Skip to content
By using Twitter’s services you agree to our Cookies Use. We and our partners operate globally and use cookies, including for analytics, personalisation, and ads.

This is the legacy version of twitter.com. We will be shutting it down on June 1, 2020. Please switch to a supported browser, or disable the extension which masks your browser. You can see a list of supported browsers in our Help Center.

  • Home Home Home, current page.
  • About

Saved searches

  • Remove
  • In this conversation
    Verified accountProtected Tweets @
Suggested users
  • Verified accountProtected Tweets @
  • Verified accountProtected Tweets @
  • Language: English
    • Bahasa Indonesia
    • Bahasa Melayu
    • Català
    • Čeština
    • Dansk
    • Deutsch
    • English UK
    • Español
    • Filipino
    • Français
    • Hrvatski
    • Italiano
    • Magyar
    • Nederlands
    • Norsk
    • Polski
    • Português
    • Română
    • Slovenčina
    • Suomi
    • Svenska
    • Tiếng Việt
    • Türkçe
    • Ελληνικά
    • Български език
    • Русский
    • Српски
    • Українська мова
    • עִבְרִית
    • العربية
    • فارسی
    • मराठी
    • हिन्दी
    • বাংলা
    • ગુજરાતી
    • தமிழ்
    • ಕನ್ನಡ
    • ภาษาไทย
    • 한국어
    • 日本語
    • 简体中文
    • 繁體中文
  • Have an account? Log in
    Have an account?
    · Forgot password?

    New to Twitter?
    Sign up
patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

Tweets

Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

Tweets

  • © 2020 Twitter
  • About
  • Help Center
  • Terms
  • Privacy policy
  • Imprint
  • Cookies
  • Ads info
Dismiss
Previous
Next

Go to a person's profile

Saved searches

  • Remove
  • In this conversation
    Verified accountProtected Tweets @
Suggested users
  • Verified accountProtected Tweets @
  • Verified accountProtected Tweets @

Promote this Tweet

Block

  • Tweet with a location

    You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more

    Your lists

    Create a new list


    Under 100 characters, optional

    Privacy

    Copy link to Tweet

    Embed this Tweet

    Embed this Video

    Add this Tweet to your website by copying the code below. Learn more

    Add this video to your website by copying the code below. Learn more

    Hmm, there was a problem reaching the server.

    By embedding Twitter content in your website or app, you are agreeing to the Twitter Developer Agreement and Developer Policy.

    Preview

    Why you're seeing this ad

    Log in to Twitter

    · Forgot password?
    Don't have an account? Sign up »

    Sign up for Twitter

    Not on Twitter? Sign up, tune into the things you care about, and get updates as they happen.

    Sign up
    Have an account? Log in »

    Two-way (sending and receiving) short codes:

    Country Code For customers of
    United States 40404 (any)
    Canada 21212 (any)
    United Kingdom 86444 Vodafone, Orange, 3, O2
    Brazil 40404 Nextel, TIM
    Haiti 40404 Digicel, Voila
    Ireland 51210 Vodafone, O2
    India 53000 Bharti Airtel, Videocon, Reliance
    Indonesia 89887 AXIS, 3, Telkomsel, Indosat, XL Axiata
    Italy 4880804 Wind
    3424486444 Vodafone
    » See SMS short codes for other countries

    Confirmation

     

    Welcome home!

    This timeline is where you’ll spend most of your time, getting instant updates about what matters to you.

    Tweets not working for you?

    Hover over the profile pic and click the Following button to unfollow any account.

    Say a lot with a little

    When you see a Tweet you love, tap the heart — it lets the person who wrote it know you shared the love.

    Spread the word

    The fastest way to share someone else’s Tweet with your followers is with a Retweet. Tap the icon to send it instantly.

    Join the conversation

    Add your thoughts about any Tweet with a Reply. Find a topic you’re passionate about, and jump right in.

    Learn the latest

    Get instant insight into what people are talking about now.

    Get more of what you love

    Follow more accounts to get instant updates about topics you care about.

    Find what's happening

    See the latest conversations about any topic instantly.

    Never miss a Moment

    Catch up instantly on the best stories happening as they unfold.

    1. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      Eventually, a bank or, more likely, a regulator is going to say “Actually this doesn’t look like a legit deposit that we’re uncomfortable with supporting due to AML/regulatory reasons. It looks an awful lot like proceeds of crime intermingled with grey money.”

