Is it too soon to talk about Crypto yet?

[geteh]

Over on X, the newest version of Grok and Chat pro version place Cardano at the top for being decentralized but also speak positively about Bitcoin.

View attachment 2713991

View attachment 2713985

The saying goes that Bitcoin adoption will be slow at first and then all at once. Supposedly, the governing rules that we need for the Crypto Industry to rapidly grow here in the USA are going to be completed in the coming few months but the Fed system adopting Bitcoin as either a Reserve Asset or a Stockpile will take upwards of 12 to 18 months to go from Committee (where it is at right now) congress, the Senate and finally signed into law. With that time lag in mind, the USA is creating a Sovereign Wealth Fund that can quickly move into the crypto space and we already have public retirement funds throughout the USA buying Bitcoin ETFs and companies holding Bitcoin reserves for Bitcoin exposure DAS training in Milton Keynes. Meanwhile, the legislative State map seemingly grows every time I look at it.

View attachment 2713992

Meanwhile, the general crypto price index is currently sliding sideways to down right now as we go through a further consolidation (I'm still buying as funds come available) and retail investors have not really participated in the past year's run-up, which is another clue that we're still early. As it is the consolidation we see is a flight to utility as the investor-class is taking profits from some crypto and rotating into other Crypto. We see this happening with Solana as the memes keep hitting and diluting the alt coin space. One place retail investors are exposed on is XRP. My buddies that know nothing about crypto know about XRP and that's because XRP is a private company with a marketing group.

That said, it really does feel like an exciting time to buy into quality crypto as this nation awakens to it as a means to quickly and track government spending, sovereign debt shortfalls, and as a means to bolster trade.

thank you so much for your suggestion

 

[California]

How much overlap is there between some of the proposed Federal Bitcoin legislation, and the promoter group that put up the Argentine Sovereign Wealth, and Melania, coins?

Coffeezilla on YouTube spoke about this recently.

He discovered the promoters sniped the initial releases in moments and were who got rich, not the retail participants.

 

[MinnesotaEric]

How much overlap is there between some of the proposed Federal Bitcoin legislation, and the promoters of the Argentine Sovereign Wealth, and Melania, coins?

Coffeezilla on YouTube spoke about this recently.

He discovered the promoters sniped the initial releases in moments and were who got rich, not the retail participants.

Utility coins let alone meme coins aren't in publicly in the loop about regulation other than at least Charles Hoskinson (one of the founders of Cardano and Ethereum) talking about having a seat at the table to suggest good regulation. New meme coin launches happen dozens of times every day and their primary purpose is to enrich the insiders. Look at Hawk-Tua, Trump, et cetra.

That said, Charles is pretty chatty about what (he) thinks is going on. Here is his profile link on X.

If you must own meme coins, get the OG of all meme coins, Dogecoin which is both amusing and ticking off a whole bunch of people in our government.

 

[rumwrks]

I will place you into the hater section.

If by "hater" you mean "anti-scams" and "unsupportive of greater fools schemes" (which are a superset of the pyramid scheme) then.. sure I guess.. sign me up.

The unwarranted witch hunt SEC lawsuit against Coinbase is getting dropped

Ah yes the famously reliable coinbase. The hotel california of crypto, you can check in but you can never leave (in fairness most of the exchanges are similarly scammy so it's perhaps unfair to single out coinbase as being an exception.. because they're not). The meme is more "which rules did I break" .. followed by a laundry list of them hah.

At least they're not ByBit which just had $1.4 Billion hacked by (reportedly... we'll see if that ends up being true... or if there was some sort of "shared gains" scam lol) North Korea.

Inb4 "not your wallet not your coins" to remind everyone that the transaction rates are still single digit/s. It doesn't scale.. And for the "no need to sell, just hodl diamond hands" response "what good is an unsellable asset", money has value as a medium of exchange.

Also worth noting that if the details on the hack are correct it was a wallet attack which.. "how cold is your cold wallet" lol (and frankly if the people running exchanges get hacked for everything what are the odds joe consumer can adequately protect themselves). Unless ofc you're the guy trying to desperately buy a garbage dump to get the hard drive with his wallet on it back. Truly the future of finance.

