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Trust? Where is the trust? Bitcoin is a sequence of linked transactions signed by a verifiable cryptographic signature. We have a saying in Bitcoin; Don’t Trus

Trust? Where is the trust? Bitcoin is a sequence of linked transactions signed by a verifiable cryptographic signature. We have a saying in Bitcoin; Don’t Trust. verify.

arcticbull 5y ago
- How are you verifying Tether's assets? - How are you verifying the contents and beneficial ownership of exchange wallets? - How are you verifying market activity is legitimate, and there's no wash trading, spoofing or tape painting? The underlying L1 is so utterly incapable that entire centralized, trusted and opaque businesses have to be built on top of and around it - offering none of the guarantees of the underlying - just to get past the fact it can't actually support more transactions than a mid-sized Costco.
- randomhodler84 5y ago
  A) why would I need to? B) why would I need to? C) why would I need to?
  - arcticbull 5y ago
    Because that's what determines how much you can exchange each BTC for - not necessarily in USD but in terms of goods. Those are substantially they only things that determine how much each BTC is worth. You have to trust they don't unravel or your net worth will be substantially impacted.
    - randomhodler84 5y ago
      Nah… tether is less relevant today than ever. Maybe in 2017/2018 it was another story. I suspect in 2022 the other stables will overshoot it anyway. Folks seem quite excited about UST as another algorithmic option today. We are still in price discovery phase for BTC, and will be for a while longer. There are 1.3M coins available for purchase today, dropping at about 100k/month. I feel this will have a far greater effect than some stablecoins. I feel nothing for wild swings to my net worth. If anything, it has made the very concept of money more nebulous to me.
      - arcticbull 5y ago
        > Nah… tether is less relevant today than ever. Yeah, no, but I do wish you luck with that. [1] USDT is 50% more volume than BTC and ETH combined. It's all the liquidity in the entire market. It's more important now than ever. [1] https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my...
  - danaris 5y ago
    Because you just said "don't trust, verify".
    - randomhodler84 5y ago
      Nah, I don’t feel I need to verify any of those. I buy the coins and get them off the exchange. I don’t touch tether. Why would I care what games people are playing on the exchange, as long as I get my coin at the market price, I don’t care. I am talking about not trusting (eg: relying on a fixed source of with no verification, eg: trust anchor. A ‘root CA’ is a good example of a trust anchor. BTC does not have this at all.) Verify the block. Verify the tx. Verify the sig. that is all.
Karunamon 5y ago
The financial system also has a saying: The markets can remain irrational longer than you can remain solvent. The verification you refer to prevents double spending. It does not prevent insane valuation swings due to sentiment, government action, etc. That makes it a worse store of value than most fiat currencies.
singlow 5y ago
It's not about trusting the transactíon. It's about trusting that the value will be sustained.

Trust? Where is the trust? Bitcoin is a sequence of linked transactions signed by a verifiable cryptographic signature. We have a saying in Bitcoin; Don’t Trust. verify.

arcticbull 5y ago

- How are you verifying Tether's assets? - How are you verifying the contents and beneficial ownership of exchange wallets? - How are you verifying market activity is legitimate, and there's no wash trading, spoofing or tape painting? The underlying L1 is so utterly incapable that entire centralized, trusted and opaque businesses have to be built on top of and around it - offering none of the guarantees of the underlying - just to get past the fact it can't actually support more transactions than a mid-sized Costco.

randomhodler84 5y ago
A) why would I need to? B) why would I need to? C) why would I need to?
- arcticbull 5y ago
  Because that's what determines how much you can exchange each BTC for - not necessarily in USD but in terms of goods. Those are substantially they only things that determine how much each BTC is worth. You have to trust they don't unravel or your net worth will be substantially impacted.
  - randomhodler84 5y ago
    Nah… tether is less relevant today than ever. Maybe in 2017/2018 it was another story. I suspect in 2022 the other stables will overshoot it anyway. Folks seem quite excited about UST as another algorithmic option today. We are still in price discovery phase for BTC, and will be for a while longer. There are 1.3M coins available for purchase today, dropping at about 100k/month. I feel this will have a far greater effect than some stablecoins. I feel nothing for wild swings to my net worth. If anything, it has made the very concept of money more nebulous to me.
    - arcticbull 5y ago
      > Nah… tether is less relevant today than ever. Yeah, no, but I do wish you luck with that. [1] USDT is 50% more volume than BTC and ETH combined. It's all the liquidity in the entire market. It's more important now than ever. [1] https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my...
- danaris 5y ago
  Because you just said "don't trust, verify".
  - randomhodler84 5y ago
    Nah, I don’t feel I need to verify any of those. I buy the coins and get them off the exchange. I don’t touch tether. Why would I care what games people are playing on the exchange, as long as I get my coin at the market price, I don’t care. I am talking about not trusting (eg: relying on a fixed source of with no verification, eg: trust anchor. A ‘root CA’ is a good example of a trust anchor. BTC does not have this at all.) Verify the block. Verify the tx. Verify the sig. that is all.

Karunamon 5y ago

The financial system also has a saying: The markets can remain irrational longer than you can remain solvent. The verification you refer to prevents double spending. It does not prevent insane valuation swings due to sentiment, government action, etc. That makes it a worse store of value than most fiat currencies.

singlow 5y ago

It's not about trusting the transactíon. It's about trusting that the value will be sustained.