OT: Must-read article for anyone exposed to cryptocurrency such as Bitcoin

Suhrreal

Recruiting Coordinator
Jun 1, 2009
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I have mentioned this before months ago, but it gets hard to repeat the same things over and over. Somebody did me a great favor (and possibly you as well) and took the time to write a detailed article on the risk involved in the crypto market at the moment.

I know there is a Bitcoin thread going right now, but I feel it is important that this article is seen by as many people as possible given the amount of hype and misinformation out there. The author really did do a tremendous job of capturing the relevant issues at play.


Just to add: This is not advice to buy/sell, just information that I think everybody should be aware of. The crypto space is much more complex than the narratives they are pushing in public right now.
 
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LoudHogRider

Head Coach
Aug 5, 2010
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I have mentioned this before months ago, but it gets hard to repeat the same things over and over. Somebody did me a great favor (and possibly you as well) and took the time to write a detailed article on the risk involved in the crypto market at the moment.

I know there is a Bitcoin thread going right now, but I feel it is important that this article is seen by as many people as possible given the amount of hype and misinformation out there. The author really did do a tremendous job of capturing the relevant issues at play.


Just to add: This is not advice to buy/sell, just information that I think everybody should be aware of. The crypto space is much more complex than the narratives they are pushing in public right now.
Terrifying. Just dumped all my crypto on Coinbase and and generating a bank transfer ASAP.
 

GBRforLife1

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Feb 18, 2020
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I have mentioned this before months ago, but it gets hard to repeat the same things over and over. Somebody did me a great favor (and possibly you as well) and took the time to write a detailed article on the risk involved in the crypto market at the moment.

I know there is a Bitcoin thread going right now, but I feel it is important that this article is seen by as many people as possible given the amount of hype and misinformation out there. The author really did do a tremendous job of capturing the relevant issues at play.


Just to add: This is not advice to buy/sell, just information that I think everybody should be aware of. The crypto space is much more complex than the narratives they are pushing in public right now.
Appreciate you sharing. Thank you.
 

litespeedhuskerfan

Nebraska Football Hall of Fame
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Just spent the last 30ish minutes reading about tethers...which I had never heard of before I read the OP's link. Wow, is all I can say. I would not touch any of that crap after reading all that. I'm not saying you cannot make money in Bitcoin or other similar digital curriences, but it is obviously a product with more perceived, than real, value. That whole subject fascinates the crap out of me. Another thing I find interesting is that everyone seems to know tether is a house of cards, they do not have the USD in the bank they would need for their claim that one tether is backed by one dollar....yet people keep engaging in this form of trading. Greed has no bounds I guess.
 

kerpal_68

Athletic Director
Dec 12, 2005
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I tend to fall down some rabbit holes but that guy fell into a crater. Sounded like he had millions on the line though.
 

Dean Pope

Offensive Coordinator
Oct 11, 2001
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Who was the guy who told everyone to sell Bitcoin back in March when it was at 5K? It's above 37K now.
 

GBRforLife1

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So, the US dollar being printed and increasing the money supply doesn't change the value of the dollar.

But if tether is being used and printed then it's inflationary?

I guarantee the conversation with "Bob" didn't happen. The whole blaming the increase on incentives by exchanges almost no one has ever heard of is pretty weak.

Be interesting to see what comes of this.

Simple fact is as the US govt increases the money supply all asset classes will increase. This is why stocks are at all time highs right now.
 

K_Y_E

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Sep 9, 2018
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Intersting article for sure. I have a small amount of crypto and just kind of think of it as gambling. It’s a fun ride, but probably not a wise long term investment. Not sure what will happen but the pending usd inflation might continue to drive the crypto market up. I’m certainly no expert though.
 
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NYC-Husker

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So, the US dollar being printed and increasing the money supply doesn't change the value of the dollar.

But if tether is being used and printed then it's inflationary?

I guarantee the conversation with "Bob" didn't happen. The whole blaming the increase on incentives by exchanges almost no one has ever heard of is pretty weak.