      1 reply 0 retweets 27 likes
      Show this thread
    2. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      And the terrifying outcome, from the cryptocurrency economy perspective, is the regulator doing what the USFH did with respect to Mutum Sigillum (Mt Gox’s US front): “OK, we’re going to give you two choices.”

      1 reply 0 retweets 20 likes
      Show this thread
    3. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      Door #1: Prove that it’s legal money. This should be trivial for you because KYC is the law and your compliance should be automatic. So have your lawyer suit up. BTW we expect this to take 3+ years. Door #2: We propose a 50% haircut.

      2 replies 3 retweets 33 likes
      Show this thread
    4. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      Gox’s bankruptcy administrator took the haircut. That was an eminently sensible call. I think there is a material risk that Tether absorbs a billion dollar hair cut.

      2 replies 5 retweets 31 likes
      Show this thread
    5. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      A historical precedent for this is the Reserve Fund meltdown in 2008. The Reserve Fund was a money market fund; those are not fully reserved but are expected to invariably be a) liquid as cash and b) maintain $1 par value. If it had a token and didn’t pay interest, that’s Tether

      2 replies 0 retweets 25 likes
      Show this thread
    6. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      The Reserve Fund “broke the buck” due to the poor decision to have several percentage points of their assets in commercial paper of an American financial institution with zero counterparts risk, Lehman Brothers.

      1 reply 0 retweets 21 likes
      Show this thread
    7. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      This caused such a large loss of confidence in money market funds as a class that the immediate capital outflow threatened to destabilize the global financial system.

      2 replies 0 retweets 16 likes
      Show this thread
    8. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      The cryptocurrency economy relies on Tether, specifically, far more than the global financial system relies on money market funds. It has convinced itself that they’re equivalent. That is wrong. It has always been wrong. It may soon be experimentally disproven catastrophically.

      1 reply 10 retweets 34 likes
      Show this thread
    9. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      Tether doesn’t have single digit percentage point exposure to a US financial institution who couldn’t pay them 100% and wouldn’t be able to settle for months. They probably have close to total exposure to a financial institution which will be offering much worse.

      1 reply 1 retweet 18 likes
      Show this thread
    10. Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      (If you believe I am wrong you can call up your OTC desk of choice and offer to buy N million dollars of tether at a 3% discount to par. Hoover up that free money.)

      1 reply 0 retweets 22 likes
      Show this thread
      Patrick McKenzie‏ @patio11 14 Oct 2018
      • Report Tweet
      • Report NetzDG Violation

      (You know why you can’t call up an OTC desk and offer to buy a deposit held in a US bank for a 3% discount to par, at a trade size of millions? And indeed financial professionals would laugh you out of the room for suggesting it? Yeah.)

      1:19 PM - 14 Oct 2018
      • 2 Retweets
      • 28 Likes
      • Jordan Jackie thinks Black Lives Matter 🏳️‍⚧️ Zvi Brian Holdefehr Ovid 19 BC 🐮 Ryan Parent hikikomorphism🏳️‍🌈🏝🛰️ Tim Swanson Garrett Wollman
      2 replies 2 retweets 28 likes
        1. New conversation
        2. hello again‏ @bobpoekert 14 Oct 2018
          • Report Tweet
          • Report NetzDG Violation
          Replying to @patio11

          the question is whether people who hodl tether will care that it's not convertible to dollars. there's a bet on whether tether actually has the money but they're another bet on how connected to reality cryptocurrency people are

          1 reply 0 retweets 5 likes
        3. hello again‏ @bobpoekert 14 Oct 2018
          • Report Tweet
          • Report NetzDG Violation
          Replying to @bobpoekert @patio11

          it's plausible that tether's assets disappear but they can obscure that fact with PR effectively enough to stop a crash (it wouldn't really be a run because I don't see people actually trying to get tether to give them USD)

          0 replies 0 retweets 1 like
        4. End of conversation
      1. Show additional replies, including those that may contain offensive content

      Loading seems to be taking a while.

      Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.

        Promoted Tweet

        false

        • © 2020 Twitter
        • About
        • Help Center
        • Terms
        • Privacy policy
        • Imprint
        • Cookies
        • Ads info