They also serve as a better way to buy things than traditional crypto*, because of the smaller chance that the value will skyrocket in the middle of a transaction.
The faithful also probably believe that stablecoins are less likely to collapse in value in the middle of a transaction. I'm not convinced.
Also on a basic level, they're a tradable token that's not used for gambling. It's probably a lot easier to find someone who has the tulip bulb you want to trade for and is willing to trade it for probablydollars than one who is willing to trade their tulip bulb for another tulip bulb.
And then they got huge and propagated because it's a super easy scam to just lie that you have more money than you do and wildcat bank your way to stealing a fortune.
There's also the other side of it: exchanges use stablecoins rather than dollars as your "liquid" balance rather, meaning there's an extra barrier between you and taking your money out of the system.
It also lets exchanges buy coins they don't have dollars for. One of the most suspicious things about Tether is that every time a prominent coin crashed, Tether would mint millions or billions of new coins, "backed" by highly questionable interest free debt (the exchanges "owed" Tether the balance in coins they held but didn't appear to be paying it in any meaningful way). So Bitcoin is down and the exchanges would start buying it for tether to stabilize the price.
Crypto enthusiasts insist that their mining efforts are driving pushed towards green energy. that Bitcoins are helping the environment, actually.
A ridiculous and baseless claim, to be sure but even so this is a surprisingly stark repudiation of that false philosophy. We now have miners purchasing fossil fuel sites that were set to be capped off and closed, and mining directly at the site - often without permits. Because it's more profitable that way!
After the Pennsylvania Department of Environmental Protection discovered the mining operation on a January site visit, it sent the company [Big Dog Energy] a notice of violation that alleged the firm had installed and operated generators without authorization. Per the letter to owner Matthew Anderson, these operations violate sections of the state environmental code, which prohibits the construction or modification of an air contamination source without a permit.
[...]These are wells that have been opened and fracked but aren’t connected to pipelines, so well owners have no way to bring the gas to market. Anyone who sets up a bitcoin mining operation at one of these stranded sites is burning fossil fuels that would have stayed in the ground, if not for bitcoin.
Rob Altenburg, the director of the Energy Center at Citizens for Pennsylvania’s Future, a statewide environmental advocacy group, said miners who own gas wells can make more than twice as much money using their gas to mine bitcoin than they could selling it to the wholesale market. Altenburg is concerned about what this means for air pollution and greenhouse gas emissions in Pennsylvania, especially if more gas companies follow Big Dog’s lead. And since these operations are relatively mobile, they are hard to monitor and regulate.
“They take the generators on trailers and plug them into their gas well, run the generators and mine bitcoin,” Altenburg said. “And the problem with these is, they’re on wheels, and they didn’t apply for a permit. They just showed up one day with the trailers and plugged them in.”
Altenburg points out that Big Dog Energy owns other wells in the state where they could have started mining without anyone noticing. “I think it’s a fair question of, has anybody gone and looked at those other wells?” Altenburg said. “And has anybody looked at other companies?”
...
Pennsylvania isn’t the only place this is happening. In 2020, a bitcoin mining company called Link Global installed four 1.25 megawatt gas generators at a dormant natural gas well in Alberta, Canada, and started mining bitcoin. The generators ran for nearly a year (364 days) without permission. Another unauthorized bitcoin mining operation by the same company ran for over 400 days.
In South Dakota, a bitcoin mining company called Highwire Energy purchased the mineral rights to seven natural gas wells that had been slated to be plugged.
...
“It’s really difficult for a state environmental regulator to deny permits,” Altenburg said. “I spent 22 years working for DEP. And I had to tell a lot of people that if a company meets the permit criteria, and DEP denies the permit—DEP doesn’t get to say, ‘We’re not going to let you do this, because we think it’s a bad idea.’ They’ve got to say, you know, ‘Do you meet these criteria or not?’ And the criteria were not written in a world where bitcoin mining was even a thought.”
Jesus with the people involved I'm surprised one of those hasn't just blown up.
I certainly wouldn't be sad if they did.
Yeah if like it didn't harm someone else or damage the environment it wouldn't exactly be the worst thing ever. But with these chuckle fucks they'd probably be running an unlicensed daycare there or something.
I would like some money because these are artisanal nuggets of wisdom philistine.
