jerguismi

11 ms·

1.
by jerguismi 7y ago
To become a bank you need an account at the central bank. Getting a banking license is difficult. And even after you get it, central bank can freeze your assets any time.
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by jerguismi 7y ago
> It's crazy that they messed this up, Tether is basically a money printing machine, all they had to do was be solvent. > Tether is a fundamentally a risk free money making concept To me it sounds like you don't really under
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by jerguismi 7y ago
Full-blown government collapse is quite far-fetched scenario. Infrastructure in venezuela still works at some level, however poorly. Bitcoin works in places pretty well where goverment is crappy but still not that crappy, that you have elec
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by jerguismi 7y ago
> They are selling gold to afford these necessities. They are probably using anything that there is available as a currency replacement. I would bet that mostly physical USD, but also gold, bitcoin, cigarettes etc. I don't think gol
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by jerguismi 7y ago
Well lots of bonds tend to have negative returns nowadays...
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by jerguismi 7y ago
Well, if you follow that logic your whole life, you will have lots of bitcoins when you die. Happy life I guess? The point of money, currency or any financial asset is to produce value to your life. If you think bitcoin will develop in valu
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by jerguismi 7y ago
Quite often this kind of instruments might be "tradable debt instruments" which can't be converted to actual bitcoins, but can be traded back and forth on the platform to traditional currencies. The issuing company maintains
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by jerguismi 7y ago
Well, banks can give out loans too eagerly to wrong people meaning that the resell value of the loan can be much less than the value of the loan. In fact nowadays it is not that rare for bonds to have negative returns. Banks can fuck up and
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by jerguismi 7y ago
Usually by insolvency is meant that the bank doesn't have enough liquid, hard assets to cover up the withdrawals from the bank. Bank can have varying assets such as bonds that it has lent out, but if the bank has lent out a lot of mone
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by jerguismi 7y ago
Central banks can print money, banks can't. Banks can only do fractional reserve. Sometimes banks go bust, sometimes central bank might save them.
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by jerguismi 7y ago
> Sure some of these assets are not liquid. Most of the banks assets are not liquid, such as the loans they have lent out. Banks quite often have problems that they give credit out too easily, which leads to the situation where their ass
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by jerguismi 7y ago
More like fractional reserve banking.
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by jerguismi 7y ago
On the other hand people have been saying the same about tether for many years, and it still has kept the peg at pretty good levels. And it is still the most liquid and biggest "stablecoin". Many seem to need this kind of thing so
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by jerguismi 7y ago
Yeah they are loans, like apartment loans. The loan might be for something like 20 years and might default. In my opinion having assets like house loans is pretty far away from being "backed". If enough customers want their money
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by jerguismi 7y ago
Small amounts are somewhat easy to exchange, if you want to exchange millions it gets much, much more difficult since you have to explain the source of funds to the exchanges and banks involved. If you have hacked them they will use blockch
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by jerguismi 7y ago
> To expand on it further, even if you are lucky to have joined a unicorn, you still didn't get a good deal in comparison to virtually everyone else involved in the company. The founders are likely billionaires and you made off wit
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by jerguismi 7y ago
There seems to be some kind of understanding that start-up means aways working overtime etc. AFAIK that is not often the case, but people can work quite normally in early-stage companies as well. And mostly it is the founders who are workin
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by jerguismi 7y ago
Wow, genious idea.
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by jerguismi 7y ago
I have used Bitcoin to buy various things and used it as a savings instrument, I see that it has solved problems for me. Of course I could use other tools for that, but if you think Linux is superior that doesn't invalidate someones ex
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by jerguismi 7y ago
> It's very simplistic to say that (low, predictable) inflation hurts individuals. Hurting might be the wrong term. Analogy would be something like having some bonus card which gives you 2% off for every purchase. Some people obsess
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by jerguismi 7y ago
One speculator enters the market = one more buyer and seller. If you go to a stock exchange, you see the bids and asks. The more there is those, the better the liquidity. Each speculator adds either bids or asks or demand for them.
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by jerguismi 7y ago
> What is driving the value of a bitcoin? No one knows, maybe some have same theory of value and that's why there is speculation? I see nothing special in bitcoin, it is just one of the numerous things that the market tries to value
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by jerguismi 7y ago
Why not have inflation at 10% to have even better "nudge" for people to work? You are essentially communicating the same thing that the crypto nerds are saying, just from a different angle. The individual pays the 2% "nudge&q
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by jerguismi 7y ago
> Hoping that it will mis-count your wealth in your favor is speculation, which is a bad, dangerous role for currency. Speculation is rampant also with traditional currencies - I remember seeing reports where 80-90% of trades in traditio
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by jerguismi 7y ago
There are actually lot of cryptocurrencies with issuance for eternity: dogecoin, grin comes to mind at least. The inflation parameters are the easiest to change, if for Bitcoin those are a problem, some other cryptocurrency with better para
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by jerguismi 7y ago
They most definitely aren't dirty, but also there is nothing dirty in wanting money. Practically everyone needs money to survive, and if you want to have more money than just survive I don't think there is nothing wrong with that,
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by jerguismi 7y ago
> But in real life many people show their basic disinterest in money simply by choosing to do things and pursue activities that have no financial incentive. So in fact most people are above money. Usually the preference of staying in the
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by jerguismi 7y ago
It is quite a complex topic. For example there are credit card processing companies for cryptocurrency related companies, but they have very stricter customer onboarding processes and also higher fees. For many banks who target mainstream c
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by jerguismi 7y ago
How so cryptocurrencies haven't solved anything? If someone has done a transaction with cryptocurrencies that brings value to him, isn't that solving something? Your claim is just very probably totally untrue - I think Bitcoin etc
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by jerguismi 7y ago
Yeah so you need only to be super genious to design the system properly and then it won't break. Somehow I like being stupid and use technologies that allow me being stupid and still work good enough.

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