basically, we were saying: "imagine what it looks like when these price swings are the same in percentage, but the valuations are in the thousands or tens of thousands. Add in institutions leveraging their positions and it'll be unbelievable.". Btc will rebound and drag the rest of crypto with it eventually after enough blood has spilled. The basic project just works, regardless of markets and Saylor's / SBF's. In that future some will focus honestly on unleveraged empires; many will not and claim that time is it different. Imagine what it will look like when the price swings are the same in percentage, but in the tens / hundreds of thousands. Imagine what the rest of the crypto market will like then.
This reads like the eulogy for a passing era https://www.sequoiacap.com/article/sam-bankman-fried-spotlight
"The founder of FTX lives his life by a calculus of altruistic impact."
of course
Nice catch...I like this from the Sequoia letter to investors posted on their social media:
" Dear Limited Partner.
We are reaching out to share an update on our investment in FTX. In recent days, a liquidity crunch has created solvency risk for FTX. The full nature and extent of this risk is not known at this time. Based on our current understanding, we are marking our investment down to $0." - https://twitter.com/sequoia/status/1590522718650499073
Ouch.
I honestly don't know where crypto goes from here. I hear a lot now about needing to create an alternative system to get away from the Western techno-fascist fiat system, but the problem of crypto is it requires the internet. So how do we truly trust an "alternative system" that requires a presence on a shared ecosystem with the thing we're trying to separate from?
Some conflation in your comment between "internet', "Internet protocol", nodes, hosting, server architecture, closed source, open source, financial systems, and more. We all live in the jungle...doesn't mean we have to live in the Tiger's mouth or stay away from water.
If we are headed towards the Chinese Internet firewall model, if you have an IP address you aren't safe, even in crypto. They could lock up your access to the network (or your counter party in a transaction who is less secure) and then you are as Peter Schiff says "only one person on an island with a million dollars." Your currency is worthless in that scenario.
I don’t live in China; pretty sure I don’t live in North Chinalina also. Aside from the civil scenario you described, at least for BTC node architecture is important, and it’s not as easy to internet police the btc network as you may be suggesting. The Chinese miner crackdown was primarily physically enforced and tracked through people and electricity usage. That’s was not a shutting down of the btc network. (As far as gold- can’t have it both ways; Roosevelt ‘outlawing gold’ was enforced at the banks, not in the homes. Was it worthless?).
Didn't say gold. I'm talking local, like goods and services your neighbors want and need. The "Currency" of real relationships and helping one another to get and have the stuff of life.
There's also the added risk of EMP, solar flares, etc. Those are REAL risks to crypto, fiat, and everything else. This debate doesn't exist in a world with power outage problems. If things get bad enough our governments will turn on their own citizens. They've done it before.
Just because something feels inconceivable now doesn't mean you shouldn't at least prepare your mind for the "what if"s.
Something significant has happened with Bitcoin's price that has never happened before, which is that it's price is now lower than it was at it's prior peak 5 years ago. That puts the handful of Hodlers who had horrible timing and that are still hanging on with their diamond hands in the red. It wouldn't have to go a lot lower before a lot more Hodlers are sitting on losses. Something which they were all convinced could never happen. Just food for thought.
Tether has never been properly audited.
govs use crypto to launder money, simple dimple. any democratizing efforts, whether in money or otherwise will be exploited by govs / politicians / bigs. I don't understand why ppl think it is an "investment" or "store of value", it is programmable and it depends upon the internet, which can be altered, filtered, or simply shut down. most ppl have emergency cash on hand, hard to spend emergency crypto tho.
Bitcoin is not "crypto" -- Bitcoin is the most pristine asset human civilization has ever conceived of. It is the purest form of money that exists and it will be the reserve money of the world, replacing gold, for thousands of years to come. Everything else is just an unregistered security. All roads lead to Bitcoin.
"Bitcoin is not crypto" ? So those gif files illustrating beautiful thick gold coins with gorgeous dollar sign holograms are actually real, well shit, I am in.
"Crypto" as it has come to be known encompasses all the other "coins" that are NOT Bitcoin. That is what people refer to when they talk about "crypto." Bitcoin is not a part of that and never has been.
All other "crypto currency" as they are called -- are securities. They all pass the Howie Test. They all were created by a small, centralized team to raise money for a project.
Bitcoin is the only crypto that is actually a cryptocurrency. It does not pass the Howie Test. There is no central organization behind it. There was no money raised for a project. It is the largest, most secure, most consistent monetary system in the world.
Bitcoin is the most pristine money humanity has ever devised in its entire history. So no it is not "crypto" as it is referred to.
Bitcoin is money. And it is the best money mankind has ever known. It is perfection encompassed. It has solved all the problems that gold has, while encompassing the money characteristics of gold (but better -- because while people can always find more gold, they cannot find more Bitcoin, which makes Bitcoin the hardest money in existence -- and as history shows THE HARDEST MONEY ALWAYS WINS end of story).
You say Crypto has nothing that denotes actual value. How is this different than fine art?
Mr SBF is a huge donor to the Democratic Party. If it is determined that he misappropriated funds, will those funds be returned?
His mother, a Stanford law professor, has a left wing pac called Mind The Gap. This fund raised millions. Will she be asked if her son donated funds, and, if so, will the funds be returned?
They are still buying the dip. Bitcoin up 13.28% today.
Crypto was all about motivating super smart tech people to accelerate digital currency development.
The only problem is when you can create money out of thin air, that sh@t will definitely attract flies...
Any idea what the MSTR liquidation price is? feel like people stopped talking about that one.
I admittedly don't know a lot about bitcoin so I'm sure someone will tell me I'm an idiot for asking this but what if energy moons? I saw a headline the other day that said some miners were losing money/shutting down because the cost of the energy to mine the coins are more than what the coins are worth. Is there still a network if energy costs triple and bitcoin goes sub 5k?
New internet? Based on a decentralized architecture. Totally anonymous and impossible to take down.
Back in 2015, I was having a conversation with a friend of mine. Basically, we were saying: "imagine what it looks like when these price swings are the same in percentage, but the valuations are in the thousands or tens of thousands. Add in institutions leveraging their positions and it'll be unbelievable.". Btc will rebound and drag the rest of crypto with it eventually after enough blood has spilled. The basic project just works, regardless of markets and Saylor's / SBF's. In that future some will focus honestly on unleveraged empires; many will not and claim that time is it different. Imagine what it will look like when the price swings are the same in percentage, but in the tens / hundreds of thousands. Imagine what the rest of the crypto market will like then.
soon and very soon. noticing the direct correlation between btc charts and spx charts. unholy.