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    Cryptocurrency Daily Discussion - June 4, 2021 (GMT+0)

    June 04, 2021

    Cryptocurrency Daily Discussion - June 4, 2021 (GMT+0)

    Daily Discussion - June 4, 2021 (GMT+0)

    Posted: 03 Jun 2021 05:00 PM PDT

    Welcome to the Daily Discussion. Please read the disclaimer, guidelines, and rules before participating.

    Disclaimer:

    Though karma rules still apply, moderation is less stringent on this thread than on the rest of the sub. Therefore, consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading, and could be an attempt to manipulate new readers by known "pump and dump (PnD) groups" for their own profit. BEWARE of such practices and exercise utmost caution before acting on any trade tip mentioned here.

    Please be careful about what information you share and the actions you take. Do not share the amounts of your portfolios (why not just share percentage?). Do not share your private keys or wallet seed. Use strong, non-SMS 2FA if possible. Beware of scammers and be smart. Do not invest more than you can afford to lose, and do not fall for pyramid schemes, promises of unrealistic returns (get-rich-quick schemes), and other common scams.

    Rules:

    • All sub rules apply in this thread. The prior exemption for karma and age requirements is no longer in effect.
    • Discussion topics must be related to cryptocurrency.
    • Behave with civility and politeness. Do not use offensive, racist or homophobic language.
    • Comments will be sorted by newest first.

    Useful Links:

    submitted by /u/AutoModerator
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    Paypal shut down someone's account because they didn't like where he was spending his money, and they won't even let him withdraw for 6 months. This is why crypto is necessary.

    Posted: 03 Jun 2021 01:36 PM PDT

    Elon Musk’s Reputation Plummets following his Attacks on Bitcoin

    Posted: 03 Jun 2021 04:26 PM PDT

    Ron Paul, Former United States Representative, Wants Bitcoin Totally Legalized to Compete With Dollar and Let the People Decide

    Posted: 03 Jun 2021 09:34 AM PDT

    GTA 6 to Include In-Game Cryptocurrency Rewards, According to Prominent Insider

    Posted: 03 Jun 2021 11:50 AM PDT

    According to a prominent leaker, Grand Theft Auto 6 will pay players in-game cryptocurrency rewards for completing some missions, as per report by U.Today.

    As claimed in a June 3 tweet by famous leaker Tom Henderson, the next instalment of the iconic franchise will pay players rewards in crypto instead of cash for completing some missions:

    I heard recently that in GTA 6, some missions will reward you in bitcoin instead of cash for completing some missions.

    Henderson also says that the game will add a broker for various cryptocurrencies, which he believes would be "huge" for the industry.

    The insider adds that the in-game cryptocurrency is unlikely to be called "Bitcoin" per se, but it will be cryptocurrency.

    submitted by /u/robis87
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    New to crypto? Overwhelmed? I made a crypto ecosystem visual. Check it out.

    Posted: 03 Jun 2021 03:41 PM PDT

    I've just gotten into crypto in the past couple of months. It's incredibly overwhelming when you're starting. What the hell are all of these cryptos for? Why do we need them all? Which one should I pick?

    I think a lot of people struggle with similar questions when they're starting out. Eventually you have the "Ah ha!" moment. Many of these aren't competing with each other. Many of them are working together with each other. They're making each other better. Even if blockchains, protocols, or products are competing - that doesn't mean you have to pick "the right one". I'm not saying all of them will survive, but many of them will. I know many veterans know this, but many new people likely don't. Our future holds many interconnected blockchains, each with many products on it. Many of the products will be on several competing blockchains. They will exist together, communicate with each other, and eventually they'll probably provide a relatively seamless user experience even across different blockchains.

