The Cryptocurrency Trading Journal

Discussion in 'Journals' started by Daal, Jan 20, 2021.

  1. Daal

    Daal

    Musk is an asset, not a liability

    upload_2021-5-24_17-9-52.png
     
    #381     May 24, 2021
  2. johnarb

    johnarb

    This is good for Bitcoin PR

    The efforts to formalize and define ESG compliance may bring in more investments from funds that have stayed away

    Bitcoin is a decentralized project/experiment. The Wall Street folks and the likes are free to do what they want just as the community and developers are free to do what they want

    If there is an extremely divisive issue that cannot be resolved among the participants, there will be a fork(s)

    It happened in 2017, already

    This one will cause a war

    https://www.coindesk.com/marathon-miners-censor-bitcoin-transactions-ofac-compliant


    EDIT:
    There's no need to virtue-signal, I already know what side I'll be joining For censorship coins, there's already FB DIEM and Chinese CBDC as well as Fedcoin and more to come that will be the leaders on that

    I think the Taproot upgrade with additional privacy features may address the issue

    https://bitcoinmagazine.com/technical/95-miners-potentially-activating-taproot
     
    Last edited: May 24, 2021
    #382     May 24, 2021
  3. Daal

    Daal

    Its not virtue signaling, look up how many countries signed up for the Paris agreement. The world is moving towards less fossil fuels and Bitcoin will have to comply with that, its that simple. Dirty bitcoin mining is quite likely to be banned in the coming years. The WSJ posted about funds bringing coal mines back online to mine Bitcoin, that reminds of when Martin Shkrelli raised drug prices and drove an outrage. We are not at that point yet but at some point, someone will go too far

    With regards to censorship of transactions, thats where the flaws of Bitcoin start to appear. Mining pools can be pressured to comply with certain regulations, either that or the people behind them can be put behind bars. In 5 to 10 years, its possible that no one will be able to mine in the G-20 without complying with all kinds of restrictions
    Good luck doing that with the 34K ETH2 validators that anyone can run one in their garage
     
    #383     May 24, 2021
  4. johnarb

    johnarb

    Taproot has privacy features that may solve the ability of miners to filter transactions that don't meet the OFAC

    At any rate, that is what I meant by the developers will not take serious threat to the original design and use-case of bitcoin lying down

    edit: I did not mean you or anyone on the virtue-signaling, I meant for me

    (There's no need for me to virtue-signal as I already know which side of the censorship battle I'll be joining since I was a big Monero hodler at one time, privacy, censorship-resistance, and fungibility are, imho, very important to the cryptos decentralized design)
     
    Last edited: May 24, 2021
    #384     May 24, 2021
  5. Daal

    Daal

    #385     May 25, 2021
  6. NoahA

    NoahA

    I like this quote, which is also in the headline:

    Saylor: "Everybody in that meeting, including Elon, are passionate believers in decentralization."

    I find it kind of ironic that for Tesla to have become so successful, it needed lots of government support, which is a centralized entity with unlimited funding. I would love to see how successful the entire corporate world would be without government support. It really is the biggest joke. They force the government to give them unlimited bailouts because they threaten mass layoffs, but when it comes time to pay taxes to support that very same entity from which they suck off of, they explain that taxes are too high and find whatever means necessary in order not to pay.

    So excuse me if I call Elon the biggest hypocrite. I'm all for decentralized everything, but where would the TSLA stock price be without super low interest rates, provided once again, by the centralized government?
     
    #386     May 25, 2021
    johnarb likes this.
  7. Daal

    Daal

    #387     May 27, 2021
    Sprout likes this.
  8. Daal

    Daal

    #388     May 27, 2021
  9. johnarb

    johnarb

    A major portion of the video is on prime brokerage business, high yields on cryptos especially stable coins (i.e. Celsius, Nexo, BlockFi, Voyager, and also defi, like AAVE)

    Surprised you posted it, since you don't believe in that market

    https://www.realvision.com/shows/th...us-network-regulations-yield-on-crypto-assets



    The whole crypto borrow/lending got stress-tested, and no one went bankrupt

     
    #389     May 27, 2021
  10. Daal

    Daal

    He explained what is driving the high yields in stablecoins, the futures arb trade and the shortage of dollar liquidity. Binance, TradeStation Crypto, AAVE and Compound all offer these high USD stablecoin yields, there is nothing usual about that

    He did not explain how companies like Celsius and Blockfi can offer high BTC yields, that is a completely different game. In that game you are short BTC the whole time and you have to stay in the non-stablecoin crypto universe otherwise you lose exponentially as BTC rises. Binance, TS Crypto, AAVE and Compound all offer less than 1% in BTC deposits, usually way less than that actually. We know how BlockFi offered their 5%+ BTC yields, by running the GBTC arb trade, which blew up on their face and they had to be bailed out by Pomp. Easy in a bull market, not so easy in a bear

    How does Celsius do it? Or Nexo 8% BTC yields work? Celsius CEO said the company was like a hedge fund on RealVision, what kind of risks are they taking? I suspect they might be using that BTC to get a loan and then buy even more BTC, so they are running a levered BTC position (borrow stablecoins using BTC collateral, then long more BTC). Which is an idiotic trade and anyone can do it without their help, or they are using their capital to pay gains which is unsustainable and could lead them to become a ponzi if they run into trouble and dont find investors.
    Also, the SEC hasnt come after them yet, but I think they will, you cant just gamble with retail deposits in crypto land, call your company a quasi hedge fund, be completely centralized and not expect the government to push back. Also, DeFi will disrupt them. Also, they risk their clients KYC in case they get hacked. So I have no interest in these companies and I think they dont have that much of a future
     
    Last edited: May 28, 2021
    #390     May 28, 2021