Cryptocurrencies - Your Key to Financial Freedom AMA

techlead on 30/03/2021 - 10:45
Last edited 24/05/2021 - 11:22 by 1 other user

I've been tracking the crypto space since Bitcoin was invented and bought my first Bitcoin in 2013 and has been using every cent of my savings to buy cryptocurrencies ever since.

I can now comfortably retire. Which other investment allows you to do that in less than 10 years.

Ask me anything about the cryptocurrency space, there's no such thing as a "silly" question. I think this goes without being said, but I'm going to say it anyway. None of what I say here is financial advice, I do not hold an AFS license, you should seek advice from a licensed professional before making any investment decisions. If you are making investment decisions from some random guy on the internet without doing your own research and due diligence, you should stop immediately!

There's all these controversy about property prices "surging" or becoming unaffordable, not for me, if you invest in the right asset, property is actually getting cheaper and cheaper. Property prices in Bitcoin terms has been decreasing and will continue to as Bitcoin increases in price at a faster pace. So to me, property is progressively getting cheaper and cheaper.

Update:

For those who would like to find out more about cryptocurrencies and why I think Bitcoin is here to stay and will be more valuable in the future, head over to hope.com and watch some of the videos. This site was set up by the CEO of MicroStrategy, Michael Saylor who's company bought an aggregate of approximately 90,531 bitcoins, which were acquired at an aggregate purchase price of approximately $USD2.171 billion and an average purchase price of approximately $USD23,985 per bitcoin, inclusive of fees and expenses as of 24th Feb 2021.

To those who think that I "got lucky" and was "fortunate", that's very far from the truth. I saw this coming, I knew that with rampant money printing by central banks, fiat currency is going to zero and it has been doing so for centuries. All fiat currencies have gone to the zero, in history, there has not been any fiat currency that didn't go to zero. So Bitcoin's rise is inevitable to me, hence I bought it. I didn't go as far as that family who sold everything to buy Bitcoin, but I did use nearly all of my savings to buy cryptos.

Common criticisms of Bitcoin

  • Its just like Tulip mania
    Bitcoin is nothing like Tulips, Bitcoin is a decentalised and censorship resistant network which enables values to be transferred across the internet at very low cost. The value of Bitcoin is the strength of its network and the fact that it has never been breach or hacked, which means unless someone steals your private key, your coins are safe.
    Tulips has none of these qualities. The only thing which Bitcoin and Tulips have in common is the fact they both went up in value very quickly. Even then there are differences, Tulips went up and crashed all within 3 years. Bitcoin has gone through at least 3 cycles where it has smashed its previous all time highs and never dipped below the starting point of the cycle.
    Bitcoin has recorded a higher year on year low every single year since its existence except for 2015.

  • The Bitcoin network uses too much energy
    This is just market supply and demand. People mine Bitcoin because it is profitable to do so. The Bitcoin network do not require so many miners, in fact it started with just one miner. The network can continue with just one miner, it adjusts as more miners enter and leave, this is built into the network. The high energy used by Bitcoin is a sign that it is valuable and people are willing to make the effort in participating in the effort in securing the network and be rewarded for it.
    Due to the profit motive, the energy sources used by Bitcoin miner are increasingly from green energy sources reducing its impact on the environment.

  • It is used for criminal activity
    Fiat currencies are used on a much much larger scale by criminals. Banks launder money for criminal, there's been so many scandals, and those are just the ones which make it to the media, I'm sure a lot goes undetected.
    Bitcoin is actually very bad for criminal activity, this is why they quickly moved onto privacy coins like Monero and Zcash. The Bitcoin blockchain is public and all transactions remain there forever. If a drug deal is done with cash, unless there's a recording device there at the time of the transaction, that drug transaction is untraceable. If you do a drug transaction with Bitcoin, that transaction will always be on the blockchain, all it takes is for law enforcement to tie one address to a real person, and the entire web unravels, so its not very smart using Bitcoin for criminal activity.

