421–430 of 473 posts
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A custodial wallet. The original custodial wallet, in fact.
The correct term is non-custodial. A custodial wallet means someone else holds your keys, but a non-custodial wallet lets you hold them yourself (which Bitcoin Core does).
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Didn't it take a fairly long while before client money laws came in even in traditional banking? I don't have a date so I could be wrong, but taking the history of british banking I have a feeling this was a relatively recent thing. Being generous, we're still within the first decade of crypto as an investment instrument, I imagine regulations haven't quite caught up so really it's no surprise newer crypto companies…
Most things should have pretty good client money coverage now - basically anything that is deposit taking and then some. >it's no surprise newer crypto companies like Coinbase aren't particularly serious about keeping client money/assets separate. I'd say the opposite. As crypto company I'd be expecting the regulator to be on my ass from day 1 above the pettiest things.
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> Since coinbase isn’t FDIC insured, it makes sense that if coinbase goes bankrupt, the customer currencies will go away as well. And they aren’t SPIC insured in the situations where crypto is a security. Is Coinbase "loaning" out the Bitcoin users have deposited in it? The reason banks need the FDIC is that they loan your deposits out instead of throwing it in a vault and sitting on it, so if they go under they don'…
While I agree making a bad loan is the most likely reason for a bank to lose deposits, I wouldn't go so far as to call it "the" reason. Robbery, embezzlement, or natural disaster [1] can also result in loss of funds that would be covered by FDIC, and those risks exist for cryptocurrency too, albeit in somewhat different forms. [1]: see this paper, which found that "disaster damages play a significant role in bank fai…
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I'm sorry but I can't fathom why you would "invest" in a cryptocurrency you yourself don't even know how to use. This comment reads as an object lesson in exactly what is wrong with the current world of crypto. The entire value prop of crypto currency is that you are in control not major financial institutions, but it sounds like you are very much not in control. I think the best strategy for someone in your case is…
Tens (hundreds?) of millions of Americans "invest" in stocks they have no idea how to "use" (disclosure: I'm one of them). They're just numbers on a computer screen and nothing more. Should be more encouraging that this guy wants to figure it out instead of pointing and jeering at him.
If the company pays a dividend it gets sent to you (or to whoever holds the stock on your behalf), but that doesn't seem like "using" the stock. I suppose you could "use" it by voting at the AGM.
Crypto you can make use of (such as it is), but no one does that. They hold it like a stock, same as the OP who doesn't know how to create a wallet.
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If you were a CEO, you'd often be set up for life with some level of financial prudence, and everything else after achieving that level of wealth seems like it'd just be for a lark or some pursuit of satisfaction/happiness.
Honestly I was being somewhat tongue-in-cheek, but I guess it didn’t go over well. Lesson learned.
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Tens (hundreds?) of millions of Americans "invest" in stocks they have no idea how to "use" (disclosure: I'm one of them). They're just numbers on a computer screen and nothing more. Should be more encouraging that this guy wants to figure it out instead of pointing and jeering at him.
How do you "use" a stock? You give a company money in the hope they are able to turn it into more money over a certain period of time than you would holding it in a bank account. If the company pays a dividend it gets sent to you (or to whoever holds the stock on your behalf), but that doesn't seem like "using" the stock. I suppose you could "use" it by voting at the AGM. Crypto you can make use of (such as it is), b…
> I suppose you could "use" it by voting at the AGM
Is my stock anything other than the number of shares I see on TDAmeritrade.com? If I wanted to take this thing that I supposedly own and sell it or store it in a way that doesn’t involve TDAmeritrade.com, is that even possible? No fucking clue.
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On paper, you have and can report a lot of assets. However, many companies go bankrupt with current ratios greater than one with either overinflated or overvalued assets or undervalued or understated debts or some combination. Financial reports a la 10-Ks and 10-Qs are 'boring,' difficult for most people to read, contain specialized jargon, and contain significant lag time where a going concern is, well, a concern. A…
If "cash and cash equivalents" is wrong, that's fraud, not something I should have taken with a grain of salt.
Grant Thornton audits Coinbase last I checked. Hopefully they do a better job than EY. I doubt a "stablecoin" holding would count as cash equivalents, but not all cash equivalents are equal and the definition has changed over the years. Commercial paper, 1-3 month maturing Treasury notes, certificates of deposit, money market accounts, and savings account funds can all be counted as cash equivalents. For example, if you hold a two month commercial paper of another cryptocurrency company as Coinbase, this might qualify as a cash equivalent. Cash equivalents are not all equally liquid or risky. Even if all of the cash and cash equivalents are there and solvent, the definition of a cryptocurrency in a bankruptcy might not be settled in a court of law in such a way that it favors account holders of Coinbase held cryptocurrency over stockholders or bondholders.
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Do you think it would be okay for him to say there's no risk of bankruptcy to some friends in a public bar? How about at a BBQ in his backyard? Would it be okay for him to say this on a flyer stapled to a public board? Why is twitter special?
> Why is twitter special? The SEC's Rule FD [1]. [1] https://www.sec.gov/news/press-release/2013-2013-51htm
Apparently such information has to be released in a way that all the public, generally, can see it at once and twitter with it's faked high user numbers and famous people fulfills this. Releasing it on a small local poster board would be illegal because it is limited, where twitter is legal because everyone theoretically has access to twitter.
Since coinbase isn’t FDIC insured, it makes sense that if coinbase goes bankrupt, the customer currencies will go away as well. And they aren’t SPIC insured in the situations where crypto is a security. It’s funny to see people shocked (SHOCKED!) when crypto doesn’t have the protections of regular banking and investments. That’s why you don’t invest with stuff that isn’t insured. Those aren’t real rates, they are ris…
I was on reddit and someone called bitcoin a "useful savings account" and I was like, "NO, STOP. Do not tell people this stuff is for savings!" I was downvoted to hell and people were like "lmao noob." Got into a back and forth where I was trying to delineate an investment and savings and people just kept replying stuff like, "it goes up, that means you beat inflation, do you not understand how this works???" Sigh.
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If "cash and cash equivalents" is wrong, that's fraud, not something I should have taken with a grain of salt.
Cash and cash equivalents can be very wrong, even when audited by firms such as Ernst and Young, one of the big four accounting firms. Wirecard is a good example. https://www.ft.com/content/bcadbdcb-5cd7-487e-afdd-1e926831e... Grant Thornton audits Coinbase last I checked. Hopefully they do a better job than EY. I doubt a "stablecoin" holding would count as cash equivalents, but not all cash equivalents are equal and…
Yeah, that's what I said, fraud.
Do you have an example where it was wrong without fraud?