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  1. #3426
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    Quote Originally Posted by splat View Post
    How do you offshore bitcoin to keep the feds at bay?
    Move to Puerto Rico.

    Sent from my Pixel 3 XL using TGR Forums mobile app

  2. #3427
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    I can haz bottom? Name:  Screenshot_20191025-062342.jpeg
Views: 252
Size:  13.3 KB

    Sent from my Pixel 3 XL using TGR Forums mobile app

  3. #3428
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    Well, I will say ONE positive thing about this whole thing: it brings the LULZ.

  4. #3429
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    Pump up the jam, pump it up, while your feet are stompin', and the jam is pumpin', look at the crowd is jumpin', pump it up a little more.Click image for larger version. 

Name:	Screenshot_20191025-182652~2.jpeg 
Views:	41 
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ID:	299391

    Sent from my Pixel 3 XL using TGR Forums mobile app

  5. #3430
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    Orange coin good. Number go up.

    Sent from my Pixel 3 XL using TGR Forums mobile app

  6. #3431
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    hodling is not easy

  7. #3432
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    Quote Originally Posted by Bromontane View Post
    hodling is not easy
    Just think of the Lambos!

    $2 mil/coin in 2020!!


  8. #3433
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    Lee Lau - xxx-er is the laziest Asian canuck I know

  9. #3434
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    Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

    - One entity on the cryptocurrency exchange Bitfinex appears capable of sending the price of Bitcoin higher when it falls below certain thresholds, according to University of Texas Professor John Griffin and Ohio State University’s Amin Shams. Griffin and Shams, who have updated a paper they first published in 2018, say the transactions rely on Tether, a widely used digital token that is meant to hold its value at $1.

    - “Our results suggest instead of thousands of investors moving the price of Bitcoin, it’s just one large one,” Griffin said in an interview. “Years from now, people will be surprised to learn investors handed over billions to people they didn’t know and who faced little oversight.”

    - “This pattern is only present in periods following printing of Tether, driven by a single large account holder, and not observed by other exchanges,” they wrote in their new peer-reviewed paper, set to be published in a forthcoming Journal of Finance.

    - “Simulations show that these patterns are highly unlikely to be due to chance. This one large player or entity either exhibited clairvoyant market timing or exerted an extremely large price impact on Bitcoin that is not observed in aggregate flows from other smaller traders.”

    https://www.bloomberg.com/news/artic...rge-study-says



    If these accusations are found by a jury to be true, or even approximately true, then it will immediately go straight to the Hall of Fame level of Largest Frauds of All Time:

    - Allegation #1: The 2017 Bitcoin Bubble was market manipulation, and Tether was how they did it

    -- Allegation #2: Tether became a systemically important, money laundering conduit for the crypto ecosystem

    --- Allegation #3: They might’ve gotten away with it, too, if they hadn’t gotten robbed while busy scamming

    https://danco.substack.com/p/the-tri...r-lawsuit-part

  10. #3435
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    Participants: We want to buy bitcoin

    Exchange(s): Give me your dollars and I will give you credit (tethers) to buy bitcoin

    Participants: Ok, here you go

    Exchange(s): Here is your credit of tethers, go buy bitcoin when you want

    Participants: (buys bitcoin by lifting offers, bids follow price up)

    Professors: Clearly what we see here is manipulation

    These guys have been dead wrong on the cause and nature of exponential price increases in bitcoin in 2011, 2012, 2013, 2016, 2017 and now 2019. And yet, bitcoin sits there moving value at a rate of $2,000,000,000 in network volume per day, $10,000,000,000 per day on the exchanges & OTC markets. Honey badger simply don't care.

  11. #3436
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    It'll be interesting watching this play out. It's honey badger don't care, limited future demand for stablecoin, or rinse and repeat:


    Participants: We want to keep the feds at bay, we don’t want to answer irksome questions

    Tether (circa 2017): Tether is backed 100% by USD

    Participants: Cool, so we can evade the feds while pretending to trade USD

    Banks: If you want to park USD here then you must comply with regulations

    Tether: Ok, we’ll use “banks” instead

    Big Player: I’ll issue Tethers to buy Bitcoins and then sell the USD backed Bitcoins at a higher price

    Participants: Cool, we’ll buy or arbitrage Bitcoins with USD at the higher price because they’re backed 1:1 USD

    “Banks”: We’re actually money launderers and we’re going to skim

    Tether (post 2017): Tether is not backed 100% by USD, more like 60-ish-%, oh and some of the funds could be loans from affiliates

    Participants: We want to withdraw USD, not crypto-to-crypto

    Tether (2019): We are asking our customers not to send any additional incoming wires until we can provide a reliable method of receiving funds.

