It is no doubt Grayscale’s booming popularity as a mainstream investment has caused a lot of community hullabaloo lately. As such, I felt it was worth making a FAQ regarding the topic. I’m looking to update this as needed and of course am open to suggestions / adding any questions. The goal is simply to have a thread we can link to anyone with questions on Grayscaleand its products. Instead of explaining the same thing 3 times a day, shoot those posters over to this thread.My hope is that these questions are answered in a fairly simple and easy to understand manner. I think as the sub grows it will be a nice reference point for newcomers. Disclaimer: I do NOT work for Grayscale and as such am basing all these answers on information that can be found on their website / reports. (Grayscale’s official FAQ can be found here). I also do NOT have a finance degree, I do NOT have a Series 6 / 7 / 140-whatever, and I do NOT work with investment products for my day job. I have an accounting background and work within the finance world so I have the general ‘business’ knowledge to put it all together, but this is all info determined in my best faith effort as a layman. The point being is this --- it is possible I may explain something wrong or missed the technical terms, and if that occurs I am more than happy to update anything that can be proven incorrect Everything below will be in reference to ETHE but will apply to GBTC as well.If those two segregate in any way, I will note that accordingly.
ETHE is essentially a stock that intends to loosely track the price of ETH. It does so by having each ETHE be backed by a specific amount of ETH that is held on chain. Initially, the newly minted ETHE can only be purchased by institutions and accredited investors directly from Grayscale. Once a year has passed (6 months for GBTC) it can then be listed on the OTCQX Best Market exchange for secondary trading. Once listed on OTCQX, anyone investor can purchase at this point. Additional information on ETHE can be found here.
So ETHE is an ETF?
No. For technical reasons beyond my personal understandings it is not labeled an ETF. I know it all flows back to the “Securities Act Rule 144”, but due to my limited knowledge on SEC regulations I don’t want to misspeak past that. If anyone is more knowledgeable on the subject I am happy to input their answer here.
How long has ETHE existed?
ETHE was formed 12/14/2017. GBTC was formed 9/25/2013.
How is ETHE created?
The trust will issue shares to “Authorized Participants” in groups of 100 shares (called baskets). Authorized Participants are the only persons that may place orders to create these baskets and they do it on behalf of the investor. Source: Creation and Redemption of Shares section on page 39 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here Note – The way their reports word this makes it sound like there is an army of authorizers doing the dirty work, but in reality there is only one Authorized Participant. At this moment the “Genesis” company is the sole Authorized Participant. Genesis is owned by the “Digital Currency Group, Inc.” which is the parent company of Grayscale as well. (And to really go down the rabbit hole it looks like DCG is the parent company of CoinDesk and is “backing 150+ companies across 30 countries, including Coinbase, Ripple, and Chainalysis.”) Source: Digital Currency Group, Inc. informational section on page 77 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here Source: Barry E. Silbert informational section on page 75 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
How does Grayscale acquire the ETH to collateralize the ETHE product?
An Investor may acquire ETHE by paying in cash or exchanging ETH already owned.
Cash: The investor pays the subscription amount in cash and the Authorized Participant will use that cash to purchase ETH.
ETH: The investor transfers the ETH to the Authorized Participant, which will contribute the ETH in-kind to the Trust.
Source: Creation and Redemption of Shares section on page 40 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Where does Grayscale store their ETH? Does it have a specific wallet address we can follow?
ETH is stored with Coinbase Custody Trust Company, LLC. I am unaware of any specific address or set of addresses that can be used to verify the ETH is actually there. As an aside - I would actually love to see if anyone knows more about this as it’s something that’s sort of peaked my interest after being asked about it… I find it doubtful we can find that however. Source: Part C. Business Information, Item 8, subsection A. on page 16 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Can ETHE be redeemed for ETH?
No, currently there is no way to give your shares of ETHE back to Grayscale to receive ETH back. The only method of getting back into ETH would be to sell your ETHE to someone else and then use those proceeds to buy ETH yourself. Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Why are they not redeeming shares?
I think the report summarizes it best:
Redemptions of Shares are currently not permitted and the Trust is unable to redeem Shares. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. Because the Trust does not believe that the SEC would, at this time, entertain an application for the waiver of rules needed in order to operate an ongoing redemption program, the Trust currently has no intention of seeking regulatory approval from the SEC to operate an ongoing redemption program.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the fee structure?
ETHE has an annual fee of 2.5%. GBTC has an annual fee of 2.0%. Fees are paid by selling the underlying ETH / BTC collateralizing the asset. Source: ETHE’s informational page on Grayscale’s website - Located Here Source: Description of Trust on page 31 & 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the ratio of ETH to ETHE?
At the time of posting (6/19/2020) each ETHE share is backed by .09391605 ETH. Each share of GBTC is backed by .00096038 BTC. ETHE & GBTC’s specific information page on Grayscale’s website updates the ratio daily – Located Here For a full historical look at this ratio, it can be found on the Grayscale home page on the upper right side if you go to Tax Documents > 2019 Tax Documents > Grayscale Ethereum Trust 2019 Tax Letter.
Why is the ratio not 1:1? Why is it always decreasing?
While I cannot say for certain why the initial distribution was not a 1:1 backing, it is more than likely to keep the price down and allow more investors a chance to purchase ETHE / GBTC. As noted above, fees are paid by selling off the ETH collateralizing ETHE. So this number will always be trending downward as time goes on. Source: Description of Trust on page 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
I keep hearing about how this is locked supply… explain?
As noted above, there is currently no redemption program for converting your ETHE back into ETH. This means that once an ETHE is issued, it will remain in circulation until a redemption program is formed --- something that doesn’t seem to be too urgent for the SEC or Grayscale at the moment. Tiny amounts will naturally be removed due to fees, but the bulk of the asset is in there for good. Knowing that ETHE cannot be taken back and destroyed at this time, the ETH collateralizing it will not be removed from the wallet for the foreseeable future. While it is not fully locked in the sense of say a totally lost key, it is not coming out any time soon. Per their annual statement:
The Trust’s ETH will be transferred out of the ETH Account only in the following circumstances: (i) transferred to pay the Sponsor’s Fee or any Additional Trust Expenses, (ii) distributed in connection with the redemption of Baskets (subject to the Trust’s obtaining regulatory approval from the SEC to operate an ongoing redemption program and the consent of the Sponsor), (iii) sold on an as-needed basis to pay Additional Trust Expenses or (iv) sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.
Source: Description of Trust on page 31 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Grayscale now owns a huge chunk of both ETH and BTC’s supply… should we be worried about manipulation, a sell off to crash the market crash, a staking cartel?
First, it’s important to remember Grayscale is a lot more akin to an exchange then say an investment firm. Grayscale is working on behalf of its investors to create this product for investor control. Grayscale doesn’t ‘control’ the ETH it holds any more then Coinbase ‘controls’ the ETH in its hot wallet. (Note: There are likely some varying levels of control, but specific to this topic Grayscale cannot simply sell [legally, at least] the ETH by their own decision in the same manner Coinbase wouldn't be able to either.) That said, there shouldn’t be any worry in the short to medium time-frame. As noted above, Grayscale can’t really remove ETH other than for fees or termination of the product. At 2.5% a year, fees are noise in terms of volume. Grayscale seems to be the fastest growing product in the crypto space at the moment and termination of the product seems unlikely. IF redemptions were to happen tomorrow, it’s extremely unlikely we would see a mass exodus out of the product to redeem for ETH. And even if there was incentive to get back to ETH, the premium makes it so that it would be much more cost effective to just sell your ETHE on the secondary market and buy ETH yourself. Remember, any redemption is up to the investors and NOT something Grayscale has direct control over.
Yes, but what about [insert criminal act here]…
Alright, yes. Technically nothing is stopping Grayscale from selling all the ETH / BTC and running off to the Bahamas (Hawaii?). BUT there is no real reason for them to do so. Barry is an extremely public figure and it won’t be easy for him to get away with that. Grayscale’s Bitcoin Trust creates SEC reports weekly / bi-weekly and I’m sure given the sentiment towards crypto is being watched carefully. Plus, Grayscale is making tons of consistent revenue and thus has little to no incentive to give that up for a quick buck.
That’s a lot of ‘happy little feels’ Bob, is there even an independent audit or is this Tether 2.0?
Actually yes, an independent auditor report can be found in their annual reports. It is clearly aimed more towards the financial side and I doubt the auditors are crypto savants, but it is at least one extra set of eyes. Auditors are Friedman LLP – Auditor since 2015. Source: Independent Auditor Report starting on page 116 (of the PDF itself) of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here As mentioned by user TheCrpytosAndBloods (In Comments Below), a fun fact:
The company’s auditors Friedman LLP were also coincidentally TetheBitfinex’s auditors until They controversially parted ways in 2018 when the Tether controversy was at its height. I am not suggesting for one moment that there is anything shady about DCG - I just find it interesting it’s the same auditor.
“Grayscale sounds kind of lame” / “Not your keys not your crypto!” / “Why is anyone buying this, it sounds like a scam?”
Welp, for starters this honestly is not really a product aimed at the people likely to be reading this post. To each their own, but do remember just because something provides no value to you doesn’t mean it can’t provide value to someone else. That said some of the advertised benefits are as follows:
Access to trading within a tax advantaged retirement account
Institutions can easily and safely get exposure to crypto in a more legal-friendly manner
Ease of use for those who are not very technologically savvy
Ease of access for someone who doesn’t want to set up a Coinbase account
Perceived trust in institutional platforms over something like Coinbase or Kraken
Degen traders who just want access to the volatility ETHE provides that have no interest in crypto beyond that
So for example, I can set up an IRA at a brokerage account that has $0 trading fees. Then I can trade GBTC and ETHE all day without having to worry about tracking my taxes. All with the relative safety something like E-Trade provides over Binance. As for how it benefits the everyday ETH holder? I think the supply lock is a positive. I also think this product exposes the Ethereum ecosystem to people who otherwise wouldn’t know about it.
Why is there a premium? Why is ETHE’s premium so insanely high compared to GBTC’s premium?
There are a handful of theories of why a premium exists at all, some even mentioned in the annual report. The short list is as follows:
ETHE is NOT redeeming shares and as such doesn’t have an effective arbitrage mechanism
ETHE has a 1 year wait to be sold on the secondary market, again negating the ability to effectively arbitrage the premium
People may simply be willing to pay a premium for the benefits stated above.
Why is ETHE’s so much higher the GBTC’s? Again, a few thoughts:
ETHE hasn’t been around as long, so there is less secondary market supply to go around
ETHE was listed at an insanely high premium to begin with
ETHE might simply be more popular at the moment
Could just be sheer stupidity (investors think ETHE is a 1:1 ratio not 1:11)
Are there any other differences between ETHE and GBTC?
I touched on a few of the smaller differences, but one of the more interesting changes is GBTC is now a “SEC reporting company” as of January 2020. Which again goes beyond my scope of knowledge so I won’t comment on it too much… but the net result is GBTC is now putting out weekly / bi-weekly 8-K’s and annual 10-K’s. This means you can track GBTC that much easier at the moment as well as there is an extra layer of validity to the product IMO.
I’m looking for some statistics on ETHE… such as who is buying, how much is bought, etc?
There is a great Q1 2020 report I recommend you give a read that has a lot of cool graphs and data on the product. It’s a little GBTC centric, but there is some ETHE data as well. It can be found here hidden within the 8-K filings.Q1 2020 is the 4/16/2020 8-K filing. For those more into a GAAP style report see the 2019 annual 10-K of the same location.
Is Grayscale only just for BTC and ETH?
No, there are other products as well. In terms of a secondary market product, ETCG is the Ethereum Classic version of ETHE. Fun Fact – ETCG was actually put out to the secondary market first. It also has a 3% fee tied to it where 1% of it goes to some type of ETC development fund. In terms of institutional and accredited investors, there are a few ‘fan favorites’ such as Bitcoin Cash, Litcoin, Stellar, XRP, and Zcash. Something called Horizion (Backed by ZEN I guess? Idk to be honest what that is…). And a diversified Mutual Fund type fund that has a little bit of all of those. None of these products are available on the secondary market.
Are there alternatives to Grayscale?
I know they exist, but I don’t follow them. I’ll leave this as a “to be edited” section and will add as others comment on what they know. Per user Over-analyser (in comments below):
As asked by pegcity - Okay so I was under the impression you can just give them your own ETH and get ETHE, but do you get 11 ETHE per ETH or do you get the market value of ETH in USD worth of ETHE?
I have always understood that the ETHE issued directly through Grayscale is issued without the premium. As in, if I were to trade 1 ETH for ETHE I would get 11, not say only 2 or 3 because the secondary market premium is so high. And if I were paying cash only I would be paying the price to buy 1 ETH to get my 11 ETHE. Per page 39 of their annual statement, it reads as follows:
The Trust will issue Shares to Authorized Participants from time to time, but only in one or more Baskets (with a Basket being a block of 100 Shares). The Trust will not issue fractions of a Basket. The creation (and, should the Trust commence a redemption program, redemption) of Baskets will be made only in exchange for the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional ETH represented by each Basket being created (or, should the Trust commence a redemption program, redeemed), which is determined by dividing (x) the number of ETH owned by the Trust at 4:00 p.m., New York time, on the trade date of a creation or redemption order, after deducting the number of ETH representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the ETH Index Price at such time, and carried to the eighth decimal place), by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one ETH (i.e., carried to the eighth decimal place)), and multiplying such quotient by 100 (the “Basket ETH Amount”). All questions as to the calculation of the Basket ETH Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested in the Trust. The Basket ETH Amount multiplied by the number of Baskets being created or redeemed is the “Total Basket ETH Amount.” The number of ETH represented by a Share will gradually decrease over time as the Trust’s ETH are used to pay the Trust’s expenses. Each Share represented approximately 0.0950 ETH and 0.0974 ETH as of December 31, 2019 and 2018, respectively.
