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1722
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Economy / Economics / Re: How do banks generate income?
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on: May 16, 2023, 10:11:31 AM
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So, from the net view of the bank: - A has a positive balance of +$200.000
- B has a negative balance of -$180.000
- C has a positive balance of +$180.000
- D has a negative balance of -$162.000
- E has a positive balance of +$162.000
- F has a negative balance of -$145.000
- G has a positive balance of +$145.000
So, with one deposit of $200.000, at this point in time, person A,C,E and G have a total of $687.000 Person B,D and F have a total negative balance of -$487.000 A,C, E and G get 1% intrest whilst B, D and F have to pay 3%. As long as B,D and F repay the debt, the final balance of the bank is fine. Exactly, and if it weren't for B,C,D,E,F,G the bank would have had $200.000 and zero negative balances, which is exactly what $687k-$487k does at the end of the line. I like the ending, the bank is fine as long as, everyone that borrows the money pays back, this is quite interesting and I'm sure you will agree with it, as long as customers pay back their debts the banks are fine. A scenario that will end badly in your friend's situation too if he decides he's not paying back the money you lent him while the housing market crashes!! As soon as they don't, the system is in trouble
Don't you find it at least one bit ironic that almost everyone is angry about banks not guaranteeing their deposits and how the system is broken when the trigger is actually the people who took out loans that are not willing to give back the money they owe? I find it quite a lot more than just one bit ironic! But anyhow, how could a bank that sets aside user deposits even work? How would they be able to give loans and why would they even pay you interest when they can't use that money and they have to keep it ready for withdrawal at any time? Why would they even take deposits at all? |
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1723
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Economy / Economics / Re: How do banks generate income?
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on: May 16, 2023, 08:26:57 AM
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It is accurate, you have misunderstood. mocacinno is saying that banks create that money out of thin air, not that the money created does not exist. When commercial banks lend money by creating it out of thin air with a lower reserve ratio, in some cases 2.5% or even 0%, they are creating money out of thin air even though the money they send you is real.
Sorry, but what you describe it's still impossible and it's not fractional reserve. When a bank lends you money for buying a house that money is directly spent as it leaves the bank to the previous owner, you can't do fractional reserves when you're paying money, you can only do that with reserves, that's why they are called so and not fractional loans. Second, what happens when you're paying back your since this would mean the virtual cash gets erased and replaced by real money?  Because otherwise, you would have a bank full of real money and virtual money back by nothing, when actually there is real money backing it up! If my understanding of fractional reserve is correct, i might have explained it better....
I asked chatGPT for an ELI5 about fractional reserve banking in regards to the housing market, and this is what it came up with... To the best of my understanding, this is correct.
The bottom line is that, in this example, there was an initial deposit of $20.000 (for example, on somebody's saving account), and in the end the banks manage to lend out (and collect intrest on) $200.000 with only the $20.000 in the bank account to back up all those loans. The person with the saving account gets intrest on the $20.000 whilst all the borrowers have to pay the bank intrest on $200.000.
No, the bank is not making 200 000 out of 20 000! Just as in the exact line you've quoted from the answer chatgpt gave you the banks sometimes loan 90% of the deposits. So in your case with a deposit of 20 000, the bank will be able to make a loan of only 18 000! For a consequent loan, it needs another step, which chatgpt mentioned one line below, the cycle, for that person to deposit the said loan in the bank, which, let's get real is impossible and it makes no sense at all. So A deposits 20 000. B takes a 18 000 loan and deposits 18 000 in his house seller account! C takes a 16 200 loan and deposits 16 200 in his house seller account! D takes a 14 580 loan and deposits 14 580 in his house seller account! None of the house sellers are taking a penny out of the bank! Do you see this as actually happening in any economy or at least in 1% of consumer spending? But wait, it's not even the 10x loan-to-deposit ratios, that cause We have A,B,C,D deposits worth 68 780 we have 48 780 in loans and we have still 20 000 in cash since nobody took money out of this scheme. Furthermore, how is that different from you having 200 000 loaned to your friend with no fractional reserves? You have loaned him 200 000 and you won the rights to the house, the bank is indeed 180 000 short in cash, but has 180 000 on the loan it has given out! So fast forward ten years from now when the guy pays back his loan, what happens to the so called virtual money? |
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1724
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Bitcoin / Bitcoin Discussion / Re: 2.4% People from Bangladesh Hold Cryptocurrency
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on: May 15, 2023, 08:37:34 PM
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Country with 1.8 million population having 2.4% of cryptocurrency holders is a great thing. However when calculated mathematically the holders count is less than 45k.
