161–170 of 194 posts
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Tether
Exactly. The SEC has said they consider crytpos securities. That would mean the fraudulent price manipulation in the crytpo space (Bitfinex treating tether as USD and pushing up the bid) is securities fraud. This is probably why Wells Fargo stopped clearing Dollar transactions for Bitfinex.
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The irony of making it difficult to exit crypto means traditional banking will long-term be on the losing end as people who buy into crypto (even as novelty) won't want to "cash out" due to difficulty while realizing how convoluted the fiat process is when viewed from the outside. They'll find ways to stay in crypto and get things done.
> traditional banking will long-term be on the losing end as people who buy into crypto (even as novelty) won't want to "cash out" due to difficulty There is context for this. China and Venezuela's capital controls are why everyone wants to hold renminbi and bolivars.
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I'm going to start one, just going to call it Ibizacoin or something.
Go for it! Honesty seems to have worked out well for the Useless Ethereum Token guy: https://uetoken.com/
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We have ligthning comming up, anx 600+ altcoins to test.
Imagine that you are a business that operates in Bitcoin and pays employees in Bitcoin. How does Lightning solve that? It doesn't. Lightning falls apart if the graph has heavily asymmetric connections, and the only solution is to have banks, which is what these crypto enthusiasts want to get rid of in the first place. https://medium.com/@jonaldfyookball/mathematical-proof-that-...
Then you use a single, non-Lightning transaction with an output for each employee, and the fee for that transaction is most likely less than half a percent of the total amount being transferred[1].
[1] Actually just 0.35% ($170 fee / $48k wages) assuming a fee of 520 satoshis/byte, 34 bytes per output, 140 bytes of fixed overhead, $15k/BTC, 60 employees, and an $800 after-tax biweekly paycheck per employee ($20k/year). The ratio improves for higher wages since the fee is unaffected by the amount being transferred.
A few thoughts from a CEO in this space: 1. There are very few issuing banks for crypto fiat debit cards. Internationally there has been 1 WaveCrest; which as of a few months ago decided to discontinue support. 2. Even when a bank will sponsor a crypto fiat debit card into one of the payment networks, the company offering the card will face constant pressure from their own bankers. 3. This happening is from my perspe…
2) Stop saying crypto is decentralized. The vast majority of cryptocurrencies are mined by a small minority, and most participants have zero say in the direction of each currency. Yes, you can have a "decentralized" architecture, but not "democratization". Crypto-space ended up with an oligarchy.
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Wire transfer fraud. I am an insider in the Bitcoin industry, and within 1 day of opening a new bank account we started seeing fraudulent wires flooding in. When we dug deeper, it was shocking to see how many Americans' bank credentials have been hacked. It takes almost no effort for a EEU/RUS hacker to send a wire from a hacked bank account. Once the fraudulent wire is sent, rest of the wire transfer system is tedio…
Regarding CB ACH, They had/have a huge exploitable hole in their ACH system that a friend discovered by accident. Long story short, they credited them for a large sum that they never took from his/her account. I won't put the exact detail of how to trigger the error but suffice it to say it was shocking to learn how a system that deals with large sums of real money could fail in such a way (and likely in a repeatable…
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The SEC has said they consider some cryptos securities. They've been pretty reasonable about it so far.
Yes. For example, they've said that you could use a blockchain to keep track of book borrowing in a book club, where people expect to use the blockchain to get books and not to get rich. I do think this is pretty reasonable, but it sounds like you meant something else.
https://www.sec.gov/news/public-statement/statement-clayton-...
A few thoughts from a CEO in this space: 1. There are very few issuing banks for crypto fiat debit cards. Internationally there has been 1 WaveCrest; which as of a few months ago decided to discontinue support. 2. Even when a bank will sponsor a crypto fiat debit card into one of the payment networks, the company offering the card will face constant pressure from their own bankers. 3. This happening is from my perspe…
> 3. This happening is from my perspective just a quick look behind the curtain of the Digital Currency infrastructure problem as it exists today. There is no good way in, or out of digital currency at the moment, and the ones that exist are tenuous at best. What country do you live in? This has not been true in US or EU for years as Coinbase and Kraken are two excellent options to get in and out. Bitcoin debit cards…
Unacceptably poor customer service, significant markup when buying bitcoin, sometimes a week or more delay between purchase and fulfillment, arduous verification process for new customers, being arbitrarily (from the customer's perspective) flagged for a verification even though you already sent them a photo of your passport 3 months prior, banning customers for sending coins to certain addresses, and did I mention unacceptably terrible customer service? Sometimes just never even responding to a customer ever?
I can't say it's not usable... I have bought bitcoin from there and I did receive it, but the experience has been very far from good.
> We're being oppressed! Oh dear. I hope that was said with tongue firmly in cheek, because anyone who truly believes that their Bitcoin Visa card being cancelled is a form of "oppression" needs a reality check.
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This is not true. Liquidity in these markets is steadily increasing. It is easier now to sell large amounts of Bitcoin than it was two years ago, and it was easier then than two years prior.
Have you tried to sell millions of dollars worth of bitcoin to USD? As soon as there is a down day the exchanges shutdown and stop people from trying to withdraw. The money to cash out billions doesn't exist. All these headlines of founders being billionaires is false. $1.5 billion fake USD pumped crypto. Good luck to anyone holding millions of dollars trying to cash out when the market turns downward. This is adult…
A million dollars perhaps used to be problematic, but is now a drop in the bucket on any exchange's daily volume. A normal bank transfer will suffice, but check with your bank if you aren't moving those amounts regularly. For bigger volumes there is a quite functional OTC market as well.