mike4001
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January 28, 2018, 12:10:50 PM |
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12k still cannot be broken.
Hopefully this happens sometime soon and more importantly we don't crash right back to 10-10,5k after touching 12k+.
On a sidenote: What's up with Ethereum? Rose 10% in the last 5-6 hours.
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Ludwig Von
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January 28, 2018, 12:29:45 PM |
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Ok I just read the latest article about Tether on Coindesk. I read between the lines that Theter did not want Friemann to dig too deep. That 's it guys, Tether is over and out. Now what will be the consequences?
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FractalUniverse
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January 28, 2018, 12:36:47 PM |
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Tether is over and out. Now what will be the consequences?
.. Won't believe it until it happens.
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realr0ach
Sr. Member
Offline
Activity: 924
Merit: 311
#TheGoyimKnow
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January 28, 2018, 01:16:32 PM |
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Everyone affiliated with Bitfinex should be in prison:
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Neo_Coin
Sr. Member
Offline
Activity: 1204
Merit: 293
"Be Your Own Bank"
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January 28, 2018, 01:24:17 PM |
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Everyone affiliated with Bitfinex should be in prison:
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realr0ach
Sr. Member
Offline
Activity: 924
Merit: 311
#TheGoyimKnow
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January 28, 2018, 01:32:42 PM |
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~>"Be Your Own Bank"<~
By buying silver or gold because bitcoin has built-in middlemen and doesn't remove counterparty risk. Since transactions aren't blinded and transaction validators are designed to centralize, it's a permissioned ledger in practice. The G20 then labels whoever they want "terrorists" and instructs the centralized pools to not process any transactions for them so your money is essentially deleted and you no longer exist, just like the system Aaron Russo warned about.
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Ludwig Von
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January 28, 2018, 01:39:13 PM |
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Tether is over and out. Now what will be the consequences?
.. Won't believe it until it happens. The question for me is : how to prepare for it to happen? Not just sit and wait.
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realr0ach
Sr. Member
Offline
Activity: 924
Merit: 311
#TheGoyimKnow
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January 28, 2018, 01:44:57 PM |
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The question for me is : how to prepare for it to happen? Not just sit and wait.
Yes, that's the hilarious part. The last time there was a Bitfinex scare and everyone KNEW they were a fraud, Bitfinex DOUBLED DOWN on fraud. They knew everyone would convert everything to BTC to try and withdraw, so what do they do? They pumped BTC on their own exchange right beforehand to make sure everyone is forced to buy the bitcoins at TOP DOLLAR HAHA. That's how big of crooks everyone affiliated with that exchange is.
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fabiorem
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January 28, 2018, 01:47:28 PM |
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The difference between Mt.Gox and Bitfinex is that, at that time, bitcoin had few use cases, and few exchanges, whereas now, is much more widespread, with lots of use cases and exchanges (there are even people using it to buy cars and houses).
So a Bitfinex scandal would not affect the price as much as Mt.Gox did.
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Lopumbo
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January 28, 2018, 01:53:26 PM |
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The difference between Mt.Gox and Bitfinex is that, at that time, bitcoin had few use cases, and few exchanges, whereas now, is much more widespread, with lots of use cases and exchanges (there are even people using it to buy cars and houses).
So a Bitfinex scandal would not affect the price as much as Mt.Gox did.
Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion.
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AlexGR
Legendary
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Activity: 1708
Merit: 1049
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January 28, 2018, 01:57:14 PM |
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Personally I don't see much of a difference between tethers and "real" dollars displayed on an exchange after you sell btc or a shitcoin. I mean they are both virtual until you get the money on your hand. Many insolvent exchanges showed dollar balances that weren't reflecting the reality of the USD holdings of the exchange, whether it was MtGox or more recent ones.
So no matter if it says "USD balance" / "EUR balance" / "CNY balance", "USDT balance" or even "BTC balance", it always has a risk when you are dealing with an exchange.
Having said that, I think one of the best applications of lightning-type channels would be the ability to instantly remove BTC funds which aren't actively traded, through the use of the channel. Since exchanges represent a big source of on-chain transactions, it would quickly make transactions cheaper, while also reducing the dangers involved with keeping bitcoins on exchanges. Want to go off for a weekend? Withdraw the money to the channel. Want to trade on Monday? Resend the money back to the exchange - through the channel... do I want to get the btc right now? I just close the channel... etc etc... It should also theoretically reduce the exposure of exchange hot wallets to hackers - which should move less funds in and out, on-chain.
edit for something irrelevant: I did a <20sat/byte tx earlier in the day to consolidate some funds, it cleared within a couple of hours... don't even remember when I went *that* low...
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fabiorem
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January 28, 2018, 02:00:52 PM |
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Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion.
The bagholders would be the ones holding tether, not bitcoin. In relation to bitcoin, this looks like a orchestrated FUD. It already happened before, when price was starting to rise.
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Ludwig Von
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January 28, 2018, 02:03:14 PM |
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The difference between Mt.Gox and Bitfinex is that, at that time, bitcoin had few use cases, and few exchanges, whereas now, is much more widespread, with lots of use cases and exchanges (there are even people using it to buy cars and houses).
So a Bitfinex scandal would not affect the price as much as Mt.Gox did.
Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion. Isn 't the majority of Tethers not sitting on Finex? On Kraken, there is very little volume with it.
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Ludwig Von
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January 28, 2018, 02:05:31 PM |
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Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion.
