I'm way late to this party, but is there a good video or site that you guys know of that explains crypto? I just can't wrap my head around it.
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Originally posted by Laketex View PostI'm way late to this party, but is there a good video or site that you guys know of that explains crypto? I just can't wrap my head around it.
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Originally posted by rladner View PostCrypto, real crypto, not ponzi scheme crypto, is the currency of the network. The network is Blockchain. There are many different blockchain technologies out there. Blockchain, simply put is a record of transactions that are all linked together in a block of data. Once that block is full a new block is created, which is also linked to the previous block. Hence, "Chain". That means it is more secure from hackers and it becomes very difficult for the information from a transaction to be manipulated because it requires manipulation of all the other transactions in the block chain that are referenced with it. So, a blockchain is a network and in principle is very secure. So, companies build their infrastructure on the blockchain. They transact business on the blockchain. Crypto is the native currency of that blockchain. All transactions that take place on the block are charged a very small fee, payable in that block's crypto. So, in order to conduct business you must own that block's crypto. You pay your fees and get paid fees in that block's crypto. That is the premise for supply and demand of that crypto. Investors come in and buy up crypto for various reasons, but the basic reason is that business activities on the block will increase, driving demand, thus driving up price. At least that is how I understand it all.
ok, explain it to me like i'm 5.
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I lost mine when Voyager Digital went bankrupt because of their immense unsecured loans to Three Arrows Capital (3AC)......who went toes up.
The irony is FTX was the highest bidder and was about to buy Voyager when FTX went bankrupt.
Behind Voyager’s Fall: Crypto Broker Acted Like a Bank, Went Bankrupt
As it turns out, 2021 was actually a lot like 2017 – both were quickly followed by a brutal crypto market crash. Ehrlich’s sunny optimism has yielded a rotten harvest.
The Jersey City, N.J.-based company is now known to have made immense unsecured loans to Three Arrows Capital (3AC). That failed hedge fund now appears to have defaulted on all of its obligations, and its founders are reportedly fugitives.
That alone was apparently a mortal wound. On July 1, Voyager froze customer funds. Just days later, it filed for bankruptcy protection in New York.
Voyager is in a bleak situation. “The Debtors are facing a short-term ‘run on the bank,’” according to a statement Ehrlich filed alongside bankruptcy papers. But, also according to Ehrlich (who did not respond to a request for comment for this story), Voyager has a brighter future: “Debtors have a viable business and a plan for the future.” (Under Chapter 11, the company is seeking to reorganize rather than liquidate.)
So how did a once mighty and well-regarded crypto lending outfit get here?
Short version: Voyager was pretty good at attracting deposits. When it came to lending that money out … not so much........
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Originally posted by Tbar View PostI lost mine when Voyager Digital went bankrupt because of their immense unsecured loans to Three Arrows Capital (3AC)......who went toes up.
The irony is FTX was the highest bidder and was about to buy Voyager when FTX went bankrupt.
Behind Voyager’s Fall: Crypto Broker Acted Like a Bank, Went Bankrupt
I had a small amount of hbar on voyager when it went kaput. It will be interesting to see how much we get back. If any.
Sent from my iPhone using Tapatalk
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Originally posted by rladner View PostCrypto, real crypto, not ponzi scheme crypto, is the currency of the network. The network is Blockchain. There are many different blockchain technologies out there. Blockchain, simply put is a record of transactions that are all linked together in a block of data. Once that block is full a new block is created, which is also linked to the previous block. Hence, "Chain". That means it is more secure from hackers and it becomes very difficult for the information from a transaction to be manipulated because it requires manipulation of all the other transactions in the block chain that are referenced with it. So, a blockchain is a network and in principle is very secure. So, companies build their infrastructure on the blockchain. They transact business on the blockchain. Crypto is the native currency of that blockchain. All transactions that take place on the block are charged a very small fee, payable in that block's crypto. So, in order to conduct business you must own that block's crypto. You pay your fees and get paid fees in that block's crypto. That is the premise for supply and demand of that crypto. Investors come in and buy up crypto for various reasons, but the basic reason is that business activities on the block will increase, driving demand, thus driving up price. At least that is how I understand it all.