It's like the first line in the article: It is estimated that over 4 million people, or 2.4% of Bangladesh’s total population, currently own cryptocurrency. Bangladesh has ~170 million people, not 1.8! Anyhow, this 2 - 3 % I've seen lately are coming back down to a more credible number than 20% for some countries which is simply ridiculous, we're nowhere near that level at adoption yet, and if we were at that with these low prices and even low number of transactions and businesses accepting crypto it would be completely weird near impossible. So, a long way still to go! |
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1725
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Economy / Economics / Re: How do banks generate income?
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on: May 15, 2023, 08:06:49 PM
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When a bank gives you a loan of 300.000 euro's, they don't have to have 300.000 on their books... They can just create "virtual money" which they loan out to you. IIRC, the percentage is actually a little less than 10%. So, a bank can have 30.000 on it's books, and still give out a 300.000 loan AND get 279.000 in intrest. They don't double their money, they actually multiply their investment by a factor >9...
Sorry, but this is completely inaccurate! Simple real-world personal example from 2017: I've sold my house to a guy who took a mortgage to buy the old apartment, the price was 140 000E, he took that loan, the bank wired me the money, the full 140 000E, and I spend it like the next day buying my new apartment in which I live now. So, where are the virtual money and how did the bank manage to pay me the entire amount when they deal only with 10%?  You forget that it's not the bank that's selling you this, the bank needs to pay the actual owner of the house that can go the next day out to Las Vegas and gamble and whore all the sum in a day, and the last time I checked neither casino nor brothels take virtual money! |
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1726
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Economy / Speculation / Re: Leak Reveals Secret Democratic Plan For A Game-Changing U.S. Crypto Crackdown
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on: May 15, 2023, 07:57:59 PM
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What part of : "The problem isn’t ambiguity—it’s mass non-compliance with existing laws," the memo reads. "We can't invent new accommodating regulatory structures simply because crypto companies refuse to follow clear rules of the road." did you miss when you assumed this is an all out attack on Bitcoin when it's obviously against crypto companies that ask all day for regulations to attract investors and when those come they do all possible to bypass them in order to play with people's money how they want like it's theirs? Let's bring the tinfoil hat although a regular hat might do just as good - Binance is in hot water in the US since , well, we all know what it did there and how they tried to avoid every possible regulation with a 0.2 sqm virtual office in Delaware - Forbes in which Binance poured $200m it fleeced out of its gullible customers comes regularly with a doomsday article on how regulations are bad for the price and the world will end if Binance is forced to flee the US. They'll happily create a crypto market crash and make investors lose money in order to prevent them from losing money.
I thought that was what FTX has done! Probably my memory is playing games with me but it wasn't either party fault that triggered that! |
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1727
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Bitcoin / Mining speculation / Re: 2023 Diff thread now opened.
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on: May 15, 2023, 02:31:46 PM
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Coming back to this post: I was curious about this on the last adjustment but forgot about it, so the interesting part about those is that the last time we had 3 consecutive adjustments under 2.5% (+ or -) was on 2022-07-07 , prior to that on 2021-03-19 and 2019-12-19.
So 3 times in 4 years, and not even once we had 4 in a row.
So we're past this: 788,256 2023-05-04 18:28:07 48,005,534,313,578 - 48.01 T - 1.45 % 0x1705dd01 10 min 10 s 343.07 EH/s
786,240 2023-04-20 12:57:33 48,712,405,953,118 - 48.71 T + 1.72 % 0x1705c739 09 min 50 s 348.60 EH/s
784,224 2023-04-06 18:33:19 47,887,764,338,536 - 47.89 T + 2.23 % 0x1705e0b2 09 min 48 s 342.16 EH/s not even a 1 Exa in a month, (0.91) and we're looking at 2.1% with ~ 3 days to do, high chances to still tick under 2.5% I will take all the diff adjustments for the last years cause I'm really curious percentage-wise how many times we experience changes this low. Of course, I already know it's one thing to get 10% at 30Exa and a different game for it at 300 but could it is that we reached some sort of peak hashrate moment when expansion plans are on hold? and 0.00000336 btc a th
Yeah, I was curious how much we will stay closer to 10 cents rather than 7 but seems like we're back at those levels. The mempool is still full with 190 blocks of tx left but less than 1/3 of it is over 10sat/b so 0.00000311 now! |
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1728
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Economy / Exchanges / Re: Exchanges X Canada
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on: May 15, 2023, 01:47:44 PM
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But I think this is all good for the crypto space, the last thing we want is for Binance to control the whole marketshare.
