I chose those fancy tech stocks as they have all been getting hit in tandem with crypto. Shopify, Sofi, even Tesla (which is kinda like a tech stock) are all getting chopped down.
VICE: ‘It's a Bloodbath’: The Crypto Crash Is Real
- Thread starter Coyote Starrk
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Thats what I wondered too. Shouldn't it stay put at $1 till an exchange runs out of money if people are cashing out then it drops straight to nada? Would've made more sense, a slow decline would more likely create panic and cashing out and then trigger the very scenario they are trying to avoid.
Some communities are certainly like that, just nothing but hopium and false dreams. I'm not saying you should ignore FUD, but you should investigate the truth behind it and know what the source is. A lot of huge investment firms want retail investors to get scared and sell off. I mean the Luna sell off was possibly triggered by BlackRock causing some shenanigans with a private Bitcoin to TetherUSD sale knowing it would cause it falter. You also should never put anything into Crypto that you're afraid to lose.
Chip shortage is not tied to crypto specifically. We were bound to hit a chip shortage in 2024-2025 before covid stopped production (and froze the expansion of factories) and brought the shortage even closer. The increase of chip usage (both lower and high end tech) was not paired with a similar increase of production.
Now, we are in the middle of chip shortage and the earliest it will be "actually over" will be closer to 2030 (as major factories in EU and USA might open in 2024-2025... but actually start producing at scale a year + later). Recession and crypto bust might help reduce demand, but the reality is that the increase of chip demand is more tied to an ever increasing number of devices using chips that previously didnt.
Tether is still supposed to be convertible into a fiat currency (dollar) at the end, even if they have made it hard to do so. Tether printing more money doesnt matter if the general market has no trust on them actually fulfilling the convertible part that is what pegs the coin to the dollar. 1 Tether is supposed ot be convertible to 1$ regardless of what the market says about Tether (but the convertibility kinda makes it so that the price is close enough to 1$ to be "stable"), but if the market suddenly values 1 Tether at 0.9$, people would still be able to go to Tether and demand 1$.
Of course, Tether pay for that because they supposedly have backing for it.... But to what degree? Tether has been printing a ton of Tether to a level that it is unbelievable they have that amount of money lying around (in whatever form they say they have), so at some moment, Tether will have to freeze / stop convertibility and the value will just disappear. Tether market value (what people think its value is in reality) was always a bit below 1$ because nobody is going to pay 1:1 as they want to make some lvl of profit (and as I said, converting Tether to USD isnt the easiest of things).
Basically, printing Tether will just increase the size of the Bubble, but if the Bubble pops (due to trust), just printing more money has no effect because Tether doesnt stand for anything. Tether value is that you can (hypothetically) convert 1 Tether to 1USD. If you cant do that, the value of Tether is 0.
Well yeah, if you bought high and then sold now you would have. But if instead of selling, will they have lost everything in 2 years? The point being if you try and get rich quick, out side of a few anomalies you'll have just gambled it all away. Same as if you try and day trade stocks.
technically if you bought at $30k way back 5 hours ago, you're now down 11%
How long can Tether keep converting 98-cent coins (or lower, if the drop continues) to $1 at a loss until the company runs out of money? (Are they converting from their own pocket, so to speak? I'm not entirely sure how this works.)
I get that, thats why I am surprised they are not trying to keep the bubble going. Any decline means it will cause a panic and a run. If it stays stuck at $1 maybe people won't cash out and they can still ride it out.
Of course this is a simple assessment. I guess in reality its complex enough they can't react fast enough.
I think there was blood in the water a few weeks ago when the NFT market completely dried up, I don't think there was any stopping it at that point
Hope this shit crashes and burns forever. It's a fucking scam that way too many people are falling for. You may as well take your money to the casino.
I mean, Tether did create 1Billion Tether in the last week, so they are trying to keep the bubble going. I guess they dont want to do too much because now Stablecoins are on the target (after Luna collapse) and everyone knos Tether is full of bullshit... but decide not to look too much into it.
Tether leveraging itself even more will make it even more vulnerable at a time where they might get attacked. So in the end it is probably a "do we pump the market to save us, risking ourselves to an attack or do we not pump it and risk ourselves to a collapse".
I'm not going to lie, I felt a momentary pang of sadness just reading the name and thinking that Jon Bois was a crypto bro.
This is normal in a lot of scams and ponzis and why the would should come down on them hard. It's not just numbers it's lives
Seen this before. I don't think crypto is going way but it might take at least a year to start recovering investor confidence. Crashes happen and with crypto, it will keep happening.
Real question- what is allegedly backing Tether? Or whom?
Is someone just pumping millions of dollars into it? I don't get it.
Supposedly, every single Tether is backed by something (in the start it was only Dollars, nowadays they say a mismatch of stuff, which some analyst think it might just be Bitcoin bought with tether) so the company would have the ability to do that.