  12. #3437
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    It's a little weak in terms of substance.

    The capital hole at bitfinex was from regulatory seizures where a bad actor in its chain of custody (Crypto Capital) had funds seized to the tune of ~$880 million. Tether loaned bitfinex something like $650 million to help cover the capital deficit & prevent operational disruption. Tether at last report had $4 billion total issuance/market cap against reserves of $3.35 billion and a loan to bitfinex of $650 million. So it's recently/currently ~84% backed with a promisory note from a profitable company that has a giant sum of cash locked up due to indirect involvement in nefarious b.s.

    In order for Tether's reserves to return to 100% it needs to either wait 2-3 years for operating income from bitfinex to satisfy the note or some combination of release of funds + profit from operations makes them whole. Bitfinex may die as a result of the action against CC, but even in that case Tether may have recourse against the seized funds. And if bitfinex dies and recourse to seized funds is a bust then other tether exchanges could step up & make reserves whole. Incentive alignment is there & business is good, stranger things have happened.

    Keep in mind there is a ton of money going into crypto from retail & high net worth individuals. It's predominantly a non-institutional market. The top crypto exchanges rank top 10 globally in terms of revenue (only beaten out by giants like the CME, NYSE). The vast majority of that money (>95%) goes towards speculation, just as 95%+ of USD trasnactional volume goes to speculation on various dollar-denominated assets.

    If you want real money laundering, or if you actually care at all about money laundering - as opposed to using it to prop up a flagging commitment to confirmation bias - look into the asymmetry of cash bill issuance & the constituents those various bills serve. Regular people use the small bills & international criminal orgs use the $100 / e500 notes. The reason central banks print the big notes despite the exceptionally high use in crime is the seignorage revenue from large bills. They feel the revenue opportunity more than offsets the role in facilitating the drug trade, human trafficking, & various other black & grey markets. The exact people that tell you to be angry at crypto are doing business with criminals on a scale that bitcoin will never approach. You are being exploited for your lethargy to protect another man's economic moat.

    Here's a price chart of tether on binance to give you an idea how concerned the market is:

    Name:  tether.JPG
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  13. #3438
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    Quote Originally Posted by Bromontane View Post
    It's a little weak in terms of substance.

    The capital hole at bitfinex was from regulatory seizures where a bad actor in its chain of custody (Crypto Capital) had funds seized to the tune of ~$880 million. Tether loaned bitfinex something like $650 million to help cover the capital deficit & prevent operational disruption. Tether at last report had $4 billion total issuance/market cap against reserves of $3.35 billion and a loan to bitfinex of $650 million. So it's recently/currently ~84% backed with a promisory note from a profitable company that has a giant sum of cash locked up due to indirect involvement in nefarious b.s.

    In order for Tether's reserves to return to 100% it needs to either wait 2-3 years for operating income from bitfinex to satisfy the note or some combination of release of funds + profit from operations makes them whole. Bitfinex may die as a result of the action against CC, but even in that case Tether may have recourse against the seized funds. And if bitfinex dies and recourse to seized funds is a bust then other tether exchanges could step up & make reserves whole. Incentive alignment is there & business is good, stranger things have happened.

    Keep in mind there is a ton of money going into crypto from retail & high net worth individuals. It's predominantly a non-institutional market. The top crypto exchanges rank top 10 globally in terms of revenue (only beaten out by giants like the CME, NYSE). The vast majority of that money (>95%) goes towards speculation, just as 95%+ of USD trasnactional volume goes to speculation on various dollar-denominated assets.

