4 ms·

you don’t understand how bitcoin works if you have to ask this question.

by keymone 7y ago

perl4ever 7y ago
To be fair, people[1] have raised the question of whether bitcoin is manipulated by people who have printed other types of currency without limit, which implies practically nobody understands how bitcoin works. [1]https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066
- keymone 7y ago
  That’s like manipulating value of USD by printing more Euros. Sure it has effect because economies are interrelated by it can’t be sustained - Euro will be worth nothing eventually.
- keymone 7y ago
  Also Tether is special case - it’s not unrelated altcoin, it’s supposedly stablecoin bound to BTC. “Supposedly” because no proper audit of tether assets and liabilities was done and there is little transparency. Counterargument is that if tether is insolvent, it would affect Bitcoin but only to some degree. Here’s the logic: if tether was printed without backing to buy and prop up price of bitcoin then somewhere somebody is sitting on a pile of USDT which they will want to get rid of. You can get rid of USDT by asking tether to buy them back from you for USD or you can trade them on the market for BTC. Assuming tether goes dark USDT owners will be forced to sell USDT at discount creating even more buy pressure for BTC. The whole thing will be a huge debacle and incur some damage to BTC but ultimately it’ll be perceived like one more exchange scams - not your keys not your Bitcoin, trusting that USDT can keep USD parity is purely on you. Bottom line is - people are being manipulated, not Bitcoin. Bitcoin will continue to live up to its promise - distributed open ledger and transaction platform, solving consensus problem via proof of work and there will only ever be 21 million of them.

4 ms·

you don’t understand how bitcoin works if you have to ask this question.

by keymone 7y ago

you don’t understand how bitcoin works if you have to ask this question.

perl4ever 7y ago
To be fair, people[1] have raised the question of whether bitcoin is manipulated by people who have printed other types of currency without limit, which implies practically nobody understands how bitcoin works. [1]https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066
- keymone 7y ago
  That’s like manipulating value of USD by printing more Euros. Sure it has effect because economies are interrelated by it can’t be sustained - Euro will be worth nothing eventually.
- keymone 7y ago
  Also Tether is special case - it’s not unrelated altcoin, it’s supposedly stablecoin bound to BTC. “Supposedly” because no proper audit of tether assets and liabilities was done and there is little transparency. Counterargument is that if tether is insolvent, it would affect Bitcoin but only to some degree. Here’s the logic: if tether was printed without backing to buy and prop up price of bitcoin then somewhere somebody is sitting on a pile of USDT which they will want to get rid of. You can get rid of USDT by asking tether to buy them back from you for USD or you can trade them on the market for BTC. Assuming tether goes dark USDT owners will be forced to sell USDT at discount creating even more buy pressure for BTC. The whole thing will be a huge debacle and incur some damage to BTC but ultimately it’ll be perceived like one more exchange scams - not your keys not your Bitcoin, trusting that USDT can keep USD parity is purely on you. Bottom line is - people are being manipulated, not Bitcoin. Bitcoin will continue to live up to its promise - distributed open ledger and transaction platform, solving consensus problem via proof of work and there will only ever be 21 million of them.