Well, February 22nd makes it one whole year. I think that's deserving of a top level post, right? Here are screenshots of the Mint Trends, which has every single expense from the past year categorized. I've added comments on each page. Expenses Overview Auto Expenses Food Expenses Home Expenses Utility Expenses Tax Expenses Healthcare Expenses Entertainment Expenses Main takeaways, my total expenses for the year was $37,700, but I'm going to dismiss about $15,000 of that as "one time" expenses from paying off my car and my furniture loan. A more reasonable number for my annual spend is $22,700. With my car payment gone, my highest expense category is Food, averaging $500 per month. This has room for improvement. Healthcare will look artificially low last year because of taking Tax Credits up front. This year I am not and will be paying $325 per month for health insurance. At ~$4000 per year, this puts healthcare at nearly 20% of my total expenses. Nothing else is particularly interesting. That $22,700 figure is a reasonable real-world number for me, but for future planning I'd still inflate that to $25,000 just to have more wiggle room. I may look into traveling this year, which would add some expense. Investments: Vanguard Investments: (All in VTSAX)
Traditional IRA: $299,000 -> $348,000
Roth IRA: $14,500 -> $18,150
Brokerage: $18,400 -> $22,900
Total Rollup: $331,800 -> $389,100. ~17% return
Other LTCG holdings: $145,000 -> $291,000 (other investment accounts and bitcoin) HSA Investment Account: $6000 -> $7400, with another $1700 in the "cash" holdings of the HSA. $9000 cash in Money Market & Checking Account. Finances Going Forward I had earned income last year so I didn't start my Roth Conversion Ladder last year. This year I decided I will be converting the $12,400 standard deduction + $9600 of the first tax bracket for a nice round $22,000 converted. Yes I'll owe a little bit of taxes, but it sets up my Roth with $22k in 5 years which should cover the majority of my expenses. And with $350k currently in tIRA and converting $22,000 per year, I won't be able to chew through it all before actual retirement age. I have about $20k from an old stock purchase plan that unlocks come April, which I will be selling and likely moving over to my money market account to shore up my "cash" holdings. My plan is to not really tap any of my "normal" investment accounts for as long as possible. I've been deferring to selling Bitcoin if I need to move some cash over. Last year I sold 3 bitcoin, one for $9300 in June, and then two at the end of December (for tax year Capital Gains reasons) for $7300 each. These were all LTCG at 0% taxed. AGI for last year is around $35,000. The Living Part: There's all the boring expenses and financial stuff. Now for the ever painful question that my beloved Grandmother loves to ask, "But gosh, what do you do with all of your time! I can't imagine being retired at your age!" Step 1, restful sleep. During my working career I lived off 6 hours of sleep every day. It made for exhausting weekends trying to "make it up." And luckily I'm not a generally stressful person or else it'd have been worse. But now I go to bed when I'm tired, and whenever I naturally wake up, I get up. This can lead to VERY weird hours since I'm often an extreme night owl. But I generally get 9-10 perfect restful uninterrupted dream-filled hours of sleep. I'm betrayed by my "Food Expense" breakdown, but I really am cooking more and eating better. I drink a lot of coffee and water at home and generally try to eat only one meal per day, but sometimes lunch and dinner. I don't normally eat breakfast, just have coffee when I wake up. And did I mention how much less painful it is to go grocery shopping when it's in the middle of the day and everyone's at work. It's so nice. I spend a lot of time on reddit browsing my front page, and I check out the YouTubers I follow that post daily, then check out any of the irregular posters. Depending on how much good stuff there is, this could go on for a few hours. I have a lot of hours playing video games. I tend toward puzzle games or building games (Factorio, Satisfactory) because they scratch that itch in my engineering brain. There are times at night where I'll spend hours on this website: https://www.puzzle-sudoku.com/ and play Sudoku or Nonograms or any of the other puzzle types on the bottom of the page. I'm doing my best to watch every single last show on Netflix. It's a daunting task, though it's surprising how often I drift back toward watching the same smattering of Star Trek: The Next Generation episodes rather than try something new. But I try and take recommendations and work my way through shows. And Podcasts! The joy of joys is when I come across a new-to-me podcast that has a huge backlog. I found a great ST:TNG rewatch podcast that had 108 episodes already done. I spent like 2 months watching the episode of TNG then immediately listening to their podcast about that episode, repeat repeat repeat. I'm currently working my way through The Adventure Zone, I'm on episode 46 of 155 with them. And they keep advertising the other podcasts The McElroys do so I'm sure I'll roll into one of those next. For many people podcasts are background noise, but I'll often just sit on the couch and concentrate on just listening the podcast. Outside of home, I can't wait for the weather to get nicer so I can go on more walks. Being a night owl I like going for walks at night. I live near our city center so I'm within blocks of city hall, the main library branch, and the fountain / park. I jump at any opportunity to hang out with friends. It's just about every weekend that we are getting together to hang out and play board games. Like I mentioned in one of the breakdowns, I've started to play D&D with my buddy and his wife. I'd never played before but he's been DMing for years (but hasn't had a group for 10+ years now). He's glad to be playing again, his wife loves it, and it's super convenient for them to stay home with the 5 month old daughter. (And baby gets to hang out with Uncle Oracle.) I get together with former co-workers every few months to keep in touch with them. One in particular I have a standing every-2-month bar date with. I remind them every so often that if they want to go out to lunch ever to just call me. Personal History Just a quick personal history in closing. I was an automotive engineer working for OEMs and Tier 1 suppliers in the Metro Detroit area. In the 2008 downturn I lost my job and was unemployed for 2 years and ended up getting my house foreclosed in 2010. By the time i got a job in March of 2010 I was basically at $0. I had a tiny amount in an 401k, had about $20,000 in credit card debt from being unemployed. But then I got a very well paying engineering job ($108k annual and eligible for time-and-half overtime). I kept living like I was unemployed, spent as little as possible and saved as much as possible. Through my parents I secured a mortgage on a nice 1 Bed / 1 Bath 900 sq ft condo. I paid off my CC debt in less than a year and kept banking cash and maxing my 401k every year. I heard about bitcoin in early 2013 (from a guildmate in World of Warcraft, believe it or not) and jumped on board. All time bitcoin price chart (log scale) for those unfamiliar with the history. I got in before the first spike to $1000 in December of 2013, and kept buying throughout the downswing in 2014 / 2015. In 2017 I sold 5.6 BTC for a total of $6000 and paid off the last of my student loans and my car, then a few months later I sold 4.25 BTC for $6700 and paid off the last of my condo mortgage. So in May of 2017 I was officially debt free and had a net worth of about $200,000. Then in the fall of 2017 was when bitcoin exploded. I knew I had to take profits here. Every time the price went up 10% I sold another bitcoin. $7500, $9000, $10700, $13000, $15500, $18600. I sold all the way up. I ended up selling about $100,000 in bitcoin that year and I pushed most of it into my Roth IRA and Brokerage accounts. Then I really started thinking about FIRE in early 2018. Started doing the math, tried to see what my expenses would be, and thought I'd give it ago. I've told myself from day 1 that I'd give this trial a solid 2 years. If I don't feel good about it, or the money doesn't seem right, then I'll still only be 40 years old and could (IMO) easily jump right back into an engineering gig. So I targeted early 2019 so I could frontload my 401k for two months, grab the annual bonus, then peace out. TL:DR: 38, FIREd, Money's looking right, Life is feeling right, everything is fine
FYI: There aren't enough BTC for HALF of today's millionaires to own JUST ONE. Owning ONE bitcoin puts you--at minimum--in the top 0.2% of the human population in terms of total possible Bitcoin wealth distribution.
Let me remind all you old timers, and inform the newbies: There will only be a maximum of 21 million bitcoins. Ever. Approximately 4 million have been permanently LOST, bringing the maximum circulating total to 17 million. This total number won't be reached until 2140 due to Bitcoin's issuance schedule. This is "quantitative hardening." Total number of millionaires (in USD value) worldwide is around 33 million (source). The factual math is simple: there is not enough Bitcoin in the world for even HALF of today's millionaires to own just ONE SINGLE BITCOIN. Much less all the future millionaires that will be born as the human population approaches 10bn. Bitcoin is SCARCE. Check out the S2F model for a good explanation of why scarcity and value correlate. Recently updated to the S2FX model for a model that incorporates more data, and is more accurate. Furthermore: If you are able to acquire even one BTC today: Enjoy the feeling. You are an early adopter. And one of a very select number of humans. Owning just ONE BTC means that you are--at minimum--in the top 0.2% (17M / 8Bn * 100*100&ie=UTF-8&oe=UTF-8)) of the human population in terms of total possible bitcoin wealth distribution. The percentage is much lower than that, of course, given that there are lots of whales out there with 1000+ BTC each. Edit: And never-mind the idiots that will say something asinine like "my pubic hairs are limited in number too...does that make them valuable?" Your pubic hairs have zero network utility, whereas every day Bitcoin proves it has extraordinary utility as (perhaps) the most perfect form of money humans have yet created. Stack those sats! That is all.
[WTS] Mid-week Geiger Silver! (and some other 1oz silver rounds)
Welcome back to a new Mid-Week Geiger Sale! Please feel free to DM with specific inquiries. Thank you! Proof & Verification Accepting : Paypal FF, Paypal GS (buyer+3.5%), Venmo, Cashapp, Zelle, crypto (btc, eth, xtz) Shipping : USPS First-Class $4, USPS Priority $8, Insurance available for additional 3% of order total. Tracking number is provided shortly after payment is confirmed. Your package will ship either the same, or next business day, Monday through Saturday. Additional pictures available by request. All items available here have been personally Sigma verified. Now, onto the sales!
[WTS] [WTT] Libs, Reverse Maples, Pyromet, and more!
https://i.imgur.com/kdPMTRs.jpg = proof (terrible pic, sorry). Only 1 lot left (headed to bed) Lot #8 https://imgur.com/a/0AfrkDJ ($120) 5 x 1 oz NFC Mintid Buffalo Rounds—-Can tap/scan the round to verify its real. *Lot #1 https://imgur.com/a/omrmbKD * ($143 pending) 5 oz 2019 Libertad *Lot #2 https://imgur.com/a/YpszSCX * ($120 pending) 5 x 1 oz 1985 Libertads *Lot #3 https://imgur.com/a/lGqNnwf * ($135 pending) 5 x 1 oz Reverse Proof Maple Leaf Wolf Privy *Lot #4 https://imgur.com/a/tvhd34B * ($150 pending) 5 x 1 oz Reverse Proof Maple Leaf Bigfoot Privy *Lot #5 https://imgur.com/a/YKjwwId * ($95 pending) 1 oz Silver Anonymous Mint Bitcoin Round with CoA—-the QR code can be scanned to show price of BTC1 oz Silver Ethereum Round by Silver Shield mint with CoA *Lot #6 https://imgur.com/a/JuujCmA * ($115) 5 x 1 oz The Silver Card by Pyromet with CoA for each. *Lot #7 https://imgur.com/a/PsCJT5E * ($135 pending) 5 x 1 oz Reverse Proof Maple Leaf Tank Privy *Lot #9 https://imgur.com/a/UtDnUNO * ($60) 3 x ASE (toned, 1 badly. 1987, 2005, 2009) **Lot #10 https://imgur.com/a/BUXGa2k ($60 pending) 3 x 1 oz Trident Silver Rounds Payment: CRYPTO ONLY (BTC and ETH) for first 24hrs. Or Gold trades. PM me if you want to buy and don’t have crypto. I will come back to you if no one has offered crypto for it after 24hrs. I have zero problem telling you “no thank you,” “no,” “pass,” or “hellllll to the naw,” so just holler and offer. Shipping is cheap, depends on what you buy and where you live. Feel free to chat about the other stuff in the proof picture.
FYI: There aren't enough BTC for HALF of today's millionaires to own JUST ONE. Owning ONE bitcoin puts you--at minimum--in the top 0.2% of the human population in terms of total possible Bitcoin wealth distribution.
