Tether, the cryptocurrency which is theoretically backed 1:1 by USD held in a bank account and available on demand, is currently in the early stages of a bank run.
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Replying to @Ceasar_Bautista
I think many people will buy Bitcoin as a result of this (because it will be perceived as a way to exfiltrate value denominated in tether), but I continue to not think either is valuable.
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Replying to @patio11 @Ceasar_Bautista
Your best guess is that bitcoin will move to 0 or you are actively shorting it?
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Unlikely he's actively shorting it. Short-selling makes a fair number of assumptions that can be hard to prove with cryptocurrency, and Patrick seems like he doesn't want a piece of the cryptocurrency market in general. He seems more "doesn't want to get any on him."
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Replying to @codefolio @Ceasar_Bautista
I have no position in cryptocurrency or any derivative of it. If there were options available on Bitcoin, ~10% of my net worth would be in on the bet “Bitcoin achieves its true value of zero before X.” I keep being wrong about timing but only have to be right once ;) )
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(The only sensible way to short Bitcoin at the moment is futures and the structure of those products does not make me confident that I have a happy result for my family contingent on me being absolutely right.)
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Harness your inner Michael Burry! Go make your own financial product from scratch.
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Making financial products assumes a community that will honor contracts, stay solvent, etc. Assembling a stable financial product with *no* trustworthy actors is really hard.
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This leads to the uncomfortable situation for me where each quantum of respectability Bitcoin gets magnifies the loss to the world but increases my expected value because hookups to the regulated financial system result in something I trust enough to use as a counterparty.
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Replying to @patio11 @codefolio and
meh, no real loss just like there's no real gain. that equation balances, so i wouldn't worry about it. its not like you're shorting a company with employees and assets that will depreciate and lose value while being unused. except for chips.
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