    This isn't all inclusive, but here's what the ecosystem roughly looks like. If I've made any mistakes please let me know!

    https://imgur.com/a/3recNRb

    submitted by /u/The-Tots
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    Miami's Mayor Bought Bitcoin Below $40K and ETH at $1.5K

    Posted: 03 Jun 2021 08:18 AM PDT

    Miami announces Plans to invest in Bitcoin, give Crypto Payment Option to Employees and Citizens to pay Taxes in Crypto

    Posted: 03 Jun 2021 04:32 PM PDT

    Friendly Reminder: When the market reacts instantly AND drastically to a certain celebrity's tweet, or some insane FUD news story, its probably just BOTS.

    Posted: 03 Jun 2021 08:20 PM PDT

    Just remember that people literally programmed bots to scan news articles and tweets and program them to sell whenever "negative" things are tweeted. Sure it sucks to have an upward trend cut down by automation. But don't decide to sell just because a bunch of mindless scripts decided to.

    *insert customary buy the dip comment*

    submitted by /u/me123meme
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    This is single handedly the most FUD aiming headline I've ever read. And I'm sick.

    Posted: 03 Jun 2021 09:00 PM PDT

    "US looks into cryptocurrency role in Ransomware hacks"

    Could you imagine turning on the news one day and reading, "US looking into dollar bills role in bank robberies"

    The fact ridiculous articles and headlines can even be takem serious is astounding. But sure let's blame the asset, let's blame the reward not the crime. Let's sit back and think to ourselves well if they didnt have bitcoin they wouldn't be criminals. Pretty sure crimes been paid for with good ol Uncle Sam's pride and joy paper for almost 245 years.

    It eats me up that the next paragraph has OUR(US sorry) PRESIDENT MENTIONED as investigating this absurd notion.

    "Man you know ol Pete wouldn't of whacked that guy if money wasn't invented." This is just dumb writing

    submitted by /u/raiderloverwreckum
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    Anybody else Crypto poor?

    Posted: 03 Jun 2021 02:42 PM PDT

    So I've got all this money in crypto but I can't use it. On paper I'm not poor at all, but in reality I just have enough money for food. I don't want to take out of my positions because I want to maximize gains and my paychecks keep going towards buying the dips. Just waiting for a brighter day when it all pays off. Anybody else in a similar situation?

    submitted by /u/FriendshipPlastic128
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    History in the making- Bitcoin 2021 event is going to be the largest crypto conference with more than 12000 attendees. The speaker lineup is like never before and we think it is going to go beyond Bitcoin in the next three days.

    Posted: 03 Jun 2021 07:42 AM PDT

    Chinese State Media Indicates China Is NOT Banning Crypto Trading

    Posted: 04 Jun 2021 12:49 AM PDT

    I've been Shuffling Shitcoins for 5 years now. Here's were it got me.

    Posted: 03 Jun 2021 05:40 PM PDT

    I did good.

    Being a semi early adopter I didn't have to know much at all. Just hold. Which I did. That is....

    For the first 8 months or so until I discovered Coin Market Cap, and obviously.... How can you not get FOMO looking all those cool names , and symbols?

    Nobody walks into a casino for the first time in their life , and isn't mesmerized by all the pretty lights on the slot machines.

    I FOMO'd in. It was FKing great. So great I almost blocked people out of my life.

    They kept telling me it wasn't right. No...they weren't right for me. The FK they knew about crypto? I had the Crypto, every crypto I can get my hands on.

    But all that hard research, keeping updated, flipping , and catching little pumps here and there.... It led me to the same Spot as if I just held the first crypto I bought.

    I originally got $500 in XRP in 2016. I held till it hit about $0.25. it was amazing to me. JACKPOT. I was saving for a wedding too. Perfect timing. I cashed out half, then took Half of the half left, and used it to trade shitcoins. I had my hands In everything at one point. I even had some AntShares at $1.

    I've held some, held some XRP, held some chainlink. Did good. But XRP is now up to $1.

    This whole time all I had to do was forget about it and go about my life and I would end up with the same profit than I did trading shitcoins all these years. lol. 0.005ea to $1 is 200x. lol. I've made more than that. Thanks to incentive based platforms like having $5,000 in moons, $3000 in Steem, some theta some donuts. But that was something back for time spent making quality shitposts, not really getting ROI although it can give an ROI.