There will only be a maximum of 21 million bitcoins. Ever. Approximately 4 million have been permanently LOST, bringing the maximum circulating total to 17 million. This total number won't be reached until 2140 due to Bitcoin's issuance schedule. Total number of millionaires (in USD value) worldwide is around 33 million (source). The math is simple: there is not enough Bitcoin in the world for even HALF of today's millionaires to own just ONE SINGLE BITCOIN. Much less all the future millionaires that will be born as the human population approaches 10bn. Bitcoin is SCARCE. Check out the S2F model for a good explanation of why scarcity and value correlate. Furthermore: If you are able to acquire even one BTC today: Enjoy the feeling. You are an early adopter. And one of a very select number of humans. Owning just ONE BTC means that you are--at minimum--in the top 0.2% (17M / 8Bn * 100*100&ie=UTF-8&oe=UTF-8)) of the human population in terms of total possible bitcoin wealth distribution. The percentage is much lower than that, of course, given that there are lots of whales out there with 1000+ BTC each. Edit: And never-mind the idiots that will say something asinine like "my pubic hairs are limited in number too...does that make them valuable?" Your pubic hairs have zero network utility, whereas every day Bitcoin proves it has extraordinary utility as (perhaps) the most perfect form of money humans have yet created. Stack those sats! That is all.
REMINDER: There aren't enough BTC for HALF of today's millionaires to own JUST ONE. Owning ONE bitcoin puts you--at minimum--in the top 0.2% of the human population in terms of total possible Bitcoin wealth distribution.
Let me remind all you old timers, and inform the newbies: There will only be a maximum of 21 million bitcoins. Ever. Approximately 4 million have been permanently LOST, bringing the maximum circulating total to 17 million. This total number won't be reached until 2140 due to Bitcoin's issuance schedule. This is "quantitative hardening." Total number of millionaires (in USD value) worldwide is around 33 million (source). The factual math is simple: there is not enough Bitcoin in the world for even HALF of today's millionaires to own just ONE SINGLE BITCOIN. Much less all the future millionaires that will be born as the human population approaches 10bn. Bitcoin is SCARCE. Check out the S2F model for a good explanation of why scarcity and value correlate. Recently updated to the S2FX model for a model that incorporates more data, and is more accurate. Furthermore: If you are able to acquire even one BTC today: Enjoy the feeling. You are an early adopter. And one of a very select number of humans. Owning just ONE BTC means that you are--at minimum--in the top 0.2% (17M / 8Bn * 100*100&ie=UTF-8&oe=UTF-8)) of the human population in terms of total possible bitcoin wealth distribution. The percentage is much lower than that, of course, given that there are lots of whales out there with 1000+ BTC each. Edit: And never-mind the idiots that will say something asinine like "my pubic hairs are limited in number too...does that make them valuable?" Your pubic hairs have zero network utility, whereas every day Bitcoin proves it has extraordinary utility as (perhaps) the most perfect form of money humans have yet created. Edit #2: Yes. I have said all of this before. But there are new people arriving in this sub every day. And very few people go back and read posts from 1+ month ago... Stack those sats! That is all.
Grayscale GBTC BTC Holdings Still Increasing in April
So I have been following GBTC as a way to gauge institutional interest in BTC. In Q1 2020, Grayscale attracted $500 million while in all of 2019 it attracted $600 million. https://sports.yahoo.com/grayscale-says-raised-record-500m-130346543.html I also follow the Grayscale twitter which updates each day it's Assets under management (AUM). From there, I believe you can calculate how much BTC it holds by dividing the AUM by the holdings per share and then multiplying it to account for each share equaling .0001 BTC. https://twitter.com/GrayscaleInvest From that I put together this spreadsheet: https://preview.redd.it/1tiap7k9wlv41.png?width=697&format=png&auto=webp&s=9089c248c69db2177ab76348ec5374a007a5a68e What is interesting to me is that from Nov-Dec 31, 2019, the holdings of BTC only went up by 56. However each month in 2020 GBTC has increased it's BTC holdings by at least 9k a month, including April (from 315k to 324k). I expected April BTC holdings to go down as funds liquidated but that doesn't seem to have happened. This next picture shows the % of newly mined BTC Grayscale bought in 2020. Assuming demand stays the same, Grayscale will be buying at least 40% of newly minted BTC. Just one entity that doesn't include exchanges, rich people, etc. https://preview.redd.it/thoxz7yiwlv41.png?width=561&format=png&auto=webp&s=536aed4fe53dea1aed04c886a33a9e08a4b530f7 So from this information, it seems like an easy supply/demand problem. If demand stays the same, supply gets cut in half, price should go up. And I feel like Covid-19 has accelerated the interest in bitcoin as central banks around the world have started printing to infinity and beyond. Not sure if I made a mistake analyzing this information so any other opinions would be helpful. Just something I put together real quick that I thought was interesting and makes me think bitcoin is attracting strong interest still.
Alright guys, Ive been working on this for a while and a post on here by a guy describing his portfolio here was the final kick in the ass for me to put this together. I started writing this to summarize what Im doing for my friends who are beginners, and also for me to make some sense of it for myself Hopefully parts of it are useful to you, and also ideally you guys can point out errors or have a suggestion or two. I'm posting this here as opposed to investing or canadianinvestor (blech) because they're just gonna tell me to buy an index fund. This first section is a preamble describing the Canadian tax situation and why Im doing things the way that I am. Feel free to skip it if you dont care about that. Also, there might be mistake regarding what the laws are here so dont take my word for it and verify it for yourself please. So here in Canada we have two types of registered accounts (theres actually more but whatver). There is the TFSA "Tax Free Savings Account", and RRSP "Registered Retirement Savings Account" For the sake of simplicity, from the time you turn 18 you are allowed to deposit 5k (it changes year to year based on inflation etc)in each of them. That "room" accumulates retroactively, so if you haventdone anything and are starting today and you are 30 you have around 60k you can put in each of them. The prevailing wisdom is that you should max out the TFSA first and you'll see why in a minute. TFSA is post tax deposits, with no capital gains or other taxes applied to selling your securities, dividends or anything else. You can withdraw your gains at any time, and the amount that you withdraw is added to the "room" you have for the next year. So lets say I maxed out my TFSA contributions and I take out 20k today, on January of next year I can put back in 20k plus the 5 or whatever they allow for that year. You can see how powerful this is. Theres a few limitations on what is eligable to be held in the TFSA such as bitcoin/bitcoin ETFs, overseas stocks that arent listed on NYSE, TSX, london and a few others. You can Buy to Open and Sell to Close call and put options as well as write Covered Calls. The RRSP is pre-tax deposits and is a tax deferred scheme. You deposit to lower your income tax burden (and hopefully drop below a bracket) but once you retire you will be taxed on anything you pull out. Withdrawing early has huge penalties and isnt recommended. You are however allowed to borrow against it for a down payment as a first time home buyer. The strategy with these is that a youngperson entering the workforce is likely to be in a fairly low tax bracket and (hopefully) earns more money as they get older and more skilled so the RRSP has more value the greater your pre-taxincome is. You can also do this Self Directed. Its not relevant to this strategy but I included it for the sake of context. Non registered accounts ( or any other situation, such as selling commercial real estate etc) is subject to a capital gains tax. In so far as I understand it, you add all your gains and losses up at the end of the year. If its a positive number, you cut that number IN HALF and add it to your regular pre-tax income. So if I made 60k from the dayjob and 20k on my margin account that adds up to 70k that I get taxed on. if its a loss, you carry that forward into the next year. Theres no distinction between long term and short term. Also physical PMs are treated differently and I'll fill that part in later once I have the details down. The reason why all that babble is important is that my broker Questrade, which isnt as good as IB (the only real other option up here as far as Im aware) has one amazing feature that no other broker has: "Margin Power" If you have a TFSA and a Margin account with them, you can link them together and have your securities in the TFSA collateralise your Margin account. Essentially, when it comes to the Maintenance Excess of the Margin Account QT doesnt care if its in the TFSA *or* the Margin! You can see how powerful this is. ------------------------------------------------------------------------------------------------------------------------------------------------ So as you can tell by the title, a lot of this is heavily inspired by Chris Cole's paper "The Allegory of the Hawk and the Serpent". You can read it here: https://www.artemiscm.com/welcome#research Between it, his interviews and my mediocre options skills at the time my mind was blown. Unfortunately I didnt know how to do the Long Volatility part until after the crash in March but I've since then had nothing but time to scour the internet and learn as much as I could. The way I interpret this isnt necessarily "what you should have right now", but what abstracted model they were able to backtest that gave them the best performance over the 90 years. Also, a lot of my portfolio I already had before I started trying to build this. As such my allocations dont match the proportions he gave. Not saying my allocations are better, just showing where they are at this time. I'm going to describe how I do Long Volatility at the end rather than the beginning since the way *I* do it wont make sense until you see the rest of the portflio. Physical PMs 22% I'm not sure wether he intended this to be straight up physical gold or include miners and royalty streaming companies so I will just keep this as physical. I consider Silver to be a non-expiring call option on gold, so that can live here too. I am actually *very* overweight silver and my strategy is to convert a large portion of it to gold (mostly my bars) to gold as the ratio tightens up. If youre into crypto, you can arguably say that has a place in this section. If an ETF makes sense for part of your portfolio, I suggest the Sprott ones such as PHYS. Sprott is an honest business and they actually have the metal they say they have. If you have enough, you can redeem your shares from the Royal Canadian Mint. The only downside is that they dont have an options chain, so you cant sell covered calls etc. Simple enough I suppose. One thing to bear in mind, there is a double edged sword with this class of assets. They're out of the system, theyre nobody's business but your own and theres no counter party. That unfortunately means that you cant lever against it for margin or sell covered calls etc. You can still buy puts though (more on that later) Commodity Trend (CTA) 10% https://youtu.be/tac8sWPZW0w Patrick Ceresna gave a good presentation on what this strategy is. Until I watched this video I just thought it meant "buy commodities". A real CTA does this with futures also so aside from the way he showed, there are two other ETFs that are worth looking at. COM - This is an explicit trend following ETF that follows a LONG/FLAT strategy instead of LONG/SHORT on a pile of commodity futures. So if they get a "sell" signal for oil or soybeans they sell what they have and go to cash. COMT- Holds an assortment of different month futures in different commodities, as well as a *lot* of various related shares in producers. Its almost a one stop shop commodities portfolio. Pays a respectable dividend in December If you want to break the "rules" of CTA, and include equities theres a few others that are also worth looking at KOL- This is a coal ETF. The problems with it are that a lot of the holdings dont have much to do with coal. One of them is a tractor company. A lot of the companies are Chinese so theres a bit of a red flag. Obviously Thermal Coal, the kind used for heating and powerplants isnt in vogue and wont be moving forward...but coking coal is used for steel manufacturing and that ain't going anywhere. The dividend is huge, pays out in December. A very very small position might be worth the risk. Uranium- I'm in URA because thats the only way for me to get exposure to Kazatoprom (#1 producer), which is 20% of the holdings. The other 20% is Cameco (#2 producer)and then its random stuff. Other than that I have shares in Denison which seems like its a good business with some interesting projects underway. I'm still studying the uranium space so I dont really have much to say about it of any value. RSX- Russia large caps. If you dont want to pick between the myriad of undervalued, high dividend paying commodity companies that Russia has then just grab this. It only pays in December but it has a liquid options chain so you can do Covered Calls in the meantime if you want. NTR- Nutrien, canadian company that was formed when two others merged. They are now the worlds largest potash producer. Pretty good dividend. They have some financial difficulties and the stocks been in a downtrend forever. I feel its a good candidate to watch or sell some puts on. I'm trying to come up with a way to play agriculture since this new phase we're going to be entering is likely to cause huge food shortages. EURN and NAT- I got in fairly early on the Tanker hype before it was even hype as a way to short oil but I got greedy and lost a lot of my gains. I pared down my position and I'm staying for the dividend. If you get an oil sell signal, this might be a way to play that still. Fixed Income/Bonds 10% Now, I am not a bond expert but unless youre doing some wacky spreads with futures or whatever... I dont see much reason to buy government debt any more. If you are, youre basically betting that they take rates negative. Raoul Pal of Real Vision is pretty firm in his conviction that this will happen. I know better than to argue with him but I dont see risk/reward as being of much value. HOWEVER, I found two interesting ETFs that seem to bring something to this portfolio IVOL- This is run by Nancy Davis, and is comprised of TIPS bonds which are nominally inflation protected (doubt its real inflation but whatever) overlayed with some OTC options that are designed to pay off big if the Fed loses control of the long end of the yield curve, which is what might happen during a real inflation situation. Pays out a decent yield monthly TAIL- This is a simpler portfolio of 10yr treasuries with ladder of puts on the SPX. Pays quarterly. Equities 58% (shared with options/volatility below) This is where it gets interesting, obviously most of this is in mining shares but before I get to those I found some interesting stuff that I'm intending to build up as I pare down my miners when the time comes to start doing that. VIRT- I cant remember where I saw this, but people were talking about this as a volatility play. Its not perfect, but look at the chart compared to SPY. Its a HFT/market making operation, the wackier things get the more pennies they can scalp. A 4% dividend isnt shabby either. FUND- This is an interesting closed end fund run by Whitney George, one of the principals at Sprott. He took it with him when he joined the company. Ive read his reports and interviews and I really like his approach to value and investing. He's kind of like if Warren Buffett was a gold bug. Theres 120 holdings in there, mostly small caps and very diverse...chicken factories, ball bearings all kinds of boring ass shit that nobody knows exists. Whats crucial is that most of it "needs to exist". Between him, his family and other people at Sprott they control 40% or so of the shares, so they definitely have skin in the game. Generous dividend. ZIG- This is a "deep value" strategy fund, run by Tobias Carlisle. He has a fairly simple valuation formula called the Acquirer's Multiple that when he backtested it, is supposed to perform very well. He did an interview with Chris Cole on real Vision where he discusses how Value and Deep Value havent done well recently, but over the last 100 years have proven to be very viable strategies. If we feel that theres a new cycle brewing, then this strategy may work again moving forward. I want to pause and point out something here, Chris Cole, Nassim Taleb and the guys at Mutiny Fund spend a lot of effort explaining that building a portfolio is a lot like putting together a good basketall team. They need to work together, and pick up each others slack A lot of the ETFs I'm listing here are in many ways portfolios in and of themselves and are *actively managed*. I specifically chose them because they follow a methodology that I respect but I can't do myself because I dont have the skill, temperament or access to. The next one is a hidden gem and ties into this. I'm not sure how much more upside there is in this one but man was I surprised. SII- Sprott Inc. I *never* see people listing this stock in their PMs portfolios. A newsletter I'm subscribed to described this stock as the safest way to play junior miners. Their industry presence, intellectual capital and connections means that they get *the best* private placement deals in the best opportunities. I cant compete with a staff like theirs and I'm not going to try. I bought this at 2.50, and I liked the dividend. Since then they did a reverse split to get on the NYSE and like the day after the stock soared. When it comes to mining ETFS I like GOAU and SILJ the best. None of their major holdings are dead weight companies that are only there because of market cap. I dont want Barrick in my portfolio etc. SGDJ is a neat version of GDXJ. Aside from that my individual miners/royalty companies are (no particular order) MMX SAND PAAS PGM AUM AG MUX RIO- Rio2 on the tsx, not rio tinto KTN KL Options/Volatility: varies So this is where we get to the part about options, Volatility and how I do it. I started out in the options space with The Wheel strategy and the Tastytrade approach of selling premium. The spreads and puts I sell, are on shares listed above, in fact some of those I dont hold anymore. Theres tons of stuff on this in thetagang and options so I wont go into a whole bunch (and you shouldnt be learning the mechanics from me anyway) but theres one thing I want to go over before it gets wild. If I sell a Cash Secured Put, from a risk management perspective its identical to just buying 100 shares of the underlying security. You are equally "Short Vol" as well, it just that with options its a little more explicit with the Greeks and everything. But if I use my margin that I was talking about earlier, then I can still collect the premium and the interest doesnt kick in unless Im actually assigned the shares. But if I sell too many puts on KL or AG, and something happens where the miners get cut down (and lets be real, they all move together) my margin goes down and then I get assigned and kaboom...my account gets blown up So what I need to do, is balance out the huge Short Vol situation in my portfolio, be net Long Vol and directly hedge my positions. Since the overwhelming majority of my equities are all tied to bullion this is actually a very easy thing to do. Backspreads https://youtu.be/pvX5_rkm5x0 https://youtu.be/-jTvWOGVsK8 https://youtu.be/muYjjm934iY So I set this up so the vast majority of my margin is tied up in these 1-2 or even 1-3 ratio put spreads that *I actually put on for a small credit*, and roll them every once in a while. I run them on SLV, and GDX. I keep enough room on my margin so I can withstand a 10% drawdown before it sets off the long end of the spreads and then I can ride it out until it turns around and we keep the PM bull market going. Theres another cool spread I've been using, which is a modified Jade Lizard; if already hold shares, I'll sell a put, sell a covered call, and use some of the premium to buy a longer dated call. Ive been running this on AG mostly. I have a few more spreads I can show you but Im tired now so it'll have to wait for later. As I said multiple times, I do intend to trim these miners later but now isnt the time for that IMO. I'm also monitoring this almost full time since I have an injury and have nothing better to do until I heal :p
Collapse of MakerDAO Keepers: $4.5M lost & how to become a Keeper to earn 13%+ liquidation penalties by providing liquidity to MakerDAO Keeper Pool.