My Crypto mistakes and other pitfalls

I want to go over some of the ways I lost money in crypto over the years so maybe you can learn from my mistake

  • Scam websites
    In 2014, there was a website called Bitcoin savings bank, which promises 9%pa interest if I transferred my Bitcoin there. Very similar to what Crypto.com, Blockfi etc offer today, except they are scammers. Unfortunately, I didn't do my research and I believed them. I transferred 2BTC to their "savings account". Never saw it again.
    Nowadays, these sites are very obvious, they promise hourly returns, like 10% every 2 hours. This is impossible to consistently do, they are all scams, don't fall for them.

  • Double your coins scam
    This is quite famous, there are many variants, but essential it just entails you sending your coins and double or some very good return percentage will return. Its a scam, you will get nothing. Fortunately, I have never fallen for these.

  • Pump and dump groups
    These are almost always scams, there are more losers than winners. Yes you may win one time, take it and walk away, but most likely you will lose. I lost more than 1BTC in this. I'm still part of the groups to monitor, but I never participate anymore. Neither should you. They also have these VIP or "inner circle" groups, where they promise you early notification of the coin to pump for a fee. Don't fall for this. They might also have an inner inner circle group or VIP+, where they promise to take your Bitcoin and buy the coins for you, to maximize your returns. These are definitely scams, they will take your Bitcoin and then block you on telegram.

  • Fake wallet apps
    These apps emulate popular wallet apps and asks you for your seed phrases and private keys so they can steal your crypto. Treat your seed phrases and private keys as private. NO ONE should know, not even staff members of the hardware wallet company. Its like your online banking password, no bank employee should ask for that. If any app do, delete it IMMEDIATELY.

  • Leveraged trading
    I lost around 1 BTC (worth around $5-6k USD at the time). I tried to pick the bottom during the 2018 bear market, the Bitcoin price was quite stable and stagnant around the $5500-$6000k mark, so around Nov 2018, I thought that was the bottom and went in with a leverage long. The market went off a cliff dropping down to $3500. I got liquidated, lost the 1 BTC I deposited. I never touched leverage trading again. Its very hard to pick tops and bottoms, so now I just dollar cost average and periodically buy and hold. You don't need to worry about being liquidated if you do this, it will help you sleep better at night haha.

Mod Note: The user is not associated with TechLead YouTube channel.

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Financial Cryptocurrency

Comments

  • RealScienceNow on 11/05/2022 - 19:30

    I've having some good fun liquidating people's longs. Call me when another ponzi is about to collapse so I can make millions again.

    RemindMe! 1 week

    • techlead on 11/05/2022 - 19:31

      How are you doing that? Have you been selling?

      My longs have no liquidation level, so good luck with that. :D

      • RealScienceNow on 11/05/2022 - 20:10

        Lucrative lending arrangements. xD.

        I thought you were already in the game because you take loans out against your crypto.

        • techlead on 11/05/2022 - 20:44

          I didn't end up purchasing the property so no loans. I was going to borrow to get the deposit to pay for the property, but the deal didn't happen in the end so no loan.

          I will wait for the change of government and a few interest rate rises to re-assess.

  • RealScienceNow on 11/05/2022 - 20:09

    Techlead needs to trust the science and the math. A lot of people get burned not trusting the science. It's a bit like people who don't understand how virology works. It cannot be replicated, every sample is a different variant. I still haven't been paid for the bet I won against an electoral candidate.

    • techlead on 11/05/2022 - 20:18

      I do trust science and maths.

      What bet did you have against an electoral candidate?

  • Jason Genova on 12/05/2022 - 07:26

    how are them 18% APY earnings going now boys?

    • rektrading on 12/05/2022 - 07:34

      There is still $3.178B $UST earning +19.59% APY.

      • Jason Genova on 12/05/2022 - 08:31

        keep dreaming moonboy

        • rektrading on 12/05/2022 - 08:59

          Getting a +19.59% APY was never about going to the šŸŒ•.

          It's about getting enough yield on savings to beat inflation here on šŸŒŽ.

  • El-Rhi on 12/05/2022 - 08:20
    +1

    I think there will one day be a movie or tv show made about the story of how a hedge fund exposed one of the biggest Ponzi schemes (UST/LUNA) of all timeā€¦. I look forward to watching it

    • rektrading on 12/05/2022 - 09:02

      I also šŸ‘€ forward to someone doxxing the šŸ³ and the people who helped them.