However, there are very serious doubts about Tether actually having a backing to keep the peg, so their ability to convert might be frozen or just disappear. Hell, even if they had the ability to convert 1:1 (like banks should have), they normally dont have the liquidity to handle it if EVERYONE is asking at the same time, so you would end up with bankruns.
Supposedly they have a ton of money invested into different stuff to handle the 1:1 peg. In reality? Probably a scam that everyone in crypto doesnt want to look into because of how entrenched it is in the ecosystem. It started with a clear 1:1 system but then they got addicted to the power of central banks being able to print money to increase values without realizing that central banks work because the currency in the end is ultimately backed by the labour of the people in the country:
Bloomberg - Are you a robot?
www.bloomberg.com
You have to think that whomever control Tether can just pump the value of a fuck ton of cryptoassets by increasing liquidity of tether (by printing more) and use that tether to buy new cyrpto assets at higher values, which also increases the value of their previous positions in the crypto world. It is something that could easily get you hooked with how much power it has (until people realize you dont really have that power).
My prediction is..
Bitcoin is hoing to end up worth around $200usd in the very end. Not sure when, but it'll happen.
Blockchain itself is going to die and become obselete as we move onto some other tech breakthrough, such as quantum entanglement/synchronicity stuff probably.
Betamax vs VHS stuff.
Bitcoin is hoing to end up worth around $200usd in the very end. Not sure when, but it'll happen.
Blockchain itself is going to die and become obselete as we move onto some other tech breakthrough, such as quantum entanglement/synchronicity stuff probably.
Betamax vs VHS stuff.
And this being all we know wasn't enough to freak people out about it already?
these posts are so annoying. This is after people trying to kill themselves
"But my gpu" that's the first thing you go to.
i mean it's good that a scam is looking like it might end but the right to "my gaming costs" again when people are killing themselves losing their life savings because most of them GOT SCAMED. Aka were victims, were lied to and defrauding.
I was almost a victim of a similar crime to fraud a similar thought as some of these people are expressing happened to me. you realize how much your life could potentially changed because of someone lying and deceiving you just trusted them
(I know your not a bad guy, and I quoted you post because it was the first thing I saw where people thought when others were defrauded how they could stand do benfit)
Thanks for th article, just gave it a brief read. Will read more in depth tomorrow.
Fucking nuts, really. How much of the worth of Bitcoin is tied to Tether?
I was going to ask what kind of impact this will have on El Salvador. Doesn't look too good :(Related:
El Salvador expected to default as bitcoin plummets
The Central American country made the cryptocurrency legal tender last year, but since then, it has continued to fall, raising concerns about whether it will be able to meet its next debt paymentenglish.elpais.com
I think you are underestimating the tipping point breached by the extreme demands put on the high end chip market by crypto rigs, ASICs, and supporting hardware infrastructure. When there is a squeeze in supply at the top, a cascading domino effect of increased demand downmarket occurs, driving supply down across the entire hardware market in an already supply-taxed system. Obviously, COVID fucked it up even worse but it was already fucked before COVID. Let's not pretend like it wasn't. Crypto currencies are an unsustainable pursuit for a whole host of reasons but the negative environmental impacts and opportunity cost for high end hardware constantly being tied up in a speculative market that creates no real value and solves no real problems facing the world is having a hugely detrimental impact on society. Gaming at least provides entertainment value, socializing to some degree, and escapism for mental health needs.
jesus
this guy is going to end up in prison, in exile or in the ground
A lot of the transactions for bitcoin where into Tether back in January 2021:
The Bit Short: Inside Crypto’s Doomsday Machine
This is the story of a Bitcoin trade — the most financially impactful trade I’ve ever made in my life. It’s also the story of the…
crypto-anonymous-2021.medium.com
Because nobody wanted to take a look into Tether because how important it was of an asset to easily "value" stuff in a market where converting into $ to lock them was hard. Tether (and stablecoins lol) are just an example of how important having a central bank is to a new economy as a way to stabilize values.
Tether (and stable coins lol) are also a showcase why central banks themselves can be a big part o the problem and need adults to control them, as well as why central bnak is just a part of the economy regulation (aka, a currency with no real value is what?)
I mean, my position was more that even before the crypto craze we were bound to have a chip shortage (and covid + crypto just increased it). Of course, when i mean chip shortage I dont fully mean the current situation (this will last, but not so long) but a situation where chip sourcing is a major problem from a supply standpoint.
I hope I underestimate the effect of crypto on the market and the shortage is lessened (my job is in specific machinery and due to chip shortage we have issues sourcing even dumb old tech like ECUs and have had issues sourcing sensors for a while), I just know everyone at work expected this shortage to happen, just mroe into the future (before covid I mean). Production of all of those things were not ramping up to the same level demand was, so it was going to catch up and inventories were starting to be reduced to some degree.
