I undertook ETH Mining in a Coinbase Wallet one week ago.
This morning at 7:00AM EST this experiment in Mining Ended for good.
A heavy degree of Skepticism was confirmed - Crypto is a Liquidity Trap.
Permit me to explain.
______________________________________________________________
"Money" as we knew it, no longer exists. The very "Moneyness" of it has all
but evaporated.
Durability - lasting medium of exchange
Stability - store of value
Divisibility - fungibility to smaller units of exchange
Transportability - easily moved to and from to complete exchange
Noncounterfeitability - secure, non-reproducable
I would counter with a simple rebuttal - The US Dollar as a currency has failed.
This is recognized outside of the United States by many Nations. The privileges of
Seniorage since Bretton Woods has failed repeatedly.
President Nixon closing the Gold Exchange Window was simply the first betrayal in
a series of many.
As a Store of Value... the US Dollar has lost 99.6% of its Purchasing Power Parity since
1913.
There is currently a "Coin Shortage" within the US. Looking to hoard quarters, head to the
local Laundromat. Rock, Paper, Quarters... divisibility can be challenging. Substitution
effects play an important role, pre 1982 pennies are now worth $0.0307 or 3+ times face Value.
They are, after all, 95% Copper, a healthy arbitrage opportunity for those with time to collect millions
of them, the return on our time is significant, were they to exist in circulation in quantity.
They do not.
Should you take up counterfeiting physical currency, you go to prison.
Your Cental Bank and Government conduct it... it's Monetary and Fiscal Policy.
______________________________________________________________
Suggesting CryptoCurrency is "Money" - I find it entertaining at best.
Through the BlockChain, it certainly has Divisibility and "Portability/Transportability".
It checks 2 boxes, but just barely.
My recent ETH Mining Adventure had many BRE.X / Ponzi telltale signs...
I've closely followed Monetary History for most of my life, it has always fascinated me,
beginning with Gold & Silver Coinage.
______________________________________________________________
Prior to jumping headfirst into the results of ETH Mining, my primary concern was the
ETH/USDollare "Tether" ...
These are somehow assumed to be Tied to the US Dollar... in theory they are...
BUT - rumors have been circulating since the creation of the "Tether" it is a liquidity trap
design to provide the appearance of US Dollar "Stability" @ Par via Tether.
This, of course, assumes there is $1 on Deposit for every $1 USDTether.
Bitfinex, the crypto exchange instrumental in the creation of the Tether,
has been conspiring for years to drain the reserves from Tether's bank accounts.
The SEC has been quietly pursuing Stablecoins since the beginning of 2021, since
June the effort gained decided momentum.
The results at present have been interesting - Bitfinex will pay a combined $42.5MM Fine
for being caught dead to rights in attempting to do what many have suggested for years.
$41MM of that coming from Tether and $1.5MM coming from Bitfinex.
The "Conspiracists" ( A dirty word as there is Poosbiility and Probability) were correct, Bitfinex's
Tether was not backed by the Full Faith and CREDIT of the US Dollar for all Debts Public and
Private.
The Stablecoins were found to be grossly underfunded against claim(s). Stablecoins are after
all assumed to trade at Par, although they never do AFTER conversions to US Dollars due to...
Exchange Fees.
Counterfeiting abounds... but how?
:) Come on... you already know the answer, If not - you may be in denial. The Madness of Crowds
is probably worth a read if you are still shaking your head in disagreement,
There are consequences to Choice, and although the masses seem to enjoy having those choices
made for them... as long as there is a payout, apathy to responsibility and the ability to demand
the opposing choices of others are less than desirable.
Lovely.
Risk-Free, NO, absolutely not.
______________________________________________________________
Let's cut the to "Mining Experience" which was dismal at best.
$1000 on Deposit in a Coinbase Wallet Deposited
$50 Mining Fee to select Cloud Miner
$76 total ETH mined
ETH feee for transfer to Coinbase, $72.32
ETH Tether exchange to BTC
BTC SELL to USD
USD transfer NET to Bank Account - $986.14
A Net Loss of $13.86 for one week of ETH Mining and I escaped at the Lows of the Network Fees.
Had I exited at the highs my NET would have been $937.11.
And let's not forget to include the $50 Mining Fee... the Net declines
into a precipitous Negative ROI.
A $986.14 on $1050 Capital Outlay while ETh went from ~3500 to 3900...
***If you read the disclaimer carefully, you will discover there are a number of issues whereby your
Tether may become unavailable due to Network Outages...
Yeah, naw... I'l pass.
