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The coins were not really worth 1 billion in the sense of being able to convert them into a billion in covid relief, since the market for them is very thin. The
by readams 5y ago
The coins were not really worth 1 billion in the sense of being able to convert them into a billion in covid relief, since the market for them is very thin. They are worth far more as a mark to market charitable deduction.
Now the puzzle of what to do with this nonsense is in someone else's hands.
- nandhinianand 5y agoExactly how do you convert from crypto to regular currency? If you can't how do you convince the full supplier ecosystem to take crypto as payment? and If you do, then who benefits from the rise in crypto currency use in one of the largest country. I'm an Indian, and I don't want to malign the intent behind it. But it is not going to convert into COVID-19 relief anytime soon, and not sure it will matter by the time it can be converted/translated into relief.
- judge2020 5y agoExchanges, mainly Binance and Coinbase right now, have to offer SHIB/USD trading for there to be a market for this, and if there really was an unannounced selloff of this magnitude right now (with the relatively low transaction rate), the coin's value would instantly crash. There's also the issue that, since nobody is going to use it to trade commodities or actual goods and services, the value of this coin is entirely based on speculation of its future value by investors.
- anandaverma18 5y agoBinance listed it very early, Coinbase did not and might not even list. Coinbase announced to list DOGE after 6-8 weeks. I don't think there will list SHIB anytime sooner. Maybe a year later if it becomes something. Doge also started as meme coin, no utility but now slowly becoming a coin of choice for at-least transaction between two parties. who know how DOGE and SHIB turn out in near future.
- Yizahi 5y agoAnd on Binance it is probably not USD, but Tethers instead (hidden from user).
- mgerullis 5y agoWell, the recipient needs to sell them on an exchange or find a party which would be ready to swap the coins for something else. AFAIK Buterin never wanted these coins, which is why he donated them. What happens with them after that really isn’t his concern. It’s still free money
- nandhinianand 5y agoTrue.. but then the counterpoint is you can't eat money.. I mean, I understand why he gave it away, but I also don't expect it turn into anything anytime soon. May be even siphoned off by some officers.4.
- mgerullis 5y agoIf Buterin had sold the coins before donating he would have crashed their price by himself and I can see how that’s not something he wanted to do. He gave away a lot and burned the rest, thus theoretically creating scarcity which should play in favor of the price. Then again, SHIB is a hyped shitcoin, it was never going to be worth much in the long run and it’s remarkable that it even reached the price it has right now. Creating such a token can be done within an hour. If the COVID relief fund gets stolen by officers, then that is unfortunate to say the least but once again, all things considered, Buterin did the best thing he could.
- konschubert 5y agoAccording to Matt Levine's Money Stuff, the IRS is likely not going to accept the 1 billion valuation at face value.
- me_me_me 5y agoThey were worth exactly what he got for them. Its a freaking definition of worth. If you think your paper comic is worth 20000 cuz its first series in plastic wrap then its worth 20000 as long as someone pays you that for it. How about a piece of canvas with 3 colours? Is it work millions?