      • El-Rhi on 12/05/2022 - 09:09

        There are rumours circulating about who was behind itā€¦ will be interesting when it all comes out

        • rektrading on 12/05/2022 - 09:24

          There are a lot of rumours going around on CT.

          A hack this size has many moving parts. 100,000 Bitcoin doesn't just appear and disappear on a public ledger. Someone knows something and is itching to tell the story.

        • [Deactivated] on 12/05/2022 - 19:15

          Crypto people always paranoid about the western governments one day just printing trillions out of thin air causing 100% inflation but there are unknown 'whales' out there that can apparently tank the entire system. But do go on telling me that crypto is so much better than fiat.

          • bobwokeup on 12/05/2022 - 19:32

            @[Deactivated]: Nah thatā€™s boomers thatā€™s are worried about that. I know crypto will ALWAYS bounce back!!!

  • RealScienceNow on 12/05/2022 - 10:48

    Closed my shorts today, but I still see Luna going to zero as people exit UST and arbitrage continues.

  • dreamscene on 12/05/2022 - 18:05

    When use case?

  • clandestino on 12/05/2022 - 18:49

    A concerning time for anyone who chose to "invest" in Luna…

    If I had spent $100,000 near its peak (say, around $110)…. Then that $100k would now be worth $99.

    Not $99,000… Just, $99.

  • RealScienceNow on 12/05/2022 - 20:04
    +1

    Most people will not figure out the deception.

    Most people won't realize the reality and the truth of our days. They will be taken for a ride. This is how the deception plays out. Those who are truthful, those who speak the truth, those who act in truth, those who remain true to their values. Those people will be looked down upon because they contradict the popular narrative of society.

    That popular narrative includes earning 20% in a ponzi scheme. That immoral behavior is prevalent in our society. Because we go against this narrative, we are not seen to be trustworthy. We will be ostracized and persecuted on forums such as ozbargain when we state we are content with low returns. We will be seen as an anomaly. Wrong!

    It's because we don't fit in. The problem is most people will derive their standards on what should be earned as an interest from comments that are upvoted on ozbargain. People will shout that they earn more in Celcius than in an ADI insured account. That is the deception. Most people will fall for this deception. This is derived from the dominant culture and narrative, so when a crime of investing in ponzi scheme becomes normalized and you do not participate. You are ostracized by the majority as they have fallen for the deception.

    There will be people that refuse to be intimidated by society. There will be people that speak the truth. They will hold onto their principles but they will be accused of being liars. Whereas those who embrace immorality and falsehood will be held in high esteem, and be role models in society like Do Kwon. That is the deception but they will not see them as liars but they will see them as the pinnacle of society. They will look down upon those who stand up for the truth.

    Those who deserve to be trusted will not be trusted. They will be held in doubt and suspicion. Those who are telling lies will have their decisions implemented and most people will fall for that. Immorality has become celebrated as a way of earning fast money. We need to be conscious and aware of that deception.

    We need to carefully calculate the mathematical algorithms used, we need to be careful about where we take our standards from. Where does your value system come from? Is it from social evidence or is it based in real science? Are your experiments reproducible?

    Virology, Cryptocurrencies, Ponzi Schemes, Pseudoscience. It's all part of the deception. Will you wake up and join us or will you live in ignorance?

    Do not be deceived.

    • techlead on 12/05/2022 - 20:50
      +3

      No idea what this rant is about.

      No one is saying Celsius is the same as an ADI. That's why there is a stark difference in the interest rate for the two. You are being compensated for the extra risk you take with Celsius

    • axlfan on 14/05/2022 - 14:58

      Virology? LMAO….Anti-vax sentiments in a crypto thread as well. Nothing is black or white. A good number of vaccines have helped eradicate numerous diseases and prolonged the human race. Now do immoral vaccine companies make a killing from it? You bet.!

  • RealScienceNow on 12/05/2022 - 20:33
    +1

    I have decided to retire from Crypto. There is something immoral about it. I too have fallen for its deception.

    • techlead on 12/05/2022 - 20:45

      Take your profits and run.

      I will never retire from Crypto.

  • steven6 on 12/05/2022 - 20:36

    Buy the dip

    • techlead on 12/05/2022 - 20:44

      Done. I'm never out of money because I never go all in. I always have fiat, USDT, USDC in reserve.

