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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

#311

To me it's always seemed like money grows from the barrel of a gun. Detaching money from military power sounds wonderful but it makes no sense to me. It seems to defy the very basis of what money is. Tokens handed out by warlords. Only stretched out over such a long time that it isn't obvious any more. Obviously I am neither an economist nor a political theorist.

I always figured that 'naturally arising' currencies, like gold and cigarettes, have two key properties: a) perceived inherent value (e.g., gold by long tradition and whose origins are lost to history, and cigarettes because people want their fix) and b) natural limitations on quantity (and counterfiting: gold has known density, and a fake cigarette is apparent as soon as you try and use it).

The purpose of the gun, it has seemed to me, is to get around the fact that fiat currencies have neither of the above properties, but that both can be enforced to some degree.

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

#312
post #226

Earlier quoted context omitted.

Can you name some use cases that aren’t trading crypto derivatives or crypto debt? Ethereum is certainly more interesting than Bitcoin but the use cases so far seem to be more speculation.

Sovereign identity, DAOs, NFTs (not just the art stuff which atm is a little cringe but game items, land registries, deeds), stablecoins (usdc, dai, yes there is also wilder experimentation here). I think people can quickly get dissuaded by some negatives like lack of scaling or environmental issues. These are real but are being solved. We really need communities like HN to engage because if proponents are right then…

> Sovereign identity

Not a real problem. Any civilized country has solved identity already.

> DAOs

A solution in search of a problem

> NFTs

Speculative. Game items, land registries and deeds are a solved problem. If your jurisdiction/company hasn't solved them already with Postgres and hardcopy it's because it's not interested in solving it or it's not a real problem, just a minor annoyance.

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

#313
post #259

Earlier quoted context omitted.

Name one place where you can buy BTC with fiat without KYC.

1) bisq 2) sign up to a kyc exchange. Exchange small amount. Contact someone who is willing to exchange outside of the platform, maybe someone with a high reputation.

3) Lose all your money - deserved for being this stupid.

The only reason someone sends you money back after you irreversible send money to them is if they are even more stupid than you.

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

#314

Just as a fun hypothetical to think about... an effective way to crack down on cryptocurrencies would be to do it under the table. Don't make any official policy about crypto other than recommending that US citizens don't invest in it. Attack the crypto ecosystem the way they attacked Iranian centrifuges. The damage is done by the CIA and NSA, not the SEC and FBI. The goal is not to make it impossible to use crypto b…

Indeed, and this may already be ongoing. Programmers find a handful of vulnerabilities in core Bitcoin software every year [0], and there is no way for us to know if those bugs were planted intentionally. Some of these bugs caused the supply inflation to be wildly different than what is claimed (so much for "there can only less than 21mm coins"). We also don't know what bugs currently exist in the software that are or will be exploited. We also don't know if any of the core contributors and influencers in the project actually work for the CIA/NSA/PRC/etc.

[0] https://en.bitcoin.it/wiki/Common_Vulnerabilities_and_Exposu...

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

#315

> U.S. Treasury Secretary Janet Yellen and other officials have warned about the use of cryptocurrencies for illicit transactions. Wait until you hear about cash. More seriously (and hopefully less reductionist) i feel nations who embrace cryptocurrencies early will see mixed results as the landscape matures. I am more confident that nations which turn their back on it, or shut it out completely, will see a loss of o…

The possibility of cryptocurrencies being banned in the U.S. is probably greater than what many people realize, especially those current holders. At least an attempted ban not unlike what happened in India.

While the whole "illicit transaction" argument is bullshit, Yellen and other Treasury officials probably realize that cryptocurrencies like Bitcoin could pose an existential threat to the U.S. dollar and needs to be snuffed out early. Companies like Microstrategy and Tesla have already began using them as substitutes for U.S. treasuries. Together with the decline of oil dependency and the petrodollar, a day will come when the de facto currency is no longer the U.S. dollar and with it goes the world currency status. Yellen's department, the U.S. Treasury, would become a minor department and a shadow of its current self.

An apt analogy could be the U.S. government is like Nokia in the early days of the iPhone.

That said, a U.S. ban may actually unintentionally lead to greater adoption as it effectively means cryptocurrencies withstood and prevailed an attack by the world's foremost national power.

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

#316
post #265
post #226

Earlier quoted context omitted.

Can you name some use cases that aren’t trading crypto derivatives or crypto debt? Ethereum is certainly more interesting than Bitcoin but the use cases so far seem to be more speculation.

- Pseudonymous Transactions / Privacy - Multiple Accounts - International Transfers - Customization (smart contracts) - Micro Payments / Internet money - Low entry (Phone, internet) - Peer 2 Peer and decentralized - Free Software

> Pseudonymous Transactions / Privacy

Not really tech problems; you're bound to the limits of the law

> International Transfers

Not a tech problem; international trx are dropping in price as competition increases; tech doesn't change anything here.

> Micro Payments / Internet money

There is no way to scale the tech to the volume where it makes sense for microtransactions.

I'm not really seeing these as problems fundamentally limited by technology.

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

#317
post #259

Earlier quoted context omitted.

Name one place where you can buy BTC with fiat without KYC.

Huobi, last I checked. localbitcoins, I think ? ( huh, such a blast from the past - they now have some sort of KYC but I think it's soft)

Huobi needs KYC. Localbitcoins is more like localscamers.

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

#318

Earlier quoted context omitted.

Blockchain tech is a next generation internet still in its early days. I don't think it will go away. What do you think these networks will look like in 20 years? It might be a negative for society now (I assume you are referring to the shady nature of using it as an alt currency), but it's precisely the tech you need to provide an alternative against Facebook or other walled gardens many people love to hate on here.…

> What do you think these networks will look like in 20 years? Exactly the same as it looks today. Because nothing has changed in the last 15 years either (Bitcoin was released in 2006). > it's precisely the tech you need to provide an alternative against Facebook or other walled gardens many people love to hate on here. How does cryptocurrency help with any of that? > tech is open an transparent and scalable. Citati…

> Bitcoin was released in 2006

It wasnt. It was released 9 January 2009

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

#320
post #109

> U.S. Treasury Secretary Janet Yellen and other officials have warned about the use of cryptocurrencies for illicit transactions. Wait until you hear about cash. More seriously (and hopefully less reductionist) i feel nations who embrace cryptocurrencies early will see mixed results as the landscape matures. I am more confident that nations which turn their back on it, or shut it out completely, will see a loss of o…

> Whatever your stance on cryptocurrencies are, what is of little dispute is the business opportunities they have created. Binance and Coinbase are large, successful companies. Poloniex was sold for ~400M. I find this argument a little weird, because I think we can all agree that bubbles and fad tech isn't really great for society as a whole. If you believe cryptocurrencies aren't a fad and actually provide useful be…

I admire that controversial opinion, but would you really be comfortable with a federal authority telling you which software on your computer is "great for society as a whole" and which is a fad?
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