TL;DR - join waitlist for MakerDAO Keeper Pool to earn yield on DAI/ETH/USDC/USDT/Chai/sUSD/cDAI from liquidation penalties and ETH/DAI arbitrage profits earned in collateral auctions by the Keeper Pool (zero fee pool, non-custodial of course:) - https://docs.google.com/forms/d/e/1FAIpQLSfekQcjT5up5Uh2W_C2W0U5zJ5miLd5ott_87CW8-dDH75TZg/viewform ________ Unfortunately, many of us became victims of MakerDAO collateral auctions market. This market was brought to its knees today, resulting in: 1) Losses affecting some of the MakerDAO Vault holders (borrowers of DAI from the Multi-Collateral DAI system), and 2) Losses affecting 100% of MKR token holders, - minting enough MKR and selling them for DAI to cover the missing DAI in the system. The auctions will begin on Wednesday, March 18, 2020. For the last 14 hours I've been focusing on determining the root cause of the problem, and determining WHAT CAN I DO? to prevent this collapse from ever happening again. Collapse of the MakerDAO Auctions. Losses above is a result of a short-term monopoly in the auction market of collateral liquidation of MakerDAO vaults becoming under-collateralized with price of collateral (ETH, BAT) on the decline. This monopoly existed for ~3.5 hours this morning, allowing a single Keeper to buy close to $4.5M worth of ETH in exchange for ~0 DAI + gas fees. The collapse negatively affected two classes of market participants: 1) Victim class #1: MCD Vault holders who were being liquidated between ~10am EST until ~1pm EST Please meet Paul, one of the people who lost money. Read his story: https://www.reddit.com/MakerDAO/comments/fhn1qn/complete_vault_liquidation_no_eth_left/ If you still didn't get it, please meet BitBurst who lost his life savings today: https://www.reddit.com/MakerDAO/comments/fhs7kp/just_got_100_liquidated_with_my_1713_eth_cdp_fck/ Want more? One of us with a Reddit handle 'phyzled' is calling for help: https://www.reddit.com/MakerDAO/comments/fhrjxp/help_complete_liquidation/ Even 'Bitcoin_Bender' is threatened. Not just him but his life and his family are going downhill: https://www.reddit.com/MakerDAO/comments/fhupn8/total_liquidation_mkr_holders_should_take/ 2) Victim class #2: MKR holders who will be diluted on Wednesday, March 18th as a result of Flop auction - minting new MKR tokens and selling them at an auction until the auction proceeds cover the missing DAI ($4.5M DAI at the time of this writing). WHAT HAPPENED? Prior to ~10am EST, there were a lot of Keepers bidding against each other for collateral at 13% liquidation penalty. Keepers are software bots which monitor Vaults and participate in auctions for collateral of borrowers who became under-collateralized. Operators of such bots are incentivized with mandatory 13% liquidation penalty imposed on Vault collateral upon liquidation. https://docs.makerdao.com/auctions/the-auctions-of-the-maker-protocol https://docs.makerdao.com/smart-contract-modules/collateral-module/flipper-detailed-documentation However, after 10am EST, a single liquidation auction bot was able to bid at 0 DAI (or slightly above) PER EACH COLLATERAL ETH BEING AUCTIONED, AND WIN THE AUCTION. As a result, this Keeper was effectively steal $4M worth of ETH collateral because the auction was designed to raise at least 4M DAI in exchange for the ETH that was auctioned during liquidations, however all except one Keepers stopping their operations, there was only one bidder. Any price above 0 would be accepted. As a result, but the Vault holders who supposed to receive some ETH back, never got any ETH back > making the effective liquidation penalty to over 50% instead of 13%. Why did the Keeper's market collapse? Why most Keepers stop operating? Unfortunately, most Keepers stopped operating this morning due to the following reasons: Root cause #1: Catastrophic liquidity crunch. Keepers simply ran out of DAI to bid in the collateral auctions due to 1.a I believe some Keepers were unable to continue Keeper operations due to inability to liquidate ETH fast enough for DAI. 1.b Some Keepers shut down due to squeeze (bought ETH for 170 DAI, and hours later can only sell for 130 DAI at a loss - which is way more than 13% liquidation penalty). Root cause #2: Network congestion. This brought many Keepers to its knees. Even with liquidity, many were unable participating in auctions due to stuck transactions & high gas costs. In addition, issues like longer client sync times + some Ethereum clients (like Parity) sufferring from known problems of keeping transactions stuck in Mempool for a very, very long time, amplified this problem. PROPOSED SOLUTION - MakerDAO Keeper Pool. Why don't we pool our liquidity (non-custodial pool, Uniswap-style) and give Keepers some competition!? To prevent more people from losing their funds, I decided to fund development of a MakerDAO Keeper Pool, which will allow anybody to become a Keeper and participate in liquidations of collateral (to earn 13% liquidation penalty). Background: During today’s Community Call (5 hours and still ongoing at the time of this writing), multiple members of the Maker community stressed importance of increasing # of Keepers servicing the MCD system in order to prevent yet another collapse of the Keepers market as it happened today. To improve maturity of the Keepers market, increase the collective liquidity used by Keeper’s, engineers at Protofire.io (developers of MakerDAO governance dashboard https://mkrgov.science, Solhint - Solidity Linter https://github.com/protofire/solhint, maintainers of Gnosis Conditional Exchange https://github.com/protofire/gnosis-conditional-exchange) and risk team + engineering team at Atomica.org (developers of Atomica.org/unwind/) launched emergency efforts to ship one or more of the following ASAP:
Web-based MakerDAO Keeper. Perform liquidations of 3rd party collateral from your browser as a Keeper. Earn 13% liquidation penalty.
Open Source Keeper Templates. Run your own Keeper Bot on AWS - 1-click Installer for a MakerDAO Keeper Bot (open source Amazon Machine Image).
Non-custodial MakerDAO Keeper Pool. Earn yield on DAI/ETH/USDC/USDT/cDAI/Chai from a pool running multiple Keeper bots servicing MakerDAO ecosystem. Join/Exit/Add/Withdraw DAI/ETH/USDC/USDT/cDAI/Chai, and earn 100% of liquidation penalties earned by the Keeper (zero fee pool).
