Crypto Currency Thread (Vol.2)
Discussion
Silicon Valley Bank (SVB) the 16th largest bank in the US has collapsed and Crypto firm Circle had $3.3 bln exposure to SVB.
https://www.cnbc.com/2023/03/11/crypto-firm-circle...
"U.S. cryptocurrency firm Circle said it has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank. Startup-focused SVB collapsed on Friday in the largest bank failure since the 2008 financial crisis."
Hot on the heels of Silvergate - https://www.theguardian.com/technology/2023/mar/09...
https://www.cnbc.com/2023/03/11/crypto-firm-circle...
"U.S. cryptocurrency firm Circle said it has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank. Startup-focused SVB collapsed on Friday in the largest bank failure since the 2008 financial crisis."
Hot on the heels of Silvergate - https://www.theguardian.com/technology/2023/mar/09...
FourWheelDrift said:
You know you are in trouble when your clients turn up at the door to ask about their accounts and Death is one of them
it is ironic the The Federal Deposit Insurance Corporation (FDIC), has taken over the bank, when BTC was made to stop s
t like this.Anyway to the moon. Or my tip get out whilst you have something.
dimots said:
Raccaccoonie said:
it is ironic the The Federal Deposit Insurance Corporation (FDIC), has taken over the bank, when BTC was made to stop st like this.
Anyway to the moon. Or my tip get out whilst you have something.
Where is the irony? What connection is there to bitcoin?t like this.Anyway to the moon. Or my tip get out whilst you have something.
SVB has done the same, but then all banks do the same don’t they… unsecured depositors, just the gov back stops small deposits… though in SVB’s case it looks like there are assets to cover insured amounts.
Mr Whippy said:
Bitcoin exchanges not really having deposits on hand to give back to owners, having invested them elsewhere to ‘make money’
SVB has done the same, but then all banks do the same don’t they… unsecured depositors, just the gov back stops small deposits… though in SVB’s case it looks like there are assets to cover insured amounts.
That's a bit of a tenuous link. What have bitcoin exchanges got to do with this? SVB (a bank) collapses and gets taken over by the FDIC. BTC was created to stop this.SVB has done the same, but then all banks do the same don’t they… unsecured depositors, just the gov back stops small deposits… though in SVB’s case it looks like there are assets to cover insured amounts.
Well, yes it does stop this. If you had your money in BTC instead of in a bank it wouldn't happen.
Where is the irony?
Maybe I’d misread the post.
But FTX failed because their investment assets were worthless/devalued.
SVB has failed for the same reason.
The irony is that anything can devalue, regulated or not.
But FDIC only covers regulated institutions… not that the FDIC will cover most of the deposits of the systemic risky owners.
But from what I’ve read their assets are still sufficient to cover the insured amounts, so no one loses except silly people.
But FTX failed because their investment assets were worthless/devalued.
SVB has failed for the same reason.
The irony is that anything can devalue, regulated or not.
But FDIC only covers regulated institutions… not that the FDIC will cover most of the deposits of the systemic risky owners.
But from what I’ve read their assets are still sufficient to cover the insured amounts, so no one loses except silly people.
ooid said:
dimots said:
If you had your money in BTC instead of in a bank it wouldn't happen.
Where is the irony?
If you have bought any amount of BTC, the probability of its value going to disappear tomorrow is higher than any other dodgy bank's future.Where is the irony?
ooid said:
dimots said:
If you had your money in BTC instead of in a bank it wouldn't happen.
Where is the irony?
If you have bought any amount of BTC, the probability of its value going to disappear tomorrow is higher than any other dodgy bank's future.Where is the irony?
Bitcoin has been around over 14 years. Some of these dodgy banks don't even last that long.
Banks only manage to stick around because they get bailed out by someone. Even the "best" of them!
Seventyseven7 said:
BBC have reported over 200 Uk firms won’t be able to pay their staff due to the SVIB collapse and there is no government bailout.
Nice.
https://www.bbc.co.uk/news/business-64930944 saysNice.
BBC said:
He said the government was "working at pace" to bring forward a plan to make sure firms can meet their cashflow needs "within the next few days".
That plan will mean companies can pay their staff, he said. "That's the big ask we've had in the last 24 hours."
He in this quote is the chancellor, and that says pretty much the opposite?That plan will mean companies can pay their staff, he said. "That's the big ask we've had in the last 24 hours."
And the countdown to a 'convenient' CBDC continues.
My view is still the same as over a year ago - structural collapse and contagion. Bank runs have already started - we'll get some surprising news this week.
Your average Joe is about to get a whole lot poorer. Looking to see how Asia opens tonight.
My view is still the same as over a year ago - structural collapse and contagion. Bank runs have already started - we'll get some surprising news this week.
Your average Joe is about to get a whole lot poorer. Looking to see how Asia opens tonight.
digger_R said:
And the countdown to a 'convenient' CBDC continues.
My view is still the same as over a year ago - structural collapse and contagion. Bank runs have already started - we'll get some surprising news this week.
Your average Joe is about to get a whole lot poorer. Looking to see how Asia opens tonight.
CBDC makes sense in a world without greed and self interests.My view is still the same as over a year ago - structural collapse and contagion. Bank runs have already started - we'll get some surprising news this week.
Your average Joe is about to get a whole lot poorer. Looking to see how Asia opens tonight.
But in our world. It’ll be abused far worse than what we’ve seen from CBs so far, all “in our own best interests”
Currency will always trickle down from an authority of some kind.
Even if that were say a group of elected representatives at a trading market for instance… you’d then be able to take your eggs on Monday and wait till Wednesday for the jam to arrive to do the trade.
Of course the market would take a cut to cover its operational costs.
It’s like the start of 2001 A Space Odyssey.
What we end up with as it develops is the corruption of the original intention.
Even with BTC you’d need markets to buy and sell and they’d want a cut to cover costs.
You’ll never get rid of this ‘central’ nature to human activity… and humans will never stop being greedy and corruptible and ruining even the best laid foundations for an equitable way of sharing and living.
Even if that were say a group of elected representatives at a trading market for instance… you’d then be able to take your eggs on Monday and wait till Wednesday for the jam to arrive to do the trade.
Of course the market would take a cut to cover its operational costs.
It’s like the start of 2001 A Space Odyssey.
What we end up with as it develops is the corruption of the original intention.
Even with BTC you’d need markets to buy and sell and they’d want a cut to cover costs.
You’ll never get rid of this ‘central’ nature to human activity… and humans will never stop being greedy and corruptible and ruining even the best laid foundations for an equitable way of sharing and living.
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