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Coinbase Custody Is Officially Open for Business

blog.coinbase.com

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Re: Coinbase Custody Is Officially Open for Business

#51

Post by occamrazor »

wereHamster wrote: post #49
beefield wrote: post #18

Next step: Coinbase gives discount of custody service fees - or even pays the deposit maker a fee (a.k.a interest) if it is allowed to lend coins forward while coins are within custody (a.k.a fractional reserve banking).

"fractional reserve banking" would be the case if Coinbase lends more than it holds in their accounts. That's impossible with bitcoins.

That's possible. They can lend the same bitcoins to many different people, with the expectation that not all of them will withdraw the borrowed coins at the same time.

Re: Coinbase Custody Is Officially Open for Business

#52

Post by jay_neyer »

robertAngst wrote: post #12
wmf wrote: post #8

Earlier quoted context omitted.

I think of Coinbase as "cryptocurrency for people who don't believe in cryptocurrency" so it's not surprising from that perspective.

Please. Coinbase has kept my bitcoin safe since 2011. They also have free payments to friends with their email + shift card. Yes their customer service sucks, but they have provided tens of thousands of dollars in value to me.

Except coinbase wasnt even around in 2011??

Re: Coinbase Custody Is Officially Open for Business

#53

Post by where_do_i_live »

craigc wrote: post #44
where_do_i_live wrote: post #37

Earlier quoted context omitted.

You are full of it. > They only allowed people to sell it on their market again, about 24 hours later, after the coin went down to $1,000. This is completely false, and a lie since you say you were trading it at the time. BCH was trading between $3200 - $4300 when it reopened later the next day. Not only do you not understand what the verb steal means, you give false information as to how the BCH market traded. You a…

Their allegations are not entirely off base. The Coinbase BCH launch was a complete disaster. The BCH price pumped for days on other exchanges leading up to the announcement. See here for some more information: https://motherboard.vice.com/en_us/article/pam4xn/coinbase-i... In addition, they opened up trading on GDAX, but waited to open up buys and sells on Coinbase until Roger Ver’s segment on CNBC Fast Money (right…

That the rollout of BCH was problematic is not something I disagree with. It was a huge embarrassment professionally for coinbase.

I am well aware of BCH increasing in price prior to the launch but #1 EVERYTHING was going up in price at the time - BCH started ramping up the prior week from ~ $1700, and #2 really took off once the API keys were publicly found that weekend. That there was a peak of insanity on the release of BCH, I don't dispute, I merely claim that these other claims of nefarious actions can be easily explained through more mundane behaviors.

Re: Coinbase Custody Is Officially Open for Business

#54

Post by leppr »

cbase22 wrote: post #16

Coinbase stole $30,000 from me and won't return it. They listed a new coin (bitcoin cash) without prior announcement. I bought $30,000 worth at $5000 each. It went from $500 to $9000 in a matter of minutes. However, while allowing people to buy the coin at very high prices, they also froze everyone's ability to sell the coin. They only allowed people to sell it on their market again, about 24 hours later, after the c…

You still have your Bitcoin Cash dont you ? Trading is high-risk, you have to learn to recognize pump-and-dumps yourself, because they're gonna happen whether they're organized by the exchange or not.

Re: Coinbase Custody Is Officially Open for Business

#55

Post by hapnin »

sdf43543t345 wrote: post #45
hapnin wrote: post #40

Earlier quoted context omitted.

Fireproof boxes. I hope Coinbase gives you your btc when the run starts next year or two.

This. only suckers keep their coin on exchanges. Mtgox. Bitcoinica. Mintpal. Poloniex. Cryptsy. Bitfinex. Coincheck. All hacked, all lost their users coin. Any coin on exchanges does not belong to you. Only coin in which you and you alone hold the keys, is yours.

Bitfloor. That was a doozy too.

Re: Coinbase Custody Is Officially Open for Business

#56

Post by hapnin »

snissn wrote: post #46
hapnin wrote: post #40

Earlier quoted context omitted.

Fireproof boxes. I hope Coinbase gives you your btc when the run starts next year or two.

There's room for both sides to be right. Paper / steel / hardware wallets are a great solution. Coinbase can be ok too

My paper wallet has never asked for KYC/AML info.

Re: Coinbase Custody Is Officially Open for Business

#57

Post by erikpukinskis »

occamrazor wrote: post #51
wereHamster wrote: post #49

Earlier quoted context omitted.

"fractional reserve banking" would be the case if Coinbase lends more than it holds in their accounts. That's impossible with bitcoins.

That's possible. They can lend the same bitcoins to many different people, with the expectation that not all of them will withdraw the borrowed coins at the same time.

How do you lend the same cash to two people? Don’t people take loans to spend the money?

Re: Coinbase Custody Is Officially Open for Business

#58

Post by occamrazor »

erikpukinskis wrote: post #57
occamrazor wrote: post #51

Earlier quoted context omitted.

That's possible. They can lend the same bitcoins to many different people, with the expectation that not all of them will withdraw the borrowed coins at the same time.

How do you lend the same cash to two people? Don’t people take loans to spend the money?

If Coinbase customer A borrows bitcoins and transfers them to Coinbase customer B, those bitcoins never leave Coinbase, assuming that customer B does not transfers them immediately out of Coinbase. Same happens if Coinbase customer A tranfers 1 BTC to Bitstamp customer B and Bitstamp customer C transfers 1 BTC to Coinbase customer D. Fractional reserve banking can happen (and did happen) even without a central bank, with gold backed currencies.

Re: Coinbase Custody Is Officially Open for Business

#59

Post by kylebenzle »

yohann305 wrote: post #2

Not sure if this is related or not, but Coinbase's cryptocurrencies of choice (Bitcoin, Ethereum and Litecoin) just got a huge price bump in the past 2 hours which makes total sense because if this "Coinbase Custody" system is adopted by businesses and institutions, huge amount of money will be poured into these cryptocurrencies which will dwarf the current price. Am I missing something or it makes sense?

I would say Bitcoin Cash is Coinbases's currency of choice.

They have pushed for on-chain scaling for years and have been very vocal about how horrible Blockstream (small blocks) has been for Bitcoin.

Re: Coinbase Custody Is Officially Open for Business

#60

Post by kylebenzle »

21 wrote: post #5
yohann305 wrote: post #2

Not sure if this is related or not, but Coinbase's cryptocurrencies of choice (Bitcoin, Ethereum and Litecoin) just got a huge price bump in the past 2 hours which makes total sense because if this "Coinbase Custody" system is adopted by businesses and institutions, huge amount of money will be poured into these cryptocurrencies which will dwarf the current price. Am I missing something or it makes sense?

As someone who watches the price of bitcoin in detail every day, the price bump from today is not related to this news. It's just usual market activity (stop hunting)

Are you saying that if you were a trader or just in the market to buy and sell Bitcoin, and somehow you knew, 100%, 24 hours before anyone else, that Coinbase was announcing this, it would not influence you at all? Because that is what you are saying.
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