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royco

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Us senator Elizabeth Warren, failed Presidential candidate, is one of those infuriating politicians for whom about 50% of her utterings, you shakes your head in wonder about the stupidity of the thing.

But for the other 50%, you say in varying degrees, I can't argue with that.

Her most recent railings against Bitcoin is a case of the latter.

From Wall Street on Parade

“Cryptocurrencies have turned out to be a fourth-rate alternative to real currency. First, cryptocurrencies are a lousy way to buy and sell things. Unlike the dollar, their value fluctuates wildly depending on the whims of speculative day traders. You know, in just the last two months, the value of Dogecoin increased by more than ten-fold and then declined by nearly 60 percent. Now that may work for speculators and fly-by-night investors, but not for regular people who are looking for a stable source of value to get paid in and to use for day-to-day spending.

 

“Second, crypto is a lousy investment. Unlike, say, the stock market, the crypto world currently has no consumer protection — none. As a result, honest investors and people trying to put aside some savings are at the mercy of fraudsters. Pump and dump schemes are outlawed in the case of ordinary stock, but they have become routine in crypto trading. One study found that the level of price manipulation in cryptocurrency is — and I quote — ‘unprecedented in modern markets.’

 

“And third, crypto has become a haven for illegal activity. Online theft, drug trafficking, ransom attacks, and other illegal activity have all been made easier with crypto. Experts estimate that last year more than $412 million was paid to criminals in ransom through cryptocurrencies. And unlike other payment systems that make it tougher to move money illegally, a key feature of crypto is its secrecy. So just in the past few weeks, cryptocurrencies made it possible for hackers to collect a ransom to release the Colonial pipeline hack and to free JBS, the world’s largest meat producer, from paralyzing cyberattacks. And every hack that is successfully paid off with a cryptocurrency becomes an advertisement for more hackers to try more cyberattacks.

 

“Finally, there are the environmental costs of crypto. Many cryptocurrencies are created through ‘proof-of-work’ mining. It involves using computers to solve useless mathematical puzzles in exchange for newly minted cryptocurrency tokens. Such mining has devastating consequences for the climate. Some crypto mining is set up near coal plants, spewing out filth in return for a chance to harvest a few crypto coins. Total energy consumption is staggering, driving up demand for energy. If, for example, Bitcoin — just one of the cryptocurrencies — were a country, it would already be the 33rd largest energy user in the world — using more energy yearly than all of the Netherlands.

 

“And all those promised benefits – the currency that would be available at no cost to millions of unbanked families and that would provide a haven from the tricks and traps of big banks – well, those benefits haven’t materialized.”

 

The arguments could apply to almost all the digital currencies that exist that use mining and proof of mathematical concepts as validation.

However, there are others that do not require mining that also exist, and thus less likely to be blamed for the useless consumption of vast amounts of power.

 

As an aside, I was reading about the differences between mined versus non mined digital currencies (see Motley fool ), and read the following

Mining bitcoin requires specialized ASIC (application-specific integrated circuit) chips and massive servers, which can rack up expensive electrical bills. This means electricity costs come into play, which is a big reason China, a relatively low-cost country for electricity costs on a kilowatt-per-hour basis, is home to four out of five of the world's largest bitcoin mining farms.

I am not a big fan of the motley fool( just ask EB), so I often look for a secondary validation.

According to coinbase, the above statement may not be correct. It has a list of the 5 largest miners, and only one is in China ( see Coinbase

So much to learn about digital currencies, mining, distributed ledgers etc, and so little time.

Mick

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and.. Warren doesnt understand Proof of Worth and Proof of Stake coins

 

as very different in terms of cost.

 

BTC and ETH are Proof of Worth.. (ETH trying to move)

 

DOT, HBAR and most others are Proof fo Stake

 

Proof of Stake is very very cheap

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Perhaps Ms Warren (and a few others) needs to read A comparison of proof of work versus proof of stake

However, the one stumbling block in both systems, is the problems with scalability.

So many great ideas t hat work really well in proof of concept mode, fail when it comes time to scale them up to manage massive workloads.

Whether it be proof of work or proof of stake,l that hurdle still exists.

Mick

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Mick

 

There are a lot of systems out there.. and the hard thing is to work through them all...

 

So much marketing both trying to sell their system or destroy others...

 

POW is not really scalable and that is really just BTC and ETH

 

ETH will go to POS

 

Both have secondary systems on top to speed up...

 

but I tend to view it as BTC, Platforms and Sh#tcoins

 

So many out there

 

We all have our favourites, but important not to throw the baby out with the bathwater

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Apollo Capital Fund, which invests in crypto assets: .... in the year to April 30, the fund was up 699.08 per cent, capping a solid few years since it was established in February 2018. Its two-year return is 924.21 per cent per annum, and since inception, it is up 362.83 per cent per annum.