      • ozbargainerlife1 on 13/05/2022 - 00:58

        What did you buy?

      • Bargain-er on 13/05/2022 - 07:58

        Would it be bear market for a while?

      • Bargain-er on 13/05/2022 - 08:28

        I ve been accumulating too but the drop in last few days is different… Bulls didn't really fight back… Some of my old orders got triggered. In normal days it's a bargain but not anymore…

  • Jason Genova on 13/05/2022 - 10:20

    0.001c terra :D

    • techlead on 13/05/2022 - 10:35

      Yep, I made a mistake with Luna. Its dead, I've stopped buying it.

      • urbancartel on 13/05/2022 - 10:50

        Ouch!

        What do you think it means for the whole crypto industry? Surely this will set it back massively

        • techlead on 13/05/2022 - 11:15

          Nope, this is specific to the Luna ecosystem. I've held Luna before the crash then sold it over $100, didn't have a position before UST started unpegging. I did try to buy the Luna dip and lost. The way UST works is different to USDT and USDC, they admit they undercollateralise and run on fractional reserves. Also, the Anchor protocol is abit of a ponzi.

          What's happening is that people are burning UST to get Luna and then dumping the Luna. Hence, Luna just keeps dropping. I thought the team could make changes to that mechanism, but I was wrong hence Luna is dust now because it has essentially an infinite supply with people minting it and dumping it.

          As for the whole crypto industry, I don't think it will affect it much. This doesn't even rise to the level of disrupt as the Mt Gox hack and the crypto industry came back bigger and much much stronger as a result of Mt Gox. I think this Luna debacle will allow other more robust algorithmic stable coins to shine, like MakerDAO.

          I'm still buying the dip, just not the Luna dip anymore haha.

          • Bargain-er on 13/05/2022 - 19:57

            @techlead: Is it literally zero now? Binance doesn't have it in exchange anymore but it says suspended instead of delisted.

            • techlead on 13/05/2022 - 20:39

              @Bargain-er: You can convert the dust to BNB, its still available. In Kucoin as well.

              • Bargain-er on 13/05/2022 - 21:50

                @techlead: Thanks, never convert dust. What s the rate?

              • Bargain-er on 13/05/2022 - 22:06

                @techlead: Actually Luna is not listed in dust conversion

                • techlead on 14/05/2022 - 00:08

                  @Bargain-er: They must have removed it. I was able to do it in the morning.

                  • Bargain-er on 14/05/2022 - 00:14

                    @techlead: Ah, so really no hope for LUNA? I read some articles it may come back

  • Jaff on 13/05/2022 - 10:58
    +1

    bought at the "dip" but it kept dipping and finally lost too

    • techlead on 13/05/2022 - 11:25
      +1

      Here we go again hahaha, chalk this one up, https://99bitcoins.com/bitcoin-obituaries/

      Its weird that this Bitcoin ponzi has "collapsed" so many times before. I heard it all. How can a ponzi scheme keep "collapsing"?

      Jan 12 - Jan 27 2012 $7 "crashed" to $4
      12 Aug - 19 Aug 2012 $16 "crashed" to $7
      6 Mar - 7 Mar 2013 $49 "crashed" to $33
      21 Mar - 23 Mar 2013 $77 "crashed" to $50
      10 Apr - 12 Apr 2013 $259 "crashed" to $50
      19 Nov 2013 $755 "crashed" to $378
      30 Nov 2013 - 14 Jan 2016 $1163 "crashed" to $152

      I remember the 19th Nov 2013 "crash" very well, this was my very first crash, I was so panicked when I saw my Bitcoin half in value in ONE day. I seriously thought about selling. I"m very glad I didn't. :D

      • axlfan on 14/05/2022 - 15:03

        Well Cryptos are kind of a ponzi right? The value of your holding go up only when others buy after you and increase the market cap.

        Dont get me wrong. I welcome cryptos and am a HODLer but end of the day, we cannot be sure of anything no matter how confident we sound. LUNA's demise needs to underscore this. Any coin can go to $0 and therefore I have made my peace with it.

    • rektrading on 13/05/2022 - 14:04

      Who is this person?

      Never heard of him.