 

[MinnesotaEric]

If by "hater" you mean "anti-scams" and "unsupportive of greater fools schemes" (which are a superset of the pyramid scheme) then.. sure I guess.. sign me up.


Ah yes the famously reliable coinbase. The hotel california of crypto, you can check in but you can never leave (in fairness most of the exchanges are similarly scammy so it's perhaps unfair to single out coinbase as being an exception.. because they're not). The meme is more "which rules did I break" .. followed by a laundry list of them hah.

At least they're not ByBit which just had $1.4 Billion hacked by (reportedly... we'll see if that ends up being true... or if there was some sort of "shared gains" scam lol) North Korea.

Inb4 "not your wallet not your coins" to remind everyone that the transaction rates are still single digit/s. It doesn't scale.. And for the "no need to sell, just hodl diamond hands" response "what good is an unsellable asset", money has value as a medium of exchange.

Also worth noting that if the details on the hack are correct it was a wallet attack which.. "how cold is your cold wallet" lol (and frankly if the people running exchanges get hacked for everything what are the odds joe consumer can adequately protect themselves). Unless ofc you're the guy trying to desperately buy a garbage dump to get the hard drive with his wallet on it back. Truly the future of finance.

That hack wasn't against the Ledger wallet, it was conning the users. That said, I rest my case: you're in the hater category while it is being telegraphed that the ground is going to shift under our feet.

 

[California]

 

[rumwrks]

That hack wasn't against the Ledger wallet, it was conning the users

No they hacked the exchanges "cold" (lol) wallet (which isn't their ledger wallet - which actually wouldn't have been .. quite.. as bad). There are, of course, as you're admitting a lot of scams directly targeting the users as well but that wasn't specifically the problem in this case.

https://www.theblock.co/post/342667/crypto-exchange-bybit-hacked-as-over-1-billion-worth-of-eth-leaves-wallets

https://cointelegraph.com/news/bybit-hack-withdrawals-5-3b-reserves-secure-hacken

"Dolev said the Ethereum multisig cold wallet was compromised through a deceptive transaction, tricking signers into unknowingly approving a malicious smart contract logic change. This allowed the hacker to gain control of the cold wallet and transfer all ETH to an unknown address,”

That's part of the great thing about "smart wallets", you can get incoming transactions that create trap doors you can't ever touch or they'll drain your wallet (or sometimes even if you don't touch them there are vulnerabilities in the wallet... which can also drain all of your assets...).

 

[MinnesotaEric]

No they hacked the exchanges "cold" (lol) wallet (which isn't their ledger wallet - which actually wouldn't have been .. quite.. as bad). There are, of course, as you're admitting a lot of scams directly targeting the users as well but that wasn't specifically the problem in this case.

https://www.theblock.co/post/342667/crypto-exchange-bybit-hacked-as-over-1-billion-worth-of-eth-leaves-wallets

https://cointelegraph.com/news/bybit-hack-withdrawals-5-3b-reserves-secure-hacken

"Dolev said the Ethereum multisig cold wallet was compromised through a deceptive transaction, tricking signers into unknowingly approving a malicious smart contract logic change. This allowed the hacker to gain control of the cold wallet and transfer all ETH to an unknown address,”

That's part of the great thing about "smart wallets", you can get incoming transactions that create trap doors you can't ever touch or they'll drain your wallet (or sometimes even if you don't touch them there are vulnerabilities in the wallet... which can also drain all of your assets...).

Again, nothing failed in the security, what failed was not checking the actual address on the hardware wallet since only the hardware wallet showed where the ETH was being sent.

How the hack worked was by spoofing the address on the software side. The software user front end was compromised showing the "correct" address where the ETH was to be sent (which was really being sent to an altogether different address), but the hardware device itself showed the real address that the ETH was being sent to. In other words, it wasn't a failure of the security of the hardware wallet, it was a con on the software front end of the user interface.