Issuing money by global central banks is a great opportunity for stablecoins," says Digital Gold Advisor Dr. Walter Tonetto
Last week we talked with our adviser and CEO at Nusantara Trust Dr Walter Tonetto. He answered a number of questions that interest our customers. How did you land in the cryptocurrency / blockchain space? I was advising startup businesses in the technology space, and when 2016 came around, I asked Scotty, the feisty chief engineer of the U.S.S. Enterprise, to beam me into the heart of the finance system; I felt more and more the irresistible tug towards remodeling the current toxic financial system. Purposive remodeling, of course, is going on all the time, and it’s a knife that cuts into two directions. The vast majority of the ‘woke’ crowd actually believe that they can ‘disrupt’ the power of the elites that control all money flows. Bathing limestone statues – registering about 4 on the Mohs scale and 0 on the scale of reason -- of past leaders in district waters may give you a feeling of breathing the air of revolution and tiring unknown muscle-groups in your shanks, but think of it like a father watching his child toss around shovels of soil in a sandbox; he smiles benignly from afar, knowing it won’t change a thing; all the luxurious appointments at home won’t get touched. It is a grave illusion to suppose that by playing around with payment systems and technologies we will actually change the role and the emission of money. You may be permitted to become the shoe-shine boy in the royal household, but don’t think you will marry the princess and dilute the royal blood! But understanding the constitutive parts of power aggregation, and working over significant time-frames, allows for approaches and solutions; -- but these should come not from another adversarial position, thus merely marking a displacement of the incumbent, a change of guard, but from an authentic re-orientation, of making benefits much more widely possible and not creating monetary systems that are grossly imbalanced and highly destructive. That, and not building tech stacks, is the challenge! What was your initial reaction to bitcoin? Well, I was following the file-sharing service Napster since it started, around 1999 – when the U.S.S. Enterprise was sitting pier-side at Huntington Ingalls Newport shipyard, rusted and gutted, and to me the P2P sharing paradigm was always present in my mind, shining buffed and radiant, so even the centralized Napster was something wholly natural to me – Dr Sheldrake calls it morphic resonance. We live with a great deal of blurriness, though. On the one hand, we think of the virtues of sharing; on the other, there is a seemingly indefatigable impulse to control and dominate. Sean Parker, after founding and floundering with Napster, became a cocaine-snorting egotist and president of Facebook. Collecting money for a charity, he gets aggressive with people who do not follow suit. A control-freak in overdrive. Notwithstanding the technical variations, BTC, seemingly freeing us up from fiscal controls and yet showing our craving for money, exemplifies the flawed perception at the root of things. Monero, which sounds like a much faster, highoctane vehicle, a CV8-Z of the crypto-track, beats BTC in regard to privacy and fungibility, though BTC has advantages in other areas. Which is a much more common trend nowadays? It’s hard to make out the shapes of wild-life in the current kangaroo market we’re in. The bulls and bears have mauled one another, and the kangaroo, bereft of oxygen on account of wearing a tight mask, is hopping wildly everywhere. But clearly the possibilities of digital currencies became un-tethered via Bitcoin and the querulous and hidden Satoshi. I like to think of him more as an idea rather than as a person; an idea is generally more malleable and consequential. For instance, rather than laud the benefits of crypto for FX and cross-border payments, the possibilities of a central-bank issued digital currencyENCOMPASS THE POTENTIAL to inscribe new roles for programmable money; for how money is issued, how it is used, and what role custodial mechanisms (traditionally in the hand of commercial banks) might have. I see HUGE potential for private firms to enter the equation here, but we need more open-minded and intelligent regulators that do not always look for the rungs of the career-ladder in any move they make! A DAO could be most helpful here, but we are currently under the terror of algorithms that are not concerned with the welfare of the greatest number of people. If I had the time I would coauthor a book on this theme with a skilful mathematician (perhaps with my son, who is completing a Ph.D in near-term Quantum Algorithms). In 2018 I was keynote speaker at the BlueWhale forum in Seoul, and I spoke about an Algorithm of Peace. I had a clutch of people approach me straight after the talk, some from Korea, others from the U.S., and ask me to develop my ideas in book form. Where do you see the price of bitcoin going over the next few years? I wouldn’t speculate, but since everyone is shilling it, it is bound to keep pushing north, occasional blockages otwithstanding. I always look for twists and incongruities in the usual narratives on offer. Many BTC fans talk about the unbanked, but BTC is held by what will become another elite in due course, and the unbanked will later be serving them the chilled drinks between innings, as usual. Do you think that there’s a time for altcoins to break out and move away from the movements of bitcoin? What’s that tipping point that needs to take place? I have some notions under which alt-coins can take the lead and leave bitcoin behind, but it’s too complex to explain the conditions for that to occur. Once very solid use-cases have been established with a clutch of alt-coins, bitcoin might begin quavering in his boots. That alt-coins should take BTC as a benchmark speaks volumes about the lack of maturity of this young and over-eager market. The fuzzy umbilical cord is always present like a foot-tangle; alt-coins must find their own ground, and clip the connection to a vagrant father. Finance needs clarity and not fuzziness. Keep in mind that many sovereign nations bridle at the calamitous influence of the US on payment systems, so nations are building their own messaging systems outside SWIFT, and their own securities exchanges are following. But remember: these are all crumbs: the U.S. can shut down payments to any recipient accounts by informing the payments company and doling out threats. And since all alt-coins and fiat currencies are connected to payment gateways in some form, the U.S. would have to begin reforming its archaic ACH structure to enable efficiencies in the financial pipes, which does not offer real-time payments functionality. This accounts for the relative simplicity (and success) of the PayPal business model (which Venmo and Dwolla later emulated without using credit cards). But understand that the elites will always protect the real crown jewels, and incite wars (or street battles and racial squabbles, as we’re witnessing in the U.S. in mid 2020) so that they can get away with major financial heists in broad daylight. It’s all smoke and mirrors, and scorched talons if you look closely: you cannot trust the reflection you will receive on a smoky pane. Only the big players know the predetermined outcome. One fundamental misprision occurs amongst alt-coin apologetes: they fail to understand how markets move and what the designated role of money is in markets. Even if you want to displace something, you first need to understand exactly what you’re dealing with, but that is rarely the case. Yes, banks are structurally and constitutionally part of the problem, but no government will dare cross swords with them: there is still too much aggregated power. Ripple and Stellar are two Blockchains that are working with, and not against, banks, and that likely makes them much better candidates for wide acceptance. What’s one must-read book you recommend to everyone? That depends so very much on who’s sitting opposite me! I wouldn’t push what is not naturally aligned. But I would push a couple of films urgently, as essential viewing for everyone: “Vaxxed: From Cover-Up to Catastrophe” (and a sequel), which profoundly shocked me, but confirmed my suspicions. Talking about books: one gets a good sense of the kind of books I would counsel people not to touch, unless an overweening impulse bade them otherwise. For instance Steve Pinker, a favourite author of Bill Gates. Pinker in Gates’ hands explains a lot about the character of the reader, the latter of whom I consider one of the most dangerous people on the planet at the moment. If we stay with Pinker for a moment, since he’s famous and fashionable (Harvard professor with a Medusa hairdo and an effete libertarian air, who in “Better Angels of Our Nature” has affirmed that man is not innately good), we note in his presentation in regard to his ineptly titled book “Enlightenment” that he falls prey to the very flaws he chastises, the classic Münchhausen trilemma (in Jakob Fries’ phrase). Picture Baron Münchhausen pulling himself out of quicksand by his own hair! That he is beholden to neoliberal befuddlement becomes clear when two of the opening images of his talk show Vladimir Putin with a rifle andDonald Trump speaking on a podium. The classic neoliberal Harvard think-tank shows reason to be failing and drowning in pious gestures to the cognoscenti and anointed. I like to look for effective counters for specious and shallow argument: for instance, Rupert Sheldrake’s “The Science Delusion” is a splendid book that bucks the Dawkins’, Pinkers and other materialists of this age. You see, if one listens to Pinker with the head alone, his pedestrian epistemology might not irk, and some ideas might appear plausible enough in a desultory encounter, but if you really want to know the meaning of things, and discover how it relates to the heart, you feel betrayed and given short shrift by him. Among the platitudes he gives out in carefully parsed syllables, the movement of his forehead and eyes betray the spirit behind the façade. Yet I always look, like Yeats, for those who “had changed their throats and had the throats of birds”! What’s the rainbow trout of the year? Nut-like flavour, the eye still gleaming, with tender, flaky flesh? There are many books I could cite for different genres. The vast majority of modern writers, for all their accomplishments, lack genius, don’t really understand the art of writing, and so cannot hold my attention for long. For those who are open-minded and spiritual, “A Course in Miracles” cannot be bested, but don’t touch it unless you’re really willing to dive deep. There is no need to save the world, since it is nothing but projection; there is no world. You might experience the deepest sigh of relief, as if Atlas had cast off a burden after the Titanomachy. Paul Celan once remarked that “reality is not simply there, it must be sought for and won.” Snorkeling near the surface and blowing bubbles won’t cut it. We are living in times of great manufactured unrest, which will only heighten in coming months and years, and so I would offer a guernsey to Seamus Heaney. I had met him many years ago, alas cursorily, at a symposium at Waseda University where I was working as a Gaikokujinkoshi, an Associate Professor, where another Nobel laureate, Kenzaburō Ōe and he were giving a reading. Heaney was inspired to write “The Grauballe Man” on the basis of the bog man that he had seen in a book of prehistoric times, but the troubles in Ulster were alive in him, too: As if he had been poured in tar, he lies on a pillow of turf and seems to weep the black river of himself. The grain of his wrists is like bog oak, the ball of his heel like a basalt egg. His instep has shrunk cold as a swan’s foot or a wet swamp root. Talking of Japan here, methinks, is an aculeate observation of Japan: Cross the intersection at Shibuya Station in Tokyo on a forbidding wintry evening — touted as the world’s busiest cloverleaf — and you will feel this is Eliot’s London Bridge revisited, with quaggas (think half zebras) preserved in the tar of the five crossings; — flattened ebon bones dreaming the dreams of Pleistocene mammoths — as the mass of the dead mill past you, chasing some mirage, and often accompanied by a revenant that must have been disgorged from a Pachinko parlour. Blanched lilacs float in minarets of light beyond these bituminous quaggas, bidding the odd-toed ungulates in their psychotropic dernier cri and fuddy-duddies in theirstygian suits to sup here or buy over yonder: all tethered to their devices. One might be surprised that no cracks are forming at these arced crossings with strange requisitions folding into the hiemal air. And yet it is still more odd that so few people see this as a primped and pimped potter’s field, a graveyard for those who’ve lost their way. We’re living in an age where the multitude of the dead are pacing among us in perdurable trysts with other zombies. The above text is from one of my unpublished works; again it speaks to me – and perhaps to you – about the quiddities of this age. There is a distinct sense of zombification taking place on the planet at the moment. Is your lineage that of Dolly, or are you magnificent and free? Do you have any theories about who Satoshi is? I don’t really, though I follow the haughty chit-chat at times, especially in the jejune forums LinkedIN provides. I think the person has a good reason to remain concealed (forever), but that is also a major factor why I have never fully trusted bitcoin as an investment proposition. Keeping the provenance concealed suggests a number of things, none of them conducive to embracing bitcoin as a common form of payment. What do you think about the prospects of gold in connection with the uncontrolled money printing by different Central Banks? Gold is what BTC can never become, especially when its provenance remains totally unclear – as well as its likely endgame! Central Banks engage in quasi-criminal activity – and one hopes the future prudent regulator won’t be making it too difficult for people to hold gold bullion. The Perth Mint might be a splendid little dot on the global map, but beware of holding your assets in the form of gold coins: many governments will regard them as forms of payment, and may impose all manner of restrictions on the possession of it. Let's dream a little. How stablecoins can be used after 5 years from now? I believe the great RESET is coming – even Davos and the U.N. are alerting us to that. The Covid19 panic has been declared by more than 1500 German physicians as a “global Mafia-style deception”, and while Big Pharma and Bill Gates will likely earn trillions of dollars by the useless and potentially dangerous vaccines that will be foisted on “free” citizens, the finance system as a whole will need to be RESET. We are already receiving an inkling of how draconian and void of reason and concern for the people most governments of the world are reacting to a harmless lab-manufactured virus (virologist Prof Luc Montagnier, Nobel Laureate in medicine in 2008, said that), so it’s possible that regulators may become more tyrannical, and under some pretext or other forbid the use of alt-coins. STABLECOINS can be over-collateralized, allowing absorption of pricing fluctuations, but it will be hard to call. I believe many are bound to fail, and that even earlier, despite all their most valiant efforts: as soon as the RESET comes, which is likely to come with all manner of encumbrances. There are many reasons for the issuance of stablecoins, some having opposing views, but all are dependent on trust – and we don’tknow yet if digital currencies that governments will issue will by regulatory over-reach (including absurd compliance requirements) displace other contenders, but you can assume that the tyrannical forms of governance we are currently experiencing suggest that all kinds of skullduggery are possible. Do you see the problem of fiat stablecoins in the fact that annual inflation constantly depreciates them? An investor who bought $1000 USDT now and sold these tokens in 10 years for $ 1000 will receive much less money. The problem occurs if we’re converting things back into payment forms that are fundamentally flawed. Inflation and Black Swan events are the major threats to stablecoins, and tethered crypto-values to natively burdened propositions recalls my earlier idea that we have not yet cut the umbilical cord to bitcoin. On the other hand, stablecoins in their current flavour are perhaps best viewed as transitional schemata that will need later revisitation. You are a very successful Crypto and ICO Advisor, what is the secret behind this success? I’m not sure if I’m very successful, but I always try to shoot a straight ball. Here are two instances where my input has not been heeded in any way. I recall one of the first ICOs I advised. I was sitting with the owner on a Telegram Channel, and after some power Q&A sessions online, we were literally hearing the millions of dollars tumble in neat digital hashes into the inbox within a couple of hours of the ICO opening. He had a bottle of Scotch on his table, and by the end of the session he had reached his hard cap and was besotted to boot! The age of digital money had placed the foolscap on his pate, but the script was no longer legible. I cannot determine if his sobriety ever returned. The prudential advice I had been giving him previously – and that we had discussed in great depth -- was over coming weeks thrown out of the window, and I assume other bottles of Scotch ended up on his desk and didn’t last long. Here is another example. At one time a well-known ambitious individual in the U.S. cryptospace, a young lawyer, asked me if I wanted to start a crypto compliance organisation with him. When I think of him now and the feathery assistants he congregated around him, I think of the lines in Dickens’s “Bleak House”: “Mr. Tangle’s learned friends, each armed with a little summary of eighteen hundred sheets, bob up like eighteen hammers in a pianoforte, make eighteen bows, and drop into their eighteen places of obscurity.” Simply to continue serving wine from the same sour vats won’t do. I saw that as a prospective idea, and offered some important advice to get the ball rolling. Soon we had recruited many eager beavers to the exercise, and there was talk of it becoming an influential body. I