Be interesting to see what comes of this.

Simple fact is as the US govt increases the money supply all asset classes will increase. This is why stocks are at all time highs right now.

Agreed. I don't doubt there are some bad actors in the crypto space, but I don't think that changes the long-term prospects of the USD. Crypto is definitely in bubble territory now, it's hard to know how much of the run-up is due to retail investors using leverage for short-term speculation versus people (retail and institutional) looking to hold long term as an inflation hedge.
 
Mar 4, 2009
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Super interesting, thanks for posting. I’ve been following the NYDFS case and there is another private civil case against Tether parent company alleging BTC price manipulation. It is not causing me to sell my small amount of crypto, but interesting nonetheless.
 

GBRforLife1

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So Tether with a market cap of $24.3 billion is going to tank Bitcoin, which has a market cap of $675.1 billion? Hmmmmm...
 

CromsLaugh

Walk On
Nov 3, 2013
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so much to say about this...but i wouldnt waste my time. bitcoin doesnt care about tether. you guys want to get scared and sell everything now then go for it. id say only buy bitcoin and just hold
 

CromsLaugh

Walk On
Nov 3, 2013
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mec86i2h5lb61.jpg
 

Suhrreal

Recruiting Coordinator
Jun 1, 2009
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Here is another view.


You may be overexposed to Bitcoin if you're trying this hard to justify your position. Do you have any links that specifically argue against the claims in the article? "It's just FUD," is not very convincing.

To be clear, there is a distinction to be made between Bitcoin and Tether. The problem is that Tether seems to be dominating the unregulated trade of Bitcoin. This unregulated trade is manipulating the price upward allowing long-time holders and whales to unload at huge profits.

The illuminating part of the article is how foolish traders using leverage are having their crypto liquidated by the dominant whale traders (quite possibly the people behind the unregulated exchanges). This would explain the wide $31k-42k Bitcoin price we have seen over the last few weeks. The biggest players are just taking candy from babies (most likely all automated as well), although a cursory glance at CoT shows that smart money has been short Bitcoin for over a year.
 

Herbert Husker

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Jan 26, 2018
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I have mentioned this before months ago, but it gets hard to repeat the same things over and over. Somebody did me a great favor (and possibly you as well) and took the time to write a detailed article on the risk involved in the crypto market at the moment.

I know there is a Bitcoin thread going right now, but I feel it is important that this article is seen by as many people as possible given the amount of hype and misinformation out there. The author really did do a tremendous job of capturing the relevant issues at play.


Just to add: This is not advice to buy/sell, just information that I think everybody should be aware of. The crypto space is much more complex than the narratives they are pushing in public right now.
Legit question: Why does it matter if Tether is being used to buy Bitcoin, even if Tether’s value is fraudulent? As long as Bitcoin has value, should it matter how people purchased it?

Analogy: If for one day the world believed a blade of grass was worth a thousand dollars, and on that day I used a thousand blades of grass to buy a mansion, does the value of my mansion go down the next day when everyone realizes grass is worthless? Nope. The person who accepted my blades of grass as payment is out of luck, but I’m not.
 

GBRforLife1

All-American
Feb 18, 2020
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You may be overexposed to Bitcoin if you're trying this hard to justify your position. Do you have any links that specifically argue against the claims in the article? "It's just FUD," is not very convincing.

To be clear, there is a distinction to be made between Bitcoin and Tether. The problem is that Tether seems to be dominating the unregulated trade of Bitcoin. This unregulated trade is manipulating the price upward allowing long-time holders and whales to unload at huge profits.

The illuminating part of the article is how foolish traders using leverage are having their crypto liquidated by the dominant whale traders (quite possibly the people behind the unregulated exchanges). This would explain the wide $31k-42k Bitcoin price we have seen over the last few weeks. The biggest players are just taking candy from babies (most likely all automated as well), although a cursory glance at CoT shows that smart money has been short Bitcoin for over a year.
Hey don't take my posts the wrong way. I love discussing this with you. After I read the article you posted I thought it could be really bad. After reading some other viewpoints and getting some context I'm not so sure.