The amusing fallout has been a discussion to back ETH to a former hard fork, thereby locking out the stolen ETH from the float. The unintended consequences from this suggestion are making other coins that are significantly more secure than Ethereum much talked about than the second highest market cap to Bitcoin.

 

[quicksandfarmer]

No they hacked the exchanges "cold" (lol) wallet (which isn't their ledger wallet - which actually wouldn't have been .. quite.. as bad). There are, of course, as you're admitting a lot of scams directly targeting the users as well but that wasn't specifically the problem in this case.

https://www.theblock.co/post/342667/crypto-exchange-bybit-hacked-as-over-1-billion-worth-of-eth-leaves-wallets

https://cointelegraph.com/news/bybit-hack-withdrawals-5-3b-reserves-secure-hacken

"Dolev said the Ethereum multisig cold wallet was compromised through a deceptive transaction, tricking signers into unknowingly approving a malicious smart contract logic change. This allowed the hacker to gain control of the cold wallet and transfer all ETH to an unknown address,”

That's part of the great thing about "smart wallets", you can get incoming transactions that create trap doors you can't ever touch or they'll drain your wallet (or sometimes even if you don't touch them there are vulnerabilities in the wallet... which can also drain all of your assets...).

I'm sure the crypto regulators will make sure that the crypto insurance fund makes everyone whole.

 

[MinnesotaEric]

I'm sure the crypto regulators will make sure that the crypto insurance fund makes everyone whole.

Regulation is expected to

1) Provide a clear framework framework for launching coins. What is allowed, not allowed, and how they should be treated.

2) Regulations to manage staking as a way of creating yield for stakeholders and this to include crypto ETFs.

3) Regulations allowing domestic banks to custody crypto—especially stable coins that a lot of multinational companies use for transferring profits from offshore to domestic accounts.

4) Currently if crypto is used to buy something like a meal, right now we pay capital gains tax on the crypto used to purchase that meal because the crypto used was "cashed out." In other words, our tax code does not reckon crypto as "money" used in commerce. So we need a framework that differentiates crypto used as an investment where capital gains taxes would be applicable from crypto used as money to purchase goods and services.

 

[etpm]

Interesting article I will only provide a link to so that I don't violate fair use. Link: Bitcoin's downward spiral gets worse as the Trump-led crypto party is over
Eric (not Minnesota Eric)

 

[quicksandfarmer]

No they hacked the exchanges "cold" (lol) wallet (which isn't their ledger wallet - which actually wouldn't have been .. quite.. as bad). There are, of course, as you're admitting a lot of scams directly targeting the users as well but that wasn't specifically the problem in this case.

https://www.theblock.co/post/342667/crypto-exchange-bybit-hacked-as-over-1-billion-worth-of-eth-leaves-wallets

https://cointelegraph.com/news/bybit-hack-withdrawals-5-3b-reserves-secure-hacken

"Dolev said the Ethereum multisig cold wallet was compromised through a deceptive transaction, tricking signers into unknowingly approving a malicious smart contract logic change. This allowed the hacker to gain control of the cold wallet and transfer all ETH to an unknown address,”

That's part of the great thing about "smart wallets", you can get incoming transactions that create trap doors you can't ever touch or they'll drain your wallet (or sometimes even if you don't touch them there are vulnerabilities in the wallet... which can also drain all of your assets...).

What I think is hilarious is that one of the bigger investors in Ethereum is now pushing for Ether blockchain to be rolled back to undo the hack. It's hilarious because crypto is supposed to be decentralized and immutable.

 

[MinnesotaEric]

What I think is hilarious is that one of the bigger investors in Ethereum is now pushing for Ether blockchain to be rolled back to undo the hack. It's hilarious because crypto is supposed to be decentralized and immutable.

As I understand it, the people calling for rolling back Ethereum are Bitcoin maxis trying to wreck Ethereum. That said, I agree with you: rolling back is stupid and funny all at the same time. This makes a good case for not-Ethereum cryptos for decentralized development. I'm on the Cardano bandwagon, myself.

