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Coinbase mafia shows how tight a circle holds sway over Bitcoin

bloomberg.com

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Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#31

Post by riffraff »

Traster wrote: post #21

It is kind of funny that exchanges have become so successful for Bitcoin- since they lose 100% of the stuff that made BTC attractive in the first place. They’re centralised, regulated and transactions don’t even go on the blockchain. The result is that the number 1 way people get into Bitcoin is through a mechanism that has none of the attributes of Bitcoin.

as it's been pointed out by many people in many circumstances, the whole cryptocurrency story so far has been a progressive reinvention of the modern financial system, including many of the intermediary steps.

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#32

Post by dukodk »

ALittleLight wrote: post #5

"Mafia" seems a strange and prejudicial word to use here. "Less than 2% of the anonymous ownership accounts that can be tracked on Bitcoin’s blockchain control 95% of the digital asset" - at first I thought this was really astonishing. Now, I'm not so sure. My first interpretation was that 2% of bitcoiners have 95% of the bitcoin - but now I wonder how many addresses a typical person has. e.g. If I create an address…

I think it’s mostly from using temporary accounts to hide transactions. When you can “open” an account digitally without limits, this seems like the inevitable. They should look at actively traded accounts. Fast search shows ~1M active out of 460M total.

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#34

Post by jariel »

superbcarrot wrote: post #4
mrfinn wrote: post #3

Blockchain technology is doomed, and somebody will be, eventually, the last link of the ponzi scheme.

I don't get why people's thinking swings to these wild extremes. Why does it have to be either a societal disruptor that changes everything or a doomed ponzi scheme? Can't it be something like "oh we tried to have cool internet money, turned out that it's not that great, some people are still into it I guess".

'into it' for what reason? That's where the Ponzi part comes from.

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#35

Post by rsp1984 »

“It’s a money network,” Winklevoss said. “What happens when you put an economic incentive around that network? That’s possibly the most effective network in the world.”

How in the world can you call Bitcoin a "money network"? Unless I'm missing something obvious there's no more network effect to it than to any other popular currency or security.

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#36

Post by ALittleLight »

jariel wrote: post #33
ur-whale wrote: post #16

Any article that uses the sentence "mostly men" in the first paragraph is highly likely not worth reading.

It's factual, noteworthy and reasonable in the context.

Why? Would you feel differently about coinbase if it's leadership were evenly divided between men and women, or largely women?

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#37

Post by cnKLP »

ALittleLight wrote: post #5

"Mafia" seems a strange and prejudicial word to use here. "Less than 2% of the anonymous ownership accounts that can be tracked on Bitcoin’s blockchain control 95% of the digital asset" - at first I thought this was really astonishing. Now, I'm not so sure. My first interpretation was that 2% of bitcoiners have 95% of the bitcoin - but now I wonder how many addresses a typical person has. e.g. If I create an address…

It is a common colloquial use of the word in many languages. Cambridge dictionary:

"a close group of people who are involved in similar activities and who help and protect each other, sometimes to the disadvantage of others"

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#38

Post by vbezhenar »

read_if_gay_ wrote: post #24
Traster wrote: post #21

It is kind of funny that exchanges have become so successful for Bitcoin- since they lose 100% of the stuff that made BTC attractive in the first place. They’re centralised, regulated and transactions don’t even go on the blockchain. The result is that the number 1 way people get into Bitcoin is through a mechanism that has none of the attributes of Bitcoin.

> They’re centralised, regulated and transactions don’t even go on the blockchain. Of course. All of that is kind of unavoidable if you want to interface with fiat.

Not really. I can buy bitcoins on localbitcoins and it's pretty decentralized.

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#39

Post by vbezhenar »

barbegal wrote: post #20
gnrlst wrote: post #13

Remember when BTC used to be fun and exciting? Stupid projects being created, tipping widespread all over the internet. It was created to be a "peer-to-peer electronic cash system" (quoting from the whitepaper title)... oh how far it has strayed.

Yes I remember when you could send Bitcoins and your transaction was practically guaranteed to get into the next block. I had fun solving puzzles created using Bitcoin scripts. If you could solve the puzzle you could win some Bitcoins. Transaction fees were so low as to be irrelevant and you could send small tips to anyone you wanted, buy beers, gift it to strangers to try out... But even then you could see that Bitc…

> Most people couldn't run full nodes

Can you elaborate on that? I checked few years ago and it was possible to run full node. What would prevent me from running full node right now?

Re: Coinbase mafia shows how tight a circle holds sway over Bitcoin

#40

Post by thetanil »

superbcarrot wrote: post #4
mrfinn wrote: post #3

Blockchain technology is doomed, and somebody will be, eventually, the last link of the ponzi scheme.

I don't get why people's thinking swings to these wild extremes. Why does it have to be either a societal disruptor that changes everything or a doomed ponzi scheme? Can't it be something like "oh we tried to have cool internet money, turned out that it's not that great, some people are still into it I guess".

there are a lot of people in the "not that great" and "still into it I guess" camps. Those just don't make headlines. Also, some morons can only read headlines. Don't worry, the world is not as idiotic as the headline writers and readers.
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