The Crypto Thread

I think there’s some confusion here. At least, I know that I am confused.

You can’t figure out the dollar value of bitcoin by looking at on-chain transactions. All on-chain transactions do is move bitcoin from one wallet to another. To see what the dollar value of bitcoin is, you look at the exchanges, where people are trading bitcoin for dollars (and vice versa).

I don’t know how exchanges work internally, but the overwhelming likelyhood is that when you sell bitcoin, there is no on-chain transaction happening, because, as Ginger_Yellow says, bitcoin is a terrible protocol which is slow and expensive. They probably just update your account to show you now own fewer bitcoin and more dollars. (Basically, the same thing your bank does when you transfer money to another account). The only time the exchange is going to actually go to the chain is if a customer withdraws or deposits a lot of money, or when they think they can make money by doing so.

So the fact that there isn’t a lot of on-chain volume backing up this huge rise in the dollar value of bitcoin doesn’t mean there isn’t a lot of actual volume. There might be! Exchanges are notoriously opaque (usually because they are doing insanely risky things with depositor’s money), so we probably have no way of knowing.

It is sort of hilarious that “the blockchain” is becoming less and less important to the operation of bitcoin, when it was the whole point of the thing in the first place, and I’m sure most investors will still point to it as the reason for its value.

Which is either crazier, or perhaps further indicative of who’s buying and driving up the price.

As in, who the fuck would trust an exchange now, after 3AC, FTX, BlockFi, Celcius, etc, etc? If your BTC is just paper, kiss it goodbye in another collapse.

Unless…the ones buying all the bitcoin and ETFs are the exchanges themselves (and/or their financial backers/stakeholders)! Just massive amounts of wash trading, laundering and funny paper money moving around to pump it all up again.

Yea that’s my question too. Plus the fact it’s just a digital ponzi scheme.

ooo, you gonna get such pedanting!

WELL ACTUALLY . . . . just kidding.

It’s only a Ponzi scheme if it’s from the Ponzi region of Italy, otherwise it’s just sparkling fraud.

I guess this can go here too.

I’d like to see his parents prosecuted as well.

In September, Robb told people on the crypto-centric social media platform Friend.Tech and on Twitter that people who “have $100-$200k+ sitting around” could take advantage of “some next-level MEV stuff” via a new bot he was building, according to messages included in the affidavit. Robb explained to investors in DMs that what he was apparently building was “quite capital intensive” but that he had already built a prototype that is “theoretically good enough already to make enormous returns.”

Over the course of the next few weeks, Robb allegedly collected a series of investments totaling at least $1.5 million and continued to give investors optimistic-sounding updates that claimed their “risk free” investment would result in a “six figure return” within a week of the bot’s launch.

Rather than actually build any sort of bot, however, the FBI alleges that Robb transferred much of this investment to his personal bank accounts, which he then used to buy sports tickets, a luxury Jeep, and a Bahamas vacation.

Who could have foreseen this?!

I guess they got what they paid for.

They really dropped the ball on this story’s headline. “Rob Robb Robs Rubes” was right there.

Crypto version of “hurt me, mistress”?

There are so many scams in Molly White newsletter, (I hadn’t seen it before) that it is hard to know where to start.

I’m currently reading Going Infinite by Michael Lewis, borrowed from my library virtually, and I have to say, reading about SBF’s childhood is like I’m reading about the childhood of a psychopath or serial killer. Reading it, I am suddenly really happy that my own son is not displaying so many of these isolating behaviors. I have to put some of this on the feet of the parents though. If you don’t celebrate birthdays and other events because you don’t see the point, of course that attitude will also filter through to the children. Their whole attitude seems to been that he didn’t seem to want it, so they didn’t bother.