In other news, the FBI confirmed that it was North Korea's Lazareth Group who did the hack, making me wonder why the FBI cares about ByBit, a Singapore-based exchange? My conclusion is that people related to or connected to our new Administration own ETH—thus the FBI's interest in Ethereum. Anyway, the FBI called on private sector entities including RPC node operators, exchanges, and DeFi services to block transactions with addresses TraderTraitor actors are using to launder the stolen assets. Here is a link to the actual FBI PSA which also includes all the ETH addresses to be blocked.

Anyway, the rapid rise of Bitcoin from the low $70s to the $90s immediately following November's election is getting backfilled and so people like myself have little limit orders on the way down and bigger limit orders on the major support levels. 30-40% pullbacks in Bitcoin are commonplace in its history and are viewed as a feature and especially so if your position gets stop-lossed out and you're looking for new entry points. What does stink is if American crypto exchanges operated like proper US-based equity exchanges, then each tax lot could be assigned trailing stops, thereby limiting tax exposure, but at this time I'm unaware of any US-based exchanges offering proper risk-management tools.

Meanwhile, The new administration's plan for solving our national debt on the crypto side of this appears to be taking shape.

Step 1: Create Gold Card for foreigners to relocate to US for $5,000,000.

Step 2: Enact a Strategic Bitcoin Stockpile causing Bitcoin's price appreciation to rip.

Step 3: Remove capital gains for crypto.

Step 4: Thereby making the USA a haven for rich Bitcoin HODLers to relocate to avoid taxes with Gold Card fees paying down the national debt.

 

[Fixastuff]

I mined over 2k pi coin over a few years.(no cost to me just clicked a button on phone daily) Never thought it would go live but it has and it’s increasing in value fast. Pretty crazy and can’t say I understand it but it’s cool!

 

[mikester]

There are over 2,400,000 cryptocurrencies and over half have failed.

Don't be so pessimistic I just created an NFT and it's worth BILLIONS of dollars. Just you wait, don't miss the bus! Make sure to wear your hockey helmet on the bus too.

Crypto is an important part of every scammer, criminal and charlatan's portfolio. Without it the Russian prince and the guy monitoring my computer camera recording me wacking off won't be able to move money around the world without oversight.

 

[Fuddyduddy1952]

Now I'm curious since there's nothing tangible to back up cryptocurrency then why is it referenced to $money?
That's like me...I know nothing about jet engines, but I charge $500/hour labor to not work on one.

 

[MinnesotaEric]

Now I'm curious since there's nothing tangible to back up cryptocurrency then why is it referenced to $money?
That like me...I know nothing about jet engines, but I charge $500/hour labor to not work on one.

 

[MinnesotaEric]

Meanwhile, Cardano's founder, Charles Hoskinson, is apparently meeting with the President. The speculation for over a month is that somehow our Nation's expenditures are going to be put on a blockchain but also Charles has a seat at the table for shaping the forthcoming Crypto regulation. Last month Charles announced that he is now working with SpaceX who uses stable coins as a method to transfer and bring into the USA subscription fees from StarLink services from around the world.

 

[quicksandfarmer]

I recommend this episode about John Law, the man who essentially invented paper money in the European world (although ultimately he failed and his money was rejected) :

https://www.npr.org/transcripts/909876702

A couple of good quotes: "a reasonable definition of money is, it's the thing you pay your taxes with - 'cause once the government says you have to use this thing to pay your taxes, whether that thing is silver coins or cloth or dollars or paper money from the banque generale, then everybody knows that at some point, they're going to need to have that thing to pay their taxes."

Also: "So there is this question, why did John Law fail? I think he failed, at least in part, because for modern money to work - for this kind of system he was trying to create to work, you need to have a balance of power. You need to have banks and governments and ordinary people all pushing and pulling and arguing over who gets to do what and how much and when. And it's this arguing, this pushing and pulling, that at least gives you a shot at keeping things in check. France did not have any of that, really. It was an absolute monarchy."

I'd argue that the latter property is what crypto currently lacks.

 

[ConawayFarms]

I'm still trying to wrap my head around all this crypto stuff, but it definitely seems like it's becoming more mainstream. I'm not sure if it's the end of the world or the future of finance, but it's wild to see how much things have changed in just a few years.