bitcoin

[Random*]

Originally Posted by Isle of Wight

What does that make NFTs like Socios then !

Even more of a Ponzi scheme.

[Reps AJ]

Originally Posted by Isle of Wight

What does that make NFTs like Socios then !

Now there might be some use for NFTs, but people spending £££££ on crap digital pictures of monkeys doesn't seem like it... unless you're the seller, of course

[Random*]

Originally Posted by Reps AJ

Now there might be some use for NFTs, but people spending £££££ on crap digital pictures of monkeys doesn't seem like it... unless you're the seller, of course

In most cases you're not really buying the picture. You're buying a contract that has a URL in it that points to a picture.

The picture itself isn't on the blockchain, so if the host of the URL can do whatever they want to that picture (or they might go out of business).

The NFT concept has potential future good uses in the real world, but the technology implementations at the moment are all limited by the amount of data they can store on the blockchain. There's ideas out there about implementing a decentralised storage solution that can solve this problem, but there's still some fairly fundamental technology and social issues to resolve for that to happen.

[Spindle]

Originally Posted by Neil 154

Got to take the rough with the smooth. Past week has been rough for Bitcoin. Look at the Nasdaq which is down 30% since November ATH. Gold too is down 11% in past couple of months. Bitcoin's market is tiny in comparison which partly explains this correlated volatility.

I see corrections like these a buying opportunities and I'm buying today. If you've been into bitcoin like I have for 7 years then it wont faze you. Look at the long term picture and it's rosy. Bitcoin is doing its thing ,24/7, offering the world a more reliable and censorship resistant form of money. It hasn't changed, only the short-term sentiment has.

How the actual f*ck can you compare Crypto with the Nasdaq I have stock in 4 Nasdaq listed companies, 3 in tech, and they are solid. Even going down is because they went up, I know I can buy and it's going to move but it's not a roller coaster and all my money is not on the line.

And Bitcoin is offering nothing at all but an increase in CO2 emissions and somewhere for blood money to be laundered.

[Spindle]

Originally Posted by Blind_Eagle

Gold is only down 11% in the past couple of months if you select a very specific 4 day period in March - which is actually prior to the last couple of months - for your comparison

It’s up over 9% over the last 3 months.

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You’re only deluding yourself. Care to post the same graph for bitcoin as a comparison?

Have you noticed that Neil154 only comes on here to brag about his profits and tell us that he's about to buy more.....

[Spindle]

Originally Posted by BillyTKid

Nearly half of people currently invested in Bitcoin are underwater.

And they will be literally because of their support for pollution of our atmosphere

[Spindle]

Originally Posted by cpfc4evandeva

To confirm - is this Bitcoin or some other weird crypto thing?

Try to think of it as a non speaking member of the cast of a Star Trek episode who goes down to the planet with Kirk and Spock, only he wears a red colour top. Kirk and Spock escape.

Or, one of the red lightcycles in Tron, and he gets carved up. "You are deleted from the game"

Oh dear, $116 a month ago, worth about 0.0002c atm, if that.


Beautiful scam. "Put your savings into this crypto for 20% yield instead of the 0.06% at the bank, and we'll peg it to the dollar". Except once it was in and value rose, someone flogged big, and it caused a run.

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Terra, luna and UST: What are they?
Terra is a blockchain, just like ethereum and bitcoin. While ethereum's blockchain natively produces ether tokens, Terra natively produces luna. Before the depeg, luna was trading at $85.

To create UST, you need to burn luna. So for instance, last week you could trade one luna token for 85 UST (since luna was worth $85), but the luna would be destroyed ("burned") in the process. This deflationary protocol was meant to ensure luna's long-term growth. As more people buy into UST, more luna would be burned, making the remaining luna supply more valuable.

To entice traders to burn luna to create UST, creators offered an insane 19.5% yield on staking -- which is essentially crypto terminology for earning 19.5% interest on a loan -- through what they called the Anchor Protocol. Instead of parking your savings at a bank for a 0.06% interest rate, the pitch is to turn put your money into UST, where it can earn nearly 20% in interest. Before the depegging, over 70% of UST's circulating supply, around $14 billion, was deposited in this scheme.

