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Hasu

@hasufl

25 Aug

https://twitter.com/lawmaster/status/1298121190100303872

I keep hearing this but BNB‘s buy-and-burn mechanism is functionally the same as LEO‘s.

Binance also buys the tokens it burns, it‘s only less obvious because the buy happens at the same time as the provision of trading and other services.

See example: (cont)

https://twitter.com/lawmaster/status/1298121190100303872

LEO:
Trader pays $10 in fees
Bitfinex sells $10 to buy $10 LEO
Bitfinex burns the $10 LEO
Result: Bitfinex +/- 0, trader -$10, LEO holders +$10

BNB:
Trader pays $10 BNB in fees
Binance burns the $10 BNB
Result: Binance +/- 0, trader -$10, BNB holders +$10

QED

Some people are correctly pointing out that not every trading fee is paid in BNB, and so it has to burn more than it receives from traders. These BNB are taken from their treasury.

The overall point still holds, because BNB has no obligation whatsoever to even hold BNB.

Read 7 tweets

Hasu

@hasufl

27 Sep 19

@laurashin

The other day I checked what my most-listened-to crypto podcasts are and was surprised to see @laurashin's Unchained/Unconfirmed on top of the list. As I tried to put the finger on why I like this show better than others, I came up with two reasons.

First, she asks uncomfortable questions. It's hard to do this delicately, and sometimes you get a crazy show like EP78 with Dominic Williams of Dfinity who practically collapsed from her (modest!) pushback. But overall, modest pushback makes shows much better.

That a host should see eye-to-eye with the guest seems obvious, so why don't other crypto podcasts do this as much? I think the answer lies in the relatively high supply of podcasts, and relatively low supply of interesting guests.

Read 10 tweets

Hasu

@hasufl

16 Sep 19

https://twitter.com/davidmarcus/status/1173566564576051200

The Libra's fiat reserves are themselves a lever over nation-states. At any time, the Libra Association can threaten to dump one fiat on the market for another, and that is assuming they even want to sustain a reserve ratio.

https://twitter.com/davidmarcus/status/1173566564576051200

There seems to be some confusion how exactly this gives Libra leverage.

Imagine that most people use Libra (backed by fiat) but not fiat directly. In this world, the Libra Association controls much of the demand for fiat via the composition of their reserves.

The Association can, at any time, change the composition of their reserve by replacing one fiat with another, while maintaining full reserve at all times. If you control the demand for an asset, you gain the power to set a ceiling on it's price.

Read 4 tweets

Hasu

@hasufl

12 Sep 19

A common question that precoiners have is, "How do you know it's not too late to buy bitcoin now?"

They still assume Bitcoin follows the value/adoption curve of a pyramid scheme - a system that needs to sustain itself with new buyers and collapses if those ever run out.

The question seems reasonable: Once Bitcoin is widely adopted, the future value from speculation will indeed be zero. But that ignores half the picture - where has that speculative value gone? And does it mean that earlier buyer now have an incentive to sell?

The EV of a pyramid scheme decreases the later we are in the adoption cycle. But the EV of a network good like money increases, as it becomes more useful the more people own it.

Read 6 tweets

Hasu

@hasufl

6 Jun 19

Money (not finance) is the most important field in the world today and will be for at least 20 years.

Why? 99% of history is written in 1% of the time. We are in the early phases of another 1% where the medium-term future will be written (what Neil Howe calls "The 4th Turning".)

Money is ripe for a paradigm shift, but the direction of that shift is still undecided. There are currently forces pulling into several directions, with the extreme ends being hyper-control of money (MMT) and removal of all control of money (Bitcoin.)

While in most of history local governments have issued money, many private producers will be able to compete in the future. Networks like Bitcoin are constructed from the ground up to resist, while private firms like Facebook are effectively sovereign to nation-states.

Read 14 tweets