It sounds like the lawsuit from New York isn't really going to go anywhere. We'll see.

I think all asset classes are going to continue going up as long as interest rates stay low and the govt keeps printing more dollars.

If it's all whales taking candy from babies why is JP Morgan predicting 3-5x increase? Why are publicly traded companies buying $100s of millions of bitcoin? These are legit questions and the answers don't support the idea that cryptocurrency is some giant fraud. Although there is almost definitely a small amount of fraud. The crypto market cap is over $1 Trillion. And growing.

Banks are going to to have to evolve and improve.
 
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Suhrreal

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Hey don't take my posts the wrong way. I love discussing this with you. After I read the article you posted I thought it could be really bad. After reading some other viewpoints and getting some context I'm not so sure.

It sounds like the lawsuit from New York isn't really going to go anywhere. We'll see.

I think all asset classes are going to continue going up as long as interest rates stay low and the govt keeps printing more dollars.

If it's all whales taking candy from babies why is JP Morgan predicting 3-5x increase? Why are publicly traded companies buying $100s of millions of bitcoin? These are legit questions and the answers don't support the idea that cryptocurrency is some giant fraud. Although there is almost definitely a small amount of fraud. The crypto market cap is over $1 Trillion. And growing.

Banks are going to to have to evolve and improve.

You're trusting the banks now? Winking

I will say it is interesting that they are onboard with things. I don't want to get conspiratorial, but I wouldn't be surprised if they are exploiting a weakness in the regulation/law to make money off Bitcoin (and how does one make money off Bitcoin?). Bitcoin was created by an anonymous entity after all.
 
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GBRforLife1

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If this is a fraud someone is going to elaborate lengths and is extremely patient.

That's 2425 accounts with over $35 million in them.


 

NikkiSixx

Recruiting Coordinator
Sep 14, 2013
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This doesn't mean crypto is bad. It just means one of those cryptos, (Tether) is a scam. There have been other coins that were also a scam.. Bitconnect etc.

You also have to realize that the crypto market is pure speculation right now, and it moves wildly, and is manipulated by whales (using tether) and other coins.

Most of those invested this time around, as compared to 2017, are institutional investors, not retail investors, (speculators).

As with anything in life, it's worth what someone else will pay you for it at that given time.

If you've made some gains, it might be time to take something off the table. BTC needs to correct back to it's 21 weekly EMA, and that can be a substantial drop. But we are still currently in a bull market for most of 2021.
 

litespeedhuskerfan

Nebraska Football Hall of Fame
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So what is going on in Iran?? Sounds to me like that gov't just decided to give themselves raises by blaming mining for BTC for their lousy power grid...
 

GBRforLife1

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JPM won't invest a penny of their own money in Bitcoin, they are creating a fund of other peoples money and using that to buy bitcoins. JPM just want to make fee $ from foolish retail investors.

So what you're effectively saying is that JP Morgan analysts are projecting a higher valuation to try convince more people to jump in so they can capture fees from trading?

Does JP Morgan offer brokerage accts where people trade crypto? I don't think they do but I might have missed it.
 
Oct 12, 2016
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So what you're effectively saying is that JP Morgan analysts are projecting a higher valuation to try convince more people to jump in so they can capture fees from trading?

Does JP Morgan offer brokerage accts where people trade crypto? I don't think they do but I might have missed it.

JPM is just trying to stem some wealth management business leaving them to other institutions that have a crypto fund to offer clients.

I have spent time on Wall Street, I can tell you the big Banks will never leave New York because they own the courts in NY. The big Banks, never, and I mean never, lose a court case in New York. They own the courts there.

I see the Banks taking down Tether thru NY courts to protect themselves, they see FinTech from SV as a big threat. If they can't control the crypto exchanges, then they want Bitcoin to go to zero.
 
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