I disagree. Even hardcore Bitcoin believers generally acknowledge that its an asset that has cycles like any other asset and therefore some Bitcoiners will sell their Bitcoin when they think its close to peaking and try and buy more Bitcoin cheaper after a crash. If you can end up with 50% more Bitcoin plus some spending money by timing the cycles then why not? Of course if you play it wrong you will get burnt and be left behind, Risk vs reward.
Sell during the bull run buy back in the bear
I generally agree with this, of course. I've posted a lot about it. You can Kelly Criterion it and get more, but then you have problems I've talked about, including timing declaring yourself, cap gains, etc. It's largely not worth it. That's why you get proxies and deal with stupid fiat that way.
First I have to actually make the fortune. I definitely understand that it’s not a bad idea to keep your coin in a wallet instead of turning it into fiat and take out loans on the stable coins so that you’re just borrowing your own money
Hopefully some of you picked up tao during the dip over the summer, it’s really on fire now, just makes me more bullish on how it will do during the bull run
Attachments
Harris Could Be Better for Bitcoin Than Trump, VanEck Argues
As the 2024 election nears, both Trump and Harris are seen as potential influencers on Bitcoin, with differing impacts according to VanEck.
bitcoinnews.com
Tether reports a record-breaking $5.2B profit for the first half of 2024. With $97.6B in U.S. Treasurys, Tether ranks among the top global holders of U.S. debt, surpassing countries like Germany and Australia.
Actually makes a lot of sense:Harris Could Be Better for Bitcoin Than Trump, VanEck Argues
As the 2024 election nears, both Trump and Harris are seen as potential influencers on Bitcoin, with differing impacts according to VanEck.
So, both will increase the debt and accelerate inflation. Trump is better for "crypto" and Kamala will at least be comparatively better for bitcoin since it already has approved ETFs and etc.
I still don't get exactly how tether works and how it can be so profitable. Has to be a house of cards.
When you buy Tether, you are giving the company money for the “tether”. For you it is cash that yields 0% interest. For Tether Inc, they use that money to buy short term US debt yielding 5% interest…imagine having $100 billion account that pays you a 5% coupon every month - and the nice part is it is other peoples money. There is no fraud, you are just earning the interest off other peoples deposits (just like a bank, but with 100% reserves instead of 0%)
And it is extremely profitable when your entire company only has 30 employees!
Tether then uses all that interest to buy Bitcoin (the owners/founders are 100% OG bitcoiners)
They don’t need to scam or rugpull, when it is already obscenely profitable
I'm willing to state that its beginnings might not have been the cleanest, but the fact is that now they are backed and legit, so it doesn't really matter. They pulled a majorly slick move; you gotta give them credit.
Tether basically functions as Bitcoin's own Federal Reserve. They can print USDT out of thin air and use it to pump the BTC price at will. If their operation truly was as clean and above board as chance vought suggests, it's difficult to imagine why they would be so secretive about their accounting and financial statements. They still have failed to undergo a legitimate audit, which is honestly disturbing given how much money is involved at this point.
I have a pet theory that Tether and MSTR are working hand in hand, running a scheme where Tether buys debt from MSTR (debt backed by its Bitcoin reserves) in exchange for USDT, which MSTR then uses to buy even more Bitcoin. It's a precarious house of cards and its collapse would not only wipe out both companies, but likely send Bitcoin's price tumbling by over 90%.
I have a pet theory that Tether and MSTR are working hand in hand, running a scheme where Tether buys debt from MSTR (debt backed by its Bitcoin reserves) in exchange for USDT, which MSTR then uses to buy even more Bitcoin. It's a precarious house of cards and its collapse would not only wipe out both companies, but likely send Bitcoin's price tumbling by over 90%.
They've undergone a "limited audit" where their reserves were checked, but that's it.
Getting audited sucks, but also passing an audit is such a stamp of approval. My guess: they don't want to do it, and aren't ready or are at least too afraid.
Also, sickening to think that the Pentagon has never passed an audit
Agreed, except in your example it’s 5% per year not per month
Right but the coupon pays monthly
And for all the naysayers…Tether has much more backing than the digits on your bank account screen. Remember, demand deposits require exactly 0% bank reserves in the USA and many other countries.
Reserve Requirements
The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
Silicon Valley Bank Collapse Suggests 0% Reserve Requirement Won’t Halt Bank Runs
To stop future bank runs, it would help to require banks to back all deposits with cash. That is not going to happen — but the reserve requirement should be greater than 0% — the Fed's current target.
www.forbes.com
“Banks have exceeded that reserve requirement. For example, at the end of December, Bank of America had 2% of its $1.93 trillion in deposits in cash; JPMorgan held 2% of its $2.3 trillion in deposits in cash and Silicon Valley Bank had 5% of its $175 billion in deposits in cash.”
Whew, at least they have 2%!!!
Not that I consider government debt to be much “backing”, but it’s a lot more than the nothing that your bank is allowed to use .
If tether is a house of cards, what does that make the worlds banking system
@Judoka you are the one parroting media nonsense, not me.
What do you think Tether is doing with all the treasuries they are buying?
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I mean they are buying whatever they want. They probably spend a chunk of it on buying more crypto
You can’t use treasuries to buy crypto
I’m talking about the interest money.
Usdt has market cap of 119b. It’s backed by bitfinex. Bitfinex is getting $6b per year in interest on the 119b tether
I’m saying they probably use that $6b to buy more crypto.
I don't think that's the case, because people know from whom or where Saylor is buying the BTC. The board at MSTR all had to agree to all of this over years and it's nothing new. They are doing something very novel, but regulations and approved decisions by boards aren't going to be some backdoor mafia style procedure.
It's at least an interesting theory, though.
Bitcoin, not crypto
For the guys that loaded up on sui, over the summer, good job.
I have a good amount of Tao and kaspa, no sui. But I could pick some up if it retraces.
Basically we are getting to the fun part of crypto, you will see people running around frothing at the mouth at how much money they are making.
Probably at least a couple months away from that though
I have a good amount of Tao and kaspa, no sui. But I could pick some up if it retraces.
Basically we are getting to the fun part of crypto, you will see people running around frothing at the mouth at how much money they are making.
Probably at least a couple months away from that though