In response to the usual comments about how "we need legislation on crypto, and we need it now!", can we just have one thing that isn't legislated to shit? Please? Yes, there are scams. If you fail to even do the bare minimum research, that's your fault. If you suck at detecting sketchy investments (or use crypto as an investment in general, rather than its intended purpose), that's your fault.
Temporary pause of Bitcoin withdrawals on Binance
111–120 of 532 posts
Re: Temporary pause of Bitcoin withdrawals on Binance
#112Earlier quoted context omitted.
We should be asking "what exactly is the point of holding BTC"
Holding BTC for the long term has historically been a lucrative investment. Just not holding it on one of the many centralized exchanges that always seem to get hacked or go bust.
Holding tulips in the long term was historically a good investment, too, until it wasn't.
Re: Temporary pause of Bitcoin withdrawals on Binance
#113It's not in the spirit of decentralization to stop withdrawals
It actually is.
Smaller banks are vulnerable to bank runs. So a lot of banks during crisis (before FDIC / Centralized Banking in the USA) would close up to stop bank runs.
Closing up shop during a bank run only made people angrier, and exacerbated the problem. What was invoked as a solution, was for every bank in the nation to be FDIC insured by the central bank.
The smaller and more decentralized banks are, the more frequently the bank-runs are, forcing the small banks to close to protect themselves.
Re: Temporary pause of Bitcoin withdrawals on Binance
#114Earlier quoted context omitted.
meanwhile anybody who has their own keys is able to transact with it as per usual. “not your keys not your coin.” holding keys are not trivial but far simpler than running a server, better analogy might be to do with people not wanting to stake with a validator because it’s easier to use a centralized staking service.
Transacting with it is one thing, withdrawing into fiat is quite another. Let's not pretend that most people holding BTC are holding it to buy goods and services rather than as a speculative vehicle.
Oh sorry I repeated you!
Re: Temporary pause of Bitcoin withdrawals on Binance
#115Imagine if this was some Oceans 11 type heist where the BTC owner (Binance, not you plebs holding coins in someone else's wallet) thinks one thing is happening, all while someone unauthorized got a hold of some hot wallet keys and is draining them
30 minutes have come and passed, BTC still not in sight
Re: Temporary pause of Bitcoin withdrawals on Binance
#116You really cannot make this up. As usual crypto in practice is the opposite of decentralized because people. Will. Not. Run. Their. Servers. Moxie nailed it
I think it's because bitcoin trading can't actually use the network - it's too slow and expensive.
So the exchanges and the stable coins are used as a proxy which then means that they are disconnected from the actual currency. This means that there is an amplifier (leverage) on the way up, leading to spectacular bull runs.
Also...
Re: Temporary pause of Bitcoin withdrawals on Binance
#117Earlier quoted context omitted.
Alternatively: Many people will not pass an opportunity of a "risk-free" 20% APY. (Not sure if Binance in particular is paying interest on deposits, but many exchanges do, as far as I know.) Also, how are wallets the same thing as servers? That analogy seems a bit stretched.
I’ve only heard of this mythical “risk free 20%” after the crash. I never heard anyone advertising that rate before.
Tons of alt coins offering triple digit APYs over the last few years.
Re: Temporary pause of Bitcoin withdrawals on Binance
#118The goldbugs' saying that 'if you don't hold it, you don't own it' seems to apply...
Bitcoiners saying that 'if you don't hold it, you don't own it' also applies.
Re: Temporary pause of Bitcoin withdrawals on Binance
#119"stuck transaction causing a backlog" Can someone explain the mechanism here? What is going on? (Is it something interally at Binance or something to do with the Bitcoin network.)
Two guesses: Guess one, they made a big transaction with most of their hot wallet, partially paying out to someone who withdrew, with the rest going back to the hot wallet. This transaction is in the queue but not finalized yet. The network won't accept any other spends of that money. Because that would be a double spend. So until that transaction is finalized (or it gets to old) that bitcoin is 'stuck'. Or alternati…
Excellent hypotheses, it should be possible to see these transactions if they are out there. That's why it's a public blockchain.
Re: Temporary pause of Bitcoin withdrawals on Binance
#120Earlier quoted context omitted.
not your keys not your coins. nothing to see here
"real crypto has never been tried"
I wonder if BTC will use the communism excuses, given the space is a hyper-capitalist space where everything is made of money.
I'll be looking with great attention to the near future.