Avatar
OT
86c79e5aa8c41f68c9a238858b08c4d63c1b0ce6d4fa96d32a90df25bd83b072
A Bitcoin guy.
Replying to Avatar Juraj

Fun invisible financial fact for people using stable value in fiat.

Stable value (like stablecoin, stablesats, dollar denominated cashu mint, ...) is a long position on fiat. If it's settled in BTC, or if it's based on some collateralized stablecoin, in both cases it is a short position on bitcoin (it's not a naked position, you have the Bitcoin as well).

Only crazy people want to be long Bitcoin and short fiat (that's not a judgement, market says it), so people who want to take the Bitcoin long side of the position usually have to pay the shorts (stable) in some way - interest rate, funding rate.

Another way to look at it: The long Bitcoin position is mathematically equivalent to a Bitcoin collateralized, Fiat denominated loan. If you want to borrow (short) fiat in order to keep your bitcoin exposure and not sell it, you have to pay an interest rate for the loan. It's the market way to convince (bribe) someone to take the long fiat position, which is otherwise batshit crazy.

This part should be obvious, even if not financially, just plainly - if I lend someone fiat, which is depreciating in value, I want to be compensated by the interest (even if the loan itself is risk free, charging for risk is another topic). If I borrow fiat, I fully expect to pay an interest rate on that loan. Are you with me?

OK. Now the fun part: if you have a stable position in a cashu wallet, stablesats channel, ... you:

- are loaning someone fiat (you have the long fiat position, which has the short side to complete the magic of stabilization, otherwise it would not be hedged)

- if you are not paid interest, the business of the counterparty is selling that short fiat (long BTC, or collateralized loan - mathematically the same thing in this case) position to the highest bidder in the process of hedging the stable value

- you are essentially printing new dollars (or other fiat). that's exactly how electronic fiat is created.

Questions? :)

I thought stable sats is based on traders doing their thing (some go long, some go short). So I don't see how it is akin to printing fiat.

Ahh, I remember this clown from the time he said Bitcoin would go negative. Lol

How's he doing these days?

This was huuuge!

If there's an mETH ETF there will likely be others. Maybe they won't make it in time for this bullrun, but I'd imagine scammers being creative on how they will get some of the big boy $$$.

Like imagine a company with stonks doing the MicroStrategy play but with a basket of sh$tcoins.

It is weird that people can still get interest only loans. I thought they took it away, but they must have brought it back. Our politicians would all be effected after all.

As long as you have the stable job/income, banks are happy to lend as much as they can. Its earning them interest after all, and we all know property can never go down right?

Replying to Avatar L0la L33tz

German party Die Linke just filed a formal inquiry into the use of blockchain surveillance software with the German government.

It wants to know the government's minimum requirements for error rates and verifiability of the software used. It directly references the use of Chainalysis Reactor, the accuracy of which was recently questioned in the trial of alleged Bitcoin Fog operator Roman Sterlingov. Die Linke states that:

"In the view of the questioners, there currently seems to be no apparent evidence that the methods used for the forensic analysis of virtual payment flows meet scientific standards".

But that's not all. Die Linke wants to know how many cases have been filed with Financial Intelligence Units on suspicion of money laundering, and how many cases actually resulted in criminal prosecutions – noting that, in light of a total estimated volume of more than €100 Billion laundered in Germany each year, the portion of cryptocurrency value contributing to overall money laundering volume is expected to be "negligibly small".

And here's the best part: Die Linke also wants to know how the government distinguishes between legitimate use of mixers and criminal use of mixers, and whether the government is planning a potential mixer ban or other forms of regulations.

Die Linke states that "coinmixing" and other anonymization software "corresponds to a widely held need to protect one's privacy in times of ubiquitous technological surveillance by digital corporations and government authorities".

Bullish af on financial privacy today.

Full story:

https://www.therage.co/german-parliament-faces-questions-on-blockchain-surveillance/

Finally some good news out of Europe

Close the bank account, take the cash and buy on bisq or hodlhodl.

Replying to Avatar Brad Mills

I am not a fan of these nostr:npub13ljnkd633c7maxatymv3y2fqq8vt3qk7j3tt0vytv90eztwgha9qmfcfhw notifications 😅

Anyone else think it’s odd for your bitcoin lightning wallet to be sending you notifications like this?

Maybe I’m just too sensitive because I don’t want to see the price all the time.

Disable notifications

Wonder how it works with bitcoin then... Must be silent payments. Not sure there would be many using base layer bitcoin for tipping. Maybe as payments for products, services or gigs.