Weird that you would point out my post when there are about 10 straight up "good, hope it crashes and burns!" posts a page. I was just saying, "well I don't know what's gonna happen" as in it could just be a short term dip. You asserted that I was posting something damaging by asking if this will drive down gpu prices, yet my post wasn't even related to people's plight (which does suck by the way). Maybe I could have mentioned that I was sorry for all those that lost a lot, but then again I'm always following stock market threads elsewhere and I see it constantly, so I guess I'm a little jaded in that sense.
So I will rebute that I think these types of responses are annoying that assert something is happening that isn't.
This is the part that especially sucks. It's one thing to have some poor sucker dumping his family's life savings into crypto only to lose it all, but now an entire nation is in danger of defaulting? Fuck
Unbelievable that a country in a precarious state can adopt crypto as legal tender.Related:
El Salvador expected to default as bitcoin plummets
The Central American country made the cryptocurrency legal tender last year, but since then, it has continued to fall, raising concerns about whether it will be able to meet its next debt payment
I agree in principal with everything you are saying. I think if crypto hardware demand dies down significantly, it will provide some much needed breathing room to help supply issues recover significantly faster than they otherwise would.A lot of the transactions for bitcoin where into Tether back in January 2021:
The Bit Short: Inside Crypto’s Doomsday Machine
This is the story of a Bitcoin trade — the most financially impactful trade I’ve ever made in my life. It’s also the story of the…
Because nobody wanted to take a look into Tether because how important it was of an asset to easily "value" stuff in a market where converting into $ to lock them was hard. Tether (and stablecoins lol) are just an example of how important having a central bank is to a new economy as a way to stabilize values.
Tether (and stable coins lol) are also a showcase why central banks themselves can be a big part o the problem and need adults to control them, as well as why central bnak is just a part of the economy regulation (aka, a currency with no real value is what?)
I mean, my position was more that even before the crypto craze we were bound to have a chip shortage (and covid + crypto just increased it). Of course, when i mean chip shortage I dont fully mean the current situation (this will last, but not so long) but a situation where chip sourcing is a major problem from a supply standpoint.
I hope I underestimate the effect of crypto on the market and the shortage is lessened (my job is in specific machinery and due to chip shortage we have issues sourcing even dumb old tech like ECUs and have had issues sourcing sensors for a while), I just know everyone at work expected this shortage to happen, just mroe into the future (before covid I mean). Production of all of those things were not ramping up to the same level demand was, so it was going to catch up and inventories were starting to be reduced to some degree.
I legitimately only heard nonsense for most of that.
I have no idea what's going on.
I barely have any crypto, though.
In a vacuum, yes. But in a world where there's been a LOT of pointing out that the emperor has no clothes, only to hear responses like "hfsp" or "[you're] ngmi" ("have fun staying poor" and "not going to make it"), I have very little sympathy for people who lost their savings. (And bankruptcy shouldn't be the end of one's life. People can and have come back from that.)
Hell, even some of the pro crypto people would say stuff like "don't buy more than you can afford to lose". Whether they meant it or not, the advice not to put all of one's eggs in one basket was everywhere, from crypto skeptics to even the more responsible crypto advocates.
Blockchain tech is really the most valuable thing to come from all this too
It has very specific use cases. But web3 and practical use cases of blockchain itself haven't really panned out and I don't see either being actually useful in the long run. It's mostly hype, even blockchain itself.
Nothing uncharted about it:
https://en.m.wikipedia.org/wiki/December_2001_riots_in_Argentina
https://en.m.wikipedia.org/wiki/Convertibility_plan
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If blockchain is the best thing to come from all this, then nothing of value will really be lost of everything related to crypto is abandoned. Blockchain is baiscally the mother of all "solution looking for a problem" technologies.
Well then lol
I did find this stuff interesting, now I'm glad I didn't become a cyyptobro
It is its only saving grace because the rest is fantasies, but I don't have much faith in it due to everyone sticking to the least efficient and most costly demonstrations (proof of work versions feel more concrete to people maybe??).
Anyway, it's too cumbersome to be adopted as anything other than darkweb tokens.
Good it needed to die. The crypto market is a huge disgusting enviroment destroying scam designed to seperate fools from there money. Those who invested descided making it rich was far more important than decimating our future and helping to create a black market for the worst in society. These people are not victims. They knew the risk. Are we not allowed to be happy when the house losses for once?
That being said I hope they dont kill themselves......athough I do find the tone policing here quite confusing.
That being said I hope they dont kill themselves......athough I do find the tone policing here quite confusing.
This doesn't seem very encouraging for crypto, especially when it's not something most people are forced to use.
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