They are counting 600m of their own token, which already had only 170m or whatever of market cap, which presumably now is absolutely worthless.
I don't mean worthless in a conceptual sense like all crypto, but this specific brand of made up money is based on the trust of a bankrupt lender. Nobody is buying that and counting it as 600m of asset is absurd.
It's like writing yourself a bunch of IOUs and claiming it gives you wealth.
The whole security of proof-of-work depends on "you can't beat the network", but when such a small fraction of available hardware is left in that particular network, what security does it have?
1) newer generations of bitcoin mining hardware are orders of magnitude more efficient so 3% of hardware isn't 3% of total SHA 256 computational capacity 2) 3% of hardware owned by miners is probably a GPU number. Eth is mined by GPUs, not ASICs.
Hope this helps!
That makes sense to me thanks!
Seems like people are going to take a large haircut on whatever they deposited and then maybe get back some incremental cash over time.
https://www.bloomberg.com/news/articles/2022-03-07/electric-...
My rates are 11-13 cents per kWh, the same as they’ve been for years. Our power is mostly hydro, with smaller amounts coming from nuclear and wind.
So no, that pithy question isn't particularly useful.
The miners will mine as long as it is profitable since they need to recoup the costs of specialized hardware somehow.
2) the hardware is going to become obsolete well b4fore 7 years (although I wonder how the semiconductor shortage is holding back custom mining hardware design and manufacturing? Maybe in 2029 people will still be using today's hardware? I seriously doubt that.)
3) I'm reasonably sure arbitrage pushes the cost of mining asymptotically close to the price of electricity to run it, so the margins are almost all whatever temporary, fraudulent, or criminal steps you can take to reduce your cost (or outright steal) the electricity.
Who in his right mind puts 'Other' with a 270 millions $ figure next to it ?
It reads like Tether attestations. It's pretty amazing (or rather depressing) that Mashinsky is still not in jail. Hopefully, this will open the eyes of some crypto naive fans.
https://www.forbes.com/sites/kevindowd/2021/11/07/how-hertz-...
They just have a lot more more liabilities, thus the bankruptcy.
The CEL token's sole purpose was as a tool to offer users promotional rates (and maybe for a bit of insider pump-and-dumping).
That's a separate issue from Celsius owing their depositors CEL as a debt. Those CEL creditors are entitled to Celsius' assets through the bankruptcy process, if Celsius cannot otherwise make good on that CEL-denominated debt.
Now I'm wondering if the Hertz thing would have played out differently in the current 2nd hand car market insanity? Could an asset stripper have liquidated the entire Hertz rental fleet at above new car prices?
The markets don't have to make sense right away, but eventually they do. There's alot of corruption involved first. The old mantra of the market can stay irratiional longer than you can stay solvent is true only if you make a big bet. Make small bets that you believe in.
For instance, shorting LUNA's stable coin once it slightly deppegged was a smart financial decision. Since it could only 'rePeg' back to $1.00, your downside was marginal but the upside was 99.9%. Jump capital (their biggest investor) and a ton of people at the Terra Luna foundation took that trade and made a killing.
Similiarly with twitter when it was at like 50 something and the acquisition was 54.20. Minor downside, high upside if the deal doesn't go through.
DYOR and whatnot.
As a Bitcoin Maximalist, I agree with your statement almost wholeheartedly. These platforms offer nothing valuable except for the life lesson at the end not to gamble away your life savings in shady investment vehicles that offer unsustainable yields without a transparent earnings model.
But why would anyone be buying it now?
The hope that a) Celsius comes out of bankruptcy and b) they continue to honour their existing CEL token, seems a bit far fetched.
I think you just described monetary policy.
You can't eat gold, you can't grow food with the wasted energy underlying Bitcoin. You need faith that in the long term people will give you something you want in exchange for your monetary tokens, and that the prices of goods will not grow or shrink too quickly so as to make those transactions untenable.
Sovereign nations have several levers to ensure their national currency continues to fulfil these requirements so as to encourage faith in their currency. Magic internet money does not.
I love this.
How poignant of an image: you're holding your dollars, "the military" is standing in front of you...and the rest of the world is just walking in the other direction.
They can't. They didn't.
Both are subjective.