If there is a better contemporary example of why unchecked capitalism isn’t just bad but unbelievably stupid and pointless I’d expect to read about it in the “where’s the good news Hedgie” thread I guess
If there is a better contemporary example of why unchecked capitalism isn’t just bad but unbelievably stupid and pointless I’d expect to read about it in the “where’s the good news Hedgie” thread I guess
It's a close race between this and the formula shortage
There's also the other side of it: exchanges use stablecoins rather than dollars as your "liquid" balance rather, meaning there's an extra barrier between you and taking your money out of the system.
It also lets exchanges buy coins they don't have dollars for. One of the most suspicious things about Tether is that every time a prominent coin crashed, Tether would mint millions or billions of new coins, "backed" by highly questionable interest free debt (the exchanges "owed" Tether the balance in coins they held but didn't appear to be paying it in any meaningful way). So Bitcoin is down and the exchanges would start buying it for tether to stabilize the price.
It amazes me that Tether hasn't been exposed yet. IMO they're making up their reserve backing and as you point out, every time a coin crashes they print more phony money. In a lot of ways they seem to be holding up the entire crooked crypto market.
There's also the other side of it: exchanges use stablecoins rather than dollars as your "liquid" balance rather, meaning there's an extra barrier between you and taking your money out of the system.
It also lets exchanges buy coins they don't have dollars for. One of the most suspicious things about Tether is that every time a prominent coin crashed, Tether would mint millions or billions of new coins, "backed" by highly questionable interest free debt (the exchanges "owed" Tether the balance in coins they held but didn't appear to be paying it in any meaningful way). So Bitcoin is down and the exchanges would start buying it for tether to stabilize the price.
It amazes me that Tether hasn't been exposed yet. IMO they're making up their reserve backing and as you point out, every time a coin crashes they print more phony money. In a lot of ways they seem to be holding up the entire crooked crypto market.
I was going to say just like Warlocks hold up raids but that's Ethereum or whatever and god damn joke ruined.
I would like some money because these are artisanal nuggets of wisdom philistine.
I think tether is still up because the only ones who can really crash it are the exchanges, normal holders don't really have the ability to get tether to pay out.
As soon as some exchange suddenly decides they need to turn their tether back into USD the whole thing is going to evaporate.
life's a game that you're bound to lose / like using a hammer to pound in screws
fuck up once and you break your thumb / if you're happy at all then you're god damn dumb
that's right we're on a fucked up cruise / God is dead but at least we have booze
bad things happen, no one knows why / the sun burns out and everyone dies
Stablecoins exist because crypto is so volatile that the 'investors' want somewhere safe to store their 'money' to lock in 'value'.
Without having to take the money out of the system and get subjected to capital gains tax or transaction fees.
That they are probably also scams comes with being crypto.
Well, okay, maybe if it's not tax aversion that's preventing people converting back to dollars for stability, then I guess it's just general liquidity.
Or rather that their monopoly money isn't worth what they say it is.
Stablecoins exist because crypto is so volatile that the 'investors' want somewhere safe to store their 'money' to lock in 'value'.
Without having to take the money out of the system and get subjected to capital gains tax or transaction fees.
That they are probably also scams comes with being crypto.
Well, okay, maybe if it's not tax aversion that's preventing people converting back to dollars for stability, then I guess it's just general liquidity.
Or rather that their monopoly money isn't worth what they say it is.
Fair.
I just guarantee you they're not thinking that every time they switch currencies that's a taxable event and there's about zero chance they're declaring it on their taxes.
I think tether is still up because the only ones who can really crash it are the exchanges, normal holders don't really have the ability to get tether to pay out.
As soon as some exchange suddenly decides they need to turn their tether back into USD the whole thing is going to evaporate.
Fortunately it seems to have been drilled into the cult of crypto that you NEVER cash out. It will always go higher.
I think the ~9 billion in market cap that Tether has lost since Terra/Luna collapsed is mostly from people cashing out. A bit over 10% of their peak.
Some of that is from the trading value dipping below a dollar, but just a fraction, as it's currently trading at around a tenth of a cent under a dollar.
Undoubtedly, these are related. If you're one of the lucky few who can apparently cash out Tethers for a dollar, you can buy low and redeem high as much as you want! Infinite money, woo!