I've kept telling newbies here who see CZ like some sort of revolutionary leader that will make them rich with 2 cents in bnb tokens, CZ right now is probably the most dangerous thing right now to BTC , not to crypto in general as he pumps a ton of shitty tokens and altcoins but for BTC he's an enemy and a real slimy thing, remember how he did the improvements for BTC withdrawals? - first stop them to panic people and to tarnish BTC reputation - then apply the ointment as he is planning on implementing LN and allow newbies to crown him again king of innovation! 1) You are cooking the books
2) There are no books
Lol, on that! First time hearing it but damn is accurate! |
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1729
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Other / Beginners & Help / Re: What will happen to a wallet when the wallet company closes
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on: May 15, 2023, 12:55:19 PM
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What would happen to a wallet when the company hosting the wallet closes down?
Since most are focused on telling you about the risks when the company closes down, that shouldn't be your biggest fear at all! If a company closes down just because it wants to end its business, there you might still have the chance to get your funds out till a certain date, usually a few months before the wallets become inaccessible! But, that's a good ending scenario! Using a wallet that you don't control will for sure not end only with a company closing down, it might end with - the said company gets hacked - you lose your coins - the said company getting " hacked" - you lose your coins - the said company is bad at business, FTX style - you lose your coins - your account gets hacked but the company denies it's their fault - you lose your coins - you lose access to your login credentials - you lose your coins So there are a hundred more bad ending scenarios other than just shutting down! |
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1730
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Bitcoin / Bitcoin Discussion / Re: Bitcoin IS an asset. Do you think it's bad?
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on: May 15, 2023, 09:17:48 AM
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Bitcoin is a piece of code, you can use that to what, is what you want it to be! I said it numerous times, just like this: My point also, and this is one thing I love about it, is that anyone can use it the way it wants, and not just based on some whitepaper, you want to buy 0.1BTC and wait till you can buy a Ferrari with it, go ahead, you want to hide some of your money cause you think your wife is cheating and might run away, do it, you want to buy something from Irak but no bank will let you send money, that's your choice! Go!
You can transfer value, you can hide value, can store value, can increase value (through trade), use it how you like it. And more importantly probably that this is another thing: Just as you are not required to explain why you're using Bitcoin, you shouldn't question somebody else on what he's doing either. Your keys your coins, his keys, his coins, his decision! I don't want to say that it's bad, it's just surprising me. I created a thread where I asked if people think that Bitcoin will become stable enough to become a new currency cos I thought it was the whole idea, but everyone was telling me that it will always fluctuate and it's just a method to earn money.
Show me one thing humans invested in and hasn't been turned at least once in its history into a money-making business. From war to religion, VPNs to car sharing, Bitcoin to jpg monkeys! |
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1731
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Economy / Economics / Re: 199,983 companies went bankrupt in Europe because of the energy crisis in 2022
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on: May 15, 2023, 09:10:12 AM
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Starting with yes it's BS
I just love this topic now, pretty surprised that nobody went just for the title and everyone took their time to read what the actual numbers mean, the propaganda backfired like it was supposed to be. Now fast forward to your question in Europe (I exclude the UK since I'm not familiar with them) we have the things, insolvency, and bankruptcy, much like the US but with the difference that once applied to companies, not LLC or personal enterprises bankruptcy is the final step, a company entering bankruptcy after going through restructuring and unable to pay its debts, insolvent, will get shut down as it has no way out of its debt, it happens usually if in 1-3 years after declaring insolvency it still going through losses. This thing, again, shows why that stupid title is so misleading, as a company facing problems with the 2022 energy crisis (now gone!) would have just sought protection and wouldn't have declared bankruptcy the same year, it simply couldn't have happened. Here, a company can go bankrupt but just for debt re-organizational purposes. It still continues to exist, and operate, but all the money it owes people has been reorganized and or wiped out. Or the debtors take over the business and operate it, or instead of shutting down of the banks that were owed money to take it over and try to sell it. That's what restructuring or insolvency is here, the moment we hit bankruptcy it means the end of it and the court orders the sale of assets. It doesn't apply to entrepreneurs or LLC! While he is generally a quality poster, you made me remember that he said that half a million families had gone homeless in the UK, which I quickly dismantled, and I've been looking for the post to quote it but I don't know if he deleted it because I can't find it. It seems he only wants to see the speck in his neighbours eye.
What the refusal of a green card does to people, really sad, isn't it? Just get over it, your propaganda ended like Soleimani, kotlet! Nobody is buying your alarmist and apocalyptic shit anymore! |
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1732
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Other / Beginners & Help / Re: The cost of maintaining wallet
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on: May 13, 2023, 09:26:39 PM
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First send your seed phase or private keys to your emails, also use them to compose a little song only can listen anytime, write it down in your diaries, and makes sure have a google doc to save your wallet keys and other information.