was naïve enough to assume at the time that my co-founder, a black college asketballer with body tattoos who had a write-up in a major paper on account of his ambition and aggression, was actually interested in asking some fundamental revisionary questions about compliance in relation to the freedom of the citizen. When I suggested we don’t just copy the traditional compliance template and rather probe more deeply, he became insolent and very aggressive. That confirmed my instinct that most ambitious players in the crypto-space are actually dyed-in-the-wool bourgeois, and don’t care about improving the system itself. What is your advice for upcoming Crypto startups and investors? You might know the technology well, but do you know the business? Does it really deeply address, even solve, a problem? How much life experience do you have, and how well do you know the market? Can you create a market for your product or services? If yes, how will you do that? Have you only got yes-men around you, or are you willing to listen to those who speak Tacheles to you? If you’ve come to water the plant of your ego, your business will flounder. Most achievers keep their ego initially in check, and get the work done. For investors the answer I would give is rather complex, but here’s a brief response: often the mandate of investors is very narrowly girded, and they trust their old boy networks, and rarely venture out and follow their instincts. That is foolish, and also the recipe for a dull life. Perhaps a general observation that everybody might ponder with profit is the idea that we know really so very little of the world; that the news and information we are are offered and digest, even when it is tendered by so-called ‘experts’, is often seriously ignorant. It seems our perspective is getting narrower all the time, as if our mind is shrinking and we block out knowledge. Let me give another current reference point. In 2020 everyone is fearful of viruses. Viruses currently have a bad rap! We have no idea what they actually are. We are always hobbling around with our fearful partisan gaze, and what is good today becomes bad tomorrow. Yet viruses are adroit and malleable messengers of inter-species DNA, in some sense regulating vast populations of organisms. Think of them as cellular simpletons: mere protein shells with few genes, but endowed with the ability to replicate easily despite their paucity of genetic instructions! They form alliances, you might say, with other forms of life. And they are deeply mysterious to our acquisitive and ignorant segmenting intelligence: how can the papillomavirus cause horns to grow on rabbits; and at the same time cause hundreds of thousands of cases of cervical cancer every year? Is one good and the other bad? It would seem so. Such simple summary, like Pinker’s reductionist view of the world, might becalm for a moment, but does not offer lasting satisfactions. To read the world along the axes of like and dislike, as the Buddha had warned us, leads to great suffering. I’m told by someone who met Bill Gates a long time ago that the man was apparently even then obsessively fearful of viruses (imagine a pendant to Lady Macbeth, continually cleansing his hands). But do we have any clue what viruses actually are, and how they benefit us all in so many incalculable ways? When the child crawls around, it picks up antigens (bacteria and viruses) and on that basis builds its immune system. At various points of that contact and exchange new forms grow, and other forms decay and die. Like CO2, viruses are suddenly declared dangerous and that we need to shield ourselves against them. Yet how many people know that marine phages rule the world, and rule the sea? This was not discovered until 1986. An electron microscope showed that every litre of seawater contained up to one hundred billion viruses, almost as much in dollars as BillGates expects to make off vaccines in 2020. If you put these viruses end to end, they would stretch out forty-two million light-years! Viruses offer stunning genetic variety, and they are the very pulse of life! When viruses swallow oceanic microbes, they release a billion tons of carbon every day: imagine squalls of marine snowfalls, powdering the porous sand of the deep. Imagine the white nights of St Petersburg under water, celebrating the magic of life with the same skill and abandon as the Mariinsky Theatre, to an audience of gastropods, deep-water fish and lovelorn mermaids. Seamus Heaney, when he passed in 2013, spoke the word Noli timere (“Do not fear”) to his wife as he breathed his last. Instead of being fearful, we might do well to assert that we understand nothing of the manifold wonders of this world! Let us cultivate the virtue of wonderment, and fear will find no habitation in our house: And lonely as it is that loneliness Will be more lonely ere it will be less— A blanker whiteness of benighted snow With no expression, nothing to express. They cannot scare me with their empty spaces Between stars—on stars where no human race is. I have it in me so much nearer home To scare myself with my own desert places. Website : https://gold.storage/ Whitepaper: https://gold.storage/wp.pdf Follow us on social media: Twitter: https://twitter.com/gold_erc20 Telegram: https://t.me/digitalgoldcoin Steemit: https://steemit.com/@digitalgoldcoin Reddit: https://www.reddit.com/golderc20/ Bitcointalk: https://bitcointalk.org/index.php?topic=5161544
Introduction Celo Technical Review: What Celo Wants to Achieve? Celo’s main motive is to make their crypto currency as a platform of payments. These are some of the problems faced in the crypto industry now: - Existing crypto currencies like Bitcoin are not used as payment platforms as they are considered store of value due to their deflationary nature. - Crypto in itself is very difficult with bad UIs and very difficult for the users to manage their keys and they require the public key of the user whom they want to send payment. - There is no concrete governance structure in crypto currencies. Celo wants to eliminate the above problems by following methods: - They are proposing to introduce a stable coin with elastic supply backed by variable reserves - They are using Address Based encryption to make ease of use of payments - They are introducing Governance structure at different levels. What is Address Based Encryption? Address Based Encryption is a novel approach of enabling the user to use their phone number or email address as a secure way of messaging. Users generate traditional ways of public / private key and encrypt their public key with their phone number, so they can use their phone number to send / receive Celo money. This encrypted value will be stored in a database and committed by the validator. This is what Celo is mainly pitching to reduce the dependency on people to use their public keys while transferring payment to reduce user onboarding. All one has to do is a one-time setup and then you can use your phone number as an address for sending payments! As simple as that! This is what Celo is hoping to achieve. Although this model does bring its own set up of problems, Celo addressed these issues and how they plan to resolve these in their white paper. We have some queries on these approaches which we will address at the end of this review. What is Elastic Coin Supply? Celo has two assets, Celo Gold and Celo Dollar. - Celo Dollar which will be the stablecoin. Celo Dollar will be elastic in nature as it will be freshly minted if the price goes above the peg. - Celo Gold is the utility token of the blockchain. Celo Gold will be used for governance, staking and as an incentive for developers which will be put in reserve. Celo Governance Since Celo uses Proof of Stake, Celo Gold will be used for staking and also for any governance decision making. This will be done by sending the Celo Gold tokens to a smart contract with a withdrawal notice set for a duration. White Paper Summary Overall, a good paper presented well. The value of Celo Gold will depend upon the usability of the Celo platform. Perhaps, something to learn from ETH where the value of ETH has risen because one can build various tokens on the ETH network. Questions for Celo Team (White Paper) - For the Address based encryption, it is mentioned that validators will be used to attest the signatures. * Our Question(s): How many validators will be used and what's the slashable criteria for the validators? - For mitigating the DDOS, a cost to attestation is required, which basically means users sending out a fee for attestation. * Our Question(s): Wouldn't this hamper a new user, as he has to pay a fee just for registering his key? Also, what is the time overhead required for the validators to verify and attest the message? - Regarding the Elastic Coin Supply, it is mentioned that when the Celo Dollar price is above peg, new coins will be minted and instead of distributing them to the user, they will be used to buy various other crypto-assets and sell them when required. * Our Question(s): What are the assets that will be bought is not cleamentioned and weI really think this is not a good method as we know the value of crypto assets might decay over a period of time. Any thoughts on that? Also, who will cover for that if net value ends up as loss? - Also, to be elected validator, it was mentioned that the users can form groups and pitch themselves to be validators. * Our Question(s): Wouldn't this make the protocol more centralized, something akin to a DPOS system? Other Question(s): - What are the criteria of slashing funds of a validator? - What about storage problems, since they are forking ETH, wouldn't they inherit the same problems ETH has with respect to speed and storage overhead? - To make any technical improvements, anybody can make a bonded deposit and validators can vote on that. But wouldn't this pave way to the incorrect technical improvements to be made and also will the deposit be slashed if there is incorrect spec on the improvement submitted by the developer? - What will be the function of a smart contract platform in addition to the bonded deposits and attestation of messages? Celo Code Review Celo Repositories and Blockchain: Celo has 69 repositories. Initial observations are that Celo blockchain is a fork / copy of GETH with some modifications. Key Modifications: - Addition of BLS signatures - Addition of Istanbul-BFT consensus in place of POW - Introduction of Celo Gold Tokens BLS Signatures: A simple explanation is that BLS Signatures offer a better way of aggregating signatures and reducing the storage in blocks. However, verification of these signatures still takes time. IBFT Consensus - Istanbul BFT consensus: A simple explanation of IBFT Consensus is that it is modified PBFT which is most suitable for permissioned networks. This consensus works well with a smaller set of validators and is fast and also offers safety for up to 2/3 of the dishonest nodes. Celo Gold Tokens: Celo Gold Tokens is a native token of Celo Blockchain, just like ETH for ethereum blockchain. Having reviewed all the repositories, we feel that there are a lot of other repos which have most of the code they have mentioned in the white paper, like Governance, Slashing, Stable Coin etc. Overall, all the other reports are well maintained. We don’t see any major red flags in their repositories. Questions for Celo Team (Code): - Our only observation is that we are still unable to understand why they would be needing a separate blockchain to carry out all aforementioned functions. Can't they use PoA network, which is similar to their blockchain, and they can still add the aforementioned functions or better be as a sidechain to ETH? - What's the reason for forking ETH? - What’s the Unique Selling point for Celo in the midst of several stable currencies, are we relying only on the one point of ease of access? Should I invest in Celo or not? The Matrix's Red Pill or Blue Pill or Celos’ Green Pill — Which Is Better? Discuss, ask questions here and we will learn. source:https://t.me/DotCrypto
Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)
A whirlwind tour of Defi, paying close attention to protocols that we’re leveraging atGenesis Block. https://reddit.com/link/hrrt21/video/cvjh5rrh12b51/player This is the third post ofCrypto-Powered— a new series that examines what it means forGenesis Blockto be a digital bank that’s powered by crypto, blockchain, and decentralized protocols. Last week we explored how building on legacy finance is a fool’s errand. The future of money belongs to those who build with crypto and blockchain at their core. We also started down the crypto rabbit hole, introducing Bitcoin, Ethereum, and DeFi (decentralized finance). That post is required reading if you hope to glean any value from the rest of this series. 97% of all activity on Ethereum in the last quarter has been DeFi-related. The total value sitting inside DeFi protocols is roughly $2B — double what it was a month ago. The explosive growth cannot be ignored. All signs suggest that Ethereum & DeFi are a Match Made in Heaven, and both on their way to finding strong product/market fit. So in this post, we’re doing a whirlwind tour of DeFi. We look at specific examples and use-cases already in the wild and seeing strong growth. And we pay close attention to protocols that Genesis Block is integrating with. Alright, let’s dive in.
Stablecoins are exactly what they sound like: cryptocurrencies that are stable. They are not meant to be volatile (like Bitcoin). These assets attempt to peg their price to some external reference (eg. USD or Gold). A non-volatile crypto asset can be incredibly useful for things like merchant payments, cross-border transfers, or storing wealth — becoming your own bank but without the stress of constant price volatility. There are major governments and central banks that are experimenting with or soon launching their own stablecoins like China with their digital yuan and the US Federal Reserve with their digital dollar. There are also major corporations working in this area like JP Morgan with their JPM Coin, and of course Facebook with their Libra Project.
Stablecoin activity has grown 800% in the last year, with $290B of transaction volume (funds moving on-chain).
USDC($1B): This is the most reputable USD-backed stablecoin, at least in the West. It was created by Coinbase & Circle, both well-regarded crypto companies. They’ve been very open and transparent with their audits and bank records.
DAI ($189M): This is backed by other crypto assets — not USD in a bank account. This was arguably the first true DeFi protocol. The big benefit is that it’s more decentralized — it’s not controlled by any single organization. The downside is that the assets backing it can be volatile crypto assets (though it has mechanisms in place to mitigate that risk).
Three of the top five DeFi protocols relate to lending & borrowing. These popular lending protocols look very similar to traditional money markets. Users who want to earn interest/yield can deposit (lend) their funds into a pool of liquidity. Because it behaves similarly to traditional money markets, their funds are not locked, they can withdraw at any time. It’s highly liquid. Borrowers can tap into this pool of liquidity and take out loans. Interest rates depend on the utilization rate of the pool — how much of the deposits in the pool have already been borrowed. Supply & demand. Thus, interest rates are variable and borrowers can pay their loans back at any time.
So, who decides how much a borrower can take? What’s the process like? Are there credit checks? How is credit-worthiness determined?
These protocols are decentralized, borderless, permissionless. The people participating in these markets are from all over the world. There is no simple way to verify identity or check credit history. So none of that happens. Credit-worthiness is determined simply by how much crypto collateral the borrower puts into the protocol. For example, if a user wants to borrow $5k of USDC, then they’ll need to deposit $10k of BTC or ETH. The exact amount of collateral depends on the rules of the protocol — usually the more liquid the collateral asset, the more borrowing power the user can receive. The most prominent lending protocols include Compound, Aave, Maker, and Atomic Loans. Recently, Compound has seen meteoric growth with the introduction of their COMP token — a token used to incentivize and reward participants of the protocol. There’s almost $1B in outstanding debt in the Compound protocol. Mainframe is also working on an exciting protocol in this area and the latest iteration of their white paper should be coming out soon.
There is very little economic risk to these protocols because all loans are overcollateralized.
Buying, selling, and trading crypto assets is certainly one form of investing (though not for the faint of heart). But there are now DeFi protocols to facilitate making and managing traditional-style investments. Through DeFi, you can invest in Gold. You can invest in stocks like Amazon and Apple. You can short Tesla. You can access the S&P 500. This is done through crypto-based synthetics — which gives users exposure to assets without needing to hold or own the underlying asset. This is all possible with protocols like UMA, Synthetix, or Market protocol. Maybe your style of investing is more passive. With PoolTogether , you can participate in a no-loss lottery. Maybe you’re an advanced trader and want to trade options or futures. You can do that with DeFi protocols like Convexity, Futureswap, and dYdX. Maybe you live on the wild side and trade on margin or leverage, you can do that with protocols like Fulcrum, Nuo, and DDEX. Or maybe you’re a degenerate gambler and want to bet against Trump in the upcoming election, you can do that on Augur. And there are plenty of DeFi protocols to help with crypto investing. You could use Set Protocol if you need automated trading strategies. You could use Melonport if you’re an asset manager. You could use Balancer to automatically rebalance your portfolio. With as little as $1, people all over the world can have access to the same investment opportunities and tools that used to be reserved for only the wealthy, or those lucky enough to be born in the right country.
You can start to imagine how services like Etrade, TD Ameritrade, Schwab, and even Robinhood could be massively disrupted by a crypto-native company that builds with these types of protocols at their foundation.