      • Crow K on 13/05/2022 - 17:16
        +2

        It's a lot to go into now, but basically before people made financial investments based off memes and TikTok videos, they had things called newspapers that hired writers called journalists. This was back when there was a concept of editing an idea before releasing it into the wild meant the final product might turn out better. The theory was if you had a quality product, people would pay to purchase it, and then you could actually 'sell newspapers'. It's a quaint idea, but it had a following at the time.

        Don't bother looking up one as an example, there's no emoji there, just think of it as "boomer storytime tales".

        Little bit of trivia: "Garfield" got his start in them. Mind you, so did Snake Tales, so it wasn't all good times.

        • rektrading on 13/05/2022 - 18:00

          The only economist I listen to is Mike McGlone from Bloomberg.

          An old school with an open mind.

  • techlead on 14/05/2022 - 00:10

    The mainstream media is hilarious. The headline for this article was "Crypto's unthinkable rise from the dead"

    https://www.news.com.au/finance/markets/bitcoin-ethereum-on-ā€¦

    So funny. There's nothing "unthinkable" about the rise of Crypto.

    • Bargain-er on 14/05/2022 - 12:18

      Seems like Luna back to life? 1200%+

      • bobwokeup on 14/05/2022 - 12:23

        Nope still under a cent on my apps. Where did you see that?

      • techlead on 14/05/2022 - 18:26

        Wow, what a pump, I wonder why.

        • Bargain-er on 14/05/2022 - 18:42

          Same… Something we don't know or understand. I thot it's zero

          • techlead on 14/05/2022 - 18:47

            @Bargain-er: I did abit of research, I think its due to UST. The burning has subsided, hence dilution has stopped.

            Its all because of this mechanism, 1 UST can be burnt to mint $1 worth of Luna. This creates extreme dilution for Luna when there is a bank run on UST. It also doesn't help when UST runs on fractional reserves, which causes the loss of confidence to accelerate.

            • Bargain-er on 14/05/2022 - 18:51

              @techlead: So, good to go in?

              • tunzafun001 on 15/05/2022 - 00:53
                -1

                @Bargain-er: Someone just worked the system to pull $20 billion.. LFG were fully aware it could happen (lets face it, likely involved). Nothing has changed, and now it would take a far smaller amount to do the same again..and you want to buy in. Let alone the ethics of supporting Luna who have basically just ruined a lot of peoples lives.

                These types of things are making crypto a laughing stock and shouldn't be supported.

                This is ultimately the issue with Crypto. It was supposed to be a financial system people could use without influence from banks/ governments. But it has become a ponzi greed pit thats just all about financial gain, regardless of who gets burnt and how. Basically we have become a collective of individual banks.

    • axlfan on 14/05/2022 - 15:04

      When was news.com.au mainstream media? Their news is of tabloid quality at best.

  • axlfan on 14/05/2022 - 15:21

    A lot of ozbargainers have been staking TAUD here on crypto.com and finder etc.

    How is TAUD holding up? Was it a collaterised stablecoin?

    • techlead on 14/05/2022 - 18:26
      -1

      According to Coingecko, TAUD has depegged, its now $0.34USD. its supposed to be collaterised.

      I was going to buy $2 mil of it, but found out the market cap at the time was $23 mil, I didn't think it was a good idea to hold 10% of a stablecoin lol.

      • c0dingmachine on 14/05/2022 - 18:55

        It's not depegged. I'm surprised you're saying you're buying $2mil of it without understanding that coingecko isn't reporting the value properly.

        $40.889mil minted (the token contract is here: https://etherscan.io/token/0x00006100F7090010005F1bd7aE6122cā€¦)

        You can mint and redeem it yourself here: https://www.trusttoken.com/products

        If you can buy it at $0.34 (which you can't so the point is moot) then you can simply redeem it on the trusttoken website and make instant profits.

        It's a collateralised coin, depegging makes no sense apart from market inefficiencies or trusttoken doing something dodgy. You can mint your own TAUD by sending money to trusttoken via bank transfer anyway.

        The vast majority of it is sitting in Celsius and Crypto.com wallets.

        • techlead on 14/05/2022 - 18:58

          The market cap has grown since I last checked it out. I think it was back in 2020 or 2021. I even signed up, you are supposed to send them the funds via bank transfer and they give you the tokens.

          Its a company based in HK I think.

