40 sats \ 2 replies \ @sp 29 Jun 2022 freebie
Since we are on Stacker News and we are here to "stack sats", I have a burning question: where did bitcoins go when they got "liquidated"?
Parker explains with clarity that bitcoins held by lending platforms are not the same as fiat platforms, where a lender of last resort - government stuff - can create out of thin air the money needed to bail out everyone.
Ultimately, the 21 million bitcoin finite supply must change hands, since there's no way to create "new".
Where is this money now? Who is holding the UTXOs? Who "stacked sats" from this contagion?
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10 sats \ 0 replies \ @cryptocoin OP 29 Jun 2022
Well, just like when a bank sells a house it foreclosed on, the selling price is below the price that the borrower had paid (or at least, below the amount of the loan that is still owed).
There is always a buyer of any asset at some price. So the liquidations kept lowering the price of bitcoin until a willing and able buyer was found.
Who specifically are these buyers? Well, a lot of people who DCA (dollar cost average) are buying regularly ... a $1 that used to buy 2,000 sats some time ago now buys 5,000 sats. So more sats are being acquired by those who buy even though their dollar value purchases have not increased.
But there's also speculators who are more interested in owning bitcoin at $20K than they were when it was at $50K. So they "bought the dip" (Now whether they hold if this isn't just a dip but a long term bear market, who knows).
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0 sats \ 0 replies \ @cryptocoin OP 29 Jun 2022
Well, just like when a bank sells a house it foreclosed on, the selling price is below the price that the borrower had paid (or at least, below the amount of the loan that is still owed).
There is always a buyer of any asset at some price. So the liquidations kept lowering the price of bitcoin until a willing and able buyer was found.
Who specifically are these buyers? Well, a lot of people who DCA (dollar cost average) are buying regularly ... a $1 that used to buy 2,000 sats some time ago now buys 5,000 sats. So more sats are being acquired by those who buy even though their dollar value purchases have not increased.
But there's also speculators who are more interested at $20K than they were at $50K. So they "bought the dip" (Now whether they hold if this isn't just a dip but a long term bear market, who knows).
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0 sats \ 0 replies \ @cryptocoin OP 29 Jun 2022
This episode was the focus of an issue of the Marty's Bent newsletter:
Issue #1232: Gambling with sound money and the conditions that lead to hyperinflation | Marty's Bent
#39558
https://tftc.io/martys-bent/issue-1232-gambling-with-sound-money-and-the-conditions-that-lead-to-hyperinflation
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0 sats \ 3 replies \ @cryptocoin OP 28 Jun 2022
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0 sats \ 2 replies \ @cryptocoin OP 28 Jun 2022
Listen and watch:
Podcasts: https://anchor.fm/tales-from-the-crypt
Rumble: https://rumble.com/c/TFTC
Youtube: https://www.youtube.com/channel/UCtdbWsnfA08KhSUO4amVLaQ
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0 sats \ 1 reply \ @cryptocoin OP 28 Jun 2022
On BitcoinTV (Peertube / Fediverse):
[This episode is not yet available on BitcoinTV]
On Mastodon / Pleroma (Fediverse), follow: @tftc@BitcoinTV.com
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0 sats \ 0 replies \ @cryptocoin OP 29 Jun 2022
This episode is now available on BitcoinTV:
#342: Dissecting the contagion with Parker Lewis
https://bitcointv.com/w/3QuAzGyaftUDv4AbhqriK5
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