Of course, it's not infinite. You can only do it so long as Tether has money to give you.
Anyone want to take bets on what percentage of their total market cap Tether can redeem before things collapse?
The company only allows direct withdrawals of at least $100,000 for each request, and charges a fee of 0.1% on redemptions. Anyone with less tether than that minimum can only turn their money into dollars by finding someone to buy it from them – a disparity that fuelled the temporary collapse in value.
I swear the more I hear about this stupid shit, how it operates/falls apart the more I'm reminded of this: https://www.youtube.com/watch?v=NO0cvqT1tAE&ab_channel=heybaddog
But instead of Math class it's figuring out finance. Everything else sounds like something that one of the cryptobros would say and in the same tone.
I think tether is still up because the only ones who can really crash it are the exchanges, normal holders don't really have the ability to get tether to pay out.
As soon as some exchange suddenly decides they need to turn their tether back into USD the whole thing is going to evaporate.
It seems that because the exchanges owe the money but don't actually pay the debt, returning it just cancels the debt, which was probably fake anyway so nothing gained. So while there's billions of tether out there, I'm not sure how much of it is even eligible to try to jump through the extraction hoops.
I think tether is still up because the only ones who can really crash it are the exchanges, normal holders don't really have the ability to get tether to pay out.
As soon as some exchange suddenly decides they need to turn their tether back into USD the whole thing is going to evaporate.
It seems that because the exchanges owe the money but don't actually pay the debt, returning it just cancels the debt, which was probably fake anyway so nothing gained. So while there's billions of tether out there, I'm not sure how much of it is even eligible to try to jump through the extraction hoops.
The whole idea behind Tether seems to be to prop up exchange operators and other people at the top of the pyramid by inflating coin prices. They've been doing it long enough that one wonders if even 10% of the coin value out there is "real" instead of just monopoly money printed by Tether.
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OrcaAlso known as EspressosaurusWrexRegistered Userregular
On Oct. 14, in a house near Leeds, England, Laurence Day was sitting down to a dinner of fish and chips on his couch when his phone buzzed. The text was from a colleague who worked with him on Indexed Finance, a cryptocurrency platform that creates tokens representing baskets of other tokens -- like an index fund, but on the blockchain. The colleague had sent over a screenshot showing a recent trade, followed by a question mark. "If you didn't know what you were looking at, you might say, 'Nice-looking trade,'" Day says. But he knew enough to be alarmed: A user had bought up certain tokens at drastically deflated values, which shouldn't have been possible. Something was very wrong. Day jumped up, spilling his food on the floor, and ran into his bedroom to call Dillon Kellar, a co-founder of Indexed. Kellar was sitting in his mom's living room six time zones away near Austin, disassembling a DVD player so he could salvage one of its lasers. He picked up the phone to hear a breathless Day explaining that the platform had been attacked. "All I said was, 'What?'" Kellar recalls.
They pulled out their laptops and dug into the platform's code, with the help of a handful of acquaintances and Day's cat, Finney (named after Bitcoin pioneer Hal Finney), who perched on his shoulder in support. Indexed was built on the Ethereum blockchain, a public ledger where transaction details are stored, which meant there was a record of the attack. It would take weeks to figure out precisely what had happened, but it appeared that the platform had been fooled into severely undervaluing tokens that belonged to its users and selling them to the attacker at an extreme discount. Altogether, the person or people responsible had made off with $16 million worth of assets. Kellar and Day stanched the bleeding and repaired the code enough to prevent further attacks, then turned to face the public-relations nightmare. On the platform's Discord and Telegram channels, token-holders traded theories and recriminations, in some cases blaming the team and demanding compensation. Kellar apologized on Twitter to Indexed's hundreds of users and took responsibility for the vulnerability he'd failed to detect. "I f---ed up," he wrote. The question now was who'd launched the attack and whether they'd return the funds. Most crypto exploits are assumed to be inside jobs until proven otherwise. "The default is going to be, 'Who did this, and why is it the devs?'" Day says.
