781–790 of 790 posts
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Well, it seems the word 'exchange' in this case is used with a different meaning when applied to FTX than the meaning you have in mind.
Which is exactly the problem. This should be illegal, and people who do this should go to jail. Customer funds should be 1 to 1 backed with assets.
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Well, it seems the word 'exchange' in this case is used with a different meaning when applied to FTX than the meaning you have in mind.
Which is exactly the problem. This should be illegal, and people who do this should go to jail. Customer funds should be 1 to 1 backed with assets.
Educated rumor is suggesting FTX may be insolvent, not only the victim of a bank run type scenario.
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"Shadow banks" aren't necessarily "banks". See https://en.wikipedia.org/wiki/Shadow_banking_system > The shadow banking system is a term for the collection of non-bank financial intermediaries (NBFIs) that provide services similar to traditional commercial banks but outside normal banking regulations.[1] Examples of NBFIs include insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday le…
You're moving the goalposts a bit there
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Anarchy is defined as absence of government and authority, with unlimited personal freedom as a consequence. This is fine if you're living alone, but in groups, you have unbounded externalities. Tiny councils are tiny governments.
If you let your own ignorance define anarchy, sure. Anarchists simply want every single thing to be voted on by the people, whether through referendum or randomly picked representatives. Anarchists agree that there should be governing bodies (merely that they shouldn't be the ones we have right now, and that they should be more representative and prevent the formation of a political class) and that authority should a…
Reading a bit:
1 a : absence of government
2 a : absence or denial of any authority or established order
Merriam Webster
Redefining anarchy to mean democratic government is a new one.
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If not exchanges, what entity would you suggest as a way to change crypto into fiat? Using the most successful fiat currency the world has ever known as a goal seems a bit lofty. In your view, how much time should it have taken to surpass the dollar?
That's my point. There should never have been any need to exchange crypto into fiat. Bitcoin should have been as ubiquitous as USD. Everyone using it, pricing things in it, transacting with it, holding at least some amount of it. Exchanging for fiat should have been as easy as getting change from a store.
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There's nothing decentralized about FTX or Binance. They operate in an opaque manner like any traditional business, transparency comes from forced audits & regulation. Decentralized finance is built on chain where all assets are publicly auditable at all times. EDIT: parent comment talked about decentralized finance, then edited to remove mentions of defi
Even without the edit, your response feels like a no-true-scotsman i.e. an attempt to remove bad actors who deal in decentralized cryptocurrencies from the purity that is defi. What are some large, successful defi organizations today?
Why is it apparently so difficult to run a solvent crypto exchange? On the face, it shouldn't be too hard, just take deposits, stick them in a wallet, and swap client balances in a database. Is the temptation to maintain a reserve ratio < 1 just too great? Do operators try to earn small, low-risk return on client funds only to find there are no low-risk, positive-return assets in crypto? Are the extending margin to c…
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There is a LOT of -archy overhead to the Internet.
Sure, but I think that still fits a common definition of anarchy. The idea isn't "chaos," it's "hey, the thing still works even though there isn't a clear hierarchy."
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Just because "The Internet"'s _mainstream_ may not resemble anarchy, this doesn't prohibit other parts to resemble anarchy. In fact there are a lot of examples active and thriving "on the Internet" fulfilling various definitions of anarchy.
Or it's infrastructure, or design, or all the corporate committees involved in managing it. Care to give counter examples?
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Inability to process more than 5 tx a second for entire world is a major point-of-failure that L2 chain cures.
Should’ve just increased the blocksize, instead of implementing some crap L2 solution.