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CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

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Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#181

Post by throwastrike »

puranjay wrote: post #142
throwastrike wrote: post #131

Earlier quoted context omitted.

I am sorry but that’s a very weak argument about cash being involved in illicit transactions. As it stands right now cash is still TANGIBLE. If you want to launder cash you still need to be physically present. Crypto not so much. I will leave you with this: the reason why crypto will inevitably fail is because no one and no country will be willing to go to war to defend it. As for USD? There’s the single greatest mil…

Let me introduce you to the wonderful world of Hawala: https://en.wikipedia.org/wiki/Hawala The idea that cash can't be laundered because it is tangible is laughable.

I am not contesting that cash isn’t laundered. I am simply pointing out that whenever someone brings up crypto being utilized for money laundering the first argument is almost always “well cash is also used for money laundering” which is pretty weak. If you knew what people can do to launder money in shitcoins and bitcoins you would not make that argument. There’s a reason why Macau is no longer needed to get money out of China. And there’s a reason why gold is no longer used to move drug cartel money in the past two years.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#182

Post by thoughtstheseus »

arcticbull wrote: post #166
xxxxxxx12 wrote: post #114

Earlier quoted context omitted.

There is a (seemingly growing) number of people that openly say that the budget doesn't matter. You just print and spend. Fortunately this incentivizes finding ways to circumvent that regime and point out how absurd it is.

It's only wrong if it doesn't work -- but it does. Economists aren't 100% sure why, but it does. The fact is while the debt has exploded, the total cost to service that debt has collapsed. The US is now paying less interest on its sovereign debt than before the COVID stimuli. Explain to me how it's stupid not to take advantage of this? The reality is when you take on debt, the only thing that matters is what you choo…

The cost of debt has dropped would be a more accurate description. Well... just because you can take out more loans does not mean you should. The issue is really how long you can refinance the debt for, or can you outgrow the debt, otherwise you’ll be forced to inflate it away. The cost of financing will not be this low forever and it’s still a few hundred billion of interest each year. Still, we should spend money on infrastructure and cool tech while we can.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#183

Post by NaturalPhallacy »

notahacker wrote: post #127
NaturalPhallacy wrote: post #106

Earlier quoted context omitted.

>Currencies derive their value from government control. There are countless examples that prove this false. World of Warcraft gold, EVE Online ISK, BTC, Ethereum, Dogecoin, baby food, etc. There are literally jobs in developing countries where farming in game money is a job that pays their bills. Yet we both know that no government is in control of those currencies. >Until and unless the IRS accepts tax payments in a…

> There are literally jobs in developing countries where farming in game money is a job that pays their bills Do they pay their bills in World of Warcraft Gold or local currency? (That actually illustrates the distinction between tokens that might have value to speculators and currency quite nicely)

It's not speculation though. They literally sell one currency for another. That they have value is a given, or they wouldn't be able to exchange one the other. (notice how it doesn't matter which currency is which in that sentence?)

Acceptance defines value. No other factor trumps it.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#184

Post by [deleted] »

thoughtstheseus wrote: post #182
arcticbull wrote: post #166

Earlier quoted context omitted.

It's only wrong if it doesn't work -- but it does. Economists aren't 100% sure why, but it does. The fact is while the debt has exploded, the total cost to service that debt has collapsed. The US is now paying less interest on its sovereign debt than before the COVID stimuli. Explain to me how it's stupid not to take advantage of this? The reality is when you take on debt, the only thing that matters is what you choo…

The cost of debt has dropped would be a more accurate description. Well... just because you can take out more loans does not mean you should. The issue is really how long you can refinance the debt for, or can you outgrow the debt, otherwise you’ll be forced to inflate it away. The cost of financing will not be this low forever and it’s still a few hundred billion of interest each year. Still, we should spend money o…

[deleted]

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#185

Post by RealityVoid »

noxer wrote: post #90
blondie9x wrote: post #27

Bitcoin will never be regulated.

