BlockFi files for bankruptcy as FTX fallout spreads

Post by WeylandYutani » Mon, Nov 28, 2022, 9:31 PM UTC

btown wrote: post #224

herval wrote: post #78

Earlier quoted context omitted.

That's pretty much how a lot of "unicorns" felt in the past 2-3 years

I once heard that a well-known gig economy company would open up new cities by giving employees essentially-unlimited credit cards and telling them to buy whatever they thought was needed, with no controls or multi-person approvals. It'll be interesting to see how VC changes in the modern environment - will they still be all-in on founders willing to unsustainably burn money just to incrementally boost the probabilit…

Post by Eisenstein » Mon, Nov 28, 2022, 9:37 PM UTC

lottin wrote: post #374

Eisenstein wrote: post #356

Earlier quoted context omitted.

According to wikipedia, under 'Central Bank': "a central bank possesses a monopoly on increasing the monetary base. Most central banks also have supervisory and regulatory powers to ensure the stability of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks." Since the major collapses were by organizations which had a monopoly on creating their own currencies (…

Sorry. We were talking about what it means for an "actor" to be "decentralised". Now you're saying that a central bank is someone who has a monopoly on issuing their own currency. So apparently I'm a central bank, you're a central bank, the Chinese restaurant around the corner is a central bank... First of all, none of these people or organisations are central banks. And second, we weren't talking about central banks…

Post by MrMan » Mon, Nov 28, 2022, 9:40 PM UTC

weard_beard wrote: post #320

Eisenstein wrote: post #298

Earlier quoted context omitted.

Your original response was an insinuation that banking systems in general are based on fraud, and that gold should be the basis of monetary value. In fact, the case has been proven that gold is a poor basis of monetary value and that banking systems, when properly regulated, are not fraudulent, or are very rarely fraudulent. The reply to that was to explain that regulation was the key to maintaining a stable banking…

Please understand I am not trying to be dishonest or make arguments in bad faith. Maybe I need to be further educated. I understand that the level of fraud committed specifically by FTX goes far beyond simply misleading lenders and regulators about their collateral which consisted mostly of their own crypto. In general, however, this seems to be the root of the issue and the systemic problem across all centralized cr…

Post by lottin » Mon, Nov 28, 2022, 9:41 PM UTC

halpmeh wrote: post #385

lottin wrote: post #383

Earlier quoted context omitted.

Destroying money doesn't destroy capital. It doesn't matter who created it. Money is not capital. You're mistaking a claim on a good for the good itself. These are completely different things.

Again, you're using a totally non-standard definition of capital. Google "capital definition" > wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. So yes, if you redefine the word capital to fit whatever you like, then sure, I agree with you.

Post by AlexandrB » Mon, Nov 28, 2022, 9:46 PM UTC

aww_dang wrote: post #154

nscalf wrote: post #9

For what it's worth, all reasonable people in the crypto space want regulation to make sure these types of poor lending practices don't continue. Regulators have been slow and ineffective when it comes to crypto, which has lent itself to the crypto v SEC narrative, but all the adults in the room known there is a need for some regulation.

The market is punishing bad actors with insolvency. Yet somehow the conclusion is that markets are not effective in self-regulation.