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Over 2 percent of the US’s electricity generation now goes to bitcoin (arstechnica.com)

submitted 9 months ago by [email protected] to c/[email protected]

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Over 2 percent of the US’s electricity generation now goes to bitcoin::US government tracking the energy implications of booming bitcoin mining in US.

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[–] [email protected] 2 points 9 months ago (1 children)

??? How is USD being pumped by USDT/USDC? I'm lost, lol.

[–] [email protected] -1 points 9 months ago (1 children)

The previous poster is alleging BTC is being "pumped" by tether because tether is collateralizing their coin by buying BTC. I'm pointing out that they also buy USD yet nobody is complaining that USD is being pumped.

If you buy a stablecoin, the hope is that the stablecoin is tied to an actual dollar (or whatever it is supposed to represent). This means if you buy $1 in tether, tether should buy $1 USD on the open market, put it in a vault, and wait until somebody else comes back to sell that dollar back to Tether. But you can buy other stuff too, other assets, which when you start managing large amounts of money is important for risk management. Plus they can make some returns that way. Some stablecoins pass the returns on to people who hold the stablecoin. Generally, these stablecoins are collapses waiting to happen for these and many other reasons.

[–] [email protected] 1 points 9 months ago (1 children)

Do you genuinely believe the impact of Tether buying Bitcoin on Bitcoins price is comparable to the impact of Tether buying USD to USD "price"/value? Like fr?

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago) (1 children)

I'm not saying it doesn't impact the price, I'm saying it doesn't matter. Bitcoin's current price looks like a steal to me if it's going to be the underlying currency for the global economy.

All currency is speculated on. The market finds the right price. Then it corrects. The price goes up and down. That's how markets work. The USD is guaranteed to lose value and buying power over time due to an inflationary supply. That's not even throwing in the US's declining role as a global currency hegemon and the reduced demand it causes.

Bitcoin? It could go up or down relative to other currencies or goods, but my portion of the supply relative to the whole will always be the same. That's why I buy bitcoin.