It already is. You cant buy one without KYC. Unless you go to "dark" places where you may or may not get scammed. Unless you already have cryoto then ofc you can exchange it but most people need a fiat on-ramp.

Don't be silly, of course you can. It's inconvenient, but not impossible. ON/OFF ramps are the parts that they could regulate but the tighter they squeeze, the better the circumvention methods will be. I think HN really overestimates the ability of states to keep this under wraps and underestimate the ability of the ecosystem to adapt.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#186

Post by RealityVoid »

pcora wrote: post #38
blondie9x wrote: post #27

Bitcoin will never be regulated.

Would you bet on it?

Not OP, but I am. Tell me the bet conditions and the winning criteria. Would take that any day. I'm serious.

I am certain they will at some point try, but fail miserably.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#187

Post by rawtxapp »

samvher wrote: post #164
rawtxapp wrote: post #73

Earlier quoted context omitted.

I think it's somewhat similar to innovator's dilemma, a lot of current tech leaders were once the underdog and now are at the top, so they end up becoming complacent and non-innovators or slow innovators like the companies they replaced. An example of really cool smart contract usage is borrowing against your crypto, for example, this person/group was able to borrow roughly 340M$ [1], the best part, they didn't even…

To be honest this trend of borrowing against your crypto is specifically something that makes me very suspicious about the current state of the cryptocurrency world. If crypto crashes 30-50% again all these loans for which collateral is going to be sold would crash the whole market (or am I missing something?). Also it seems way too popular to borrow against crypto and then use that money to invest in crypto as well,…

These are all over-collaterized, so you're usually borrowing up to 30% of your collaterals value, it's nowhere near the 2-20x leverage that you might get in traditional markets or leverage based exchanges.

I think it makes a lot of sense in the current bull market, it probably makes less sense in a bear market unless you're borrowing only up to like 5-10% of your collateral to actually spend on something you need.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#188

Post by loceng »

wayoutthere wrote: post #176
rudderz wrote: post #137

Earlier quoted context omitted.

Take crypto out of the equation, what are the implications of the fed issuing a programmable currency? Many financial services would become obsolete. What do I need a stock broker for? What do I need a bank for? You have Wall St and other sophisticated investors profiteering and competing against the general public, devaluing our purchasing power, making leveraged trades because they know the public will hold the bag…

If the fed did a cryptocurrency, it would be backed by the full might of the US Government — and all the things that the government can do if it decides to print more money. This also includes military and police powers. Which brings me to the other point: currencies are governed at both ends; at issuance and at use. If you use a crypto that’s not approved, the government can simply arrest you for using one of its co…

I can see value in democratic nations agreeing to use a single global blockchain they've created, without an MLM-Ponzi structure redistributing wealth simply because of adoption/use (consensus by agreement, not through greed/financial gain).

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#189

Post by wil421 »

fastball wrote: post #113
Karunamon wrote: post #66

Earlier quoted context omitted.

The NSA/CIA/etc. is precisely why this won't happen, for the same reason the same are launching no wide-scale attacks to take down Tor - the guys in suits doing questionable government things need anonymity too.

Hell, Satoshi Nakamoto probably is the NSA.

Bingo. I’ve always thought it was the NSA, CIA, or maybe UK or Israel but I doubt the latter two. Especially since Satoshi’s wallet is so large and hasn’t moved.

Bitcoin has to make it much easier for 3 letter type agencies to follow money.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#190

Post by RealityVoid »

spaceman_2020 wrote: post #86

HN is boomer central when it comes to crypto. Haven't had a single enlightening discussion about it here. I see a lot of misconceptions about scams and pump and dump schemes carried over from the 2017 run, and complete neglect of the innovations created since. If anyone wants a refresher, I'm always willing to chat. I will also write a primer to help get folks up to speed on what's the latest in crypto.

Go ahead, post them. I think there are _some_ and I think crypto is really, bigger than most people give it credit. But there is a lot of crap and hype out there.

But just posting them instead of threatening would lead to better discussion overall.

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