          I ended up just using the funds to buy USDT on FTX and stacked it at various places until I used it to buy the dips. FTX is the best. Binance kept freezing my account due to "security" and I had to verify myself when I had 7 figures there. I'm never putting 7 figures in Binance again. FTX, no questions asked, never been frozen.

        • axlfan on 14/05/2022 - 20:16

          On a side note, why are folks in Aus buying it on Celsius? Higher APY?

          • c0dingmachine on 14/05/2022 - 21:42
            +1

            @axlfan: Crypto.com and Celsius are pretty much the only two places to earn yield with TAUD, also the benefit of not being impacted by fx fluctuations. I think Swyftx added it recently and finder has it too, but they are much smaller fish and quite late to add it for staking…

            I prefer to use USDT/USDC/BUSD regardless, many more options and higher yields if you hunt around. FX fluctuations don't really bother me

      • axlfan on 14/05/2022 - 20:15

        Wow for someone with 2 mil to invest you are mistaken very badly my friend. I did some research after posting above and TAUD is collaterised. There is a 3rd party auditor (armanino) and you can see the reserves live.

        When I checked now they have $40,898,815of TAUD backed up with A$41,344,394 in real fiat.

        https://real-time-attest.trustexplorer.io/truecurrencies

  • techlead on 14/05/2022 - 18:38

    According to Defi Lama, nearly all of the UST staked have now been unstaked only $500 mil left from a peak of around $30 Billion. This explains why Luna has stopped free falling.

    I've always been abit uneasy about the mechanism of minting UST and Luna. In a black swan event, it would cause extreme dilution in Luna, which is what happened.

    Note that there is no such mechanism in ETH, so for those nay sayers who say other blockchains will suffer the same fate as Luna, I'm sorry to disappoint. There is no such minting mechanism in ETH or SOL or Avax that I'm aware of. Very happy to be corrected if I'm wrong.

    The only way to mint ETH is via block rewards, so yes, whilst the supply of ETH is not limited, the minting of ETH is restricted, you are not gonna have 30x, 100x supply of ETH being minted in a day. Unless this is passed by a resolution and goes through consensus, which is very unlikely. Just like technically its possible to change the Bitcoin code to have the supply of BTC as infinite instead of 21 million, the likelihood of this passing consensus is virtually zero, it could happy though, but very very unlikely.

    • tunzafun001 on 15/05/2022 - 11:12
      -2

      I dont recon it does explain it. UST is nowhere near parity and should be still minting its face off?

      I think someone has turned it off. So it is now based on nothing. Literal ponzi now, while gathering funds to give back to UST owners…at cents in the dollar. Soon all your Luna coins will dissapear and a fraction of it will come back.

      Pancake Bunny did similar, and that was trading around $500. But at least used some of their own funds for a compensation pool…then got exploited again..then again…and again once more. Compensation is ultimately nothing.

      So really this is nothing new.

      If it wasnt crytpo, it would be straight to jail for these types.

      • techlead on 16/05/2022 - 10:08
        +1

        There are plenty of more shading actors in traditional finance who will never go to jail. Do you know how many scam centers operate in India ripped off people in US, Australia and UK? Every other day I read an article in mainstream news about scammers porting people's phones and then resetting their internet bank passwords and transferring money overseas. Those crooks rarely get caught, the Police don't care about this type of crime.

        The Luna/UST peg mechanism didn't work out, its a good thing other major chains don't have this, eg MakerDAO and its ETH based stablecoin DAI has been around way longer and they can't mint ETH, nor can other stablecoins on Sol and Avax. This debacle demonstrates why you can't have a stablecoin which can mint the native token with no supply limit.

        Its a painful lesson for many Luna and Luna ecosystem investors. The crypto industry will learn from this and build back bigger and stronger.

        • tunzafun001 on 16/05/2022 - 10:49
          -2

          Yeah I get that, but my issue is why is Luna still up and transacting? It should be in a trading halt - by the exchanges (as it is no longer linked to UST). If it was linked, it would be worth 0.000000000000000000001 or less by now and declining 100% an hour. No one would touch it. But it is now bouncing off a support, so its now just a non fundamental ponzi that people are treating like its normal Luna.

          Crypto is never going to be taken seriously by the mainstream with this rubbish.

