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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#401

Post by tibbydudeza »

tibbydudeza wrote: post #51
rapsey wrote: post #40

Earlier quoted context omitted.

crypto.com, kucoin and others are way likelier. All the exchanges that passed ETH around to "demonstrate" their reserves.

How can it be a reserve to hold your own or other "coins" ???. This sector really needs proper regulatory framework like banks.

Way back to get a Schengen tourist visa you have to prove you had a certain amount of money available to cover expenses - you just borrowed money from friends and family for a few days, got a letter from the bank stating you had X in your bank account and then went over living in backpacker lodges and moonlight as a waitron to make money while travelling.

I presume it is more difficult now.

Re: Crypto exchange AAX suspends withdrawals

#402

Post by typon »

bilbo0s wrote: post #238
justoreply wrote: post #234

Earlier quoted context omitted.

Do you know what are you talking about? Banks don't have all the funds. Are they Ponzi scheme? No.

Banks are not exchanges. Those two entities have two different functions in any financial system. You should not be using your exchange like a bank. Even more importantly, your exchange should not be using your assets as a bank would.

> Banks are not exchanges.

This is the most important sentence to say over and over again in this entire discussion. Crypto people have somehow forgot this idea or maybe most of them never realized it in the first place. Your wallet is where your coins should be stored - the exchange is a place where you have pointers to your N wallets for N coins - not the freaking contents of the wallets themselves!

Re: Crypto exchange AAX suspends withdrawals

#403

Post by rtkwe »

littlestymaar wrote: post #348
koheripbal wrote: post #230

Earlier quoted context omitted.

Satoshi also never said Bitcoin should have a high value or be an investment vehicle.

Right, they said it should be a payment method over the internet. But they failed, mostly for two reasons: - they not anticipate ASICs, or even GPUs, which destroyed the idea of decentralized mining where individuals would just mine to get coins to spent, and forced people to buy coins instead (leading to the rise of exchanges). - their Austrian economics prejudice misled them about the nature of money, and the link…

Also the network is far too slow to handle even a fraction of the day to day transactions handled by VISA. Even if you relegate it to more substantial transfers SWIFT handles around 35 million transfers per day and for the whole month of October this year the main chain only handled 7.9 millionish from what I can find. It's so slow there's a whole opaque secondary layer that had to be built to get it even close to potentially handling day to day transactions.

Re: Crypto exchange AAX suspends withdrawals

#404

Post by rglullis »

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."

Hopefully, people will understand that crypto is about self-sovereignty and not get-rich-quick schemes.

Re: Crypto exchange AAX suspends withdrawals

#405

Post by amadeuspagel »

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…

> Apparently nobody does this anymore

The right way to do that is to use a hardware wallet. There are many companies making and selling those, so there's definitely a market for that.

Re: Crypto exchange AAX suspends withdrawals

#406

Post by amalcon »

jacknews wrote: post #77

This all seems like less a problem of crypto as such, and more that exchanges are making a virtual fractional reserve currency by leveraging customer deposits for loans/investments. ie it's a 'banking' problem, specifically a 'fractional reserve banking' problem, not a crypto problem. This is exactly why fractional reserve banking is heavily regulated.

None of these collapses have been due to fractional reserve banking, because fractional reserve banking requires being open about what you're doing. These collapses have been about fraud. There are lots of other kinds of fraud; getting rid of this type would barely make an impact.

While there's nothing intrinsic about cryptocurrency that would make it more prone to fraud than anything else, the culture around it seems highly susceptible to it.

Re: Crypto exchange AAX suspends withdrawals

#408

Post by kibwen »

rippercushions wrote: post #195
tinco wrote: post #108

Earlier quoted context omitted.

You can say that, but when MtGox went bankrupt, and also lost 4 fifths of its stored crypto, the court just heaped together all assets into one big pile and all creditors into one big pile and let them fight it out. So now there's a bunch of assholes including but not limited to Peter Vessenes, that are suing the bankrupt entity for billions (completely frivolous of course) and all the depositors have waited for 8 ye…

Well, let's not forget that BTC has gone up from $300 to $15,000 in the meantime, meaning those fractions are still worth 50x what they were back in 2014. Although who knows what the value of BTC will be once the funds are released, which is itself an event that's likely to crash the market through oversupply.

> Well, let's not forget that BTC has gone up from $300 to $15,000

Depending on how one measures. Prior to Gox's implosion, BTC was $1,000, which is the price people were actually depositing at. Meanwhile, the fact that we're denominating in USD means that we have to account for inflation if we want to compare historical data, which means the current price is more like $13,000 in 2014. There's quite the difference between 13x and 50x.

Re: Crypto exchange AAX suspends withdrawals

#409

Post by MichaelCollins »

horsawlarway wrote: post #342
MichaelCollins wrote: post #260

Earlier quoted context omitted.

Print your private key on paper and lose it all when your house burns down. vs Give your private key to an exchange, and enrich the shitheads running the exchange when they run away with your money. First option seems preferable. If you're going to lose your money, better for the money to be truly lost than to enrich a thief.

Can we acknowledge that both of those options are utter trash compared to conventional banking, though? The system that the crypto advocates hate on, but provides 250k per person + per bank + per account type as insurance by default to all registered financial institutions?

Abso-fucking-lutely. The best time to not be involved in crypto was always, and the second best time is now. Get out now if you have any sense.

Re: Crypto exchange AAX suspends withdrawals

#410

Post by awinder »

codedokode wrote: post #341
dpbriggs wrote: post #320

Earlier quoted context omitted.

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)…

> When the bank goes bust there's insurance on your deposits Usually it covers only limited amount, not full deposit. In US it seems to be generous $250 000 but in other countries it is much lower (e.g. just about $20 000 here). > gold is practically hard to work with and barely functions as an inflation hedge And deposit interest rates are often below inflation in developed countries.

And gold costs money to store, i.e there’s an interest rate charged to you. Its value does change though — in positive & negative directions that don’t correlate to inflation or an underlying monetary fundamental. Because it’s not money or a money equivalent.
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