makeasnek

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[–] makeasnek@lemmy.ml -1 points 9 months ago (5 children)

The previous poster is alleging BTC is being "pumped" by tether because tether is collateralizing their coin by buying BTC. I'm pointing out that they also buy USD yet nobody is complaining that USD is being pumped.

If you buy a stablecoin, the hope is that the stablecoin is tied to an actual dollar (or whatever it is supposed to represent). This means if you buy $1 in tether, tether should buy $1 USD on the open market, put it in a vault, and wait until somebody else comes back to sell that dollar back to Tether. But you can buy other stuff too, other assets, which when you start managing large amounts of money is important for risk management. Plus they can make some returns that way. Some stablecoins pass the returns on to people who hold the stablecoin. Generally, these stablecoins are collapses waiting to happen for these and many other reasons.

[–] makeasnek@lemmy.ml -5 points 9 months ago* (last edited 9 months ago) (3 children)

The whole idea behind IOG is to build the Cardano to the point it can become an independent, self-sustaining and self-developing thing.

So weird how proof-of-work currencies like Bitcoin were able to do that without making a centralized governance structure which promised to hand over the keys later.

yes TWO mining pools control more than half of the Bitcoins block production

Mining pools have been getting more distributed the last few years thanks to some network upgrades. Pools relay the results of mining, they don't do the actual mining, they have no hashpower. In the past, pools have tried to censor transactions, and seen their pool get abandoned by the entire network. They couldn't censor them of course, they could only temporarily delay them. Pools have no power. They can't double-spend or 51% attack because nearly all of the BTC they acquire flows right back to miners. They can't afford the cost of a 51% attack more than any other entity or nation-state. They can't spend money which isn't theirs, even if they could do a 51% attack. If you look at hashpower instead of pools, you will see it's much more decentralized.

Actually, in Cardano, the rich don’t really get richer because every single holder no matter how small gets rewards proportional to their holdings (if they stake or delegate, which is risk free and no locking unlike Ethereum and Solana garbage PoS).

The rewards proportion isn't why the "rich get richer". The rich get richer because coins in transit can't stake. This means the only coins that can stake are existing coins, sitting in wallets, doing nothing but staking. You are printing an inflationary currency supply, making new coins, and giving those coins to those who are already sitting on the most coins. The more coins you have, the greater portion of your coins will be sitting instead of moving, because why not, it's free money right? For doing nothing. It's why supply inflation/currency devaluation hurts the middle class more than anybody else. They have an emergency fund, they have a savings account, they are saving up for a down payment. They have more cash on hand than rich people or poor people. Rich people have assets. Poor people don't have enough money to be effected. The proportionality doesn't matter here. What matters is the direction of the new coin flow: towards those who are already sitting on coins.

In a fixed supply, your coins may gain value over time due to deflationary pressure. Every coin is effected the same way. In cardano and other inflationary currencies, you've added an additional layer where you are printing coins and handing them to those with the most coins already. Not only does this give them more coins, it reduces the value of the coins held by people whose coins recently transited.

[–] makeasnek@lemmy.ml 2 points 9 months ago* (last edited 9 months ago)

I'm saying that the transition to a Bitcoin-based economy will be a massive shake-up in global wealth distribution. Where each individual person ends up at the end of it is a factor of how soon they stop calling it a ponzi scheme and instead recognize its value as a currency. We have an opportunity to fix global wealth inequality, particularly the wealth inequality enforced through the dollar the the debt-cycle trap so many countries have fallen into. The dollar is a tool of US imperialism, it's traditional colonialism with a few extra steps. We extract trillions of dollars of value from other countries which rely on the dollar because we print currency which is essentially a tax on the entire world.

There is a fantastic overview of how the US uses the dollar to control other countries and extract trillions of dollars from them while keeping them in a cycle of debt. The Human Rights Foundation https://youtu.be/7qRWurFaUD0?list=PLe0djdakvnFb0T-oZAeF49A-EZChise4n&t=14009 and another one on how France abuses its currency influence in Africa to keep the colonial legacy alive https://www.youtube.com/watch?v=_-u1Pjce4Lg&pp=ygUxaG93IGZyYW5jZSBjb250cm9scyBlbnRpcmUgZWNvbm9taWVzIGZyYW5jb2RvbGxhcg%3D%3D

Bitcoin is still capitalism, it can't fix capitalism's flaws, but it can move us towards a world where the flaws of fiat currency and currency imperialism are fixed. It can move us to a world where the government isn't constantly printing away the value of your hard-earned money, where governments must increase taxes to fund wars. That world looks very different.

