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Things cryptocurrency enthusiasts probably won't tell you
171–180 of 189 posts
Re: Things cryptocurrency enthusiasts probably won't tell you
#172Earlier quoted context omitted.
People actually knowledgable in the crypto community would have told you literally years ago that the Chinese exchanges were shit. ChangPeng Zhao who now runs binance out of Hong Kong, made a reddit post (now deleted) stating exactly what was going on. The issue of exchanges "investing" client funds was known two years ago, and most people stayed away from these exchanges.
The exchanges investing client money does not surprise me at all. I worked in UK finance for 6 years or so where you have mandatory "CASS" training to warn you what is and is not OK to do with client money. I remember when I first started I was like "well obviously you keep client money and assets separate from the corporate accounts..." and EVERY year in the "refresher course" our Compliance dept gave they had new c…
Yes, we will see what the situation is in terms of exchange liquidity. With that said, the reports were of exchanges investing customer-deposited RMB funds, not selling customer-deposited crypto for fiat and then investing that fiat for profit.
Re: Things cryptocurrency enthusiasts probably won't tell you
#173Earlier quoted context omitted.
> I receive my salary in bitcoin based on spot price tied to USD Why would you want that? Why not just receive USD, and buy BTC each month if you like the price?
> (disclaimer: co-founder of a blockchain project)
That doesn't make it desirable. If it has good revenue it could explain it from the company's perspective; otherwise, is it funded in BTC?
Re: Things cryptocurrency enthusiasts probably won't tell you
#174Earlier quoted context omitted.
The exchanges investing client money does not surprise me at all. I worked in UK finance for 6 years or so where you have mandatory "CASS" training to warn you what is and is not OK to do with client money. I remember when I first started I was like "well obviously you keep client money and assets separate from the corporate accounts..." and EVERY year in the "refresher course" our Compliance dept gave they had new c…
Yes, we will see what the situation is in terms of exchange liquidity. With that said, the reports were of exchanges investing customer-deposited RMB funds, not selling customer-deposited crypto for fiat and then investing that fiat for profit.
Well investing the client deposits is pretty much exactly the situation I described. Probably could be seen as less directly scammy or intentional than selling their assets and investing it in , but certainly still a pretty standard client money breach
Re: Things cryptocurrency enthusiasts probably won't tell you
#175Earlier quoted context omitted.
Bitcoin wasn't a security in 2014 You can't retroactively apply the law. Well apparently the government acts like they can. But in my (biased) mind they shouldn't.
Bitcoin was a security the second it came into existence. The law doesn't need to retroactively be applied, it always applied. New things aren't somehow immune from existing law because they haven't been explicitly named by the law. The law doesn't need to say "crypto's are securities" for crytpo's to be securities. Don't confuse regulators clarifying how they're going to enforce the law with changes in the law. Thos…
> The law doesn't need to retroactively be applied, it always applied. New things aren't somehow immune from existing law because they haven't been explicitly named by the law. The law doesn't need to say "crypto's are securities" for crytpo's to be securities.
How about.. when a law is wrong? or if it's not just? or is changed, for this matter? since you think it's retroactively applied, which way or which one of 2 or more conflicting law are/is 'applied' retroactively?
Re: Things cryptocurrency enthusiasts probably won't tell you
#176Earlier quoted context omitted.
I got confused by your previous claim. This doesn't "hurt the economy". Yes, 2027 tends to be more productive than 2017, but this requires an increase of investment, that implies savings. Holding money allows others to use their money to invest , so you actually facilitate productivity to increase. This is "in general", since you allow more good and services to be available to be consumed by others. edit: this animat…
>Holding money allows others to use their money to invest, That's not holding money in this context. Hoarding money is keeping cash in your house or bitcoin in your purse. The money is separated from the economy. Holding money normally means keeping it in the bank account or in cash like instruments. That's fine. Bank loans it to others who use it. You receive interest for contributing capital.