    All in all, all i had to do was just hold XRP to to end up relatively in the same spot I'm in now.

    Time in the market beats timing the market. None of us know where a crypto is gonna go. We only have control over making wiser choices.

    submitted by /u/JuicySpark
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    Elon Musk manipulates markets and none of the regulators do anything about it. Remember this when the government asks you to pay taxes on crypto gains

    Posted: 03 Jun 2021 10:52 PM PDT

    It is evident that none of the regulators care about manipulation going on. Heck, they even allowed him to manipulate stock prices and get away by paying a small fine. They arent going to do anything about crypto manipulation.

    Only a fool will believe insiders arent trading these manipulations and making billions of dollars on the back of retail investors.

    Now, someone will definitely say "crYpTo is UnReGulAtEd"

    But that is not the case, regulators are already all over crypto. Its never been the case that regulators arent interested in crypto. If they dont care about the entire market, it is fine. But rather they heavily regulating crypto already by fining Coinbase for running bots, busting ICOs, busting exchanges, seizing exchanges abroad (BTC-e, BitMEX), suing DEX operators (EtherDelta).. but are completely silent when one of the richest person based in USA manipulates prices in a completely brazen fashion.

    Its obvious they will regulate only when it suits them (i.e. stifling the market) but are totally fine with someone manipulating the market to send prices crashing down.

    Remember this when they claim they deserve taxes on your gains. Any money you make in crypto is despite the government, not thanks to them.

    submitted by /u/DetroitMotorShow
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    Is the FUD starting to wear off?

    Posted: 03 Jun 2021 11:52 PM PDT

    As China bans bitcoin again while India unbans bitcoin again, this is getting played out. The energy consumption FUD is tired BS. The tweets, the misinformed articles, media FUD, etc.

    This is all getting boring.

    The fundamentals haven't changed, and the manipulation is getting boring. Seems like every rally, the same boring FUD comes in and scares the newest wave of recent buyers. It's cool if you bought within these recent few months, but stop fucking panic selling and wait for fuck sake.

    Don't like the current price, wait.

    Not giving you a good profit, wait.

    Fucking hold and wait.

    submitted by /u/erdal_mutlu
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    Bullish. Nearly 57 million people expected to buy cryptocurrency next year.

    Posted: 03 Jun 2021 02:48 PM PDT

    Unpopular opinion: I want billionaires to tweet-attack BTC

    Posted: 04 Jun 2021 03:00 AM PDT

    Andreas Antonopoulos once did a presentation likening Bitcoin to a sewer rat, and centralised currencies as "Bubble Boy"  

    What did he mean by that?  

    For those of you unfamiliar with the presentation, I'll explain briefly. It's vitally important to understand this if you are invested in crypto, it has shaped all of my investment decisions in the space and should influence yours, too.

     

    'Bubble boy' was a boy who lacked an effective immune system, he lived his entire life inside of a bubble to avoid getting sick. Many networks or cryptocurrencies operate in a secured or permissioned way, think of intranets, secured networks, permissioned coins. They are just like the bubble boy, they have security because they exist inside of a bubble, never exposed to threats. But as soon as something gets inside of that bubble, they are highly exposed and vulnerable. It's the same reason many people say that you should let your kids play in the dirt sometimes, it helps them build a strong immune system.

    Perhaps you can see where this is going already....

     

    So then we have Bitcoin, the sewer rat. Bitcoin doesn't live inside of a bubble. It rolls around in the dirt. It gets into fights. It lives and thrives in a world that is actively trying to kill it. If you take a sewer rat and treat it like a pet, feed it only the best organic foods and pamper it with fresh bedding every day and give him little ratty baths for instagram and twitter posts for the first year of his life, sure, he will thrive in that cage, but what do you think will happen when one day he escapes to the sewers, where he longs to be? He has never been exposed to the things down there, and he will get sick. His health will drop, dramatically. The healthier he was before, the sicker he will get down there.

      Same goes for Bitcoin. If Bitcoin grows in an adverserial environment, it will grow immune to those things over time.

      If it grows as a result of billionaires being kind to it, all it takes is a tweet to make it crash again, perhaps setting its immune systems development by years.  

    Yes, in the short term, billionaires are good for BTCs price.   In the long run though, we want them to attack BTC. Please, do! Give this sewer rat its sewer. It will only make BTC stronger.     ~Credit to Andreas Antonopoulos

    https://medium.com/institute-for-the-future/bitcoin-is-the-sewer-rat-of-currencies-b89819cdf036

    submitted by /u/dynamicallysteadfast
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    BTC here to stay, pay no attention to Musky

    Posted: 03 Jun 2021 08:07 PM PDT

    At the start of May 2011, Bitcoin was trading for approximately $3.50. It is currently trading at $37,800+

    I promise to read that over and over again every 1.3 minutes when a Musky post pops up on this sub.

    Don't fret about Musky tweets. The man can tweet what he wants. Hate him, love him...all will be well. Bitcoin is here to stay.

    Don't act on momentary emotion. Musky ain't the first billionaire to throw shade at Bitcoin. He won't be the last. Bitcoin is here to stay.

    submitted by /u/PurplerRain
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    Don't sell yourself short. Even if you aren't actively involved in the development of any cryptos, you are helping this space just by being here.

    Posted: 03 Jun 2021 06:45 PM PDT

    I see people saying all of the time "Well, I'm not doing much to help move the space forward. I can't code."

    Using your crypto to make purchases is helping the cryptosphere.

    Staking your crypto is helping advance things.

    Running a node is helping.

    Mining is helping.

    Accepting crypto for goods/services is helping.

    Simply buying and hodling is helping.

    If you are here, you are helping.

    submitted by /u/wheelzoffortune
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    Bitcoin Whales and Miners Have Started Smart Accumulation, Not The Best Time to Sell Your Crypto

    Posted: 04 Jun 2021 01:53 AM PDT

    While Bitcoin seems to be under pressure once again, the whale and miner activity have taken a turn for the good. Balances for the whale addresses holding between 100-10,000 BTC have started growing once again, reports on-chain data provider Santiment:

    Between Bitcoin's price ATH on April 14th and its latest bottom on May 23rd, the total balance of 100-10,000 BTC addresses has shrunk by roughly 130,000 BTC, suggesting waning confidence in the top coin. SINCE then, however, the downtrend has (finally) been broken. In the past 10 days, the combined total of Bitcoin's 'whale' addresses has grown by 50,000 BTC, or ~$1.95bn at the time of writing.

    So you might want to think twice, before giving away your investment - because some famous troll tweeted a song gimmick about it.

    submitted by /u/robis87
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    The black swans of crypto

    Posted: 04 Jun 2021 01:41 AM PDT

    If you haven't read Taleb's book "The black swan" you are missing out on life and investing education. The most powerful concept of this book is how people underestimate highly improbable events and they don't take them into account when modeling risk. As we have pointed out in the article about Defi Risk people think only in terms of yield. Well, news to all:

    There can be no GAIN without PAIN as there can be no PROFIT without RISK

    Potential black swans (improbable catastrophic events)

    I want to list here a list of events that most don't think about. This is a list for Bitcoin and Ethereum that are those that can bring the whole market down. If another smaller altcoin dies it's not such a big deal since you have a diversified portfolio (right?!)

    Bugs

    Unforeseen bugs (yes even after so many years). Who remembers that Bitcoin actually had to hard fork to fix a very early bug that was catastrophic and made the supply skyrocket? Or when that recent time when Blockstream's Luke-jr talked about a bug fix that was known in insiders but not outsiders? In Taleb's book there is a very good example with a turkey that doesn't know it is being raised in a slaughterhouse. That's what insider and outsider difference in understanding does. This has not happened only in Bitcoin. The whole Ethereum network dodged a bullet according to the core developer team. This bug was known in developer circles for a long time until the public found out. So let me repeat this:

    While you think the networks are running safely and your "investment" or "currency" or "digital gold" or whatever feels safe, there are many people that know that the whole system is hanging from a rotten cloth.