This will end badly one day.
This morning at 7:00AM EST this experiment in Mining Ended for good.
A heavy degree of Skepticism was confirmed - Crypto is a Liquidity Trap.
Permit me to explain.
______________________________________________________________
"Money" as we knew it, no longer exists. The very "Moneyness" of it has all
but evaporated.
Durability - lasting medium of exchange
Stability - store of value
Divisibility - fungibility to smaller units of exchange
Transportability - easily moved to and from to complete exchange
Noncounterfeitability - secure, non-reproducable
I would counter with a simple rebuttal - The US Dollar as a currency has failed.
This is recognized outside of the United States by many Nations. The privileges of
Seniorage since Bretton Woods has failed repeatedly.
President Nixon closing the Gold Exchange Window was simply the first betrayal in
a series of many.
As a Store of Value... the US Dollar has lost 99.6% of its Purchasing Power Parity since
1913.
There is currently a "Coin Shortage" within the US. Looking to hoard quarters, head to the
local Laundromat. Rock, Paper, Quarters... divisibility can be challenging. Substitution
effects play an important role, pre 1982 pennies are now worth $0.0307 or 3+ times face Value.
They are, after all, 95% Copper, a healthy arbitrage opportunity for those with time to collect millions
of them, the return on our time is significant, were they to exist in circulation in quantity.
They do not.
Should you take up counterfeiting physical currency, you go to prison.
Your Cental Bank and Government conduct it... it's Monetary and Fiscal Policy.
______________________________________________________________
Suggesting CryptoCurrency is "Money" - I find it entertaining at best.
Through the BlockChain, it certainly has Divisibility and "Portability/Transportability".
It checks 2 boxes, but just barely.
My recent ETH Mining Adventure had many BRE.X / Ponzi telltale signs...
I've closely followed Monetary History for most of my life, it has always fascinated me,
beginning with Gold & Silver Coinage.
______________________________________________________________
Prior to jumping headfirst into the results of ETH Mining, my primary concern was the
ETH/USDollare "Tether" ...
These are somehow assumed to be Tied to the US Dollar... in theory they are...
BUT - rumors have been circulating since the creation of the "Tether" it is a liquidity trap
design to provide the appearance of US Dollar "Stability" @ Par via Tether.
This, of course, assumes there is $1 on Deposit for every $1 USDTether.
Bitfinex, the crypto exchange instrumental in the creation of the Tether,
has been conspiring for years to drain the reserves from Tether's bank accounts.
The SEC has been quietly pursuing Stablecoins since the beginning of 2021, since
June the effort gained decided momentum.
The results at present have been interesting - Bitfinex will pay a combined $42.5MM Fine
for being caught dead to rights in attempting to do what many have suggested for years.
$41MM of that coming from Tether and $1.5MM coming from Bitfinex.
The "Conspiracists" ( A dirty word as there is Poosbiility and Probability) were correct, Bitfinex's
Tether was not backed by the Full Faith and CREDIT of the US Dollar for all Debts Public and
Private.
The Stablecoins were found to be grossly underfunded against claim(s). Stablecoins are after
all assumed to trade at Par, although they never do AFTER conversions to US Dollars due to...
Exchange Fees.
Counterfeiting abounds... but how?
:) Come on... you already know the answer, If not - you may be in denial. The Madness of Crowds
is probably worth a read if you are still shaking your head in disagreement,
There are consequences to Choice, and although the masses seem to enjoy having those choices
made for them... as long as there is a payout, apathy to responsibility and the ability to demand
the opposing choices of others are less than desirable.
Lovely.
Risk-Free, NO, absolutely not.
______________________________________________________________
Let's cut the to "Mining Experience" which was dismal at best.
$1000 on Deposit in a Coinbase Wallet Deposited
$50 Mining Fee to select Cloud Miner
$76 total ETH mined
ETH feee for transfer to Coinbase, $72.32
ETH Tether exchange to BTC
BTC SELL to USD
USD transfer NET to Bank Account - $986.14
A Net Loss of $13.86 for one week of ETH Mining and I escaped at the Lows of the Network Fees.
Had I exited at the highs my NET would have been $937.11.
And let's not forget to include the $50 Mining Fee... the Net declines
into a precipitous Negative ROI.
A $986.14 on $1050 Capital Outlay while ETh went from ~3500 to 3900...
***If you read the disclaimer carefully, you will discover there are a number of issues whereby your
Tether may become unavailable due to Network Outages...
Yeah, naw... I'l pass.
This will end badly one day.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.