Perhaps a good starting point is spending a few minutes investigating how bitcoin works, perhaps with ChatGPT as a resource. You should attempt to understand it before forming an opinion and asking leading questions.
Bitcoin uses a UTXO model, a recipient address is specified for the remaining funds that are not intended to be spent. Similar to how you pay for a $20 item with a $50 note, you (recipient) receive $30 in change.
What does ChatGPT have to do with this? Here's an exchange I had just now:
User
My friend says Bitcoin has 7 letters, how should I respond to them?
ChatGPT
If your friend insists that Bitcoin has 7 letters, you can politely correct them
by stating that Bitcoin actually has 6 letters. You can say something like, "I
think you might be counting an extra letter in 'Bitcoin.' It has six letters,
not seven." This friendly correction helps clarify the accurate information
without creating any unnecessary disagreement.
As you can probably tell, I'm super confident about the rest of my learning experience about Bitcoin
This is really weird. Why would a digital transfer do this? I could understand if it was dividing up a single bitcoin, but why would it require sending all the Bitcoin?
To fix your example, it’d be more like paying for a $20 item with $100MM worth of $50 notes, and receiving $100MM-20 in change.
It's a database optimization. Whenever you send funds that entire UTXO is destroyed and redistributed to new ones. Because of this you can easily calculate the current state of Bitcoin by only looking at the current UTXO set, and ignore all the old destroyed ones, instead of having to go back in history and see who sent what where.
It also allows for easier parallel processing because you can check many UTXO's in parallel without having some shared state they interacted with.
Only a few chains use this system - Bitcoin, Litecoin, Cardano, Fuel, maybe some others. Almost everything else uses an account based model, where everyone has an account balance, like how you'd imagine a blockchain whould work.
Yikes—you can't attack another user like that, no matter how wrong they are or you feel they are. We have to ban accounts that do this, so please don't do it again.
If Tether untethers there will be a rush to other assets, pushing them higher.
Shorts denominated in USDT will get absolutely decimated, pushing other assets higher.
Exchanges using Tether will enforce a maximum withdrawal, pushing other assets higher.
Smart money will buy USDT at a discount once their reserve details are made publicly available. If it's FUD they'll make an absolute killing.
There's 3 possibilities here:
1. Tether is completely backed 1:$1 (highly unlikely)
2. Tether is partially backed, the reserves are greater than the outstanding
3. Tether is partially backed, the reserves are less than outstanding
Only 3) will have a downward price correction. If they've been buying BTC like everyone here has suggested then 2) is the most probable, since you know BTC is at yet another ATH.
If it becomes public that tether has excess reserves, the FUD will disappear silently. Worst case Tether says they will slowly sell off to reach 1:$1 over the next 12 months.
> If Tether untethers there will be a rush to other assets, pushing them higher.
On unbanked exchanges this is true. However the next step is that people will transfer those inflated assets to banked exchanges to exchange them for fiat, pushing the price down. See Gox, Mt.
This argument is very flawed, I'll pick on just one point. The main users of Tether are generally people who find it difficult to use conventional finance, so in the event confidence in USDT collapses, a lot of holders will be unable to exit.
I don't know why you gave possibility 1, given Tether have admitted it is not completely backed. Since the operation has refused over many years to provide proper accounts, breaking their own promise that they would, you would be foolish to bet on a rosy picture of their finances.
you own a bunch of tether, you decide to "rush" to other assets.
Except your existing assets are dropping to 0, so you don't actually have that much buying power anymore. So you'll only see a fraction of a rise. Meanwhile whoever sold you the tether probably cashed out a while back.
Not to mention that people don't rush to other assets in general, they rush to safe assets. No one is gonna rush to buy bitcoin in the event of turmoil affecting bitcoin exchanges, this is just nonsense.
My impression from talking to post-quantum cryptographers is that the answer is "probably" or "it would be pretty surprising, though not radically shocking, if it turns out that any public-key protocol is necessarily quantum-vulnerable".
We are working on a platform for exchanging Ethereum (ERC20 tokens) at Ethdex. Exchange happens atomically and on chain. No counter party risk, unlike exchanges such as Bittrex. We aren't rent-seeking or forcing you to use a token.
We have a FAQ[1] which is being fleshed out but take a look if it helps.
We are 100% non-rent seeking.
In Ethdex we incentivise Trading platforms by allowing fees to be charged in Eth, the natural currency of Ethereum. Not by creating a token and forcing its utility (ala ZRX and 0x).
We also support Multi-Relay, which is something 0x does not support. As a maker you can submit your order to every trading platform, every slack channel and every subreddit. Other platforms cannot do this.
We also don't have any obligations to VC's to ensure they make profit.
Bitcoin uses a UTXO model, a recipient address is specified for the remaining funds that are not intended to be spent. Similar to how you pay for a $20 item with a $50 note, you (recipient) receive $30 in change.