Here's the key to UST retaining its peg: 1 UST can always be exchanged for $1 worth of luna. So if UST slips to 99 cents, traders could profit by buying a huge amount of UST and exchanging it for luna, profiting one cent per token. The effect works in two ways: People buying UST drives the price up, and UST being burned during its exchange to luna deflates the supply.

Then there's the reserves. Terra founder Do Kwon created the Luna Foundation Guard (LFG), a consortium whose job it is to protect the peg. The LFG had about $2.3 billion in bitcoin reserves, with plans to expand that to $10 billion-worth of bitcoin and other crypto assets. If UST dipped below $1, bitcoin reserves would be sold and UST bought with the proceeds. If UST goes above $1, creators would sell UST until it goes back to $1, with the profit being used to buy more bitcoin to pad out the reserves.

It all makes sense. But UST is, at the time of writing, is worth 17 cents.

What went wrong?
It all started on Saturday, May 7. Over $2 billion worth of UST was unstaked (taken out of the Anchor Protocol), and hundreds of millions of that was immediately sold. Whether this was a reaction to a particularly volatile period -- interest rates going up has particularly effected cryptocurrency prices -- or a more malicious attack on Terra's system is an ongoing topic of debate.

Such huge sells pushed the price down to 91 cents. Traders tried to take advantage of arbitrage, exchanging 90 cents worth of UST for $1 worth of luna, but then a speed bump appeared. Only $100 million worth of UST can be burned for luna per day.

Investors, already flighty in the current gloomy market, flocked to sell their UST once the stablecoin couldn't retain its peg. It bounced between 30 and 50 cents in the week following the initial depeg, but has now fallen to a steady low of under 20 cents. Its marketcap, which was around $18 billion in early May, now stands at $2 billion.

[Blind_Eagle]

Originally Posted by Random*

Saw a tweet earlier from someone saying they’re buying LUNA as it’s gone down 96% meaning it can only go down another 4%.

It’s now down 99%.

There are at least two posters on NSC who have done just that!

[Spindle]

Paul Barber and Tony Bloom chasing their massive losses

[Random*]

Originally Posted by Spindle

Beautiful scam. "Put your savings into this crypto for 20% yield instead of the 0.06% at the bank, and we'll peg it to the dollar". Except once it was in and value rose, someone flogged big, and it caused a run.

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It's reckoned that someone made about $800m off of this.

They needed to stake $2bn to make it happen, but once they did it was a sure thing.

This wasn't a speculative thing - someone clever studied the technology, spotted the weakness and calculated the numbers that were required to make it happen.

Smells like a hedge fund.

[Spindle]

I expect the crash was a known consequence that might happen, but they'd already have been out with everyone's savings.

[dave_who_ru]

In trying to understand what happened with LUNA I have watched a number of blogs online regarding investing in crypto currencies.

I was surprised at the number of reported ‘pump and dump’ scams that have occurred which shows how unregulated the market is. And a lot of these are only backed by hot air rather than ‘cash’ assets.

The warning for all is that any involvement in this market should be limited to say less than 10% of an investment portfolio.

[Spindle]

Even big players got hit

In 2018, Binance put $3 million into Luna and received 15 million tokens in return. At Luna’s price peak in April, those tokens were worth $1.6 billion, Binance’s CEO Changpeng Zhao said in a Monday tweet. At Luna’s price now, the tokens are worth about $2,391.

[Webb]

Ouch.

[eagle mart]

Originally Posted by Random*

It's reckoned that someone made about $800m off of this.

They needed to stake $2bn to make it happen, but once they did it was a sure thing.

This wasn't a speculative thing - someone clever studied the technology, spotted the weakness and calculated the numbers that were required to make it happen.

Smells like a hedge fund.

Hedge funds are fodder. More likely the central banks with that collateral. Its why crypto is here to stay. The food chain is here. Central Banks > Hedge Funds > Professional Traders > Retail Traders

[Webb]

Originally Posted by dave_who_ru

In trying to understand what happened with LUNA I have watched a number of blogs online regarding investing in crypto currencies.

I was surprised at the number of reported ‘pump and dump’ scams that have occurred which shows how unregulated the market is. And a lot of these are only backed by hot air rather than ‘cash’ assets.

The warning for all is that any involvement in this market should be limited to say less than 10% of an investment portfolio.

10% is too high a number for this IMO, I'd say sub 2% and willing lose the lot.