Amazing. Crypto is the future.

We love to see it don't we folks. Still more than I have in my bank account though.

      • MerryChristmas [any]
        ·
        2 years ago

        I'd expect the defi guys to take the opportunity to gloat, but what's the argument that Coinbase is safer than any other centralized crypto bookie?

        • Frogmanfromlake [none/use name]
          ·
          2 years ago

          No clue. Crypto bros don't seem like the type to really think these things through as long as it justifies their use of crypto.

        • StewartCopelandsDad [he/him]
          ·
          2 years ago

          It's very large, publicly traded (so, regular reputable audits), and based in NY which has the strictest crypto laws. Their business model makes sense, and they don't offer leverage (IIRC). In my eyes it is about as trustworthy as a normal company. I wouldn't recommend anybody keep their money in a CEX, but USDC seems like the most trustworthy stable to me.

          • YEP [he/him]
            ·
            2 years ago

            Keep your money in an FDIC insured bank account

              • StewartCopelandsDad [he/him]
                ·
                2 years ago

                If you put your son's college fund into the best high-yield FDIC insured bank account making 3% (current Marcus rate) you're fucking him over. At least put it in an index fund. If number stops going up he won't have to worry about paying for college because American capitalism will finally have been destroyed.

              • silent_water [she/her]
                ·
                2 years ago

                lmao 5% would be positively restrained. these frauds never promise less than 20% guaranteed. they're determined to make Bernie Madoff look conservative.

                • StewartCopelandsDad [he/him]
                  ·
                  2 years ago

                  Actually, BlockFi, Celsius, etc. promised like 9-13%. Higher returns are available but are more up-front about the risk, these products pitched themselves as being safe as checking accounts which is obviously not true. I like this site but it frustrates me when it intersects with stuff I know a lot about.

                  • silent_water [she/her]
                    ·
                    2 years ago

                    aww shit, the obvious scams only promised ponzi scheme level returns. they're so reasonable.

            • hypercube [she/her]
              ·
              2 years ago

              nah, I got a good feeling about this horse, baby! she's gonna win us back the farm!

            • StewartCopelandsDad [he/him]
              ·
              2 years ago

              No. Cash should be a tiny fraction of your portfolio, because (1) opportunity cost of not getting any return at all (2) it's actively melting away from inflation. High-yield savings accounts are nice but don't beat inflation.

              USDC is worth evaluating because many risky investments are denominated in USDC.

              • zifnab25 [he/him, any]
                ·
                edit-2
                2 years ago

                Cash should be a tiny fraction of your portfolio

                Liquidity has its own value, particularly when prices are falling. And the projections for the next year's worth of stock performance is pretty grim. Idk if I'd be rushing out to buy in right now, given the uncertainty and the rising Fed interest rates. Also... rising rates mean savings accounts actually aren't the worst place to stash your money atm.

                USDC is worth evaluating

                Consider investing in ASAB: All stablecoins are bad.

                • StewartCopelandsDad [he/him]
                  ·
                  2 years ago

                  It sucks to have to sell investments during a downturn, but they're still liquid. It's not sound advice to keep more cash than is necessary for operational reasons. At least buy some bonds or something if you're bearish.

                  High-yield savings accounts are nice but don’t beat inflation.

                  rising rates mean savings accounts actually aren’t the worst place to stash your money atm.

                  They're better than like, a checking account or a mattress. Marcus is 3% rn, which seems great until you remember that inflation is way higher than that.

                  • zifnab25 [he/him, any]
                    ·
                    2 years ago

                    Part of the problem with a down market is that there aren't a lot of great places to stash cash. So, yes, you're going to have a high risk of some kind of loss everywhere.

                    Inflation sucks, but a cash loss of 4-5% a year is still better than losing 10% on some equity or index fund.

            • zifnab25 [he/him, any]
              ·
              2 years ago

              All stable-coins are scams. Pretty much baked into the premise of the product.

                • StewartCopelandsDad [he/him]
                  ·
                  2 years ago

                  Do you have any reasons why USDC is a scam compared to other stables? If it's just "crypto/stables are scams" you're not wrong but it's tough to make money off that without taking on crypto price risk, which I don't do.

                  • silent_water [she/her]
                    ·
                    2 years ago

                    mate, every stable coin is sold on the basis of a promise - either that it's backed by "reserves", a term the crypto community actively lies about, conflating deposits with reserves, or that it's peg is algorithmically maintained. you're giving money to capitalists on their word that they're trustworthy enough to deserve sole and exclusive access to the money printer. it's only in finance that people can promise literally no value yet invent capital out of thin air. stable coins are a scam. the only ones who profit are the people at the top of the pyramid.

      • zifnab25 [he/him, any]
        ·
        2 years ago

        Oh yeah, they're doing great right now. Just off 85% of their market value from the IPO. And they've definitely got a bunch of cash reserves to back up all their bitcoin debts. I'm extremely confident of that :this-is-fine: