Re: why no threads on crypto collapse?
[Re: white marlin]
#7717361
11/14/22 11:23 AM
11/14/22 11:23 AM
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Joined: Jan 2014
Posts: 21,042 North East Kansas
Marty
trapper
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trapper
Joined: Jan 2014
Posts: 21,042
North East Kansas
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I heard that the company involved funneled billions back to the dems from the ukraine.
E 'Honey Badger Militia' Sleep, the anti woke adote.
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Re: why no threads on crypto collapse?
[Re: white marlin]
#7717390
11/14/22 12:19 PM
11/14/22 12:19 PM
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Joined: Dec 2006
Posts: 11,170 Oregon
beaverpeeler
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trapper
Joined: Dec 2006
Posts: 11,170
Oregon
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I figure same as Boco. People are purty darn gullible.
My fear of moving stairs is escalating!
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Re: why no threads on crypto collapse?
[Re: white marlin]
#7717405
11/14/22 12:51 PM
11/14/22 12:51 PM
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Joined: Dec 2006
Posts: 29,861 williamsburg ks
danny clifton
"Grumpy Old Man"
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"Grumpy Old Man"
Joined: Dec 2006
Posts: 29,861
williamsburg ks
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looks like bit coin still has value
Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety. Benjamin Franklin (1706-1790)
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Re: why no threads on crypto collapse?
[Re: MTtraps]
#7717447
11/14/22 02:09 PM
11/14/22 02:09 PM
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Joined: Dec 2006
Posts: 17,624 Rodney,Ohio
SNIPERBBB
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trapper
Joined: Dec 2006
Posts: 17,624
Rodney,Ohio
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Bitcoin wasnt the problem. Problem was the companies involved, Alameda Research and FTX, which were sister companies I'll post some more stuff later . Article doesn't explain anything
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Re: why no threads on crypto collapse?
[Re: white marlin]
#7717471
11/14/22 02:43 PM
11/14/22 02:43 PM
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Joined: Dec 2021
Posts: 986 Louisiana
MattLA
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trapper
Joined: Dec 2021
Posts: 986
Louisiana
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The problem here is that FTX and boy genius just straight up stole money, it has little to do with crypto except that it was the form of currency. FTX leaders "borrowed" money from accounts, and made unauthorized transactions including a $10B loan.
For FTX they had a crypto coin they made, but you have to understand that its value is based on how many people "agree" to its value. Their crypto coin also had no use for the general market, it was only good to use on their exchange. Imagine every bank having their own type of dollars, you can only spend them there but you get a better APR, a discount on trading fees, etc. You can understand that at the end of the day, those banks who have their own dollars, those can only be worth so much because they have limited to no use.
Ok so what FTX did was unauthorized use of customer funds by loaning a company named Almeda, which in my opinion is one and the same. They loaned $10B to Almeda using customer funds which is illegal, they also used their own coin to "pump up or obtain a higher valuation". A report came out detailing this, everybody freakes, the 3 biggest holders of FTX's own crypto coin, sold off everything, prompting everybody else to do so. So now remember I said FTX used their own crypto to get a high valuation? Well now that crypto is worthless, and they dont have enough fiat currency or dollars to cover all of the withdrawals. This prompted the bankruptcy, and it just is garbage management, not really a fraud scheme unless it comes out that those funds at Almeda were laundered somewhere.
Crypto is not some complex thing, the "good coins" all have purposes. Like 1 type.of coin you can use for bandwidth, another you can use to surf the internet anonymously, another is used to send money instantly anywhere in thr world, without having to pay all sorts of fees. There is a bunch of different types too, the only true "crypto" that is used for investing is bitcoin, but crypto is not really meant to be invested in. For the last example of sending money, the coin is called Algorand. The way it works is there is a computer program made for every crypto, algorand included. Every single crypto coin has a unique serial number, that we can look at every transaction made using that 1 algorand. So when Matt sends warrior $10 bucks in algorand coins which would be 1000 algorands(just for this example .10 cents = 1 algorand), that transaction gets recorded in the computer program. Now we have to make sure that transaction is legitimate, so that nobody can try to "double spend" the 1 algorand. The way this happens differs among crypto coins, but the basic premise is complex math problem get solved by another computer. This is what is commonly known as "crypto mining", when that computer solves the math problem, the computer program rewards that computer by giving it say half an algorand. The next step is that this confirmed legit transaction gets recorded in the transaction ledger, every single coin, every transaction. So just imagine being able to see where a quarter(25 cents) has ever been spent, used, deposited, etc. This is what the ledger is for.
Ok now that we are tracking just the basics, how does warrior get actual dollars or USD from the algorand I sent him? Well he has a computer program software wallet that holds his algorand, he must go find a crypto exchange, send his algorand to that wallet on the crypto exchange(coinbase, kraken, binance, FTX used to be, etc) After that warrior has to sell his algorand for USD at whatever the market rate is. Lets say in the 5 minutes that all of this takes, algorands are now only 9 cents usd per algorand. Well he is only gonna get $9 dollars, but it also can be that it went up to 11 cents per algorand and he will get $11 dollars. After he gets his USD, he can have a check mailed, paypal transfer, EFT in some cases, bank wire, etc. This is how every basic crypto coin operated, nobody who "uses" crypto uses them for investment purposes, but just like companies if a crypto does good and is useful, people will hold it just like stocks to a degree. The main difference and purpose of crypto is that you shouldnt have to have the gov regulating every move, and things should be as decentralized as possible. There is only one true "semi anonymous" crypto and that is monero.
What I like to do is take crypto for some gun stuff that I sell during the offseason of trapping and hunting, and I do have to pay taxes, but there is NO customer record unless its a legit gun purchase. The federal government cant just hit up monero like they do for mastercard or visa. They are able to see like the date and time when get the monero, but nothing else with how I require it. So it does pay to do some research and try to understand it, but just understand each crypto coin has a purpose that has nothing to do with investing.
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Re: why no threads on crypto collapse?
[Re: white marlin]
#7717557
11/14/22 05:07 PM
11/14/22 05:07 PM
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Joined: Dec 2006
Posts: 11,170 Oregon
beaverpeeler
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trapper
Joined: Dec 2006
Posts: 11,170
Oregon
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Interesting analysis Matt. I still would never trust something I can't understand and even with all the nice explanations of how it works I cannot wrap my brain around any of it.
My fear of moving stairs is escalating!
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Re: why no threads on crypto collapse?
[Re: white marlin]
#7717636
11/14/22 07:15 PM
11/14/22 07:15 PM
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Joined: Aug 2011
Posts: 45,484 james bay frontierOnt.
Boco
trapper
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trapper
Joined: Aug 2011
Posts: 45,484
james bay frontierOnt.
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I told all you guys a few months ago something like this was going to happen with the crypto. You all know I am very seldom wrong-you need to pay attention.
Last edited by Boco; 11/14/22 07:17 PM.
Forget that fear of gravity-get a little savagery in your life.
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