The bagholders would be the ones holding tether, not bitcoin. In relation to bitcoin, this looks like a orchestrated FUD. It already happened before, when price was starting to rise. We should not mistake between smoke from the BBQ and smoke from a starting fire... .
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Samarkand
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January 28, 2018, 02:07:44 PM |
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... Isn 't the majority of Tethers not sitting on Finex? On Kraken, there is very little volume with it.
You can verify where most Tethers are located using the Tether rich list: https://wallet.tether.to/richlistUsually, the USDT/USD trading pair on Kraken roughly had a trading volume of 1M $ per day. Today the trading volume has already crossed 4.5 M $.
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d_eddie
Legendary
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Activity: 2646
Merit: 3493
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January 28, 2018, 02:07:58 PM |
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Having said that, I think one of the best applications of lightning-type channels would be the ability to instantly remove funds which aren't actively traded, This could be an effective motive for the exchanges not to adopt LN. edit for something irrelevant: I did a <20sat/byte tx earlier in the day to consolidate some funds, it cleared within a couple of hours... don't even remember when I went *that* low...
Yet a number of exchanges or other online accounts still have a default fee of 0.0008 BTC for a standard 1in+2out tx, and users are not allowed to set it to a different value I think the two points made by AlexGR show how we'll really have to lobby the exchanges into servicing user needs. Much more competition is what we need.
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AlexGR
Legendary
Offline
Activity: 1708
Merit: 1049
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January 28, 2018, 02:20:18 PM |
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Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion.
Even in the worst case scenario, where bitfinex was printing money out of thin air and giving this vapor tokens to btc sellers, bitfinex still has the btc - which obviously cost more right now. I mean if you sold btc at 2000$ for 2000 USDT "bitfinex-vapor-tokens", bitfinex still has these btc and it has given them 6x in profits @12k. Same for those selling at 3000, 4000, 5000, 7000, 9000, etc - always giving bitfinex serious profits, while people were exchanging their btcs for vapor-tokens, and these BTC now can cover multiple times the USDT balance. Right?
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bitebits
Legendary
Offline
Activity: 2247
Merit: 3544
Flippin' burgers since 1163.
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January 28, 2018, 02:30:45 PM Merited by JayJuanGee (1) |
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Personally I don't see much of a difference between tethers and "real" dollars displayed on an exchange after you sell btc or a shitcoin. I mean they are both virtual until you get the money on your hand. Many insolvent exchanges showed dollar balances that weren't reflecting the reality of the USD holdings of the exchange, whether it was MtGox or more recent ones.
So no matter if it says "USD balance" / "EUR balance" / "CNY balance", "USDT balance" or even "BTC balance", it always has a risk when you are dealing with an exchange.
Having said that, I think one of the best applications of lightning-type channels would be the ability to instantly remove BTC funds which aren't actively traded, through the use of the channel. Since exchanges represent a big source of on-chain transactions, it would quickly make transactions cheaper, while also reducing the dangers involved with keeping bitcoins on exchanges. Want to go off for a weekend? Withdraw the money to the channel. Want to trade on Monday? Resend the money back to the exchange - through the channel... do I want to get the btc right now? I just close the channel... etc etc... It should also theoretically reduce the exposure of exchange hot wallets to hackers - which should move less funds in and out, on-chain.
edit for something irrelevant: I did a <20sat/byte tx earlier in the day to consolidate some funds, it cleared within a couple of hours... don't even remember when I went *that* low...
Interesting thoughts, thanks. Two questions though: - Wouldn't it mean that if every trader has a channel with for example GDAX, GDAX basically needs to keep all those bitcoins in some kind of a hot wallet? This is how I understand Lightning works, to be able to setup a node you need to have access to the private keys. - According to Andreas in ' Let's Talk Bitcoin! #352', Coinbase would never setup a Lightning node (don't have the timestamp). This because Lightning by default uses Tor, so Coinbase can't track where the transactions they are passing through their node are going to. Andreas thinks Coinbase/banks have the legal obligation to track where the money is going to.
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mike4001
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January 28, 2018, 02:31:46 PM |
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The difference between Mt.Gox and Bitfinex is that, at that time, bitcoin had few use cases, and few exchanges, whereas now, is much more widespread, with lots of use cases and exchanges (there are even people using it to buy cars and houses).
So a Bitfinex scandal would not affect the price as much as Mt.Gox did.
Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion. Hmm, wouldn't everyone want to sell their Tethers and buy every coin they can with it and pump prices up even more?
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rezurect007
Jr. Member
Offline
Activity: 70
Merit: 7
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January 28, 2018, 02:32:23 PM |
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Its not about bitfinex, its about tether. Count the number of exchanges with real! USD support - Coinbase, Bitstamp, Gemini and Kraken - thats it. Now imagine "the market" realizes that there are 2.2Billion worthless "USD" in the system, which where used to pump up the price from 1k$ to 20k$. Somebody will be the bagholder for those 2.2Billion.
Even in the worst case scenario, where bitfinex was printing money out of thin air and giving this vapor tokens to btc sellers, bitfinex still has the btc - which obviously cost more right now. I mean if you sold btc at 2000$ for 2000 USDT "bitfinex-vapor-tokens", bitfinex still has these btc and it has given them 6x in profits @12k. Same for those selling at 3000, 4000, 5000, 7000, 9000, etc - always giving bitfinex serious profits, while people were exchanging their btcs for vapor-tokens, and these BTC now can cover multiple times the USDT balance. Right? Basically an audit would prove the current solvency in the above case, but would also prove the vapour token theory, not very helpful.. loss of trust. I believe this is the reason the audit hasn't happened.
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