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Understanding Blockchain

johnwester130

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fico

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That particular case was another peg in a long history of failures, nothing new.

That was an example of what can happen when you try to create a "stable" coin, but that is not the main problem (tangent issue).

Is like humans are incapable of learning from past mistakes, cursed to repeat them over and over, but now is digital .. :banghead:

What people should be focusing on is the end of whatever freedom is left with digital currency:

- Individual micro control
- Programmable money
- Omnipresent taxation
- Over dependency on the power grid

"Cryptocurrencies" are not even close, as you can see, to money or currency. They are very volatile and intangible trading instruments that served their purpose to sell the idea of "digital currency" (if only in name).

Myopic views ignore everything else (another curse), oblivious to what the end-game is.

What makes anyone think that the government won't outlaw anything competing with their digital currency? It has happened before, we have international precedence.

Don't we know the government after all this time? Do we learn to think ahead or we go with the flow?

Now we know they are moving not to a CBDC (central bank), but to "political" digital money controlled by the US Treasury (ECASH != blockchain).

Don't focus on one thing at the expense of everything else (priorities), or you could end up ignoring reality .. :inpain:

There will always be a few that benefit from the misery of everyone else, so you need to be smarter .. :cool:


Crypto advocates have worried for months about US president Joe Biden’s $1 trillion infrastructure bill, which includes new tax reporting requirements for “digital assets” like cryptocurrencies and nonfungible tokens (NFTs).

As legislators inched closer to passing the bill, digital rights advocates lobbied hard against a provision that requires “brokers”—a vague term that could include developers, miners, and middlemen—to disclose identifying information about their clients or users, arguing that it threatens individual privacy and thwarts the anonymous design of crypto.


TerraUSD (UST), a digital token with a $16 billion market capitalization that is designed to maintain a 1:1 peg with the dollar, known as a stablecoin, nosedived over the past 24 hours. Its price fell below $.65, before somewhat recovering to $0.93 as of this writing. In other words, UST failed spectacularly at the one thing that it was supposed to do - maintain parity with the dollar.

The episode is reminiscent of when the Reserve Primary Fund, a money market mutual fund with $68 billion in assets fell from $1 per share net asset value to $0.97 during the financial crisis after Lehman Brothers filed for bankruptcy in 2008.
 
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Makrosky

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@fico it is also worth keeping in mind that cryptocurrencies are also not as independent and censorship-resistant as they might want us to believe. And not because of the governments, but because of the developpers/miners/exchanges.

An example of this is the Ethereum hard-fork that completely perverted the "code is law" and "the blockchain is immutable" principles. An absolute shame that made me rethink deeply about all the cryptocircus. We are still far to have something close to what they claim it is.

There is money to be made for sure. But at the end you own nothing. Protected by nothing. Very 2030. You are not even safe from the developers, they will save their skin and dump you if something goes wrong. Same for exchanges.
 

fico

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Aug 13, 2020
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- Liquidity refers to the ability to quickly and cost-effectively convert assets into cash.

- While Bitcoin and other cryptocurrencies also trade 24 hours a day around the globe, they are far less liquid than other asset classes.

- This means that transacting in Bitcoin or exchanging it for cash can come with a cost and/or time delay.

Again, the question about speculative assets like "cryptocurrencies" is "how much risk are you taking"?

@Makrosky You read a lot of "best-case scenario" information online, but there's an underbelly that most people haven't started figuring out.
 
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