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Joined: 3/5/15 Posts: 7952
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Bitcoin has become an unregulated financial security

If you have studied economic history, there are ways for unregulated financial products to be pumped to ridiculously high levels of paper value by leveraging that paper value to bid up even more of it.

Things that regulated exchanges cannot do:
1) Create account value out of thin air in order to purchase assets (this would be known as fractional reserve banking - something normally only banks are allowed to do - except instead of lending money against collateralized assets, they are just crediting themselves with dollar-denominated assets made out of thin air called Tether).
2) Engage in wash trading using sock-puppet accounts in order to increase apparent volume and liquidity.
3) Not perform any audits or independent 3rd party review of declared assets and to ensure no mixing of company and user accounts.

Ask yourself this hypothetical. What will you do if the exchange you use declares that no more withdrawals are allowed until further notice and absconds with all the money you think is yours?

If you play in this space, do NOT keep any significant account value in a wallet for which you do not have the private key. If you have $10,000 at Coinbase, tomorrow you may have $0 and you will just be another creditor in line. If you have 100 BTC at Coinbase, tomorrow you may have 0 BTC or those BTC may be worth $0 and all you will have is a legal claim against an entity that is incorporated in a foreign country with no assets that any US court can reach.

And it you have any USDT (known as Tethers) you are holding air designed to look and feel like dollars but which are not. Get rid of it now if you can and get all of your funds out of any exchange that deals in Tethers. They are all bankrupt because they have no assets by which to redeem those Tethers, because no assets were used to create them.

(In response to this post by BrevardHoo)

Link: Pump and pump

Posted: 12/06/2017 at 2:07PM


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Current Thread:
Bitcoin $400,000 according to Mark Yusko -- BrevardHoo 12/06/2017 11:04AM
  The miners are trying to validate prior transactions -- BrevardHoo 12/06/2017 6:24PM
  You mean like the Dutch Tulip? :) ** -- Blah 12/06/2017 2:39PM
  So are you saying Yusko is full of shit or what? ** -- BrevardHoo 12/06/2017 2:35PM
  I think he keeps his own money where he can get it -- Toolie92 12/06/2017 2:41PM
  You are not answering the question: $400k or not? ** -- BrevardHoo 12/06/2017 2:44PM
  On paper? -- Toolie92 12/06/2017 2:54PM
  By fake money do you mean USD? ** -- 2001Hoo 12/06/2017 5:14PM
  USDT -- Toolie92 12/06/2017 5:27PM
  Enjoy the ride -- Toolie92 12/06/2017 3:22PM
  And Oswald didn't shoot Kennedy ** -- BrevardHoo 12/06/2017 3:34PM
  That is not even close to accurate -- CavalierLion 12/06/2017 4:22PM
  Steam just ended Bitcoin support -- Toolie92 12/06/2017 5:36PM
  For every Steam there are a thousand companies paying -- BrevardHoo 12/06/2017 6:35PM
  It has moved way beyond that on the shady scale -- Toolie92 12/06/2017 2:24PM
  What about MasterCard or Amex/Versa? ** -- hooyorkcity 12/06/2017 6:35PM
  Yes and no, I think -- MaizeAndBlueWahoo 12/06/2017 12:25PM
  I think Bitcoin is shady right now..... -- Zhoo 12/06/2017 12:31PM
  Pretty sure Microsoft and Expedia would let you -- BrevardHoo 12/06/2017 12:27PM
  Let me rephrase the last part a bit, actually -- MaizeAndBlueWahoo 12/06/2017 12:30PM
  And technically the case when it comes to the $ too. -- The_Superhoo 12/06/2017 1:22PM
  Just like any other asset that you profit from ** -- Faz d. Hoo 12/06/2017 12:30PM
  Cap gain ** -- BrevardHoo 12/06/2017 12:25PM
  Nope, you're probably right. ** -- Lucius 12/06/2017 11:14AM

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