    Cryptographic breakthrough

    This is possible either with just a breakthrough discovery in current cryptography (advanced mathematics) or by a Quantum computer breaking all SHA-256 and RSA algorithms. We are not very far from that. A breakthrough is almost like a Black Swan, nobody sees it coming until the day a researcher declares "stuff is broken". This could be much bigger of course because if the blockchain algorithm breaks it means also that SSL breaks and that is also a major event for the internet as a whole.

    Hard forks

    Every hard fork brings on bug fixes and new features. The latter increase complexity. Increased complexity is more difficult to model for risk. Nobody knows if the next Ethereum hard fork that will bring us closer to PoS will also bring a catastrophic bug. Systems get hardened only by trial and error and hacks. Imagine like there is a new airplane flying for its maiden flight. Would you go on that plane? If not, then don't hold all your family money in an instrument like that.

    Global Regulation

    It's always a scare card in crypto but to date there has been no regulation, only China banning Bitcoin mining and exchange (but not the actual ownership). It can be a major issue though. As we are going through a turbulent meta-pandemic time with a potential hyper-inflation coming according to some the governments maybe will not be very accommodating. If the US Dollar starts to spin downwards from its status as a global currency don't be mistaken and think the most powerful government in the world will sit and watch a huge wealth transfer into cryptocurrencies. And if you didn't know they control the FATF global task force for money regulation and KYC. Another fun trivia is that at some point in the history of USA gold was banned in an era similar to ours.

    Conclusion

    It's more risky than you think. Everything is. The point is not to avoid investments and risk-taking but to understand the risk you are taking. If you are taking a risk without knowing it you are being the turkey as per Taleb, ready to get slaughtered. If you know the risks, you are the butcher.

    P.S If you find value in this article please consider subscribing to the newsletter.

    P.S2 removed all the links as the automod keeps deleting the post

    submitted by /u/aelaos1
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    Borrowing using Crypto as Collateral: My Experiences and Findings

    Posted: 03 Jun 2021 05:57 AM PDT

    As tax day in the U.S (5/17) quickly crept up on me, I found myself in a predicament: I was crypto rich but cash poor and did not have enough dollars to pay my taxes. This led me to doing research on how to borrow using crypto as collateral for I was trying to avoid selling crypto to pay taxes, which in turn would trigger more taxes. Here are my findings below:

    Since crypto is an extremely volatile asset and there is no yet established credit system in the crypto lending space, meaning crypto-backed loans are all over-collateralized. Most cases, the Loan to Value Ratio (LTV) ranges from 20%-50%. LTV = Loan Amount/Collateral Value. So to borrow 10k with a loan with LTV value at 50%, you would need to put up 20k in crypto value as collateral.

    ​

    BlockFi: Custodial crypto company which offers services including trading, borrowing and earning interest on crypto deposits.

    Loan: 10k minimum loan, acceptable forms of collateral: BTC, ETC, LTC, and PAXG, only allows monthly payments for interest (monthly payments are much lower but you will owe entire principal at the end), collateral must maintain 70% of value or will require more collateral

    Rates:

    LTV: 20%, Interest Rate: 4.50% (Only available with BTC)

    LTV: 35%; Interest Rate: 7.90%

    LTV: 50%; Interest Rate: 9.75%

    Pros:

    -Loan direct deposit into bank account

    -No protocol hack risk

    Cons:

    -Limited cryptos accepted as collateral

    -KYC

    - Legally binding contract for loan, must adhere to BlockFi's terms

    ​

    Salt Lending: Founded in 2016, Salt was one of the first companies to introduce crypto-backed lending. Salt currently offers institutional-grade crypto custody and blockchain monitoring products as well.

