Edit Well this happened.
https://cryptobriefing.com/xrp-investors-sec-ripple-lawsuit/

Ok for context, tether fud has been around from day 1, I remember it well and asked the question a few years ago why Tether had not collapsed.

I concluded that there was a lot of FUD around tether.

Now the 'meme's are

[1] 15th to produce documents to NYAG' and surrounding litigation and

[2] Tether is the main on-ramp for crypto funding.

[3] Tether pumps then the market pumps.

What is your view on all this particularly the 15th?

What I want to know who exactly sending money to tether and where from to buy all these USDT? and who is their banker? I mean the are presumably putting the USD somewhere.

One senerio....suggested.
>If tether blows initial panic selling will occur
>After initial withdrawals, exchanges won't be able to supply real USD for further withdrawals, because they won't be able to convert 1 tether for 1 usd (because tether prints out of thin air)
>that's when the shit really hits the fan, exchanges go bankrupt and real funds are frozen and can never be withdrawn, you are left with useless tokens.

So is this all FUD or what?

Thought about this, good idea, could start with a credit union or something.

the Banking licence is the key.

we need about 100M capital to look reasonable.

We can piggyback off existing banking infrastructure which is common for a credit union, and set out our constitution to be BTC friendly.

However, we have to consider the 3 hardest parts of the banking issues

[1] overhead costs
[2] compliance costs
[3] custody costs

This last one is quite expensive and hard to do. Custody of BTC if we go that path is not trivial. maybe we just openly DONT discriminate against BTC/Crypto source funds which means [1] and [2] are the issues.

how to fund it.

Banks rely on loan issuance and being a large enough loan issue to exist. with FRB, you can loan out about 10x, so 100M means we could execute about 1B worth of loans.

At 1~2% interest rate if that in repayments that's only $10 ~ $20 Million a year to keep the lights on, which is not really that much to manage everything.

If you went the exchange route, then yes you could collect the trading fees or better yet partner with say binance and take a cut, on the basis you are constitutionally crypto-friendly.

BTC custody is expensive though. Think through the safety, backups, the tech behind it to manage everything, plus make sure your own staff can't get hold of the private keys and run, this last point is very hard to do inmho.

While you could sell, the problem is while you may make a profit, say 2x, this doesn't count for much when BTC does a 10~20 x and then drops 50% 75% x even.

You're locked out of most of the next 10 x so for a momentary cycle of 2 x you give up access to 100x over a longer time frame.

That is you have to time buying back in, which is really hard. The upside risk makes this not really a viable strategy

And even if you do sell out and buy that other asset, you still have to look at that asset, for basically ever, and live with the fact BTC has gone 100x or more in the next 2 cycles and so on.

It's not like you get to stop watching the graph if you sell out, you just enter into the what-if realm.

The only solution it seems to at most sell very small amounts that have no real effect on your overall holdings even though it did cost you a lot. Eg a BTC in 600$ sale in 2016 or whatever cost you 29K now. Or maybe 20K for buying power since the printers went brrrr.


So of your portfolio, you can sell maybe 1~5% max over time.

Long term it seems we have to wait until BTC becomes the denominator that is the reserve world currency. Then we can but in BTC, and everything will be unstable compared to it or stabilize in BTC and that is 20 years off?

nothing is stable unless it is the denominator.

Once everything is denominated in BTC, then everything else looks unstable.

This myth of stability had to go.

I don't buy it the ETF has been promised for years it always gets promised and never happens

Hi, I agree, but we would be using in negligence, or similar actions, tort or which is unrelated to whether Ripple has made many illegal transactions.

A class action could likely be made out against the SEC by XRP holders.

[1] The SEC failed to act in a timely manner with respect to XRP allowing XRP to continue for 5 years with no complaint.



[2] The SEC's failure has contributed to or caused losses it's action now has directly or indirectly caused.


The SEC's filings admit they knew or constructively knew in 2013~2014

Edit Well this happened.
https://cryptobriefing.com/xrp-investors-sec-ripple-lawsuit/

I had a drawn-out debate with Joel Katz in the ripple forum back in the day that Ripple/X was centralised because you had to be invited on to the UNL.

Bitcoin (and crypto) is open to anyone who can hash.

It now seems the SEC has taken the same view, though in a tangential way.

The SEC has hooked onto this as they can see XRP/RIPPLE has officeholders and clearance house etc.

This is all a consequence of the UNL invite structure

so in the lisk ico they collected 14000 BTC so at 20K a bitcoin that's 280M which is more than their market cap....now....

taking a look at their financials is seems they liquidate 275 BTC and pay most it to themselves.

I can't help but think they would be better of just buying up lisk on the market. This may raise price and draw interest in from outside devs who hold the coin then see the wroth in doing something with it.

Stock-to-Flow Model:


why does that sound so click baity?

Tether was so FUD years ago I thought It was going collapse.


I think it has collapsed, just no one noticed or can prove it.

I am pretty sure it's fractional.


Now there are plenty of other USD coins to take over, but honestly, until they have a transparent real-time issuance and burn mech it not trustworthy.

I guess this kind different point but the USD is collapsing faster so even if tether fails, sure short term there will be issues but another better solution will arise and BTC will continue.

To buy big you need FUD

some of the FUD was real, however, I think that a lot of "economists" and people that should know, share traders analysis, bond buyers, have no understanding of what money is.

They rarely think is the 100$ in their wallet really worth 100$. Eg face value vs actual value, and inflation vs dilution by printing which is how inflation is done now.

For instance, they never have the thought that No one ever made any money on the share market, your only wrapping around pre-existing ledger amounts and loan execution via fraction reserve banking is how money is made (excepting cash).

Think about that one for a moment. No money has ever been made on the share market or destroyed. It never crosses their mind.

So where are all the normie Economists, Bankers, who said it was over in 2018? Silence "Chirp Chirp" Crickets. 



Do you think *they* get it yet, or is it rinse repeat 100k~200K, next cycle and at $1 M a coin they will "get" it then.

annnnnnd we are through.....20500 as I watch now

The coins days destroyed indicated people sell more all-time highs

What do you think of this metric? good bad etc?

https://blockchair.com/bitcoin/charts/coindays-destroyed?interval=full

What were the relatively massive volumes about a month to 3 weeks ago all about?

here comes the 3rd time for 20K I think it's going to do it. Then 30K pretty quick

edit 16.12.2020
annnnnnd we are through.....20500 as I watch now

ok, i was wrong 5 dumps from 20k.

I hope they were 100:1 leveraged bears.

edit 2.01.2021
annnnnnd there went the 30k pretty quick

well yeah ok fair call.

It just I wanted to give it a chance.

10 years into the game and 90% + of everyone that is/was going to sell has sold or been short squeezed into liquidation at some point.

Only true longs remain. This leaves something like a dex/uni swap the most real marker except that wrapped BTC and co is probably fake as well.