[–] makeasnek@lemmy.ml 1 points 9 months ago* (last edited 9 months ago) (1 children)

IDGAF about Tether, IMO it will collapse one day, and the world will be better for it. It's a currency whose basis is "trust me bro".

[–] makeasnek@lemmy.ml -2 points 9 months ago* (last edited 9 months ago) (2 children)

PoS inevitably leads to centralization and requires an inflationary currency supply. That is the problem. Coins in transit can't stake. Which means the only coins that can stake are coins that already exist and are sitting on a staking node. You are paying those stakers with an inflationary supply. Which means you are minting new coins and handing them to users who already have the most coins. This leads to centralization of the supply over time, and therefore, control of network consensus. A few rich, powerful people end up controlling the whole system, just like our existing banking system. No thanks.

Most of those PoS chains also have massive chain sizes/system requirements compared to Bitcoin, which means they can't be or remain nearly as decentralized, neutral, and secure.

[–] makeasnek@lemmy.ml 1 points 9 months ago* (last edited 9 months ago) (3 children)

There will be 21 million coins minted. Ever. That is Bitcoin's fiscal policy. There are 62 million millionaires in the world. There isn't enough Bitcoin for every millionaire in the world to have an entire coin. An entire coin currently costs around $40,000. Y'all do the math.

[–] makeasnek@lemmy.ml 2 points 9 months ago (3 children)

Nice to have a cordial discussion/disagreement on here. If you're interested in reading some (IMO) good arguments for why it's not a energy wasting pyramid scheme, check my comment history :).

[–] makeasnek@lemmy.ml -1 points 9 months ago* (last edited 9 months ago)

If everybody suddenly sold all their USD, EUR, or other currency, that currency's value relative to other currencies would also crash. That's not unique to Bitcoin.

People cash out their currency to buy goods and services, that's the whole point. You accept currency knowing you can spend it later. It's useless in and of itself. In order for them to spend it later, somebody has to be their "exit liquidity" and trade a good or service they have for that currency. You can call that a ponzi scheme if you want, or you can just call it currency, because that's how currency works.

[–] makeasnek@lemmy.ml 4 points 9 months ago* (last edited 9 months ago)

No, but some functionality could be bolted onto it for that purpose. But it is a federated network, just within it's own protocol. Fediverse (Mastodon, Lemmy, Kbin, etc) run on an underlying protocol: ActivityPub, so they can all federate with each other within ActivityPub.

Nostr runs on an underlying protocol also confusingly called nostr. Nostr's main "interface" is a twitter clone, but the underlying protocol supports things like video streaming sites etc and some interfaces have been built for that purpose.

[–] makeasnek@lemmy.ml 4 points 9 months ago* (last edited 9 months ago) (5 children)

Your understanding is not correct. You do not need to use crypto at all to use the platform. There is an optional tipping mechanism where you can tip people via BTC lightning if you like their tweets. It's pretty fun to use, it's fun to receive tips from others when they like your post. But you don't have to.

You can still post, like, re-tweet, reply, DM, etc with no crypto whatsoever. Crypto is not tied to upvotes/visibility unless you specifically set it to filter that way in your client.

One benefit of having crypto integration built-in is that it can provide a sustainable funding mechanisms for relays. You can use "pools" when you send tips. So when you send 10c in a tip for somebody's post, you can elect to have 1% go to the relay maintainer, nostr development, or any other destination you choose. This problem of subsidizing hosting is a problem ActivityPub doesn't has any real solution for.

On Activity Pub, instances may choose to run ads, issue badges, or otherwise pay for hosting, but if AP is going to scale to the level it needs to get to, we can't rely on the altruism of instances to just host everything for free. If we do, we will end up in a centralized social media mess like we're trying to get away from in the first place.

There are many ways to solve this problem of needing to pay for the network infrastructure, but nostr is the only one currently that has a workable solution.

[–] makeasnek@lemmy.ml -2 points 9 months ago* (last edited 9 months ago) (7 children)

Stablecoins are a house of cards built around stably relating to another house of cards which is the entire inflationary fiat system. Every single asset and currency is speculated on via the open market. Bitcoin is no exception. If it is overvalued or undervalued, that creates market opportunities for people to exploit the difference. The market has decided it's worth a certain amount today, it will be another amount tomorrow. Not unique to Bitcoin. Every year people have said Bitcoin was "overvalued" and powered purely by hype, on average, the market has decided they were wrong the following year.

Any honestly-run stablecoin inherently has to collateralize their coin with something. They can buy BTC (and do), they can buy USD (and do), they can buy wheat futures (but I'm not sure they do). Ultimately, a diverse portfolio would probably be wisest. Yet you don't see anybody complaining that "USD is being pumped by Tether/USDC". Why? Because it's not a problem.

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