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Cryptocurrency mega-thread

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bzparkes said:
What happens when they * it up? You lose your money and the CEO gets a 400m golden handshake.
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OR - there are mechanisms to protect deposits.

You can't fix banking system problems by going to an even WORSE system.

What happens when a crypto "bank" ****s up? Everybody loses and the instigators run off with BILLIONS.
 
Seeds said:
Oh the irony in posting a comment from buffet who believes crypto is completely worthless.
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Dude, if you're not an advocate for cryptocurrency, just leave the thread. You're a genuine downer.
 
Chief said:
It doesn't solve any problems. The technology might be good for something, some day. But it's not good as money.
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Decentralised crypto solves the problem of having your money controlled by the government. While government can take money from your bank account, they can't take it from your hardware wallet. That's important to some people.

I've also found stablecoin transfers a quick and easy way to pay people internationally. The banks have caught up in a lot of ways with Osko payment, etc.

Privacy is another facet that crypto can be better than money if electronic payments are necessary. Of course, if you want to commit crime, cash is king. ;)
 
I've repeated the arguments a few times and will do it once more.

Government control - you're swapping it for control by a small group. The ownership of Bitcoin is very centralised. And in any case government can just block financial institution transfers to and from exchanges to choke it off.

Privacy? Once someone knows your wallet address, all of your historical and future transactions are right in front of them. A few crypto scammers and their spruikers like Logan Paul are being undone by this.
 

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Chief said:
I've repeated the arguments a few times and will do it once more.

Government control - you're swapping it for control by a small group. The ownership of Bitcoin is very centralised. And in any case government can just block financial institution transfers to and from exchanges to choke it off.
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Ownership doesn't denote control of the ecosystem. Bitcoin started off being traded without centralised exchanges and could function without them. There's no easy means of banning bitcoin entirely given there's no single point of failure and no CEO to sue.
Chief said:
Privacy? Once someone knows your wallet address, all of your historical and future transactions are right in front of them. A few crypto scammers and their spruikers like Logan Paul are being undone by this.
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There are ways around that to varying degrees. Privacy tokens like Monero for example. Mixers. Online casinos. Localbitcoins.
 
Evolved1 said:
Decentralised crypto solves the problem of having your money controlled by the government. While government can take money from your bank account, they can't take it from your hardware wallet. That's important to some people.

I've also found stablecoin transfers a quick and easy way to pay people internationally. The banks have caught up in a lot of ways with Osko payment, etc.

Privacy is another facet that crypto can be better than money if electronic payments are necessary. Of course, if you want to commit crime, cash is king. ;)
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How those people that had Luna in hard wallets feeling these days ?
 
bzparkes said:
This is exactly how the banks operate though and how the sub-prime mortgage crisis lead to the GFC.

The difference in crypto is that when you do the lending (usually in the form of yield farming/providing liquidity) you take 99% of the profit.

When the bank lends your money, you get what, 1.27%? Pittance.

Having said that, there are real risks in providing liquidity, so you damn well better know what you are doing or you just get straight up rekt.

Definitely not something for amateurs.
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Absolutely, staking requires careful research into how that platform is able to offer you those returns. Are they needing to enter into high leverage trades? Are they transparent with their funds (e.g. providing all wallet addresses) and how they are used to sustain the APY/APR for their users? If it is additional supply like Merit Circle, are there mechanisms in place to help counteract the impact of the increase in supply (e.g. buybacks and burning of the MC token off the open market based on a % of treasury profits)? Is there a governance structure in place so the community is able to have a say in the staking model? Is the project team active on social media and engaging with their community on a regular basis?

Make sure you understand all of these things first so you can make an informed decision before staking on a CEX, let alone DEXs.
 
BACCS said:
Absolutely, staking requires careful research into how that platform is able to offer you those returns. Are they needing to enter into high leverage trades? Are they transparent with their funds (e.g. providing all wallet addresses) and how they are used to sustain the APY/APR for their users? If it is additional supply like Merit Circle, are there mechanisms in place to help counteract the impact of the increase in supply (e.g. buybacks and burning of the MC token off the open market based on a % of treasury profits)? Is there a governance structure in place so the community is able to have a say in the staking model? Is the project team active on social media and engaging with their community on a regular basis?

Make sure you understand all of these things first so you can make an informed decision before staking on a CEX, let alone DEXs.
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Yeah, the biggest thing people fail to understand with staking is how much it dilutes the supply. You're doomed if you can't look past the hype and actually see if there's a buyback/burn mechanism to counter the increased supply.
 

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bzparkes said:
Yeah, the biggest thing people fail to understand with staking is how much it dilutes the supply. You're doomed if you can't look past the hype and actually see if there's a buyback/burn mechanism to counter the increased supply.
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Absolutely. Another thing to check is whether the project can generate revenue outside of just their token or investments in other tokens/NFTs going up in price, which is especially important in a bear market. If they have no funds to continue building their product, that is where bad decisions can start being made e.g. leverage trading with user funds.
 
BACCS said:
There won't be any sustained run ups for a while, just small bounces between FOMC meetings and CPI prints in the US. Honestly can't see any sustained rallies until late Q1/Q2 2023 at best, but happy to be proven wrong!
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I'd rather just coast along like this until around 6 months before the next halving, even if I goes lower. More interested in accumulating for the next couple of years at this stage, then looking at what projects have managed to still go strong during the bear market and look to get in early on those.
 
BACCS said:
Absolutely. Another thing to check is whether the project can generate revenue outside of just their token or investments in other tokens/NFTs going up in price, which is especially important in a bear market. If they have no funds to continue building their product, that is where bad decisions can start being made e.g. leverage trading with user funds.
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Yeah, I had a bit of a holding in FAB (a synthetic asset issuance protocol only recently built on Solana)

Great community and the audit of the code was pretty much flawless. However a couple of weeks ago the coder (and co-founder) was discovered to have leverage traded the treasury funds away :rolleyes:

Lesson learnt : Don't trust, verify. Ask to see the address of the treasury fund wallet if you have to
 

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bzparkes said:
I'd rather just coast along like this until around 6 months before the next halving, even if I goes lower. More interested in accumulating for the next couple of years at this stage, then looking at what projects have managed to still go strong during the bear market and look to get in early on those.
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But by the next bull run, new tech will have emerged. There will be a new Solana and a new FTM. A new coin which is going to change the world.

If you look at the altcoins that did well in the 2017 bull run (XRP, XLM, Litecoin, etc), many of them turned into zombie coins and underperformed in the 2021 bull run as technology evolved
 
LongBombFromOutside50 said:
But by the next bull run, new tech will have emerged. There will be a new Solana and a new FTM. A new coin which is going to change the world.

If you look at the altcoins that did well in the 2017 bull run (XRP, XLM, Litecoin, etc), many of them turned into zombie coins and underperformed in the 2021 bull run as technology evolved
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That's true. I'll definitely be keeping an eye out for newcomers also.

For current projects, I'm more interested something like Harmony for example, which contains to do good things and delivering on promises.

Still pretty low cap, with plenty of room to move.
 
bzparkes said:
Yeah, the biggest thing people fail to understand with staking is how much it dilutes the supply. You're doomed if you can't look past the hype and actually see if there's a buyback/burn mechanism to counter the increased supply.
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Diluted supply was always meant to mean greater value, however….
 
Evolved1 said:
Who has a good track record at picking low cap alts before they're well known?
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questions mattel GIF
 

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