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Bitcoin & crypto?

Discussions about the economic and financial ramifications of PEAK OIL

Re: Bitcoin & crypto?

Unread postby EdwinSm » Sat 17 Feb 2018, 04:47:46

GHung wrote:A little investigating revealed that the crypto-currency miners are snatching up newer faster components about as fast as they can be manufactured.


And..... Crypto-currency craze 'hinders search for alien life'
Seti (Search for Extraterrestrial Intelligence) researchers want to expand operations at two observatories.

However, they have found that key computer chips are in short supply.

"We'd like to use the latest GPUs [graphics processing units]... and we can't get 'em," said Dan Werthimer.

Demand for GPUs has soared recently thanks to crypto-currency mining.

http://www.bbc.com/news/technology-43056744
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Re: Bitcoin & crypto?

Unread postby Tanada » Sat 17 Feb 2018, 08:49:02

Oh come on, the search for ET? That is really a reach, implying that all the stuff already built and in use is suddenly useless because a newer slightly faster system is temporarily unavailable.

people need to chill, a shortage today leads to a surplus tomorrow. If you can't play the latest greatest (tm) computer game for several weeks while manufacturing catches up you will not suffer anything more than a very very unimportant inconvenience, and a temporary one at that.
I should be able to change a diaper, plan an invasion, butcher a hog, design a building, write, balance accounts, build a wall, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, pitch manure, program a computer, cook, fight efficiently, die gallantly. Specialization is for insects.
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Re: Bitcoin & crypto?

Unread postby GHung » Sat 17 Feb 2018, 11:13:55

Tanada wrote:Oh come on, the search for ET? That is really a reach, implying that all the stuff already built and in use is suddenly useless because a newer slightly faster system is temporarily unavailable.

people need to chill, a shortage today leads to a surplus tomorrow. If you can't play the latest greatest (tm) computer game for several weeks while manufacturing catches up you will not suffer anything more than a very very unimportant inconvenience, and a temporary one at that.


That's my strategy. This too shall pass and hopefully I can get what I want at a discount. Smart gun buyers do the same; wait for the hysteria over pending gun control to pass and get good prices on guns or ammo..... Oh,, wait!

And I don't need this stuff. It'll just speed things up a bit, and my weather/solar logging box is showing signs of age. I can re-task my current stuff for that and build a newer system for my photo/video hobby. The county recycling center won't allow me to scrounge through the old electronics for good stuff any more so I have to actually pay up. The horror!
Blessed are the Meek, for they shall inherit nothing but their Souls. - Anonymous Ghung Person
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Re: Bitcoin & crypto?

Unread postby onlooker » Wed 28 Feb 2018, 19:08:21

https://www.nakedcapitalism.com/2018/02 ... asion.html

Bitcoin as Prosecution Futures: Coinbase Agrees to Turn Customer Records Over to Department of Justice for Possible Tax Evasion
Posted on February 28, 2018 by Yves Smith
Even in the US, which so far has been more lenient toward cryptocurrencies than China, the noose is tightening. Top Bitcoin exchange Coinbase has decided that trying to defy the law, in terms of not complying with a IRS summons requiring it to turn over information about customers who had engaged in more than $20,000 in Bitcoin transactions in a year, was not a viable position. Apparently Coinbase had had the Silicon Valley libertarian chutzpah to think the rules didn’t apply to them. The IRS does not regard “disruption” as a tax exemption.
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Re: Bitcoin & crypto?

Unread postby vox_mundi » Wed 13 Jun 2018, 10:23:34

Tether Used to Manipulate Price of Bitcoin During 2017 Peak

Tether, one of the most-traded cryptocurrencies, shows a pattern of being spent on Bitcoin at pivotal moments, helping to drive the world’s first digital asset to a record price in December, according to research by a University of Texas professor known for flagging suspicious activity in the VIX benchmark.

Tether seems to be used both to stabilize and manipulate Bitcoin prices,” finance professor John Griffin and co-author Amin Shams wrote in a paper released Wednesday.

Griffin and Shams -- in a paper titled “Is Bitcoin Really Un-Tethered?” -- set out to understand how the 2.5 billion Tether coins in existence have flowed through markets. While little public information exists about how Tether is created, it generally trades for around $1 because each coin is supposed to be backed by $1 of fiat money in a bank. The currency, which started trading in 2015, is pitched as a stable alternative to Bitcoin’s volatility, acting as a haven for crypto investors.

The data analyzed by the academics includes Bitcoin’s meteoric rise to a record high of almost $20,000 last December, before it crashed this year. It fell 1.4 percent Wednesday to $6,441.17, according to price data compiled by Bloomberg.

The analysis showed a pattern of Bitcoin price support, Griffin said. First, Tethers are created by the parent company Tether Ltd., often in large chunks such as 200 million. Almost all new coins then move to Bitfinex, he said. When Bitcoin prices drop soon after the issuance, Tethers at Bitfinex and other exchanges are used to buy Bitcoin “in a coordinated way that drives the price,” Griffin said in an interview.

“I’ve looked at a lot of markets,” he said. “If there’s fraud or manipulation in a market it can leave tracks in the data. The tracks in the data here are very consistent with a manipulation hypothesis.”

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Griffin’s paper describes several patterns uncovered in a yearlong period. First it found that flows weren’t symmetric. When Bitcoin’s price fell, purchases with Tether tended to increase, helping to reverse the decline. But during times when Bitcoin rose, Griffin said he didn’t see the reverse occur. That’s “suggestive of Tether being used to protect Bitcoin prices during downturns,” he wrote.

He zeroed in on 87 of the largest purchases of Bitcoin with Tether from March 2017 to March 2018. In the cases examined, new Tether had been issued within the prior three days, and Bitcoin’s price had fallen in the prior hour. What followed were increases in Bitcoin’s price -- and those gains added up.

Even though the 87 examples account for less than 1 percent of the time period examined, they amounted to about 50 percent of Bitcoin’s compounded return over that year. In comparison, 10,000 simulations Griffin and Shams ran demonstrated “that this behavior never occurs randomly,” they wrote.

Griffin said one of the most notable trends he saw in the data was when Bitcoin traded near certain price thresholds, denominated in $500 increments.

Bitcoin purchases with Tether “strongly increase just below multiples of 500. This pattern is only present in periods following printing of Tether and not observed by other exchanges,” he wrote in the paper. To other investors, it gives the impression of a “price floor,” providing a signal for them to buy as well.

“If it was random behavior you wouldn’t see it cluster around the thresholds,” he said in the interview. “It indicates it’s a conscious strategy to provide price support.”
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Insensible before the wave so soon released by callous fate. Affected most, they understand the least, and understanding, when it comes, invariably arrives too late.
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