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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#311

Post by monkmartinez »

gruez wrote: post #267
phailhaus wrote: post #233

Earlier quoted context omitted.

> Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this. You can literally say this about "regular" currency. Just don't put your money in banks! But people do, why? Once you answer that, you'll realize why people do it for crypto too. You can't complain that it's "against fundamental crypto values" when it doesn't have any mechanism for p…

>But people do, why? 1. cash is bulky and risky to keep at home 2. inflation eats away at your savings Bitcoin is designed to solve both issues.

Bitcoin is designed to combat inflation? Please show me how it does this. I am very skeptical of this claim.

Re: Crypto exchange AAX suspends withdrawals

#312

Post by bmitc »

disruptalot wrote: post #187
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

The only way for crypto to ever be a thing will be to integrate with traditional financial systems, to a degree. Continually beating the drum of “this isn’t crypto” has not worked and will never work aside from making crypto fundamentalists feel like they’re the only ones on the one true path.

Re: Crypto exchange AAX suspends withdrawals

#313

Post by throwayyy479087 »

jeremyjh wrote: post #99
speakfreely wrote: post #32

> Due to the failure of our third-party partner, some users' balance data were found abnormally recorded in our system. Hence, limiting our services to prevent further risks, the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings. "Abnormally recorded" ... "prevent further risks" ... "manually proofread" ... "maximum accuracy". Wow.

We’ve already stolen your money, but hopefully as a community we can work through these troubling times together.

We're sorry for your loss

Re: Crypto exchange AAX suspends withdrawals

#314

Post by this_user »

raspberry1337 wrote: post #244
anon291 wrote: post #200

Earlier quoted context omitted.

Unfortunately, absent the crypto exchanges, which let you easily convert crypto to fiat, there is no reason why crypto has any value. Given that bitcoin transaction times are nowhere near VISA or cash times, bitcoin is fairly useless to purchase things in person and few online vendors take bitcoin alone (most use an exchange to convert bitcoin to cash instantly). So without exchanges, there is literally no purpose or…

> there is no reason why crypto has any value. Given that bitcoin transaction times are nowhere near VISA or cash times, You interchanged crypto with bitcoin, but bitcoin is not all crypto. The value of crypto comes from them being decentralized and independent of a financial bank. This has the negative side effect of it being very valuable to illegal and fradulent activity, too.

> The value of crypto comes from them being decentralized and independent of a financial bank.

The value of that is exactly zero when you live in a stable and developed country, and you are not engaged in criminal activity.

Re: Crypto exchange AAX suspends withdrawals

#315

Post by probiab »

brnt wrote: post #33

So, having been around since the early bitcoin days, core to the salespitch back then was the fact you would have control. You'd have your coins in your wallet, and no need for banks etc. Apparently nobody does this anymore, and gives their wallets to these exchanges (i.e. banks) and balks when the obvious happens in pyramid schemes. People just don't get distributed currency if they promptly undistribute it. Or is i…

You do have control. You can start your own blockchain and keep the transactions flowing. Of course, transactions imply other people will use your chain. It's like you can create value not by gold, or tobacco, or even math, but by the very trust people have in your asset. And this brings us to a concept that some may be familiar with but is relatively new to the crypto community. A new kind of coin is here.

This is a concept that probably never existed before crypto, called "fiat." "fiat" is the latest and greatest in crypto technology. True decentralization. Multiple countries. Multiple municipalities. Multiple systems, multiple institutions, multiple protocols and multiple contracts, the picture of decentralization that crypto could only dream of. And of course, if you make a mistake, you can revert your transaction, a form of technology crypto has not yet mastered. Oh, NFTs? Please. "fiat" utilizes advanced art international HS92 commodities exchange codes to kick start the burgeoning modern art scene of completely legitimate businesses.

Re: Crypto exchange AAX suspends withdrawals

#317

Post by lottin »

yuvadam wrote: post #237
ethanbond wrote: post #220

Earlier quoted context omitted.

But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right? This prompts the question: why are they so centralized? It turns out the advantages of centralization are more significant than the advantages of decentralization, and this is true even in a market with religious orientation toward decentralization . All you've gotta do to…

Banks can't choose to be decentralized when the whole point of their existence is to custody centralized fiat money.

The banking industry is not centralised. Banks provide financial services and compete against each other for customers. DeFi can't even get the most basic terminology right, yet somehow thinks that it can replace the entire financial sector.

Re: Crypto exchange AAX suspends withdrawals

#318

Post by xur17 »

gjulianm wrote: post #206
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

Precisely the failure of crypto is thinking that people will follow "fundamental crypto values" and underestimating the power of convenience and ignorance. "Traditional financial institutions" are inevitable in crypto.

But at least in crypto I have the OPTION of storing it myself.

Also, if I do decide to use a custodial provider, I can choose to use a provider that publishes proof of reserves [0], giving me more confidence in the provider.

[0] https://www.kraken.com/proof-of-reserves

Re: Crypto exchange AAX suspends withdrawals

#319

Post by andybak »

dagmx wrote: post #306
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

I’d argue that your comment is a failure to understand human desire for convenience and trusted services however. Decentralization is at odds with that. It’s not convenient. It’s not easy. It’s not simple. Not for a lay person anyway. When an ecosystem comes along and can solve those for the masses, it’ll be revolutionary.

I'm technically competent and (before I got out entirely) my coins were on Coinbase.

Why? Because I decided the odds of Coinbase going down were less than the odds of losing the coins myself without their help. There were just too many ways I could have messed up my own wallet.

Re: Crypto exchange AAX suspends withdrawals

#320

Post by dpbriggs »

codedokode wrote: post #298
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

Regulated banks and currencies have similar issues, for example: - the government can print more money and devaluate your savings (it's like a form of tax one cannot avoid). But it is difficult to "print" more cryptocurrency. - the government can put limits on amount of money one can withdraw from a bank account. So you legally have the money but cannot use it. - the bank can refuse to deal with you under AML acts wi…

A lot of these exchanges have suddenly died because they printed more currency than could be reasonably liquidated on short notice. And borrowed heavily against these tokens.

When the bank goes bust there's insurance on your deposits. If the amount stored is greater than that insurance you may want to invest the difference.

And gold is practically hard to work with and barely functions as an inflation hedge (point 1) over reasonable time periods (your lifetime).

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