As mentioned in our previous post, there are near-infinite applications one can build on Ethereum. As a result, sometimes the code doesn’t work as expected. Bugs get through, it breaks. We’re still early in our industry. The tools, frameworks, and best practices are all still being established. Things can go wrong. Sometimes the application just gets in a weird or bad state where funds can’t be recovered — like with what happened with Parity where $280M got frozen (yes, I lost some money in that). Sometimes, there are hackers who discover a vulnerability in the code and maliciously steal funds — like how dForce lost $25M a few months ago, or how The DAO lost $50M a few years ago. And sometimes the system works as designed, but the economic model behind it is flawed, so a clever user takes advantage of the system— like what recently happened with Balancer where they lost $500k. There are a lot of risks when interacting with smart contracts and decentralized applications — especially for ones that haven’t stood the test of time. This is why insurance is such an important development in DeFi.
Insurance will be an essential component in helping this technology reach the masses.
Decentralized Exchanges (DEX) were one of the first and most developed categories in DeFi. A DEX allows a user to easily exchange one crypto asset for another crypto asset — but without needing to sign up for an account, verify identity, etc. It’s all via decentralized protocols. Within the first 5 months of 2020, the top 7 DEX already achieved the 2019 trading volume. That was $2.5B. DeFi is fueling a lot of this growth. https://preview.redd.it/1dwvq4e022b51.png?width=700&format=png&auto=webp&s=97a3d756f60239cd147031eb95fc2a981db55943 There are many different flavors of DEX. Some of the early ones included 0x, IDEX, and EtherDelta — all of which had a traditional order book model where buyers are matched with sellers. Another flavor is the pooled liquidity approach where the price is determined algorithmically based on how much liquidity there is and how much the user wants to buy. This is known as an AMM (Automated Market Maker) — Uniswap and Bancor were early leaders here. Though lately, Balancer has seen incredible growth due mostly to their strong incentives for participation — similar to Compound. There are some DEXs that are more specialized — for example, Curve and mStable focus mostly only stablecoins. Because of the proliferation of these decentralized exchanges, there are now aggregators that combine and connect the liquidity of many sources. Those include Kyber, Totle, 1Inch, and Dex.ag.
These decentralized exchanges are becoming more and more connected to DeFi because they provide an opportunity for yield and earning interest.
As it relates to making payments, much of the world is still stuck on plastic cards. We’re grateful to partner with Visa and launch the Genesis Block debit card… but we still don’t believe that's the future of payments. We see that as an important bridge between the past (legacy finance) and the future (crypto). Our first post in this series shared more on why legacy finance is broken. We talked about the countless unnecessary middle-men on every card swipe (merchant, acquiring bank, processor, card network, issuing bank). We talked about the slow settlement times. The future of payments will be much better. Yes, it’ll be from a mobile phone and the user experience will be similar to ApplePay (NFC) or WePay (QR Code).
But more importantly, the underlying assets being moved/exchanged will all be crypto — digital, permissionless, and open source.
Someone making a payment at the grocery store check-out line will be able to open up Genesis Block, use contactless tech or scan a QR code, and instantly pay for their goods. All using crypto. Likely a stablecoin. Settlement will be instant. All the middlemen getting their pound of flesh will be disintermediated. The merchant can make more and the user can spend less. Blockchain FTW! Now let’s talk about a few projects working in this area. The xDai Burner Wallet experience was incredible at the ETHDenver event a few years ago, but that speed came at the expense of full decentralization (can it be censored or shut down?). Of course, Facebook’s Libra wants to become the new standard for global payments, but many are afraid to give Facebook that much control (newsflash: it isn’t very decentralized). Bitcoin is decentralized… but it’s slow and volatile. There are strong projects like Lightning Network (Zap example) that are still trying to make it happen. Projects like Connext and OmiseGo are trying to help bring payments to Ethereum. The Flexa project is leveraging the gift card rails, which is a nice hack to leverage existing pipes. And if ETH 2.0 is as fast as they say it will be, then the future of payments could just be a stablecoin like DAI (a token on Ethereum). In a way, being able to spend crypto on daily expenses is the holy grail of use-cases. It’s still early. It hasn’t yet been solved. But once we achieve this, then we can ultimately and finally say goodbye to the legacy banking & finance world. Employees can be paid in crypto. Employees can spend in crypto. It changes everything.
Legacy finance is hanging on by a thread, and it’s this use-case that they are still clinging to. Once solved, DeFi domination will be complete.
At Genesis Block, we’re excited to leverage these protocols and take this incredible technology to the world. Many of these protocols are already deeply integrated with our product. In fact, many are essential. The masses won’t know (or care about) what Tether, USDC, or DAI is. They think in dollars, euros, pounds and pesos. So while the user sees their local currency in the app, the underlying technology is all leveraging stablecoins. It’s all on “crypto rails.” https://preview.redd.it/jajzttr622b51.png?width=700&format=png&auto=webp&s=fcf55cea1216a1d2fcc3bf327858b009965f9bf8 When users deposit assets into their Genesis Block account, they expect to earn interest. They expect that money to grow. We leverage many of these low-risk lending/exchange DeFi protocols. We lend into decentralized money markets like Compound — where all loans are overcollateralized. Or we supply liquidity to AMM exchanges like Balancer. This allows us to earn interest and generate yield for our depositors. We’re the experts so our users don’t need to be. We haven’t yet integrated with any of the insurance or investment protocols — but we certainly plan on it. Our infrastructure is built with blockchain technology at the heart and our system is extensible — we’re ready to add assets and protocols when we feel they are ready, safe, secure, and stable. Many of these protocols are still in the experimental phase. It’s still early.
At Genesis Block we’re excited to continue to be at the frontlines of this incredible, innovative, technological revolution called DeFi.
--- None of these powerful DeFi protocols will be replacing Robinhood, SoFi, or Venmo anytime soon. They never will. They aren’t meant to! We’ve discussed this before, these are low-level protocols that need killer applications, like Genesis Block. So now that we’ve gone a little deeper down the rabbit hole and we’ve done this whirlwind tour of DeFi, the natural next question is: why?
Why does any of it matter?
Most of these financial services that DeFi offers already exist in the real world. So why does it need to be on a blockchain? Why does it need to be decentralized? What new value is unlocked? Next post, we answer these important questions. To look at more projects in DeFi, check outDeFi Prime,DeFi Pulse, orConsensys. ------ Other Ways to Consume Today's Episode:
Can anyone please shed some knowledge, tips or recommendations on rolling over a 401k to a Cryptocurrency IRA or Self-Directed IRA? According to typical search findings these companies below are most popular, but are they any good?
I'd like to get a feel from current Individual Retirement Accountees and or any feedback that might be useful in making a decision moving forward. Thank you in advance, -O
Technical details of the Earthcoin network 2019 Blockchain parameters crypt hashing algorithm Proof of Work (POW) mining 60 seconds block target Difficulty retarget after each block (+167%, -91%) Total coins will be 13.5 billion coins (infinite by a theory, because the minimal block reward is 1 EAC, but in the practice 13.5*109 will not be exceeded within the next 2000 years) 50 confirmations per minted block 5 confirmations per transaction Supports transaction messages Initial block reward on average 10,000 EAC, varies seasonly ( currently 625 EAC) Block payout is halved every year, minimum payout of 1 EAC per block Superblocks every 14 and 31 day The default ports are 35677 (P2P-network) and 15678 (RPC-calls, optional) Transaction speed The mechanism behind Earthcoin which is based on peer-to-peer, allows transactions to happen very quickly. This means that once you pay or get payed with Earthcoin, the time taken to see the money transferred is equal or sometimes faster than the avarege debit card. Earthcoin promotes transaction times of approximatly 30 seconds where it is actually closer to 10-15 seconds which is nowadays regarded as being instant. The true strength behind this speed is the abillity to use it in any store in the near future with the same feel of speed as the currency you hold today. Security The Earthcoin network had been attacked by a 51% attack and controlled by a group of hackers for several months in the middle of 2017. Thanks to the unwavering efforts of the community, the attack was thrown back and EarthCoin was returned to all users. The source code was then fixed, secured against similar attacks in the future and a unique protection against time travel attack was implemented. The EarthCoin code is now much more secure than most of other cryptocurrencies. In the first half of 2019, a major upgrade of the Earthcoin network was done and security features according to the current blockchain protocol of Bitcoin and Litecoin networks were implemented. From:http://deveac.com/technical.html
How can bitcoin be finite 21.000.000 cap as long as we have centralized exchanges
Yes i know there can never be minted more than 21 million I was thinking about this. and yes i know as long as i have my btc in my personal hardware wallet i "own" x amount of the total supply of bitcoin. But as long as alot of people keeps their bitcoin on centralized exchanges, how can we know they dont operate like a fractional reserve bank ? I guess we will never know, but i feel this undermines bitcoins hard cap. At least with ethereum and erc20's i can be in custody of my assets at all times, only use decentralized exchanges aswell. Would like some perspective on the matter from yall folks
Some informative responses from Colin and Andy from the just-concluded Nano AMA at the Atomic Wallet Telegram group
The AMA ran today from 13:00 - 14:20 UTC, with Colin and Andy. I've copied over some of their responses that I found give me better insight into Nano. Their responses are in italics. Responses to different questions are separated by double spaces. Colin's responses are listed first, followed by Andy's. Sorry I couldn't copy over the questions as well. I've added my comments in places. From Colin: PoW coins have done a good marketing that the energy expenditure makes your coins more secure but it’s really unnecessory. PoW coins need to continue expending work because if they stop, their security parameter erodes. Nano has no such problem, once an election for a transaction is complete, it’s confirmed. If it sits there it stays confirmed and it doesn’t need any extra effort. Wow, put that way, Bitcoin seems unsustainable in the long term when there is an alternative like Nano. Yes the circulating supply is forever like this. The reason it can’t change is because nano transactions can only send your current balance or less to someone else, this means new coins can never be injected in to the system. Interesting design reason new Nano can't be minted. Volatility is a focus with all cryptocurrencies and it comes from low volume, it’s not intrinsic to cryptocurrency itself. To cure low volume our focus is integrating it in to parts of the economy where it solves a problem, rather than just emulating credit cards etc. Not having fees in the network puts us in a very good position for buying beer, for example. Typically credit card providers will charge 2-5% for a purchase, maybe even more, and it tight margin businesses that make 2-5% profit anyway, this is huge. A lot of Reddit discussion on crypto adoption considers only user experience and overlooks benefits to merchants. Nano is purpose built to be the fastest and most decentralized currency around. Our transactions settle in less than 1 second and it’s all done on a network with no fees, and a tiny environmental footprint Decentralization is an essential focus for us, many other cryptocurrencies can get fast or low cost, but they can’t also maintain decentralization which I think we do very well. Well the sustainability comes from 2 main parts. We have a laser sharp focus on being the most efficient currency. This means our development stays focused and eventually the amount of things going in to the code base will trend downward; once we’ve achieved the goal we just have to make things more efficient. The second part of sustainability is our Open Representative Voting which is our replacement for PoW mining. We saw the energy expenditure as something that would come in conflict with any system that would attain high adoption so our goal was to get the same or better decentralization benefits and also have a low energy footprint. We think we achieved that goal as our representatives are all over the world under many different organizations. A healthy decentralized representative set is good for long term sustainability. And on the simplicity, nano is probably one of the easiest cryptocurrencies to use. There are no fees to calculate, the UX impact of entering a fee is greatly understated. How much should the fee be? Does my grandma know what network load is? What does it mean with respect to fee? Nano simply has accounts and balances, you send and it lands in their wallet in less than a second, nothing can be simpler. We’re not looking to expand in to defi right now. I have some reservations about it’s viability. One thing I’ve noticed in my many years of seeing technology evolution is to not try and change 2 things at once. We don’t want to simultaneously change the currency people use and also change how finances are done. First change the currency, then change the finances. I think Libra suffers from a market mis-assesment. Essentially what they’re claiming is be a multi-currency bank account for every facebook user. Getting users electronic bank accounts isn’t a technology problem, it’s a regulatory and logistics problem. Since Facebook is essentially being a bank for people, they’re going to be required to comply with KYC requirements. Sending/receiving isn’t going to be open as it is in cryptocurrency because of AML requirements. People are not going to have access to the system in remote areas because how do they deposit or more importantly withdraw local currency from their Libra accounts. I think privacy is a big concern with our transactions and credit card purchases and it’s only getting worse. Letting Facebook/Libra know all your purchase history I think is a huge mistake. I think it also doesn’t fundamentally solve the central banking problem where they can print more money and inflate the currency supply. I see this behavior as a fundamentally unethical thing that cryptocurrency solves and Libra is taking a huge step back on that. I don’t see anything compelling about it and I don’t see long term viability. I think disk usage is going to be a low concern long term. The goal with Nano is to be a widely used commercial grade currency so the representatives will be banks and other financial institutions, universities, and tech companies. Considering how much youtube, instagram, and other social media data is created each day, I don’t think the ledger size will be a long-term limiting factor. Looks like the role of hobbyists in running nodes will diminish with widening adoption. Nano’s value is being the fastest, most efficient currency around. Entreprenuers make use of natural market incentives / natural efficiencies to make money on a business. Cryptocurrency has distorted that term a bit with something more closely resembling subsidies. The transaction fees and block rewards are subsidizing the security parameter and processing prioritization. PoW chains need this subsidy because their security parameter costs a lot. Additionally we’ve seen miners work to limit the network’s throughput in order to rent-seek on the limited transaction space. Damn, talk about unaligned incentives between users and miners. The people we’re looking for are the entreprenuers that know how to make use of a faster, lower cost currency. Yes, having a fixed supply is an essential component of currency. If people can add more currency to the system, they’re taking value away from everyone else in that process. It’s unfair and unethical. 1 Nano actually can be divided down very small so there’s no risk of not having enough coins. In this response, Colin is addressing a question about Steem and other dPoS systems. One major difference with Nano consensus is: having more Nano does not get you more Nano, there are no rewards for holding Nano. Holding nano doesn’t give people voting privledges on network changes, or any other centralizing component associated with holding. Another big difference is voting in nano does not produce blocks, it chooses between conflicting blocks that a user publishes. If you don’t attempt to double-spend, your transactions cannot be voted against. From Andy: 1. The faucet did indeed seed Nano's amazing international communities, and the contributions from around the world to the project have been unbelievable over that last 2.5 years. Communities are still active, engaged and building 💪 2. The effects of Nano being added to the Atomic Wallet (and other multi-currency wallets) is two fold. It increases the accessibility and convenience of storing Nano alongside other coins and also helps to disperse voting weight across a wider spread of representatives - increasing decentralization! We certainly feel that Nano possesses far and away the best fundamentals, democratic approach to decentralization, and user experience. Being fully distributed and operating on a the mainnet since 2015 is also very important, and puts Nano way ahead of many other projects making bold claims about future potential. Nano is here today, and works as one would expect the digital money would! Privacy is an attractive proposition to users of digital money for obvious reasons, it can be very important. Our position towards privacy is more conservative as we have seen many more hurdles to mainstream adoption being put in front of privacy-based projects. With that being said, there are eyes towards the technical implications of introducing privacy, but it is extremely difficult to do this without incurring slowdowns to settlement times. Throughout 2019 we were able to make significant progress in helping some of the more well-established cryptocurrency services such as exchanges, fiat gateways, payment platforms, and wallets- like Atomic 😄, to understand and integrate Nano. This proliferation of Nano across the space has ensured that it is increasingly more convenient for users and merchants to access and begin using Nano for payments.