    Loan: 5k minimum, 1m max; acceptable forms of collateral: BTC, ETH, BCH, LTC, SALT, Paxos, USDC, TrueUSD, PAXG, 3-12 month loan duration, option to pay interest only or principal and interest, ability to redeem SALT tokens to lower interest rates (SALT currently ~30c)

    Rates:

    LTV: 30%, Interest Rate: 2.95% - 4.95% (2.95% available if 272.1 SALT is redeemed)

    LTV: 40%, Interest Rate: 5.95% - 7.95% (5.95% available if 272.1 SALT is redeemed)

    LTV: 50%, Interest Rate: 10.95% - 12.95% (10.95% available if 272.1 SALT is redeemed)

    LTV: 60%, Interest Rate: 15.95% - 17.95% (10.95% available if 272.1 SALT is redeemed)

    Pros:

    -more reasonable rates with the SALT redemption

    -loan direct deposit into bank account

    -no protocol hack risk

    Cons:

    -availability varies (really only available in the US. Outside US, Canada, UK and Australia are business only; Brazil, HK, New Zealand, UAE and Switzerland for individuals and business)

    -KYC

    -must accept Salt's terms and conditions

    ​

    Celsius Network: FinTech platform that offers interest-bearing savings accounts, borrowing, and payments with digital and fiat assets.

    Loan: $500 minimum to borrow stablecoins ($25k minimum for fiat except in NY and TX where min is $500); over 35 acceptable forms of collateral; 6 months to 3 year loan duration; monthly payments on interest only

    Rates:

    LTV: 25%, Interest Rate: 1.00% (.95% if you pay with CEL token)

    LTV: 33%, Interest Rate: 6.95% (6.60% if you pay with CEL token)

    LTV: 50%, Interest Rate: 8.95% (8.50% if you pay with CEL token)

    Pros:

    -wider array of collateral accepted

    -longer loan duration

    -lower min for stablecoin loan

    Cons:

    -more KYC than other platforms (Government ID, Address, Tax ID)

    -primarily a phone app (can only borrow via phone app)

    ​

    MakerDAO/Oasis: Autonomous protocol built on ETH blockchain that allows anyone to open up a smart contract/vault to deposit collateral and generate DAI.

    https://community-development.makerdao.com/en/learn/MakerDAO

    Loan: 5,000 DAI minimum (dust limit); wide range of ERC-20 tokens can be used as collateral (including LP tokens), no duration limit (in order to access collateral again, required to deposit DAI)

    Rates:

    Stability fee (interest rate) ranges depending on the token used. Balancer stability fee is 2.00%, AAVE is 3.00%, ETH is 5.00%. Most stability fees are 5.00%. Liquidation Fee is 13.00%. Non-stablecoin minimum collateralization ratio is around 150% (LTV of 66.7%) but that will risk liquidation for even slight down movement. Recommended collateralization ratio is 200%-300% (LTV of 33%-50%)

    Pros:

    -fully decentralized, No KYC, no restrictions

    -wide range of collateral including some uniswap liquidity token

    -very competitive rates, fully flexible

    Cons:

    -entirely up to the individual to understand and learn the process

    -if vault falls under liquidation ratio, it will automatically get liquidated so individual must be aware

    -gas fees on ETH network ( much more reasonable now)

    ​

    Although I did not end up borrowing, I am a fan of MakerDAO as an option. Not only are you getting very competitive rates, but also getting more flexibility and are contributing to the shift towards decentralization of finance. At its core, cryptocurrency is about financial freedom and empowerment through decentralization from traditional financial institutions, and MakerDAO encapsulates this.

    Please do not treat this as financial advice, but rather a starting grounds for your own research and DD for the best option for yourself. Realistically, until there is some sort of credit system for wallet addresses where loans do not need to be 2-3x collateralized I do not see borrowing against crypto to be feasible for most people. I hope this gives people a good overview of borrowing using crypto as collateral.

    submitted by /u/zucchini_fries
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    Fidelity is launching a Bitcoin ETF. Although these are centralized, it means people can invest with using their 401k and will bring crypto investments to many more people. This is huge for crypto.

    Posted: 04 Jun 2021 01:17 AM PDT

    Vitalik Buterin on Doge - Lex Fridman show

    Posted: 03 Jun 2021 10:33 PM PDT
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