You lost me by email, you lost all the audience at google doc!! Save all your information and your private keys in google docs?? One of the first things that get hacked when you download stupid stuff, one of the first targets of malware, a thing that you can lose access to immediately by losing your phone, that can be hacked by sim swaps, seriously? Choosing google docs is one of the worse ideas ever, I don't know what could be worse, maybe uploading all this to megaupload and hope it's not taken down again? Next: "write it down in your diaries" Yeah, and put your diary right on your desk and carry it all the time with you so anyone could read it, your colleagues, visitors to your home, somebody that steals your backpack, another bright idea! I don't get it, there are hundreds of topics and thousands of advice all over the internet about how to safely keep your seed and private keys, have you ever seen somebody saying it's a good idea to keep your data on google drive? https://www.reddit.com/r/cybersecurity_help/comments/op9sp7/how_was_my_google_drive_hacked/I posted here about how a large amount of my crypto was stolen (I stupidly saved a mnemonic on google drive). Crypto is gone 3 reasons storing sensitive files in Google Drive is a bad idea https://www.komando.com/security-privacy/google-drive-security-risks/840655/ |
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1733
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Economy / Economics / Re: Pay your debt with monkeys!
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on: May 13, 2023, 08:18:17 PM
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Bumping this topic since monkeys have become a commodity : After Sri Lanka, Nepal debates exporting its ‘problematic’ monkeys https://news.mongabay.com/2023/05/after-sri-lanka-nepal-debates-exporting-its-problematic-monkeys/Yet none of these latter points seemed to merit much coverage in Nepal, where media reporting on the issue has focused on the millions of dollars that Nepal could earn exporting its own monkeys.
Dhanraj Gurung, a member of parliament from the Nepali Congress party, is among those calling for the country to start exporting monkeys to both earn foreign revenue and address the pest problem. “Monkey terror has spread in the villages,” he said in a speech at the House of Representatives. “Looking at the current economic situation, I think it is right to decide to export monkeys.” Forget de-dollarization, forget buying gold, forget BTC! Grab a few monkeys and breed them like rabbits, it's the hard currency of tomorrow! |
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1734
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Economy / Exchanges / Re: Exchanges X Canada
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on: May 13, 2023, 08:08:20 PM
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What are your thoughts on this? Do you think this is actually necessary to avoid another FTX-scenario?
What Canada tries to do here is exactly what Japan did and made all those shady exchanges (including Binance) flee the country. The biggest thing that prevents them from following the new rules is this: enhanced expectations regarding the custody and segregation of crypto assets held on behalf of Canadian clients and a prohibition on offering margin, credit, or other forms of leverage to any Canadian client. None of those exchanges are doing this, they are playing with customers' money behind the scenes like it's monopoly money. As for the other question, it's pretty easy, let's just remember what happened to FTX Japan Japan Was the Safest Place to Be an FTX CustomerIt looks like Binance is also joining the pack[1].
Oh no, what a surprise, after fleeing Singapore, HK, Japan, and Malta, despite being fully compliant they are the first to flee when laws are actually going to be enforced. Funds are #SAFU /s |
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1735
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Other / Beginners & Help / Re: AWESOME!
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on: May 13, 2023, 07:47:45 PM
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You're reading the percentages wrong. It's 94% of all the buyers are millennials under the age of 40, there could be two or 1 million of them! That doesn't mean that 94% of the population is buying, it doesn't mean the majority of millennials are buying or using crypto, and it doesn't mean anything from a global perspective. For example, if 9 people under 40 buy bitcoin and one over 40 does the same you have 90% of the buyers being millennials, but there are still only ten buyers. "420 million crypto users" is approximately 5.3% of the total population of the world, that's not even close to 80%.
With the mempool clog happening with just 400k transactions, I really believe the 400 million! "users" number is pure bull! |
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1736
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Economy / Economics / Re: 199,983 companies went bankrupt in Europe because of the energy crisis in 2022
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on: May 13, 2023, 03:20:43 PM
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You forgot to add that those 199,983 companies are - 0.86 of the total number of companies in Europe - the increase is from 0.63 the year before, so a huge number 0.2% increase, lol It contradicts your previous lies about the German bankrupcies: In a recent interview in German TV the head of the Federation of German Industries BDI, Siegfried Russwurm pointed out the increasing number of insolvencies in the country. 30% have already declared bankruptcy while about 60% have claimed to go insolvent this season. Only about 11% of the German businesses has claimed to have no issues! Majority of them claimed that they are going to take their capital outside Germany.