          • techlead on 16/05/2022 - 10:57

            @tunzafun001: The Terra team broke off that peg. Similiar to the US "suspending" the gold standard.

            Terra Luna is a layer 1 blockchain, similiar to ETH, but with the ability to mint from converting UST. The team has cut that off, hence its supply has stopped going up exponentially. Yes, some will view this as breaking trust with the community and shafting UST holdering. The market will decide that with the price. I think any kind of Luna rebirth would need community consensus and the team is over mindful of the fact that UST holders should be made whole or close to.

            The market will decline, similar things like this has occurred before.

            Have a read into why there is an ETH Classic chain and ETH chain. The TLDR of this is, there was hack on ETH and the some parts of the community wanted to freeze and roll back the chain before the hack, thereby reversing time and negating the hack altogether, some considers this sacrilegious and goes against the very ethos of a decentralised, permissionless blockchain. The community sided with the former and the hack was rolled back and the chain was forked. Some other parts of the community disagreed and continued with the original ETH chain with the hack, and that became ETH Classic. Market has moved on from that and ETH (chain with the rolled back) has gone on to be bigger and stronger as most of the developers went with it.

            Let's see what the Terra Luna team comes up with, there is a good chance it will survive, the market is pricing that in, hence you can see it bounce 1000%.

            • tunzafun001 on 16/05/2022 - 11:06

              @techlead: Cheers for the info. I didn't know that re ETH Classic. Makes sense.

              But Terra surviving is really ridiculous (this wasn't a hack). The CEO new exactly what was happening.
              So allowing them to rebuild will just perpetuate this rubbish to happen again and again doesn't sit well with me. Seeing the nothing based/ debt ridden coin bounce 1000% paints an even worse picture of Crypto.

              I have a mate who was looking to get started (not risk adverse and was looking at Tether), but he is now all out. I support his decision as I call BS on Tethers USD backing (as do many others).

              • techlead on 16/05/2022 - 11:15

                @tunzafun001: yes, this wasn't a hack. Its a systematic issue, this is a problem with how the system is designed, this pegging mechanism do not work, its a painful lesson, but other projects will benefit from this. No other project will now have that mechanism.

                As for market movements, that's just capitalism, the market will price it the way it sees fit, nothing wrong with that. Its like a property selling for 100% gains in a year when nothing has been done to it. Is that right? Who are we to judge? Its just market movements, if you have some schmuck who wants to overpay, the market shouldn't stop that schmuck.

                Sounds like your mate is better off without crypto. As I have said to many who approached me to ask if they should invest in crypto, my opinion has always been, be prepare to lose it all, do research and research again and assume everyone is trying to steal your coins, if you can deal with that, then invest, if not, don't touch crypto. Crypto will be a roller coaster, if you can't stomach that, get off the ride. I will not have my net wealth today without crypto, no other investment vehicle can get me to where I am today. As this asset class matures, the roller coast will be less wild, we are already seeing this for Bitcoin, it is alot less volatile than before.

                Crypto started out being 1% of my wealth, now its 95%.

                Over the years, the people whom I have seen lose are those who don't understand crypto and panic, and I've benefited from that. That's how I have been able to buy $3300USD Bitcoin or $110 USD ETH. Just last week I bought Bitcoin for $26k USD. I took the profits from someone selling it to me that low.

        • TheKas on 16/05/2022 - 10:49

          How did Luna become such a big project? Can you tell us how stablecoins work pls?

          • techlead on 16/05/2022 - 11:02
            +1

            @TheKas: Luna became such a big project because people were chasing yields without understanding where that yield comes from. UST is an algorithmic stablecoin, this is different to USDT or USDC or any other centralised stablecoin.

            UST is supposed to be backed by Luna via this mechanism where 1 UST can be converted to $1 of Luna. You can see when investors initially bought UST, Luna is burnt, hence helping to push up the price of Luna. However, when UST is burnt to get Luna, the supply of Luna increases hence creating dilution. What made Luna so big was due to this ponzi called the Anchor protocol. When people say Ponzi, they are usually referring to this. This is where you get 20% returned and people can borrow funds etc. Billions flowed into this because of the high yields.