Right, it's not exactly the same kind of "holding". But in this case also (burying the money), the economy (a free one) is not hurt.
To get a view of it: what if I have chests full of gold, then before dying I take tons of them, burn and bury so no one else ever put their hands on it? Nobody is hurt. Nobody is getting less food than they would, nobody is getting less anything than they would, because even if I bury the money I have, I didn't bury any other of the goods and services that are available in the economy in any time.
Because money is just a resources "coordinator's" power. If I burn mine, I'm just letting go of that power and letting someone else do it instead.
Sure, saying I had all that money not stealing or anything of the sort implies ppl I'm involved with (in/directly) are so much better that I "was allowed to coordinate more"/"received a lot of money". But still, in the end, the economy is not hurt.
Re: Things cryptocurrency enthusiasts probably won't tell you
#177Earlier quoted context omitted.
> Few people pay taxes on [their Bitcoin holdings] This is tax fraud. > How can the government arrest someone for stealing an asset that doesn't really exist? “Buyer beware” doesn’t exempt someone from fraud statutes. Honest services fraud is broadly defined in most jurisdictions to include any economic activity. > Would they arrest someone who stole water from my pool? Yes. At the very least, the perpetrator would h…
> Few people pay taxes on [their Bitcoin holdings] >>This is tax fraud. It is not; you only have a tax liability when you cash out, not when you hold, you could cash out and have a gain or have a loss and you need to reflect that on your income tax for that year.
You are mistaken, and your advice has the potential to severely harm people who take it. The IRS has been very explicit that, as with all barter, they want their slice and are entitled to it under law. The details are in their 2014 guidance, which you should read carefully if you're messing with cryptocurrency without
competent legal or tax advice. https://www.irs.gov/pub/irs-drop/n-14-21.pdf
Re: Things cryptocurrency enthusiasts probably won't tell you
#178I think that the cryptocurrency/blockchain space is the next big thing in the world on-par with the internet. But it still has a long way to go. In the late 90s you could say "X on the internet" and get tons of investment. Now it's the same but with "X on the blockchain". We are going through growing pains now, and there definitely needs to be some regulation introduced to curb the many scams. My personal hope though…
> why do I need to make $1M/year in order to prove to the US government that I'm worthy of investing into a startup Bernie Madoff lost tens of billions of dollars of investors’ money [1] in a clear fraud. This is terrible, but nobody ended up destitute [2]. The systemic risk was contained. Contrast that with the savings and loan crisis [3]. This lost retail investors’ money. People ended up destitute. That, and lots…
> People ended up destitute
Weren't the institutions FDIC insured? The wiki page you cited mentions some institutions receiving FDIC insurance. In that case, how did the victims end up destitute?
Re: Things cryptocurrency enthusiasts probably won't tell you
#179Earlier quoted context omitted.
Technical innovation is not the only type of innovation happening in the crypto space. There are tokens being developed whose innovations are financial, social, political, and economic. Don't assume technical innovation is the end all be all, Ethereum's technical innovation allows for the other types of innovation to occur, for example. To strengthen my argument, you wouldn't expect every startup on the Internet to d…
I don't exactly disagree; I think there are some ICOs that are promising. (And I'm happy that many are being built on top of a pre-existing blockchain like Ethereum's rather than pretending they're secure without a large group of miners securing their blockchain.) Maybe I should drop the word "technical": There are many projects out there with no real innovation whatsoever that were created only to facilitate pump-an…
The innovations are technical yet in the sense of theoretical mostly. Save the backlash, I'm just voicing the most critical opinion.
Re: Things cryptocurrency enthusiasts probably won't tell you
#180Earlier quoted context omitted.
exchange fees, and a general dedication to cryptocurrency
So the exchange fees magically vanished?
You can transfer money to Coinbase for free with a SEPA transfer. Transfer from Coinbase to GDAX for free. Buy crypto currency without fees by placing maker orders on GDAX.
Then transfer the crypto coins into your own wallet without a fee.