Ultra Brainlet BTC holder here. I am getting anxious about all these BTC doom and gloom posts and BCH pushers here and I don't understand technical stuff such as tethers. Please, can a fellow BTC holder explain to me why I need not worry.
Ultra Brainlet BTC holder here...
Kevin Powell
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Dominic Evans
just go to r/bitcoin if you want mindless propaganda and circlejerking, they ban all dissenters there
Chase Miller
From /r/buttcoin:
First, what Tether pretends it is.
It pretends to be a currency board for a currency called Tether. A currency board is used by countries who want to peg their currency to another one. For example, Hong Kong operates a currency board. 1 US dollar is always equal to 7.8 Hong Kong dollars (HKD); note that the parity does not have to be 1 to 1, it can be a ratio like in the case of Hong Kong.
How does that work? There are a few technicalities, but the principle is simple: to enforce that rate, the Hong Kong Monetary Authority accepts to exchange at that rate, at all time, no question asked. You bring 7.8 million HKD to them, they give you 1 million USD. You bring them 1 million USD, they give you 7.8 million HKD. (this is the most important point to remember)
It's easy to see how it enforces parity, through arbitrage. If someone was selling USD for cheaper than the HKMA, then people would buy all of it (from that guy) and sell it a higher price to the HKMA. And if on the other hand someone was selling USD for more, then why bother with that guy, since the HKMA offers you a better price?
And it keeps the monetary authority honest. They cannot print as much money as they want; if they did, people might want to convert it to US dollars, and the monetary authority might not have enough US dollars in reserve (that's what happened to Argentina a while back, and they got bankrupt as a result).
So that's all good, you can read more about currency boards on Wikipedia.
Now, when it comes to Bitcoin and Tether. The idea was to have something that is more liquid, in the crypto-currency markets, than US dollars. Because USD transfers are subject to various anti money laundering laws and regulations, etc. So how about a coin that is pegged (or "tethered") to the US dollar? This allows people to speculate on Bitcoin and other crypto-currencies without having to deal with actual US dollars; just with something that has the same value.
Jason Perry
Enter Tether. On paper, it's not a terrible idea.
So what's the catch? Well, Tether has stopped that currency board from working in one direction (assuming they ever did). You cannot redeem your Tether back to US dollars.
This completely kills the entire concept; the mechanism keeping them honest is now non-existent.
Thus, what is more likely: that mechanism is broken, but those guys are still honest? Or that the mechanism is broken because they want to print money as much as they want?
The fact that 1 Tether is worth 1 USD and not less than that (i.e. not factoring any risk) is completely bonkers. That's because people operating in those markets are largely clueless about economics, law, etc.
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Aiden Flores
This whole dumb BTC money makes me REEEEEEEE
Cooper Rodriguez
Ughhh yeah heh he he
Isaiah King
BTC is complete shit, taken over by a centralized corporation seeking profits and censoring / banning individuals who disagree with centralization.
So BCH split from the chain, and even the lead core developer Gavin Andressen who was forced out of Core tweeted that BCH was the Bitcoin that he worked on back in 2010.
BCH is the one true bitcoin containing the same genesis block as BTC, but uncorrupted like BTC with five different development teams working on improving BCH with upgrades.
Some facts:
> It's consistent more profitable to mine BCH than BTC
> BCH has the same rarity as BTC but is a lot cheaper right now
> BCH is decentralized with miners, developers, users, and speculators all having a say in the future of BCH, while with BTC you have to bow down to the corporate elites and bankers
> BCH is the one true Bitcoin, Peer to Peer cash without any one central authority controlling it
Logan Harris
This isn't helping my anxiety.
Chase Garcia
And it will always be BTC little brother.
You think the MARKETS care about any of your sentiment? You think the normies holders that barely know what BTC is care? You think investors with billions tied up into BTC care? The same investors that trade on a market that closes at 4pm everyday. You think they care about slow transactions? Fees? Get out of here.
Gavin Carter
I made an AI that evolves trading strategies. Turns out that there is no fixed % strategy (buy low sell high and stoploss) that would give you more gains than just holding bitcoin.
Adam Kelly
The best strategy was -60% of the money you would get from just holding.
Nathan Phillips
The only arguments for BTC I've heard are:
> It has BTC ticker
> Bitcoin Futures
What you don't realize is BCH also has that Bitcoin brand name recognition. If BTC rises, so will BCH, as if the price for BTC becomes too high, people will view BCH as the other Bitcoin, just as rare as BTC.
Other coins probably have much better technology than both BTC and BCH, but people want both as they're both Bitcoin. However, BCH is the one true Bitcoin and right now normies don't know that, what do you think will happen once they do?
Brandon Perez
I've more than 2xed my gains from switching over from BTC to BCH, and if I sold at the peak last week it would have been more than 7x my gains from holding BTC.
It's really risky when you exchange BTC for unknown alts with unknown potential, but much less risky when exchanging for other top coins.
The thing is, putting money in other coins is the only way your BTC holdings will rise. Keeping 1 BTC in BTC is going to be the same, while exchanging 1 BTC for an alt that doubles, gets you 2 BTC for that same 1.
Hudson Barnes
Lightning network, instant transactions, even lower fees than bch
Your counter agrument will be "its vaporware"
Luke White
>BCH
>top coins.
k
Connor Reyes
Yes, but the probability that you are right often enough to earn more btc is worse than plaing roulette (in roulette you know the numbers)
Landon Bailey
ur problem is solved quite simply. just buy nuls
Parker Thompson
BCH already has instant transactions and for BTC you have to pay extra to get that feature if it's even released. Lightning transactions won't make BTC cheaper than BCH, and again the intent of the lightning network is for Blockstream core group and bankers to profit.
Saying I will call your argument "vaporware", meaning it's software doesn't exist, doesn't make it a bad argument. It just means the issue is obvious if the person giving the argument knows how flawed it is.
If BTC implements LN, BCH will simply implement Graphene, which will destroy LN. With a faster and more decentralized development teams working on BCH than BTC, I don't doubt more improvements will come to BCH faster than the BTC dinosaur.
Angel James
> Surpassed Ethereum
> Destroyed BTC's volume
> Made every alt coin bleed red in the marketplace including BTC (brought it down to sub 6000 levels from its 8000 high)
> Remained top #3 in the marketplace
> Has second highest volume nearly matching BTC
> Yet not a "top coin"
Yeah keep dreaming.
It's a 3 month old coin, with growing adoption and more projects being worked on improving it rather than the pure speculation of BTC growth. Do you really think 1 year down the line BCH will be gone? More than likely it will have brought BTC down to its knees yet again.
Check out r/btc and yours.org for the continuous community improvement of the project.
Jackson Butler
No they aren't instant on bch, yes they will be cheaper on LN. 3 different companies are working on different implementations of LN so no blockstream monopole. You dont know how open source development works.
Won't explain more, enjoy losing your money
Xavier Nguyen
Also kek at graphene - it doesn't change transaction speed, it changes block propagation speed. Transaction speed is based on confirmations, max is 1 every 10 minutes @ btc and bch
Jaxson Nguyen
Look up 0conf transactions which already exist on BCH, but are impossible on BTC due to RPF. You claim LN will be cheaper than Graphene but have no proof or evidence, again LN is software that doesn't exist so at this point you're basically speculating. It won't be cheaper than graphene as you have to pay in order to use off-chain channels.
BTC is open source, yet despite 90% of miners advocating for increased blocksize, and 65% of the community voting for increased blocksize earlier in May, Blockstream core said no. Whatever you think opensource is, if Blockstream Core says no and chooses not to implement a feature, it won't be implemented.