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BlockFi files for bankruptcy as FTX fallout spreads

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Re: BlockFi files for bankruptcy as FTX fallout spreads

#121

Post by dehrmann »

darawk wrote: post #34
PM_me_your_math wrote: post #21

Earlier quoted context omitted.

Is it wrong to assume that this is because the industry is mostly built upon a house of cards or because of bad actors? Objectively asking.

I think the true answer to this question is that it was/is a gold rush with low interest rates that led large amounts of capital to be allocated to less than competent people. In particular, the companies and operators that look the smartest when a bubble is inflating are the ones that genuinely hedge downside risk the least, while pretending to enough to fool people with capital to allocate. This only becomes appare…

> normal tech has already found its use cases and does real things for real people in the real economy

For all the problems with gig economy companies, they're not crypto. Uber fell from its high, but it's still facilitating rides and deliveries.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#122

Post by JumpCrisscross »

seydor wrote: post #102
ilamont wrote: post #80

Earlier quoted context omitted.

There are LPs behind a lot of these incompetent VCs dumping money into in crypto, including public workers' pension funds.

Pension funds are investing in VCs?

> Pension funds are investing in VCs?

Yes, commonly [1]. At the portfolio level, VC is about as risky as buyout [2].

[1] https://www.thebusinessofvc.com/blog/lp-universe?format=amp

[2] https://timesofe.com/vc-fund-returns-are-more-skewed-than-yo...

Re: BlockFi files for bankruptcy as FTX fallout spreads

#123

Post by NotYourLawyer »

Auracle wrote: post #43
redwood wrote: post #23

Earlier quoted context omitted.

To confirm, what makes Coinbase different is that it's not a lender?

As far as I know only interest you can earn on Coinbase is from staking coins - and Coinbase actually takes a portion of that profit for themselves. I remember looking at all of these now defunct businesses wondering just how they could have such high interest rates on your coins. In what should be a surprise to no one it was too good to be true.

If someone offers a risk-free return way above the prevailing risk-free interest rate… there are some risks that aren’t being disclosed. Everybody forgot that for a little while.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#124

Post by NotYourLawyer »

jb12 wrote: post #72
redwood wrote: post #23

Earlier quoted context omitted.

To confirm, what makes Coinbase different is that it's not a lender?

It's not domiciled in North America. In fact, they refuse to tell anyone where their HQ is. EDIT: sorry, got confused. Ignore me.

Are you thinking of Binance?

Re: BlockFi files for bankruptcy as FTX fallout spreads

#125

Post by rahen »

fear-anger-hate wrote: post #60
rahen wrote: post #14

Earlier quoted context omitted.

> Sure, but you can't use DeFi to trade fiat for crypto. Of course you can, both ways. - https://bisq.network - https://learn.robosats.com

Bisq is a really impressive project. Upon first hearing about it I was a bit skeptical at how a decentralized peer to peer exchange would work in practice, but now that I've used it a few times with no issues, it really does seem like the best way to do fiat crypto exchanges. Really hope that bisq and other similar services get the recognition they deserve now that the trust in cex's has taken a fall.

Bisq v2 is going to be an interesting release: https://github.com/bisq-network/bisq2/blob/main/docs/aims.md

They're currently a little short on manpower. If you're a Java dev, you might consider giving a hand.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#126

Post by vkou »

ilamont wrote: post #80
seydor wrote: post #55

Earlier quoted context omitted.

VC wealth redistribution

There are LPs behind a lot of these incompetent VCs dumping money into in crypto, including public workers' pension funds.

Those pension funds have a small part of their portfolio chasing high-yield investments. I don't cry crocodile tears when they overperform the SP500, and I can't say I'll be crying them when they underperform.

... Although given how frequently the Ontario Teachers' Pension fund has made the 'Pension funds invests into an incredibly dumb startup' news cycle, I suppose grifters, thieves, and conmen might consider them to be an easy mark.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#127

Post by rjtavares »

Analemma_ wrote: post #76
traveler01 wrote: post #25

Earlier quoted context omitted.

That's the thing, you only depend on centralized actors if you want to. The entire point of cryptocurrencies are to not depend on centralized institutions that can screw you over.

If you stored your Luna/FTT/whatever on a personal wallet and never touched an exchange, you still lost all your money. The centralized actors run the show whether you interact with them or not.

If you bought BTC before centralized actors became dominant, you didn't lose money. If you bought BTC after, you should have known that could happen.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#130

Post by [deleted] »

A4ET8a8uTh0 wrote: post #49
badpun wrote: post #33

Earlier quoted context omitted.

When designing the iPhone, one of Apple's findings was that majority of people struggle with understanding the concept of the file system (and hence, there's no visible file system in iOS). In such world, only a small minority of people will be interested in decentralized cryptocurrencies, as the bar of technical skills required is too high for most people. This is what led to the success of centralized cryptobanks.

I hate how accurate this comment is. Without going too far with examples, PGP exists, but using it is simply harder so most people default to an easier email sending. Now.. the question remains as to whether it would be the same, if it tech was not made so accessible ( some people would be forced to learn since the bar was high ). I mostly think that battle is already lost.

[deleted]
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