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Re: End of bitcoin?

Posted: June 19th, 2019, 11:52 pm
by bearish
I’m in the “not well” camp. But then again I’ve yet to see any useful legal application of blockchain, let alone cryptocurrency.

Re: End of bitcoin?

Posted: June 21st, 2019, 9:32 pm
by tagoma
Keen to hear Wilmott forum thoughts on how this story might play out
#MeToo And I hate to say it about any Zuckerbing's idea but I think Libra deserves its own thread here on Wilmott (the website, not the man).
BTW 3 questions hic et nunc to Wilmott experts:
(A) How can a stable coin (oxymoron?) be back to real currencies?
(B) Can the establishment of the Calibra subsidiary in Switzerland have an impact on CHF? What would it (that impact) be (bull? bear?) if the Libra were to be a success (one never knows)?
(C) Isn't there a "tension" between the decentralization principles of blockchain (and the like) on the first hand and Libra that will be controlled by a handful of (large) private companies on the other one?

Re: End of bitcoin?

Posted: June 21st, 2019, 11:54 pm
by Alan
Interestingly, the backing by real assets to make it a stablecoin presents a regulatory issue: is Libra a security? 

I will guess the SEC will answer 'yes' and the CFTC will not object because they really don't want to regulate it. But, since there is not the manipulation objection that seems to knock down bitcoin-backed-securities (like ETFs), I will also guess the SEC will mull it over for a while and then tentatively approve it.  Then will come the 200 page prospectus, enriching all the lawyers. Be sure to read it before paying for your pizza. :D  

BTW, BTC just hit $10,750. Seems like Libra must be driving a lot of the enthusiasm. Now (counting all the alt-coins), we have n+1 solutions in search of problems. Well, it's certainly fun to watch.

Re: End of bitcoin?

Posted: June 23rd, 2019, 5:49 pm
by Alan
Good article in today's WSJ (paywall): Facebook’s Libra Is a License to Print Money (James Mackintosh). From the article:


The reserve isn’t quite as great as it seems, though. Like a money-market fund Libra has no capital and no deposit insurance, so any drop in the value of the reserves should mean the value of Libra falls. Losses from fraud, mismanagement or default within the reserve fall on Libra holders, unlike with a normal bank account or bank note.

Worse still, the founders of Libra have a terrible incentive structure. If the reserve can be run to have capital losses but a high cash yield, the losses lie with the Libra holders while the profits go to the founders. Buy an old bond issued when yields were higher, and the price will be above face value. That generates a capital loss at maturity offset by coupons well above more recent issues.

Do you trust Facebook and the big corporations and venture capitalists on the governing board not to misuse a license to print money? If so, no problem.

As per previous post, the SEC really needs to classify this coin as a security -- as it definitely needs a prospectus.

Re: End of bitcoin?

Posted: June 23rd, 2019, 6:28 pm
by ISayMoo
This would kill its use for micropayments though.

Re: End of bitcoin?

Posted: July 8th, 2019, 9:15 pm
by CarlosR
I think that Cryptocurrencies will change the way of doing operations on the web .. And they will not die in their attempt.

Re: End of bitcoin?

Posted: July 10th, 2019, 9:37 pm
by tagoma
I think that Cryptocurrencies will change the way of doing operations on the web .. And they will not die in their attempt.
Maybe you can share some of your arguments with us?

Re: End of bitcoin?

Posted: August 26th, 2019, 8:31 pm
by JoWee
I am not very good at this cryptocurrency. I studied it but I ordered my coursework here that time and I don't really have any deep knowledge at this sphere but I think other people on this forum are right. 

Re: End of bitcoin?

Posted: September 25th, 2019, 7:47 am
by lloydsatchwell
Good forecasting on Libra so far - seems to have been a trigger for making central banks shift gears on the topic.

Trading and Arbitrage in the Cryptocurrency Markets - something to read on market structure