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Crypto currency (IF banned from CA)

DuuuncanHadaPigeon said:
I'll be honest I am approaching this from a DEX point of view, so what you say I'm sure is true for traditional markets and on that I will hold my hand up and say I'm wrong.

But on a Dex, using an automated market maker, I can buy an asset without requiring a seller on the other side of the trade.

The algorithm will adjust the price based on the liquidity of the pairs in the pool

More buy pressure price goes up, more sell pressure price goes down.

docs.uniswap.org

How Uniswap works | Uniswap

Uniswap is an automated liquidity protocol powered by a constant product formula
docs.uniswap.org docs.uniswap.org
Click to expand...

it's just a misunderstanding of how markets work. there is always 1 seller and 1 buyer, and both parties agree on a transaction price. in theory, both parties are happy with the price and the transaction. advanced trading systems don't remove either party, even if they sometimes remove the thinking brain from the transaction.

But on your "more buy pressure... more sell pressure" that's probably at best a misunderstanding of supply and demand, which is classical economics.
 
DuuuncanHadaPigeon said:
In theory yes, they are not ponzis - but a lot of exchanges don't just act as matching engines, they gamble with users money and end up collapsing, maybe a ponzi is not best way to describe them, straight up fraud is probably more accurate.

They serve a good purpose for fiat on/off ramps but holding money in an exchange for a long period of time is just stupid as you have so much counterparty risk (whole reason crypto was invented). It is another flaw of BTC that they have no on chain exchange, automated market makers such as uniswap render exchanges in the traditional sense obsolete. With on chain exchanges you have no counterparty risk, can be in control of your own keys and trade as much as you want, provided there is sufficient liquidity.

There is a framing error when discussing crypto at the moment, crypto is not broken, it works just great, the central counterparty risk scumbags are the real problem.

I agree Q1 2023 will probably be the bottom with the halvening not far away.
Click to expand...

Which exchanges do you think will collapse in the next couple of months?
 

SerenityNigh said:
it's just a misunderstanding of how markets work. there is always 1 seller and 1 buyer, and both parties agree on a transaction price. in theory, both parties are happy with the price and the transaction. advanced trading systems don't remove either party, even if they sometimes remove the thinking brain from the transaction.

But on your "more buy pressure... more sell pressure" that's probably at best a misunderstanding of supply and demand, which is classical economics.
Click to expand...
There is no one on the other side if I trade using an AMM, just liquidity providers who take fees of each trade, but if I buy there is not a seller on the other side selling his coins to me.
 
DuuuncanHadaPigeon said:
zoom out BTC is still doing ridiculously well ( even though I think it is rubbish)

Also, this is not just a crypto thing, see the chart for META;

View attachment 191261
Click to expand...
You can't really compare Meta and bitcoin.

Meta is a business, one which has made several bad decisions over this time period which would affect the price.

Bitcoin is supposed to be an inflationary-resistant currency that has lost 65% of its value in a year.

Here's another interesting chart I just found.

1668533271390.webp

Looks to me like the drop in price is roughly corresponding to the downturn in transactions. It's almost like they've ran out of greater fools/bag holders to keep driving the price up.
 
DuuuncanHadaPigeon said:
There is no one on the other side if I trade using an AMM, just liquidity providers who take fees of each trade, but if I buy there is not a seller on the other side selling his coins to me.
Click to expand...
giphy.gif
 

Efcjake said:
You can't really compare Meta and bitcoin.

Meta is a business, one which has made several bad decisions over this time period which would affect the price.

Bitcoin is supposed to be an inflationary-resistant currency that has lost 65% of its value in a year.

Here's another interesting chart I just found.

View attachment 191262

Looks to me like the drop in price is roughly corresponding to the downturn in transactions. It's almost like they've ran out of greater fools/bag holders to keep driving the price up.
Click to expand...
I don't think I've ever said it is supposed to be an inflationary resistance currency?

Ok Amazon down about 50% ytd.

Point is BTC is still up millions of % you just need to zoom out, your framing is wrong.

Crypto is doing just fine, scumbag middlemen not so much.
 
DuuuncanHadaPigeon said:
I don't think I've ever said it is supposed to be an inflationary resistance currency?

Ok Amazon down about 50% ytd.

Point is BTC is still up millions of % you just need to zoom out, your framing is wrong.

Crypto is doing just fine, scumbag middlemen not so much.
Click to expand...

AMZN and APPL both up larger % if you use the right time frame. In the end I don't think as many people hate crypto (though some do!) as much as they hate the crypto hawkers telling them "my magic beans are very different from your magic beans."

Still not sure anyone has ever actually answered my first question: is Crypto an asset or a currency? (It's the former, I suspect.)
 
SerenityNigh said:
AMZN and APPL both up larger % if you use the right time frame. In the end I don't think as many people hate crypto (though some do!) as much as they hate the crypto hawkers telling them "my magic beans are very different from your magic beans."

Still not sure anyone has ever actually answered my first question: is Crypto an asset or a currency? (It's the former, I suspect.)
Click to expand...
Definitely an asset, or more accurately now: a liability.
 

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