MKR Holder DAI-gest: Week 19, 2020: Use Bitcoin (WBTC) To Open a Vault on MakerDAO
Use Bitcoin (WBTC) To Open a Vault on MakerDAO
MKR Holder DAI-gest: Week 19, 2020
Governance Recap May 7th, 2020
![Wrapped Bitcoin](https://i.ibb.co/THS6vqn/wbtc.jpg) MKR Holder DAI-gest is a weekly Maker governance recap that is written by the community for the community. The best source of Maker Community information is through active participation and engagement. This supplemental publication strives to present all relevant facts and remain free of editorial opinion (Big 3 takeaway excepted). The statements made herein are not the opinions or statements of the Maker Foundation. DAI-gest is Now Available on Amazon Alexa as a Skill. You can enable it at https://skills-store.amazon.com/deeplink/dp/B087NH82D1?deviceType=app&share&refSuffix=ss_copy for all of your Alexa compatible devices. Then say, "Alexa, Open Maker Governance Digest" and you'll hear the latest issue. Coming soon to Itunes. Subscribe to MKR Holder's DAI-gest on Substack - Free Corrections / Comments / Suggestions / Other: @adrianhacker-pdx in the Official Maker Forums or [email protected]
Big 3 Take-Aways for the Week:
WBTC - Wrapped Bitcoin is now an official collateral type that users can open a vault with to mint new Dai.
The first set of MIPS have passed executive vote and the new governance cycle is now officially in effect along with the procedures outlined for on boarding collateral.
SCD Shutdown - Single collateral Dai (Sai) will be shutting down on May 12th, 2020 16:00 UTC
Dispositioned Governance Agenda
USDC Risk parameter adjustment and on-boarding additional stable coins such as PAX and TUSD.
Compensating Zero Bid Vault Owners. The poll was affirmative to compensate vault holders. Currently waiting on data analytics from Maker Man before restarting in another thread.
State of the Peg - Getting DAI back on soft-peg to a Dollar after it has been trading high following black Thursday. - Almost completed.
SCD shutdown going to Executive Vote on April 24, 2020, three-week delay to follow for a final shutdown date of May 12, 2020.
Public relations consortium - Communication team to create consistent and representative communications on behalf of the DAO and to report meaningful ecosystem sentiment back to the governance community. The team has been having weekly meetings, a first report is due by the end of the month.
Precedent for on-chain polling. Signaling started to determine the governance community's feelings about having foundation member proposals require on-chain polling. The forum thread seems to have died.
Self-sustaining DAO: MIPS 0 - 12 - Ratification timeline and two additional sub-proposals have been shared in the forum. - Passed executive vote.
Zero bid auction post mortem data evaluation - Maker Man currently completing the data analytics from black Thursday. This part is moving behind the scenes. A report is forthcoming in the next several weeks. - Completed
Wrapped BTC has been proposed for collateral on-boarding. - Added in executive vote.
GSM delay - raise the delay from 4 hours to 12 hours for enacting Executive Votes, as a safety precaution.- Ratified
Just a reminder, now that the first set of MIPS has passed, the governance cadence will follow the fork on the right: ![New governance cadence diagram](https://i.imgur.com/sny6rOf.png)
Use Bitcoin to Take out a Loan
Right now you can use Eth and BTC to take out loans on the Oasis.app platform at extremely low rates. We're talking 0-1%. Certainly industry best for DeFi right now. To learn how to turn your BTC into wrapped BTC that can be used on the Ethereum blockchain, you can go to https://www.wbtc.network/.
Black Thursday Vault Owners and the Report on Black Thursday Events
The sequence of Sai shutting down is discussed here on the forums and looks something like this: ![Sai Shutdown Diagram](https://i.ibb.co/yB5m2wb/sai.png) On May 12, 2020 at 16:00UTC Sai will be shutting down completely. Following a 6 hour cool down period, you can redeem any Sai you have left for Eth at migrate.makerdao.com .
The Community Structure of MakerDAO for the Uninformed
In the true spirit of decentralization, there is a lot of work that goes on in the MakerDAO system that is done by various groups. Anyone can get involved. There are foundation members that are pay-rolled by the MakerDAO Foundation, the founding entity of MakerDAO which is in the process of preparing to dissolve in a few years once a trained and competent "governance community" has been created. Governance community refers to the Maker token holders that can vote on and propose various policies for the system. Community contributors are folks in the community that have a skill set and provide services to the Dao for compensation. Note: A governance community member can also be a community contributor. There really is not a set hierarchy other than folks who have been contributors for longer that may shepherd new individuals wishing to contribute. Want to get involved? Pop in at chat.makerdao.com find a room and say hello.
Here is a guide from MakerDAO about becoming involved in Governance. The meeting is held every Thursday, 17:00 UTC. During the postmortem and corrective action phase of the recent crypto market prices and resulting fiasco there has been a daily call. This is expected to drop to two calls over the next week. Please check the forums for information related to ad-hoc governance and risk calls that may be happening. Governance and Risk Meeting Community Guide * Understand the issues that are discussed and governance themes that get explored to build a healthy, secure, Maker Platform. * Get info on how to connect by phone or webcam. * Explore meeting archives.
Transaction details below listing - Messages only, Chats will be denied Price Drop on Gold Verification - https://imgur.com/a/tVYPVx6 Silver: (20) 1 oz Morgan Rounds - $20 each (10) 1 oz Stack-able Morgan Rounds - $20 each (20) 1 oz Provident Prospector Rounds - $20 each (9) (21) 2020 1 oz Perth Kangaroo Coins - $21 each (1) 1/2 oz Year of the Rooster Coin - $13 each (1) 1/2 oz Year of the Monkey Coin - $13 each *(2) (3) $1FV 90% Quarters - $16 each *(4) $1FV 90% Franklin/Kennedy Half Dollars - $16 each *(2) (3) $1FV 90% Liberty Half Dollars - $17 each (1) 10 oz HM Liberty Bar - $195 each (3) 5 oz Generic Bars - $100 each (3) (5) 2 oz Monarch Chunkies - $42 each (8) 1 oz Sunshine Mint Bars - $21 each (1) 5 oz Shotgun Shell - $115 each (1) 1 oz Bullet - $25 each Gold: (1) 2014 1 oz Canadian Maple - $1855 shipped (1) 2015 1/4 oz Canada $10 Bear and Cub - $480 (1) 2018 1/4 oz Queens Beast Bull - $475 SOLD (3) 0.1104 oz Ducat Restrikes - $210 *(4) 1/10 gram Liberty Aurum Gold Note - $16 each SOLD Message me your orders and offers. After agreeing on a finalized total price for your PMs I will send additional verification pictures and prepare your items for shipment. Shipment will be USPS first class for $4.50-$6.50, for 1-10 ounces, or priority for $8, for over 10 ounces. USPS INSURANCE DOES NOT COVER PMS! It directly says so in the details. As a result I will not add insurance to any orders. All orders containing gold and silver will ship free. Payment by PPFF no notes - Now accepted ETH and Bitcoin Willing to trade for different and unique silver rounds to diversify my collection. One round/coin for one round/coin trades only - this is strictly for collection purposes. *These items were listed with new stackers in mind. You can't typically buy 90% silver in dollar quantities so I figured I'd give people an easy way to get a couple pieces. These aurum notes were my first gold pieces - you can't really own gold for less than $20 in any other form. New stackers, feel free to contact me if you'd like a starter stack put together. Prices are subject to change at any time due to market fluctuations and in the event of a listing error or update.
Benjamin Graham’s views on buying gold during times of extreme inflation
Prefix: I have been browsing this subreddit and many others and often come across many posts or comments advising to buy bitcoin, gold, or other assets which are seen as store of value investments. While we often feel our time is unique, it is important to remember that there is rarely a situation we come across which does not allow lessons from the past. As such, I strongly encourage you to consider the below arguments put forward by Benjamin Graham in his book The Intelligent Investor. Why should you care what some dead investor from the 70’s thinks about our current situation? The intelligent investor is often considered the greatest book on investment ever written. It is Wareen Buffet’s (former richest man on earth) favorite book and has yet to be proven wrong through over 50 years of investments. I strongly encourage anyone who has not read this book but wants to invest and build their own wealth to read it cover to cover. Section start: Alternatives to Common Stocks as Inflation Hedges The standard policy of people all over the world who mistrust their currency has been to buy and hold gold. This has been against the law for American citizens since 1935–luckily for them. In the past 35 years the price of gold in the open market has advanced from $35 an ounce to $48 in early 1972–a rise of only 35%. But during all this time the holder of gold has received no income return on his capital, and instead has incurred some annual expense for storage. Obviously, he would have done better with his money at interest in a savings bank, in spite of the rise in the general price level. The near-complete failure of hold to protect against a loss in the purchasing power of the dollar must cast grave doubt on the ability of the ordinary investor to protect himself against inflation by putting his money in “things.”* Quite a few categories of valuable objects have had striking advances in market value over the years—such as diamonds, paintings by masters, first editions of books, rare stamps, and counts, etc. But in many, perhaps most, of these cases there seems to be an element of the artificial or the precarious or even the unreal about the quoted prices. Somehow it is hard to think of paying $67,500 for a US silver dollar dated 1804 (but not even minted that year) as an “investment operation.” We acknowledge we are out of our depth in this area. Very few of our readers will find the swimming safe and easy there. The outright ownership of real estate has long been considered as a sound long-term investment, carrying with it a goodly amount of protection against inflation. Unfortunately, real-estate values are also subject to wide fluctuations; serious errors can be made in location, price paid, etc.; there are pitfalls in salesmen’s wiles. Finally, diversification is not practical for the investor of moderate means, except by various types of participation’s with others and with the special hazards that attach to new flotations— not too different from common-stock ownership. This too is not our field. All we should say to the investor is, “be sure it is yours before you go into it.” Source: Benjamin Graham, The Intelligent Investor REVISED EDITION, 2003
Take charge of your finances with Mint’s online budget planner. Our free budget tracker helps you understand your spending for a brighter financial future. The Bitcoin Standard: The Decentralized Alternative to Central Banking Saifedean Ammous Hoboken, N.J.: John Wiley and Sons, 2018 xviii + 286 pp. Abstract: Treating bitcoin from the point of view of Austrian economics, Saifedean Ammous’ The Bitcoin Standard relates bitcoin to the theory of the market economy as a whole. Bitcoin is not necessarily an alternative to gold, but can function as a Plus, now that Bitcoin’s traded off a bit, maybe you feel a bit smug about being right in the long-run. Or at least this week. Even so, a twinge of regret remains. And with the financial planning group Mint joining the fun, Bitcoin is feeling almost old skool. Mint is partnering with the digital Bitcoin wallet Coinbase so the service can track and account These fuel producers are feeling the brunt of the economic slowdown, as a barrel of crude oil dropped to $15 on April 20. Mint, ATMs, Over 8,500 SLP Tokens Created News.Bitcoin.com
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