Crypto Currency Thread (Vol.2)
Discussion
bhstewie said:
Largechris said:
"Untraceable, untaxable, two fingers up at the capitalist system"
Oh, maybe not.
Well quite but I just wanted a small amount of exposure so I wasn't doing it with any of that stuff in mind.Oh, maybe not.
But if you're a more serious player wanting to lose serious stacks of wonga, a cold chain wallet, coinbase etc. is the way to go.
Ari said:
Seventyseven7 said:
He couldn't afford to put money into Bitcoin tbh. Shame really.
How interesting. What makes you say that? Just not someone who is flush with money to throw at Bitcoin, just bobbing along. Best to keep your money for a rainy day.
Condi said:
g4ry13 said:
Also bought some stuff to stake at 18%. It certainly beats the bank!
Did Celsius not teach you that high interest rate (ie high return) is a reward for high risk, and in the crypto world those risks are the likelihood of losing your entire investment?? Greed is the undoing of many men.
Seventyseven7 said:
Ari said:
Seventyseven7 said:
He couldn't afford to put money into Bitcoin tbh. Shame really.
How interesting. What makes you say that? Just not someone who is flush with money to throw at Bitcoin, just bobbing along. Best to keep your money for a rainy day.
Besides, I thought the whole point of Bitcoin was it could be traded in whatever quantity you wanted. If people in El Salvador and Central African Republic can use it as legal tender, I'm sure anyone in the West can afford some.
Condi said:
g4ry13 said:
Also bought some stuff to stake at 18%. It certainly beats the bank!
Did Celsius not teach you that high interest rate (ie high return) is a reward for high risk, and in the crypto world those risks are the likelihood of losing your entire investment?? Greed is the undoing of many men.
Yetski said:
DonkeyApple said:
So long as Revolut still exists.
Please can you elaborate, I'm unaware of any issues.Edited by Yetski on Friday 24th June 06:48
It's a pocket money institution. No one in their right mind would have any financial exposure beyond pocket money. Same with all the children of lax regulatory enforcement.
DonkeyApple said:
Yetski said:
DonkeyApple said:
So long as Revolut still exists.
Please can you elaborate, I'm unaware of any issues.Edited by Yetski on Friday 24th June 06:48
It's a pocket money institution. No one in their right mind would have any financial exposure beyond pocket money. Same with all the children of lax regulatory enforcement.
Yetski said:
DonkeyApple said:
Yetski said:
DonkeyApple said:
So long as Revolut still exists.
Please can you elaborate, I'm unaware of any issues.Edited by Yetski on Friday 24th June 06:48
It's a pocket money institution. No one in their right mind would have any financial exposure beyond pocket money. Same with all the children of lax regulatory enforcement.
It's also a business that is loss making in most divisions, has some 'interesting' backers and reliant on the exact customer base that has been hit hardest by global inflation.
It's one of those businesses that overtly ticks pretty much every box to not overly exposed to. Very much a micro transaction business.
Seventyseven7 said:
Ari said:
Seventyseven7 said:
He couldn't afford to put money into Bitcoin tbh. Shame really.
How interesting. What makes you say that? Just not someone who is flush with money to throw at Bitcoin, just bobbing along. Best to keep your money for a rainy day.
Us hairdressers struggle by on a pittance you know, not like you titans of finance, with your savvy investment nous! Good of you to remind me of my lowly place.
Ari said:
Seventyseven7 said:
Ari said:
Seventyseven7 said:
He couldn't afford to put money into Bitcoin tbh. Shame really.
How interesting. What makes you say that? Just not someone who is flush with money to throw at Bitcoin, just bobbing along. Best to keep your money for a rainy day.
Us hairdressers struggle by on a pittance you know, not like you titans of finance, with your savvy investment nous! Good of you to remind me of my lowly place.
Some interesting stuff on Bloomberg about crypto this evening, and about money (coins, cash, etc) held on exchange's. First interesting point is that if the exchange goes bust you become a regular creditor - your assets are considered part of the bankrupt company, not ring fenced as per banks. This bit was interesting too, and talks about the risks of unregulated DeFi. Basically the mistakes of pre 2008 banking system are being repeated but at a much greater risk because there is not even any basic risk management - 26 year old former porn stars excluded, of course. At the moment the crossover risks into regular financial systems are fairly low, but as I said ageeeees ago, crypto will go one of 2 ways - it will either end up being regulated in the same way as the normal finance system, or it will end up being a wild west which will never achieve mainstream acceptance.
Anyway, to quote;
Anyway, to quote;
Bloomberg said:
.....Broadly speaking crypto banking (and quasi-banking) is like banking in the state of nature, with no clear rules about seniority and depositor protection. But it attracts money because people are used to regular banking. When they see a thing that looks like a bank deposit, but for crypto, they think it will work like a bank deposit. It doesn’t always.
Elsewhere here is the Financial Times on the crypto “credit crisis”:
Investors could juice their returns by taking out multiple loans against the same collateral, a process called “recursive borrowing”. This freedom to recycle capital with little restraint led investors to stack up more and more yields in different DeFi projects, earning multiple interest rates at once.
“As with the subprime crisis, it’s something really appealing in terms of yield and it looks like and is packaged like a risk-free financial product to ordinary people,” said Lennix Lai, director of financial markets at crypto exchange OKX.
The financial gymnastics left huge towers of borrowing and theoretical value teetering on top of the same underlying assets. This kept going while crypto prices sailed higher. But then inflation, aggressive interest rate rises and geopolitical shockwaves from the war in Ukraine washed across financial markets.
“It all worked during the bull run where the prices of all the assets went up only. When the prices started going down, a lot of people wanted to take their assets out,” said Marcin Miłosierny, head of market research at crypto hedge fund ARK36.
As token values plummeted, the lenders called in their loans. The process has led to the removal of more than 60 per cent, or $124bn, of the total value locked on the ethereum blockchain since mid-May in a “Great Deleveraging”, according to research firm Glassnode.
Elsewhere here is the Financial Times on the crypto “credit crisis”:
Investors could juice their returns by taking out multiple loans against the same collateral, a process called “recursive borrowing”. This freedom to recycle capital with little restraint led investors to stack up more and more yields in different DeFi projects, earning multiple interest rates at once.
“As with the subprime crisis, it’s something really appealing in terms of yield and it looks like and is packaged like a risk-free financial product to ordinary people,” said Lennix Lai, director of financial markets at crypto exchange OKX.
The financial gymnastics left huge towers of borrowing and theoretical value teetering on top of the same underlying assets. This kept going while crypto prices sailed higher. But then inflation, aggressive interest rate rises and geopolitical shockwaves from the war in Ukraine washed across financial markets.
“It all worked during the bull run where the prices of all the assets went up only. When the prices started going down, a lot of people wanted to take their assets out,” said Marcin Miłosierny, head of market research at crypto hedge fund ARK36.
As token values plummeted, the lenders called in their loans. The process has led to the removal of more than 60 per cent, or $124bn, of the total value locked on the ethereum blockchain since mid-May in a “Great Deleveraging”, according to research firm Glassnode.
Gassing Station | Finance | Top of Page | What's New | My Stuff