As he tried to sleep the morning after the attack, Day realized he hadn't heard from one particular collaborator. Weeks earlier, a coder going by the username "UmbralUpsilon" -- anonymity is standard in crypto communities -- had reached out to Day and Kellar on Discord, offering to create a bot that would make their platform more efficient. They agreed and sent over an initial fee. "We were hoping he might be a regular contributor," Kellar says. Given the extent of their chats, Day would have expected UmbralUpsilon to offer help or sympathy in the wake of the attack. Instead, nothing. Day pulled up their chat log and found that only his half of the conversation remained; UmbralUpsilon had deleted his messages and changed his username. "That got me out of bed like a shot," Day says.
Are they seriously, seriously, not doing background checks on who writes code for a muli million dollar securities program. I know I dont think its worth 14 million + but they do!
Neopets probably has better security than these fools. Secure blockchain programs! This is a joke.
He's a shy overambitious dog-catcher on the wrong side of the law. She's an orphaned psychic mercenary with the power to bend men's minds. They fight crime!
The question is really less "is it illegal" and more "is there any will to prosecute crypto-scams as if they're important and classify crypto as an asset class that laws apply to", and the answer to the latter is "not usually, especially if it's in the crypto-sphere."
The question is really less "is it illegal" and more "is there any will to prosecute crypto-scams as if they're important and classify crypto as an asset class that laws apply to", and the answer to the latter is "not usually, especially if it's in the crypto-sphere."
As self appointed internet representative at large, I propose putting quotes around any valuation of a crypto asset.
“14” “million” “dollars” “worth” of Bitcoin
+20
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syndalisGetting ClassyOn the WallRegistered User, Loves Apple Productsregular
There was a guy at a dinner I was at last night who said that the fact that tether could produce 7 billion USD in three days on a small run showed that it could do a thing that banks simply could not do.
These fucking guys think that BofA, JPMC, TD, etc aren’t sitting on enough liquidity to handle a single digit billion dollar run.
They also didn’t trust banks, crypto is way more reliable - to which I asked about iron finance, luna, and like 50 other rug pulls in the past six months… nah, all those did is prove how crypto is safer than banks.
It’s a cult, complete with recitations of faith divorced from reality that adherents must stick to despite stark evidence to the contrary.
SW-4158-3990-6116
Let's play Mario Kart or something...
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DHSChase lizards.....bark at donkeys..Registered Userregular
There was a guy at a dinner I was at last night who said that the fact that tether could produce 7 billion USD in three days on a small run showed that it could do a thing that banks simply could not do.
These fucking guys think that BofA, JPMC, TD, etc aren’t sitting on enough liquidity to handle a single digit billion dollar run.
They also didn’t trust banks, crypto is way more reliable - to which I asked about iron finance, luna, and like 50 other rug pulls in the past six months… nah, all those did is prove how crypto is safer than banks.
It’s a cult, complete with recitations of faith divorced from reality that adherents must stick to despite stark evidence to the contrary.
that is the reason that FUD is the oft-repeated prayer, almost like a magic spell, of the crypto-bro. categorizing all negativity towards your icons as fear, uncertainty and doubt that has no purpose other than to distract you from the icon's perfect holy form. i mean, it's a ctrl+f replace for Suppressive Person down to the purposefully obfuscating initialism/acronym. it's a cult but it does also kinda of prove both their and their detractors points that a decentralized version of thing can grow and replace the thing it was created to replace, just worse and only for the true believers.
"Grip 'em up, grip 'em, grip 'em good, said the Gryphon... to the pig."
There was a guy at a dinner I was at last night who said that the fact that tether could produce 7 billion USD in three days on a small run showed that it could do a thing that banks simply could not do.
These fucking guys think that BofA, JPMC, TD, etc aren’t sitting on enough liquidity to handle a single digit billion dollar run.
They also didn’t trust banks, crypto is way more reliable - to which I asked about iron finance, luna, and like 50 other rug pulls in the past six months… nah, all those did is prove how crypto is safer than banks.
It’s a cult, complete with recitations of faith divorced from reality that adherents must stick to despite stark evidence to the contrary.
Did they actually produce 3 billion USD, or was it more of their monopoly money?
Every time I go to Microcenter now there's at least one dude preaching about crypto in the line. All the poker guys are into it too. I had to listen for years on how decentralized cryptocoins were going to be the great equalizer for the little man! And instead, they just recreated the stock market, with the same crooked dudes at the top, but now with no regulation!
There was a guy at a dinner I was at last night who said that the fact that tether could produce 7 billion USD in three days on a small run showed that it could do a thing that banks simply could not do.