    If you want real money laundering, or if you actually care at all about money laundering - as opposed to using it to prop up a flagging commitment to confirmation bias - look into the asymmetry of cash bill issuance & the constituents those various bills serve. Regular people use the small bills & international criminal orgs use the $100 / e500 notes. The reason central banks print the big notes despite the exceptionally high use in crime is the seignorage revenue from large bills. They feel the revenue opportunity more than offsets the role in facilitating the drug trade, human trafficking, & various other black & grey markets. The exact people that tell you to be angry at crypto are doing business with criminals on a scale that bitcoin will never approach. You are being exploited for your lethargy to protect another man's economic moat.

    Here's a price chart of tether on binance to give you an idea how concerned the market is:

    Name:  tether.JPG
Views: 161
Size:  44.4 KB
    The treatment of their auditors is interesting/concerning. It's not a simple business, and they fired one of their auditors for basically asking too many questions.

  14. #3439
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    There's also the fact bitfinex entrusted a criminal enterprise in CC with a billion. It's a shame bitfinex had to scramble to raise funds like that & jeopardize tether's reserve position, but they kind of deserved it given their lax operations. Best practice for hodlers is to avoid exchange exposure at all times & refrain from undue exposure to opaque instruments like USDT, which carry an unknown degree of risks (counterparty, performance, basis, hacking, etc.).

    But these kinds of things aren't subjects on which to base a decision regarding bitcoin exposure. It's no different than silk road in my view. Gets the monkeys all riled up; has little bearing on the real drivers of price & value.

  15. #3440
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    https://www.linkedin.com/pulse/world...oken-ray-dalio

    The World Has Gone Mad and the System Is Broken

    There is now so much money wanting to buy these dreams that in some cases venture capital investors are pushing money onto startups that don’t want more money because they already have more than enough; but the investors are threatening to harm these companies by providing enormous support to their startup competitors if they don’t take the money.

  16. #3441
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  17. #3442
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    Bitcoin is used for lots of criminal activity and exploitation too.

    https://www.bloomberg.com/news/artic...-bitcoin-trail

    Don't buy gold or Bitcoin.
    Quote Originally Posted by XXX-er View Post
    the situation strikes me as WAY too much drama at this point

  18. #3443
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    Bitcoin spreads like a virus, buy bitcoin.

    https://poseidon01.ssrn.com/delivery...021022&EXT=pdf

    US dollars fund sicarios, don't use or transact in USD.

    https://www.kpbs.org/news/2011/may/2...mexico-border/

  19. #3444
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    US Dollars funded 9/11, don't use or transact in USD.

    https://govinfo.library.unt.edu/911/..._Monograph.pdf

  20. #3445
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    Toyota supplies Al Qaeda, don't buy or own Toyota products.

    https://qz.com/519171/how-did-the-to...avorite-truck/

  21. #3446
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    Quote Originally Posted by Bromontane View Post
    Toyota supplies Al Qaeda, don't buy or own Toyota products.

    https://qz.com/519171/how-did-the-to...avorite-truck/
    no somone illegally supplies al qaeda with toyotas.
    http://www.firsttracksonline.com

    I wish i could be like SkiFishBum

  22. #3447
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    title:Tether Response to Flawed Paper by Griffin and Shams

    We have now reviewed the updated Tether article by John M. Griffin and Amin Shams.

    To obtain publication, Griffin and Shams have released a weakened yet equally flawed version of their prior article. The revised paper is a watered-down and embarrassing walk-back of its predecessor that still suffers from the same methodological defects, coupled with the clumsy assertion that one lone whale may be responsible for the rise of bitcoin in 2017.

    The purported conclusions reached by the authors are built on a house of cards that suffers from the absence of a complete dataset. As an example of one of many deficiencies, the authors openly admit they do not have accurate data on the crucial timing of transactions or the flow of capital across different exchanges. This critical lack of information means they are unable to establish a valid sequence of events through which the alleged manipulation could have happened. The updated paper is still based on the same incomplete and cherry-picked data that made the original study deficient. Furthermore, the authors now admit that the patterns of trading they observed could be consistent with the market purchase of Tethers, as opposed to the issuance of unbacked Tethers. Importantly, the authors do not possess or reference any data disputing that Tether has sufficient reserves to back up Tether token issuances in circulation.

