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1
Posted on 2/14/21 at 6:20 pm to ChuckO1975
Posted on 2/14/21 at 6:23 pm to rocket31
quote:
that what some xrp shill told you on Twitter
Do you have a link to a full audit that has "cleared" USDT? That link you shared is no such thing.
"XRP" isn't even on my radar, but it's clean as a whistle relative to USDT and Bitfinex. That's how filthy USDT is.
Posted on 2/14/21 at 6:24 pm to TigerTatorTots
quote:
USDC (USD Coin) is the same interest rate at 12.5%.
I wasn't claiming the stake rates are an issue, just that USDT is less transparent than bitconnect.
Posted on 2/14/21 at 6:30 pm to CE Tiger
This is a thread back from 2019 about Blockfi but I don't see why the same concerns wouldn't go for all of these lending apps. Pro lending bros let me know where the holes are in this person's arguments. Still hesitant to throw anything more than a few grand onto Celsius as of now
0/ I’ll try to make a case on why using @therealblockfi interest account is one of the worst decisions a BTC investor can make. I’m all for innovation and new products in the BTC space. But, in my view, this is highway robbery + exposes investors to a risk they don’t understand????
1/ Let’s start with the 6% yield. This is pre-tax. There’s enough here to be concerned that this could be taxed as ordinary income (0% to 37%). @ 37% - the aft tax yield = 3.78% NOT 6%.
2/ even pre-tax, let’s use 1 month treasuries as a comparison paying ~2.4%. On @therealblockfi you receive a premium of 3.6% above treasuries (“risk free”). Is 360bps enough to compensate for BlockFi’s credit risk you will be taking?
3/ Typical startup loans (similar credit risk you take when depositing at @therealblockfi) are much higher than 6% depending on collateral. Closer to 15% to 20%.
Remember, BlockFi goes under = you lose all your BTC potentially.
4/ The risk of @therealblockfi defaulting probably increases as BTC goes up. Why?
They claim to be lending BTC to institutions. Most probably so they can short BTC. BTC moves up quickly = these institutions default. If there isn’t enough collateral, blockFi incurs a loss.
5/ You are indirectly exposed to Gap risk - I.e. BTC moves up quickly = higher risk to Blockfi = higher risk to your deposit.
Imagine a scenario where you are bullish, BTC goes up quickly and you lose all you BTC.
6/ to summarize, the risks are:
- exchange risk (ex: lost keys)
- default risk (Blockfi goes under)
- gap risk (BTC gaps up)
7/ if you feel 6% is nearly enough to take these risks you are out of your mind. I would require 40%+ to take these risks.
History has shown that interest bearing exchanges don’t have a great track record in BTC.
8/ Please keep your BTC at safer alternatives like a hardware wallet.
Bonus/ A few people pointed that @therealblockfi requires 50% collateral on their loans. Is that enough?
Well, look no further than 2017 where in 3 days BTC jumped up 45%. Pretty much all that collateral would be gone.
Image
Bonus 2 / I wrote a Python web app that shows the largest moves in BTC. If you are curious, you can see that the top 10 weeks in BTC returns would be disastrous for managing this collateral.
hodlcalculator.herokuapp.com
Twitter
0/ I’ll try to make a case on why using @therealblockfi interest account is one of the worst decisions a BTC investor can make. I’m all for innovation and new products in the BTC space. But, in my view, this is highway robbery + exposes investors to a risk they don’t understand????
1/ Let’s start with the 6% yield. This is pre-tax. There’s enough here to be concerned that this could be taxed as ordinary income (0% to 37%). @ 37% - the aft tax yield = 3.78% NOT 6%.
2/ even pre-tax, let’s use 1 month treasuries as a comparison paying ~2.4%. On @therealblockfi you receive a premium of 3.6% above treasuries (“risk free”). Is 360bps enough to compensate for BlockFi’s credit risk you will be taking?
3/ Typical startup loans (similar credit risk you take when depositing at @therealblockfi) are much higher than 6% depending on collateral. Closer to 15% to 20%.
Remember, BlockFi goes under = you lose all your BTC potentially.
4/ The risk of @therealblockfi defaulting probably increases as BTC goes up. Why?
They claim to be lending BTC to institutions. Most probably so they can short BTC. BTC moves up quickly = these institutions default. If there isn’t enough collateral, blockFi incurs a loss.
5/ You are indirectly exposed to Gap risk - I.e. BTC moves up quickly = higher risk to Blockfi = higher risk to your deposit.
Imagine a scenario where you are bullish, BTC goes up quickly and you lose all you BTC.
6/ to summarize, the risks are:
- exchange risk (ex: lost keys)
- default risk (Blockfi goes under)
- gap risk (BTC gaps up)
7/ if you feel 6% is nearly enough to take these risks you are out of your mind. I would require 40%+ to take these risks.
History has shown that interest bearing exchanges don’t have a great track record in BTC.
8/ Please keep your BTC at safer alternatives like a hardware wallet.
