Bitcoin failed to deliver.

Discussion in 'Crypto Assets' started by Laissez Faire, Jun 13, 2022.

  1. johnarb

    johnarb

    Making rules and breaking them is justified because he owns the company? Why make rules if there are no consequences when violated

    I read something something about a character is doing the right thing even when no one is looking

    I don't publish rules, but since you follow my crypto macro thread, you are aware that I sold 1 BTC at $25K. It's consequence of when I used cash to purchase MSTR options and the effects of risk between cash and crypto portfolio, hence rebalanced at a stop loss of $25K/btc

    If there are no consequences, I'd keep breaking my own risk management cash vis a vis crypto portfolio. Did I need to sell 1 btc? no, but I'm not Buffett, and make rules that have no consequences

    -----

    https://fortune.com/2022/02/16/warren-buffett-invested-1-billion-crypto-bank/
     
    #131     Jun 14, 2022
  2. deaddog

    deaddog

    #132     Jun 14, 2022
  3. johnarb

    johnarb

    I'm going by memory, but stEth is part of the Ethereum 2.0 beacon blockchain that has been running for a while

    The "Merge" would combine the existing Ethereum mainnet POW blockchain with the Ethereum 2.0 POS blockchain

    Ethereum 2.0 is POS need validators that have at least 32Eth in order to "mine" the new blocks and get rewards of newEth. So, companies like Celsius and 3AC and crypto rich Ethereum hodlers staked Eth because they get a yield, don't hold me to it but like 5%

    But all of those coins are locked, millions of Ethereum tokens and will only unlocked after the merge everyone gets their Eth plus the earned yields

    Well, what if you have hundreds of millions of $ worth of Eth staked on that beacon chain and you need liquidity? They started a peg token stEth that were supposed to be 1-1 to Eth, but now trading 0.953 on Curve

    So another unpegged token which may have problems with liquidity, I posted the Twitter thread on the Celsius thread
     
    #133     Jun 14, 2022
  4. RedDuke

    RedDuke

    wow, had no idea. So it means it is totally
    Locked no matter how low price goes, right ? Damn….
     
    #134     Jun 14, 2022
  5. johnarb

    johnarb

    yea, those Eth are locked via smart contract

    The Ethereum 2.0 POS blockchain needs those validators and Ethereum in order to produce new blocks

    I suppose the Ethereum Foundation could shutdown the beacon chain, and unlock the tokens, not sure if that kind of failsafe was put in or even thought about

    Anyway, locked Eth is good for the price of Eth, less supply, remember?

    It worked very well during the bull market, but now, we're in a bear market and people who decided to stake Eth tokens that "do not belong to them" are facing a liquidity crisis, i.e. Celsius with their cryptos community of depositors and 3AC with their LP's and investors and what not

    Coupled with their other bets going south like Luna/UST fiasco, now they need those locked ETh unlocked, oh but wait, they have stEth that are tradeable, but now unpegged

    Fun stuff in cryptos, but I guess the stock market and bond markets are also having their issues, that's why I said let's be careful, we could get some flash crash and who knows might be one of the lucky few to get BTC at $100 or Eth at $10 during those flash crashes and the trades don't get reversed

     
    #135     Jun 14, 2022
  6. savoir

    savoir

    “It was highly sophisticated deception. A lot of brilliant minds fell for it.”

    :rolleyes:
     
    #136     Jun 14, 2022
    johnarb likes this.
  7. RedDuke

    RedDuke

    Explanation very much appreciated!!!!!!! Noah and I would love to acquire at such low levels If we ever get there. I will not miss this one if all crashes.
     
    #137     Jun 14, 2022
    johnarb likes this.
  8. johnarb

    johnarb

    #138     Jun 15, 2022
  9. NoahA

    NoahA

    I'm honestly not sure if the next bull run in alt coins can pump as hard. It would have to somehow be totally different. I think the next bull run will be all about bitcoin and will come about because of crashing real estate and an impotent FED to do anything about it. The path they have chosen now is asset price destruction, but once it spills over into job losses, real estate depression and pensions suffering through a collapsed stock market, they will have to re-inflate and that is when bitcoin will once again shine. Of course if it goes the inflation route, bitcoin will shine just as easily.

    I'm honestly also guessing that it won't even take that long. Like how are the next 6 months going to look with famine just around the corner, high interest affecting more and more people, and job losses really taking hold? Its difficult to just coast now. The FED has to go full speed in one direction, which they have chosen with aggressive rate hikes, but every direction is bad. The fact that they could print with no inflation for years was an incredible stroke of luck, but now its judgement day.
     
    #139     Jun 15, 2022
    RedDuke and johnarb like this.
  10. johnarb

    johnarb

    #140     Jun 15, 2022
    savoir likes this.