            When investors lost confidence in UST, they rushed to convert back to Luna, that's what has caused the extreme dilution and the supply of Luna went from 350 million to 6.5 trillion. The minting has now stopped as the team broke off that peg, that's why the price has stablised. Now the price is driven by speculation about how the team plans to move forward, either via a burn, consolidation or fork (Luna v2).

            People buying Luna now are betting on being part of its rebirth. Let's see if the community will trust Do Kwon again.

          • tunzafun001 on 16/05/2022 - 17:41
            +1

            @TheKas: Thats a polite version.

            Basically someone with deep pockets saw an opportunity to cause Luna to crash (manipulate the market) and shorted the coin (with billions of people Long on Luna, they made a killing).

            To do this they loaned Bitcoin, converted to UST and accumulated heaps (somehow without the market noticing…which i dont see how).

            Then dumped a shit tonne of UST all at once. Causing Luna to mint a trillion coins and the price diluted/ fell. Their short positions paid out. This caused the market to panic in general and BTC dropped. They then bought back the BTC at a reduced rate and paid off the loan.

            This caused a free fall effect as everyone was bailing out.

            Lesson. Someone was well aware that there was a crirical amount of UST that no one person should ever hold..but the protocol allowed it.

            The billionaire manipulator took everything from Mum n Dad investors for their own gain..and did it 100% legally.

            Luna was a top 10 project and made an absolute mockery of the legitamcy of crypto.

            Even worse, its still allowed to trade as a broken ponzi bucket. No financial backing whatsoever… Just numbers on a screen.

  • idjces on 16/05/2022 - 11:01

    I either missed or didn't see this interview/podcast amongst the regular crypto places

    https://www.youtube.com/watch?v=mC43pZkpTec

    It's rather long at 4 hours. Covers a lot of really interesting theoretical concepts, mental models, etc

    If, on average, the fundamental improvement in the productive output of an hour of human labor, only in the range of a couple percentage points of improvement per annum. Then, how did we arrive to the norm of expecting 10% y.o.y. returns over all asset classes…

    • AncientWisdom on 25/05/2022 - 02:41

      You're forgetting inflation

  • rektrading on 16/05/2022 - 14:28

    Gm frens,

    Breaking News,

    https://twitter.com/nayibbukele/status/1526029996787216387

    Tomorrow, 32 central banks and 12 financial authorities (44 countries) will meet in El Salvador to discuss financial inclusion, digital economy, banking the unbanked, the #Bitcoin rollout and its benefits in our country.

    What a time to be alive.

    Enjoy.

    • techlead on 17/05/2022 - 14:37
      +1

      Yea, exciting times.

  • iatnuy on 17/05/2022 - 18:48

    Anyone know which exchanges are best for trading perps in Aus?

    • rektrading on 17/05/2022 - 18:57

      Bitfinex for šŸ³ and Binance for šŸ.

      • iatnuy on 17/05/2022 - 19:11

        Binance doesn't let aussies trade futures anymore.

        https://imgur.com/a/rtOqkgH

        • rektrading on 17/05/2022 - 19:12
          -1

          Traders should always use a VPN for security.

          • iatnuy on 17/05/2022 - 19:40

            @rektrading: doesn't work with VPN either.

            which exchange do you personally trade perps on?

    • techlead on 17/05/2022 - 19:21

      Depends on which perps you want to trade. FTX looks ok, but their coin selection is not as much as Binance or Bitfinex.

      I only do spot so not an expert on that.

      • iatnuy on 17/05/2022 - 19:37

        FTX is limited to maximum 2x leverage for aussies :(

        • techlead on 17/05/2022 - 19:55

          That must have been a recent change, I remember they offered up to 20x, I saw it in my profile. I could move the slider to 20x, I always keep it at 1x. Spot only.

          I think we are very close to the bottom, I'm getting $3300 BTC vibes. Of course no one knows for sure. I'm just going to keep buying. Unlike Luna, BTC supply is not going to infinity.

          • tunzafun001 on 19/05/2022 - 20:51

            @techlead: What happens if all the miners that left China and went to Russia ..then leave Russia and end up in the states. Would be >50% sitting in the states.

            • techlead on 19/05/2022 - 21:34

              @tunzafun001: And? What's the problem? Hashrate will move around.

              I heard the hashrate in China is increasing again.

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