Bonus/ A few people pointed that @therealblockfi requires 50% collateral on their loans. Is that enough?
Well, look no further than 2017 where in 3 days BTC jumped up 45%. Pretty much all that collateral would be gone.
Image
Bonus 2 / I wrote a Python web app that shows the largest moves in BTC. If you are curious, you can see that the top 10 weeks in BTC returns would be disastrous for managing this collateral.
hodlcalculator.herokuapp.com
Posted on 2/14/21 at 6:30 pm to ChuckO1975
quote:
That link you shared is no such thing.
yeah, it is,
youre the one out here making claims that tether is filthy, why dont you provide the evidence they are not backing up issuances at 1:1? and right, id personally use USDC if given the choice
Posted on 2/14/21 at 6:34 pm to rocket31
quote:
yeah, it is, youre the one out here making claims that tether is filthy, why dont you provide the evidence they are not backing up issuances at 1:1?
Why doesn't Bitfinex and Tether actually open their records to a full audit if they are backing their issuance with their holdings?
Because they aren't. They have been pumping Bitcoin with their fake stablecoin, then claiming the increased sales price if Bitcoin on their collateral sheets.
The correlation between USDT printing and BTC prices has been well established. As has their refusal to submit to independent audit. It's a toxic wasteland.
Posted on 2/14/21 at 6:36 pm to TigerTatorTots
quote:
if you feel 6% is nearly enough to take these risks you are out of your mind. I would require 40%+ to take these risks.
So then where would you be able to do this? If you have enough money and can be an accredited investor maybe you could strike a deal with a hedge fund if not then you are relying on the blockfi, Celsius, Gemini to give you something in exchange for holding the btc.
The risk are there but in reality you aren’t relying on blockfi, Celsius, or Gemini. You are relying on the hedgefunds (Genesis Trading for Gemini) that are loaning out to which have loads of insurance for Digital Asset Crime and Vault Risks and what not.
This post was edited on 2/14/21 at 6:40 pm
Posted on 2/14/21 at 6:39 pm to ChuckO1975
quote:
Why doesn't Bitfinex and Tether actually open their records to a full audit if they are backing their issuance with their holdings?
they sent over 20,000 pages worth of records to the NYAG a few weeks ago
Posted on 2/14/21 at 6:42 pm to CE Tiger
quote:BTW, I signed up and moved some idle cash into USDC on there so enjoy that referral
CE Tiger
Posted on 2/14/21 at 6:43 pm to TigerTatorTots
quote:
/ to summarize, the risks are:
- exchange risk (ex: lost keys)
- default risk (Blockfi goes under)
- gap risk (BTC gaps up)
im up nearly 50k from this since ive been doing it for a little over a year - is that price worth it to you for sitting on your arse doing nothing? maybe, maybe not
i also dont live in constant fear of everything. people have tried to scare me out of profiting off my bitcoins since 2015
Posted on 2/14/21 at 7:07 pm to rocket31
Anyone got the balls to cash out their 401k right now and put it all on BTC?
Take that chance and retire this summer or by Christmas
Take that chance and retire this summer or by Christmas
Posted on 2/14/21 at 7:22 pm to Crawdaddy
No I’m too conservative. I’m like 90% VTSAX/equivalent as it is.
I’m too conservative. I’m like 90% VTSAX/equivalent as it is. Posted on 2/14/21 at 7:24 pm to Crawdaddy
quote:
cash out their 401k right now and put it all on BTC?
I’m tempted to send some of my Roth over to Coinbase for some more Bancor
Posted on 2/14/21 at 7:32 pm to Crawdaddy
quote:you'd be starting 30% behind the 8 ball.
Anyone got the balls to cash out their 401k right now and put it all on BTC?
Take that chance and retire this summer or by Christmas
Posted on 2/14/21 at 7:44 pm to CE Tiger
Me and TTT got some MSTR
Posted on 2/14/21 at 7:44 pm to jimbeam
Jelly....
Posted on 2/14/21 at 7:51 pm to Crawdaddy
quote:
Anyone got the balls to cash out their 401k right now and put it all on BTC?
Take that chance and retire this summer or by Christmas
I did sell my rental property in late December and have $96,000 in capital gains from the sale. I was thinking of putting at least $60,000 to ALL OF IT in BTC, ETH, BCH, LINK and Theta. I'll keep you all posted.
Posted on 2/14/21 at 7:53 pm to rocket31
quote:
im up nearly 50k from this since ive been doing it for a little over a year - is that price worth it to you for sitting on your arse doing nothing? maybe, maybe not
i also dont live in constant fear of everything. people have tried to scare me out of profiting off my bitcoins since 2015
Yep. Once it’s regulated to death and considered safe for the masses, there will be only crumbs left. Enjoy early adoption now because before we know it, it will be gone.
But we’re having some fun right now.
Posted on 2/14/21 at 7:56 pm to Crawdaddy
quote:
Anyone got the balls to cash out their 401k right now and put it all on BTC?
you don't need diversification when you're right
This post was edited on 2/14/21 at 7:57 pm
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