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Originally posted by jshouse View Postok, explain it to me like i'm 5.
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Originally posted by Tbar View PostI lost mine when Voyager Digital went bankrupt because of their immense unsecured loans to Three Arrows Capital (3AC)......who went toes up.
The irony is FTX was the highest bidder and was about to buy Voyager when FTX went bankrupt.
Behind Voyager’s Fall: Crypto Broker Acted Like a Bank, Went Bankrupt
The only bitcoin they bought was when someone wanted to pull out/transfer some bitcoin.
Originally posted by bbbuck View PostMonopoly money.
Also - Now we may know why the SEC (or whoever approves) wouldn't approve a Bitcoin trust ETF (forget the exact name of what they kept applying for). This is the type actually backed by the worth of bitcoin the fund holds.
But they did approve the futures or "paper" trading which does not peg to any hard asset. It all has to do with price manipulation.
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Originally posted by RiverRat1 View PostLet's be clear. FTX did not go bankrupt. They were a literal scam from top to bottom. People's accounts never actually owned bitcoin (or other crypto). It was all fake. One big ponzi scheme.
The only bitcoin they bought was when someone wanted to pull out/transfer some bitcoin.
Not really. FTX was just an exchange. People didn't lose because their crypto went worthless, they lost because FTX stole their money.
Also - Now we may know why the SEC (or whoever approves) wouldn't approve a Bitcoin trust ETF (forget the exact name of what they kept applying for). This is the type actually backed by the worth of bitcoin the fund holds.
But they did approve the futures or "paper" trading which does not peg to any hard asset. It all has to do with price manipulation.
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Originally posted by donpablo View PostThis is the best explanation I've heard so far. So, why doesn't a blockchain advertise that certain lucrative businesses are using its blockchain? Do the businesses using it demand confidentiality? Would that motivate hackers to target a specific blockchain? Because if say, Walmart was using Litecoin, wouldn't that increase demand for Litecoin? Of course Walmart probably wouldn't like that since their costs would go up. Still, I'm curious.
Here's the issue:
The SEC regulates Securities. Crypto is NOT a security, therefore is not regulated by any governing body. Well, the SEC is making a claim that the Ripple crypto is in fact a security and should be regulated just like a stock is.
So, here is the SEC's argument. They argue that the Ripple crypto was issued by Ripple and Ripple is marketing it and encouraging its increase in value, thus benefitting Ripple, therefore it is a security. Basically, if a Crypto company can promote to increase the value of their crypto and they benefit from that, then it is a security.
So, one reason you don't see many blockchains advertise too much is the avoidance of that issue. They don't want to be seen or regulated as a security.
I know several crypto companies who have set up "Foundations" that are separate entities. The Crypto company gives them a large amount of crypto. The Foundation then goes out and gives "grants" to companies to help them develop on the blockchain platform and market the blockchain and crypto on behalf of the Crypto company. Since they are two different entities, the crypto can remain separate from a "security" since it is the foundation who is doing all the work to increase the value. Yes, the crypto company benefits, but they are not the ones driving the increase.
Too much?
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Originally posted by Laketex View PostActually that explanation helped but I'm still dumb. So what makes it worth anything? Yes, I realize that faith in the dollar is the only thing that makes the dollar worth anything since the gold standard was gone. Still....what makes a bitcoin worth 30k or 60k or whatever it's said to be worth today? What's backing it up? Because it just looks like computer code. Just faith?
There is no real rational that Bitcoin should be at $60K. The reason it is(was) at $60K is that people believe the price will go up, so they buy. Why is it at $16K? Not worth that from a pure asset value, but the belief that others will want it and be willing to invest more money into it will drive the price back up. As we come out of this crypto winter, BTC will be one of the first and fastest movers. People know that and it will only increase the price more.
So, I guess there is no real underlying value to the crypto itself, it is not a representation of the blockchain's value, it has no equity, it only has "real" value on the chain itself, but people see the value in possibly having one form of currency worldwide and its ease of use. They see the opportunity to invest in something easy. Honestly, I can't tell you why BTC went to $60K. All I can tell you is I wish I bought a million btc back when it was at $0.08 , then sold at $60K
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