These fucking guys think that BofA, JPMC, TD, etc aren’t sitting on enough liquidity to handle a single digit billion dollar run.
They also didn’t trust banks, crypto is way more reliable - to which I asked about iron finance, luna, and like 50 other rug pulls in the past six months… nah, all those did is prove how crypto is safer than banks.
It’s a cult, complete with recitations of faith divorced from reality that adherents must stick to despite stark evidence to the contrary.
Did they actually produce 3 billion USD, or was it more of their monopoly money?
Every time I go to Microcenter now there's at least one dude preaching about crypto in the line. All the poker guys are into it too. I had to listen for years on how decentralized cryptocoins were going to be the great equalizer for the little man! And instead, they just recreated the stock market, with the same crooked dudes at the top, but now with no regulation!
Also your stock can just inexplicably disappear because some amateur script kiddy decides he doesn't want to move out of his parent's basement but rather buy the neighborhood.
There was a guy at a dinner I was at last night who said that the fact that tether could produce 7 billion USD in three days on a small run showed that it could do a thing that banks simply could not do.
These fucking guys think that BofA, JPMC, TD, etc aren’t sitting on enough liquidity to handle a single digit billion dollar run.
They also didn’t trust banks, crypto is way more reliable - to which I asked about iron finance, luna, and like 50 other rug pulls in the past six months… nah, all those did is prove how crypto is safer than banks.
It’s a cult, complete with recitations of faith divorced from reality that adherents must stick to despite stark evidence to the contrary.
Did they actually produce 3 billion USD, or was it more of their monopoly money?
Every time I go to Microcenter now there's at least one dude preaching about crypto in the line. All the poker guys are into it too. I had to listen for years on how decentralized cryptocoins were going to be the great equalizer for the little man! And instead, they just recreated the stock market, with the same crooked dudes at the top, but now with no regulation!
Also your stock can just inexplicably disappear because some amateur script kiddy decides he doesn't want to move out of his parent's basement but rather buy the neighborhood.
And there are no dividends or buybacks or any of the other possible benefits.
Posts
The faithful also probably believe that stablecoins are less likely to collapse in value in the middle of a transaction. I'm not convinced.
Also on a basic level, they're a tradable token that's not used for gambling. It's probably a lot easier to find someone who has the tulip bulb you want to trade for and is willing to trade it for probablydollars than one who is willing to trade their tulip bulb for another tulip bulb.
And then they got huge and propagated because it's a super easy scam to just lie that you have more money than you do and wildcat bank your way to stealing a fortune.
*This is an extremely low bar.
It also lets exchanges buy coins they don't have dollars for. One of the most suspicious things about Tether is that every time a prominent coin crashed, Tether would mint millions or billions of new coins, "backed" by highly questionable interest free debt (the exchanges "owed" Tether the balance in coins they held but didn't appear to be paying it in any meaningful way). So Bitcoin is down and the exchanges would start buying it for tether to stabilize the price.
A ridiculous and baseless claim, to be sure but even so this is a surprisingly stark repudiation of that false philosophy. We now have miners purchasing fossil fuel sites that were set to be capped off and closed, and mining directly at the site - often without permits. Because it's more profitable that way!
Rock Band DLC | GW:OttW - arrcd | WLD - Thortar
pleasepaypreacher.net
I certainly wouldn't be sad if they did.
Yeah if like it didn't harm someone else or damage the environment it wouldn't exactly be the worst thing ever. But with these chuckle fucks they'd probably be running an unlicensed daycare there or something.
pleasepaypreacher.net
If there is a better contemporary example of why unchecked capitalism isn’t just bad but unbelievably stupid and pointless I’d expect to read about it in the “where’s the good news Hedgie” thread I guess
To the moon, whatever it takes
It's a close race between this and the formula shortage
It amazes me that Tether hasn't been exposed yet. IMO they're making up their reserve backing and as you point out, every time a coin crashes they print more phony money. In a lot of ways they seem to be holding up the entire crooked crypto market.