How did they do it?

Henrik Andersson, .. chief investment officer of Apollo Capital Management, [said] the success of his flagship fund is because of an investment strategy focused on crypto's disruption of financial services.

We made two assumptions when we launched the fund 3 and a half years ago ..... One was that you need to be actively managed in the crypto space because it is a very inefficient space. The second one is a strong focus on an area within crypto called decentralised finance.

So those are two strong convictions we had ... and they have played out when we compare our returns to a passive index like the Crypto 20 index. We have vastly outperformed that index since inception.

 

When it comes to DeFi (decentralised finance), there is a greater understanding now that that is really where the value is captured outside bitcoin.

 

We have bitcoin in the portfolio, and we are strong believers in bitcoin, but the main value creation is happening in what we call decentralised finance, using blockchain technology to automate financial services.

 

Apollo Capital Fund is invested in several decentralised exchanges including Uniswap, Curve and SushiSwap. Andersson is bearish on one of the most popular alternatives to Ethereum called Cardano, a blockchain and smart contracts platform founded in Switzerland.

 

About 29 per cent of the fund is in crypto-smart contract platforms, 27 per cent is in decentralised finance, 19.8 per cent in cryptocurrencies as a store of value, 10.4 per cent in market neutral strategies through the Apollo Capital Opportunities Fund, 7.8 per cent is in exchange tokens, 5.5 per cent is in stablecoins and cash, and 0.5 per cent in futures...

https://www.afr.com/chanticleer/secrets-of-...20210616-p581kk

 

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Aahh, DeFi, another new buzzword.

 

It seems that DeFi may have just had its first "bank Run".

From Zero Hedge

 

Less than a week ago, billionaire investor Mark Cuban proclaimed:

 

"Crypto Businesses make more sense than you think and valuing tokens is easier and makes more sense than you think."

 

He may well be correct, but just a few days later, his investment in TITAN - part of a "multi-chain partial-collateralized algorithmic stablecoin ecosystem" from IRON Finance - has hit an iceberg and sunk like the Titanic.While this collapse is getting a lot of attention due to Mark Cuban's involvement, it is not the first of this breed of so-called algorithmic stablecoins to hit the wall.Rekt.com reports that the incident started when TITAN became overpriced, perhaps due to users purchasing the token in order to farm TITAN pairs at ~50,000% APY. Some large TITAN sales were made and the price became volatile, making investors nervous, and leading them to also sell their tokens.

 

The IRON stablecoin then lost it's peg due to TITAN dropping so rapidly.This created a situation in which users could now redeem a token worth 90 cents, for 75 cents of stablecoin and 25 cents of TITAN. An incredible arbitrage opportunity which required minting new TITAN tokens each time.

 

The market was flooded with freshly minted TITAN, and a panic sale began, pushing down the TITAN price and therefore making the IRON stablecoin lose its peg even further.

 

This vicious cycle could not be stopped until the $1 peg was regained.

 

Despite briefly regaining the peg, the huge amounts of freshly minted TITAN flooding onto the market caused the price of TITAN to drop again, the peg to be lost, and the arbitrage opportunity to open back up.

 

As long as IRON is not at peg, TITAN will continue to drop, and as long as TITAN continues to drop, IRON will not be at peg... and everyone ran for the door.

So, did you get all that? Read it five times and still not sure I got it right.

So many ways for shysters to make a buck by scamming the unwary.

Mick

 

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Yeah, Mick, it seems to be the old axiom , if you don't know who the patsy is in the room, then it is likely it is you proving itself.

 

I think the art world got it right selling the concept of nothing , recently. Wasn't even heated air.

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  • 4 months later...

CRYP, the BetaShares Crypto Innovators ETF has started trading on the ASX today.

The new BetaShares fund, like ProShares Bitcoin Strategy ETF (NYSE: BITO). in the US, will not directly put investors' money into cryptocurrencies.

Instead, it will aim to track the Bitwise Crypto Industry Innovators 30 Index before fees and expenses.
 

Quote

The CRYP index is designed to capture the full breadth of the crypto ecosystem by providing exposure to pure play crypto companies, those whose balance sheets are held at least 75% in crypto assets, and diversified companies with crypto focused business lines, states the BetaShares website.


According to Bitwise, the top 3 holdings in the index as of October 28 were:

  • Galaxy Digital Holdings Ltd (TSE: GLXY): 12.95%
  • Coinbase Global Inc (NASDAQ: COIN): 11.15%
  • MicroStrategy Incorporated (NASDAQ: MSTR): 9.79%
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