    Despite Griffin’s false bravado in recent aggressive statements to the media, the authors demonstrate a fundamental lack of understanding of the cryptocurrency marketplace and the demand that drives Tether token purchases. Simply stated, the digital token economy is driven by larger and more complex factors than the trading practices of any single player. Judging by the reaction to the updated paper, sophisticated and experienced traders in the ecosystem appear to fully understand this concept. To reduce the spike in the bitcoin price in 2017 to such simplistic terms is facile. It is also an insult to the millions of people in our community that believe in the sound principles governing the digital currency economy.

    Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is reckless – and utterly false – to assert that Tether tokens are issued in order to enable illicit activity. Tether token issuances have quadrupled since December 2017. This growth is not a product of manipulation; it is a result of Tether’s efficiency, acceptance and widescale utility within the cryptocurrency ecosystem.
    https://tether.to/tether-response-to...fin-and-shams/

    $4,100,000,000 market for USDTethers agrees with above sentiment.

    Name:  tether-charts (1).jpeg
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  23. #3448
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    The crux of the matter is whether Bitfinex/Tether issued USDT without equivalent reserves in a bank account and not the complexity of the cryptocurrency ecosystem, the complexity of which the paper fully acknowledges. The paper may well be flawed because the authors' don't have access to internal data but Bitfinex/Tether haven't been forthcoming either via an independent auditor making this something of a Rorschach test.

    Tether could have 100% capitalized reserves or 0% capitalized reserves because from the outside looking in the two are indistinguishable if USDT aren't redeemable for USD. Until USDTs are redeemable at scale, chart(s) showing USD $billions/volumes are suspect because the real number is $0 USD.

  24. #3449
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    Quote Originally Posted by MultiVerse View Post
    The crux of the matter is whether Bitfinex/Tether issued USDT without equivalent reserves in a bank account and not the complexity of the cryptocurrency ecosystem, the complexity of which the paper fully acknowledges. The paper may well be flawed because the authors' don't have access to internal data but Bitfinex/Tether haven't been forthcoming either via an independent auditor making this something of a Rorschach test.

    Tether could have 100% capitalized reserves or 0% capitalized reserves because from the outside looking in the two are indistinguishable if USDT aren't redeemable for USD. Until USDTs are redeemable, chart(s) showing USD $billions/volumes are suspect because the real number is $0 USD.
    Tether copped to a deficit of up to 25% IIRC, then modifying that to 16% a few months later. The remainder being that loan to bitfinex (its largest partner at the time of the loan). And the underlying cause of the need for the loan was confiscation by authorities.

    This stuff is concern trolling though. There is zero intellectual integrity in decrying an 84% liquid reserve ratio while tacitly endorsing a system of 10% RRs. Tether is not systemically important to the global financial system. Its failure would be met with another firm stepping in with a liquidity token. And its role is to support an industry that does not recognize centralized authority, rendering attempts to highlight noncompliance as pointless.

    The crux of the initial paper AFAIK was un-backed issuance of USDT. Now that it's been retracted or at minimum wholly unproven, the claims morph into various forms of gaslighting.

  25. #3450
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    Quote Originally Posted by Bromontane View Post
    Tether copped to a deficit of up to 25% IIRC, then modifying that to 16% a few months later. The remainder being that loan to bitfinex (its largest partner at the time of the loan). And the underlying cause of the need for the loan was confiscation by authorities.

    This stuff is concern trolling though. There is zero intellectual integrity in decrying an 84% liquid reserve ratio while tacitly endorsing a system of 10% RRs. Tether is not systemically important to the global financial system. Its failure would be met with another firm stepping in with a liquidity token. And its role is to support an industry that does not recognize centralized authority, rendering attempts to highlight noncompliance as pointless.

    The crux of the initial paper AFAIK was un-backed issuance of USDT. Now that it's been retracted or at minimum wholly unproven, the claims morph into various forms of gaslighting.
    Tether vs Crypto vs Fiat is a separate discussion, hence the Rorschach test.

    You might be right about the 84% liquid reserve ratio but there's no way today for an outsider to know because USDT aren't widely redeemable and there is no centralized authority. So I'm not sure un-backed issuance of USDT has been wholly unproven. Whether it's the loan to bitfinex, or whether the reserves are held by unaffiliated shell corporations, or the questionable forks, or the Bitfinex "hack" and subsequent issuance of tokens in lieu of dollars, does Bitfinex/Tether from a technical standpoint have any reserves? Isn't that an interesting, not a pointless, question?

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