I was going to say just like Warlocks hold up raids but that's Ethereum or whatever and god damn joke ruined.
pleasepaypreacher.net
As soon as some exchange suddenly decides they need to turn their tether back into USD the whole thing is going to evaporate.
fuck up once and you break your thumb / if you're happy at all then you're god damn dumb
that's right we're on a fucked up cruise / God is dead but at least we have booze
bad things happen, no one knows why / the sun burns out and everyone dies
Well, okay, maybe if it's not tax aversion that's preventing people converting back to dollars for stability, then I guess it's just general liquidity.
Or rather that their monopoly money isn't worth what they say it is.
Fair.
I just guarantee you they're not thinking that every time they switch currencies that's a taxable event and there's about zero chance they're declaring it on their taxes.
Fortunately it seems to have been drilled into the cult of crypto that you NEVER cash out. It will always go higher.
twitch.tv/Taramoor
@TaramoorPlays
Taramoor on Youtube
Some of that is from the trading value dipping below a dollar, but just a fraction, as it's currently trading at around a tenth of a cent under a dollar.
Undoubtedly, these are related. If you're one of the lucky few who can apparently cash out Tethers for a dollar, you can buy low and redeem high as much as you want! Infinite money, woo!
Of course, it's not infinite. You can only do it so long as Tether has money to give you.
Anyone want to take bets on what percentage of their total market cap Tether can redeem before things collapse?
(Entirely insane that it ever traded at a dollar, let alone steadily for years.)
Despite how difficult they make it, people are cashing out. If that continues, it will eventually become a very large problem.
But instead of Math class it's figuring out finance. Everything else sounds like something that one of the cryptobros would say and in the same tone.
It seems that because the exchanges owe the money but don't actually pay the debt, returning it just cancels the debt, which was probably fake anyway so nothing gained. So while there's billions of tether out there, I'm not sure how much of it is even eligible to try to jump through the extraction hoops.
The whole idea behind Tether seems to be to prop up exchange operators and other people at the top of the pyramid by inflating coin prices. They've been doing it long enough that one wonders if even 10% of the coin value out there is "real" instead of just monopoly money printed by Tether.
via good old /.:
lol
lmao
loooooool
Cryptobros hate this one weird trick!
except that the eve CEOs are generally more savvy
pleasepaypreacher.net
Neopets probably has better security than these fools. Secure blockchain programs! This is a joke.
The hacker: I gifted the exchange the tokens instead of selling them and the system broke cause it didn't know what to do.
Lol
The question is really less "is it illegal" and more "is there any will to prosecute crypto-scams as if they're important and classify crypto as an asset class that laws apply to", and the answer to the latter is "not usually, especially if it's in the crypto-sphere."
As self appointed internet representative at large, I propose putting quotes around any valuation of a crypto asset.
“14” “million” “dollars” “worth” of Bitcoin
These fucking guys think that BofA, JPMC, TD, etc aren’t sitting on enough liquidity to handle a single digit billion dollar run.
They also didn’t trust banks, crypto is way more reliable - to which I asked about iron finance, luna, and like 50 other rug pulls in the past six months… nah, all those did is prove how crypto is safer than banks.
It’s a cult, complete with recitations of faith divorced from reality that adherents must stick to despite stark evidence to the contrary.
Let's play Mario Kart or something...
that is the reason that FUD is the oft-repeated prayer, almost like a magic spell, of the crypto-bro. categorizing all negativity towards your icons as fear, uncertainty and doubt that has no purpose other than to distract you from the icon's perfect holy form. i mean, it's a ctrl+f replace for Suppressive Person down to the purposefully obfuscating initialism/acronym. it's a cult but it does also kinda of prove both their and their detractors points that a decentralized version of thing can grow and replace the thing it was created to replace, just worse and only for the true believers.
But yeah tell me about $8 billion over 3 days lol
Edit: lolol the 25th largest bank has $150 billion in deposits
Did they actually produce 3 billion USD, or was it more of their monopoly money?
Every time I go to Microcenter now there's at least one dude preaching about crypto in the line. All the poker guys are into it too. I had to listen for years on how decentralized cryptocoins were going to be the great equalizer for the little man! And instead, they just recreated the stock market, with the same crooked dudes at the top, but now with no regulation!
…for whatever you make of “crypto wealth”
Also your stock can just inexplicably disappear because some amateur script kiddy decides he doesn't want to move out of his parent's basement but rather buy the neighborhood.
And there are no dividends or buybacks or any of the other possible benefits.
This is the real tragedy