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No there won’t be a big long term correction from Tether because there are dozens of other stable coins now for people to temporarily sell into. There’s also th
by webinvest 5y ago
No there won’t be a big long term correction from Tether because there are dozens of other stable coins now for people to temporarily sell into. There’s also the ability to short crypto and buy puts on crypto. All of that provides ways for speculators, investors, middle class savers, and early technology adopters to stay in the game.
You’re like a doomsday predictor that will never see a doomsday happen.
No real value? The AAVE crypto platform alone already holds more value ($23B) than the entire market cap of Ecuador’s stock market ($11B). The AAVE platform is literally more valuable than a country.
AAVE is just one of many applications built on the Ethereum network. It speaks nothing of Uniswap, Maker, Yearn, Balancer, USDC, Compound, and many others.
Bitcoin alone secures over 1 Trillion dollars.
- notahacker 5y agoThe Quito stock exchange consists of over 300 companies in farming, forestry, power generation, medical care etc. They have physical and human capital and earn profits from their paying customers, whether or not people want to buy stocks which offer them a share of this profit The AAVE platform consists of individuals lending recently printed tokens to each other to buy other recently printed tokens in what is essentially a zero sum game with no connection to the real world unless they can convince outsiders to pay even more money for some of the tokens. The fact the latter is notionally valued at higher than the former pretty much underlines the OP's point about the lack of "real value" underpinning the whole thing...
- webinvest 5y agoThe difference is momentum and trust. Crypto is underlined by trust. Permissionless trust and cross-border trust. Either people don’t trust the Quito stock exchange to return all of the money back to shareholders or they don’t see their money going up in value there. So people don’t give them their money.
- diveanon 5y agoYou could make the same argument about any number of over valued VC funded startups.
- TrackerFF 5y agoMarket psychology is hard to predict. Going from one coin to another in a state of crisis is like people dumping their X stocks to buy Y stocks, because X is crashing. Or selling their housing real-estate portfolio to buy some other class of real-estate. Casual "investors" sell their portfolios for hard cash when markets start crashing, which in turn induces others to sell. And if you're sufficiently leveraged, you're forced to sell - no mater how much belief you have in your investments.
- deleted 5y ago[deleted]