But as usual, the distorting of truth is your specialty! Also, you deliberately forgot to add the conclusion of that article: "The balance sheet figures show a slight economic recovery of companies in Western Europe after the deterioration in the first year of Corona," explains Hantzsch. Significantly fewer companies would have a negative profit margin. 21.3 percent of the companies still recorded negative EBIT in 2021 (previous year: 26.7 percent). A fifth of the companies (19.6 percent) achieved a very high profit margin of more than 25 percent. Equity ratios have also recovered somewhat. The proportion of companies with a high equity ratio of more than 50 percent rose by one percentage point to 47.2 percent. By contrast, the proportion of companies with a very low equity ratio fell to 22.0 percen
How about you stick to the troubles of the shitshow that is Iran now and the falling rial rather than bitching about Europe and the united states all day? LE: What a non-suprise, what this little propagandist has forgotten to add from the report is the graph of bankruptcies around Europe in normal times: Easy to understand why : https://www.creditreform.de/fileadmin/user_upload/central_files/News/News_Wirtschaftsforschung/2023/Insolvenzen_in_Europa/2023-05-11_AY_OE_Analyse_EU-2022.pdf There were actually FEWER bankrupcies in Europe in 2022 than in 2019 and 2018! |
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1737
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Bitcoin / Bitcoin Discussion / Re: Adoption for Bitcoin Advances amidst High Network Fee
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on: May 11, 2023, 12:41:40 PM
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Just as the Bitcoin network experiences similar network traffic and congestion from 2017 to 2018 this will still happen shortly so the best option right now is to look away from spending Bitcoin until miners can fix the network problems by increasing the hash rate to get the transaction confirmed asap and decongest the network to ease the troubles facing them right now.
Miners can't fix something that is not broken! Increasing the hash rate can't be done without spending billions right now and it will only work temporarily till the next adjustment in 7 days. Besides, right now due to luck we have more blocks than there were supposed to be, full 23 extra blocks in the last 24h. How soon will the hash rate be fasten up is the challenge.
Guys, seriously, stop with the hash rate! Increasing the hash rate is a temporary fix for 5-10% extra capacity for 7 days till the adjustment kicks in and the cost for the machines to rise it up by that mush is in the hundred million! |
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1738
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Bitcoin / Bitcoin Discussion / Re: Adoption for Bitcoin Advances amidst High Network Fee
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on: May 11, 2023, 11:23:16 AM
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I understood but my post is to help you get a point that compare transaction fee at different times in USD is non-sense. It only makes sense if at two different times, Bitcoin has same price in USD.
In this comparison, between 2023 and 2021, Bitcoin has two different prices and the difference is very big. Big enough to make the comparison is invalid. Transaction fee can be $20 but if Bitcoin price is $60,000 in 2021, you had to spend less satoshi for your transaction than in 2023 when price is only about $30,000.
Bruh, nobody cares how many satoshis he is paying for a fee! Nobody!!! What he cares about is what those satoshis mean in $! That's all! If BTC reaches 300k nobody here will give a crap that he has to pay only 10sat/b instead of 100sat/b now. I couldn't care for Bitcoin to be one hundred quadrillion, I ain't going to pay one million $ for a tx, even if that is 1sat/b. |
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1739
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Economy / Economics / Re: Russian Gas ban - A problem for Europe or suicide for Russia?
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on: May 11, 2023, 11:14:54 AM
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Has anyone checked the crude oil prices? Despite the massive production cuts from OPEC, Brent crude is still trading at $76 per barrel. What has happened here? The supply has gone down by a massive amount. But the demand has also gone down. Anyone know the reason for this?
What, from being an expert on politics, military, economics, oil and gas you have no clue what's happening? Simple, the US oil industry is outperforming and pumping record after record of oil: The U.S. Oil Industry Is Trending Toward A Record-Breaking 2023while China manufacturing is contracting instead of recovering to pre covid levels: https://economictimes.indiatimes.com/news/international/world-news/chinas-manufacturing-contracts-signaling-recovery-concerns/articleshow/99882543.cmsAnd of course, gas is going lower and lower and touching 34 euro per mwh. Don't you feel stupid now for posting crap like this all year long? Americans have been releasing oil from the Strategic Petroleum Reserve (SPR) like there is no tomorrow. The Biden administration ordered this, because he knows that his party is fucked for the November elections. The issue here is that, once the election is over this gimmick will stop and the crude prices will be back to $120-$130 level. And in the end the American public will suffer. Because they are getting rid of the reserves in SPR when the prices are <$100 per barrel. And most probably it will be refilled when the prices are at least 30% higher.
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