NexusFi: Find Your Edge


Home Menu

 





Cryptocurrencies 101 -- what I've learned so far


Discussion in Cryptocurrency

Updated
      Top Posters
    1. looks_one SMCJB with 23 posts (58 thanks)
    2. looks_two Sandpaddict with 5 posts (6 thanks)
    3. looks_3 mongoose with 5 posts (10 thanks)
    4. looks_4 mscholder with 5 posts (13 thanks)
      Best Posters
    1. looks_one Big Mike with 9 thanks per post
    2. looks_two bobwest with 3.7 thanks per post
    3. looks_3 mscholder with 2.6 thanks per post
    4. looks_4 SMCJB with 2.5 thanks per post
    1. trending_up 13,794 views
    2. thumb_up 181 thanks given
    3. group 43 followers
    1. forum 65 posts
    2. attach_file 9 attachments




 
 

Cryptocurrencies 101 -- what I've learned so far

 
 
bobwest's Avatar
 bobwest 
Western Florida
Site Moderator
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
Frequency: Several times daily
Duration: Minutes
Posts: 8,162 since Jan 2013
Thanks Given: 57,341
Thanks Received: 26,267

I don't really know much about crypto, particularly how it may fit in with the regular economy, but his article gave me a little surprise and alarm, about the possibility of an old-fashioned bank run:


Quoting 
After largely standing aside for years as cryptocurrency grew from a digital curiosity into a volatile but widely embraced innovation, federal regulators are racing to address the potential risks for consumers and financial markets.

Their concerns have only grown as both new and established firms have rushed to find ways to profit from bringing the massive wealth held in cryptocurrency into the traditional financial system through quasi-banking services like interest-bearing accounts and lending.

Now the Treasury Department and other agencies are moving urgently on an initial target for tighter regulation: a fast-growing product called a stablecoin.

Issued by a variety of firms that are currently only lightly regulated through a patchwork of state rules, stablecoins serve as something of a bridge between cryptocurrency markets and the traditional economy.

The value of a stablecoin is ostensibly pegged one-to-one to the United States dollar, gold or some other stable asset. The idea is to make it easier for people holding cryptocurrency — which is notorious for its frequent price swings — to carry out transactions like purchasing goods and services, or to earn interest on their crypto holdings.

The use of stablecoins is surging rapidly, and regulators have grown increasingly concerned that they are not in fact stable, and could lead to a digital-era bank run. Just this year, dollar-tied stablecoins such as Tether token, USD Coin and Pax Dollar have jumped from $30 billion in circulation in January to about $125 billion as of mid-September.

More in complete article:

https://www.nytimes.com/2021/09/23/us/politics/cryptocurrency-regulators-rules.html

Bob.

When one door closes, another opens.
-- Cervantes, Don Quixote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Futures True Range Report
The Elite Circle
Exit Strategy
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
 
 
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192

I'm definitely not the person who should be giving crypto advise, but my understanding is (and could be completely wrong) ...

The largest stable coin is USDT/'Tether'. There's a lot of shall we say 'negative publicity' around Tether, with allegations that it's not fully backed. As far as I know Tether have consistently refused to have a full audit of what backs it. Tether have/are also the subject of several US investigations. For example ... https://coingeek.com/crypto-crime-cartel-the-end-is-nigh-for-tether/

There is definitely a school of thought that if tether were to implode/have a run on the bank that it could bring the whole crypto industry down. Of course there is also a school of thought that thinks the opposite.

The second largest stable coin is USDC/'USD Coin' which is backed (in part) by Coinbase, and has audited financials.

If I was going to be long a stable coin (I'm not) I know which of the two I would have my trust in!

Thanked by:
 
 
rleplae's Avatar
 rleplae 
Gits (Hooglede) Belgium
Legendary Market Wizard
 
Experience: Master
Platform: NinjaTrader, Proprietary,
Broker: Ninjabrokerage/IQfeed + Synthetic datafeed
Trading: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
Posts: 3,003 since Sep 2013
Thanks Given: 2,442
Thanks Received: 5,863


Exchange reserves in stable coins have risen 50% since the previous post
taking into account the amounts that are parked in these coins do justify some form of regulation
that is just a mater of time in my opinion

Follow me on Twitter Visit my NexusFi Trade Journal
Thanked by:
 
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192

While a lot of die-hard crypto people are anti-regulation, the reality is that regulation both protects you, and opens the door for more institutional acceptance. I think both of these are good for crypto in general.

Thanked by:
 
patrooney
Duluth MN
 
Posts: 2 since Jan 2018
Thanks Given: 2
Thanks Received: 1

Regulation may bring some baggage with it, but one of those bags is more institutional $ and liquidity.

 
Dreadlight
New York, NY, USA
 
Posts: 5 since May 2022
Thanks Given: 0
Thanks Received: 1

not to all in in projects
and not be tied to projects
only business


 



Last Updated on May 21, 2022


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts