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Temporary pause of Bitcoin withdrawals on Binance

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Re: Temporary pause of Bitcoin withdrawals on Binance

#211

Post by mumblemumble »

ericmay wrote: post #153
lumost wrote: post #108

I recently watched some traditional cable and was shocked by the number of crypto ads bombarding viewers. I have to imagine that this market was goosed up by retail investors trading on coinbase and binance just as the e-betting market was. The only difference between crypto and e-betting is that everyone got to be a winner on the crypto markets for a while. As users lose out, and exchanges stop ad campaigns - how lo…

> I'd doubt BTC will go to zero, but I wouldn't be surprised if the entire covid rally gets wiped out and we see BTC 6k again. I agree. We invest a small amount of money into $BTC and I feel pretty neutral on the topic and my comments come from an intention of neutral observation. I think $BTC is in a bad spot that's about to get worse in the short-term. It's getting hit from both ends: expensive energy, and high int…

Long term I'm bearish because it's a deflationary asset. Deflationary value stores have a tendency to cause all sorts of social ills by encouraging hoarding. There's a reasonable line of thought that observes that it's no coincidence that the end of the age of European colonialism coincided with the demise of the gold standard.

More concretely: if crypto is deflationary, then its value works similarly to how an Amway or Herbalife membership's value does. You get rich by getting in first and then convincing others to join after you.

Re: Temporary pause of Bitcoin withdrawals on Binance

#212

Post by optimiz3 »

faangiq wrote: post #196
optimiz3 wrote: post #189

Earlier quoted context omitted.

Case in point: was an early adopter of Eth, mined many of the very early blocks. Sold it all back in February. One of the reasons? The whole Eth 2.0 upgrade requires both a base level node (Ethererum sanctioned) and a "2.0 validator node" where one is supposed to trust a 3rd party implementation with minimally 10s of thousands of dollars per stake. At least with a 1st party node the Ethereum Foundation stood behind i…

Also ETH is nonsense with no use case.

Wouldn't go that far - the programmable aspects were at release were certainly unique and value added.

Re: Temporary pause of Bitcoin withdrawals on Binance

#213

Post by bombcar »

woodpanel wrote: post #187
lxgr wrote: post #76

Earlier 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.

> Also, how are wallets the same thing as servers? That analogy seems a bit stretched. It's a stretch but I think we can agree of the underlying statement: People. Aren't. Nerds. The learning curve to understand the technology of wallets is comparable to that of understanding the technology of running servers. PS: After writing this out loud I'm tending towards more people understanding how servers work than how wall…

If people spend the time I think you could learn the "details" - but even knowing the difference between running a node and a miner and server and what a wallet is and the keys associated with it, etc, even knowing and doing all that - it's still a hassle and more expensive! If you "trade" bitcoin inside an exchange and not on-chain, they don't have to pay the chain fees and therefore don't have to charge you to cover them.

It's the same with email - it's actually relatively easy to run an email server even with all the issues; but the spam and deliverability issues are enough that basically nobody except the "true nerds" bother. I suspect most people on HN could run their own email server on a $5 node, but don't bother.

Re: Temporary pause of Bitcoin withdrawals on Binance

#214

Post by tasuki »

SilverBirch wrote: post #92
mattbrewsbytes wrote: post #19

Earlier quoted context omitted.

Holding crypto on an exchange is like giving money to a guy on the corner who knows a broker to put in the stock market and telling them you don't need the account numbers, you trust them. If you're going to do crypto, get a wallet setup where you have the keys to it.

There's two counter points to this. The first is that in terms of day to day likelihood of losing the bitcoin, you're probably generally safer with an exchange than holding the crypto yourself. Secondly, if the exchanges actually do collapse, then whilst you won't lose your BTC if you're not on the exchange, your BTC are probably going to be worth a lot less anyway, so you're still exposed to the risk of exchanges co…

> if the exchanges actually do collapse, then whilst you won't lose your BTC if you're not on the exchange, your BTC are probably going to be worth a lot less anyway

I hear this repeated often. Very short term, sure. But long term, shouldn't your slice of magical internet money pot be worth more simply because there's now less of it in total?

Re: Temporary pause of Bitcoin withdrawals on Binance

#215

Post by [deleted] »

polygamous_bat wrote: post #159
koonsolo wrote: post #97

Earlier quoted context omitted.

There are cryptocurrencies with sub second transactions and zero or almost zero transaction fees. Welcome to the world of Proof of Stake.

You do understand that proof of stake has absolutely nothing to do with transaction speed or fees -- speed depends on how many nodes you want to agree on any transaction (decentralization) while the fees depend on how congested the network gets in an open pricing model for fees? Unless you are a crypto expert in it for the technology, that you happened to learn from random shiller YouTube videos.

[deleted]

Re: Temporary pause of Bitcoin withdrawals on Binance

#216

Post by kkielhofner »

tatertots1234 wrote: post #35
jmoak3 wrote: post #20

You 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

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.

There is a very real calculation to be done here:

Leave it on an exchange and have access to customer support, etc in the event you get locked out of your account or whatever.

-OR-

Be the next news story of the person who messed up the transfer, forget their seed, etc. The entire blockchain ecosystem is still so incredibly difficult to use with bad UI/UX on top of it that this is the more likely outcome for the vast majority of people.

Re: Temporary pause of Bitcoin withdrawals on Binance

#217

Post by ethbr0 »

mumblemumble wrote: post #192
jmoak3 wrote: post #20

You 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

> As usual crypto in practice is the opposite of decentralized because people. Will. Not. Run. Their. Servers. "My theory would be perfect if only I could convince humans to stop acting like humans," is the original sin of bad economics. I would submit that it is approximately impossible to have a cryptocurrency that is simultaneously popularly successful, and has even a significant minority of its users owning their…

> "My [product] would be perfect if only I could convince humans to stop acting like humans," is the original sin of bad [technologists]

fixed that

Re: Temporary pause of Bitcoin withdrawals on Binance

#218

Post by time_to_smile »

lumost wrote: post #108

I recently watched some traditional cable and was shocked by the number of crypto ads bombarding viewers. I have to imagine that this market was goosed up by retail investors trading on coinbase and binance just as the e-betting market was. The only difference between crypto and e-betting is that everyone got to be a winner on the crypto markets for a while. As users lose out, and exchanges stop ad campaigns - how lo…

> I'd doubt BTC will go to zero

I think there's some serious liquidity issues coming up ahead. You need a buyer at the other end to sell, and I think there's an unknown point where there are effectively no buyers.

Right now there are still plenty of crypto-bugs out there that will provide some liquidity because they think things will eventually turn around, but even these people only have so much cash. There's a moment where all of these unsophisticated investors (people that bought crypto based on the ads you're describing) will panic and want to cash out (or need to for personal financial reasons).

We may already be seeing the crypto equivalent of a bank run.

So much of crypto's "value" is based on the assumption of the future success. A big enough of a collapse in the belief in this future and it will be "trading" back at the levels when BTC was just a hobby project for techies (because that's what it will become again).

Re: Temporary pause of Bitcoin withdrawals on Binance

#219

Post by bombcar »

jmoak3 wrote: post #162
renonce wrote: post #150

Earlier quoted context omitted.

Of course they are not. What the author means here is that people create wallets without owning servers, so they are in fact delegating chain verification to thrid parties like Etherscan, rather than by themselves. This is effectively centralizing the crypto on a few entities.

Exactly, thank you. Generally, wallets need to connect to nodes, and nodes are servers. People do not run their own nodes, they connect to existing ones. Nobody wants to download the blockchain on a desktop, start up a node, write their keys in a note pad, and configure their phone’s wallet app to point to their new locally hosted node. God help you if you didn’t even compile your node and wallet app yourself. Anythi…

And more importantly there's a whole procedure for Chase to make you whole, and if Chase itself fails, FDIC steps up, and if they fail, the Fed steps up, and if they fail, the US will nuke someone.

Re: Temporary pause of Bitcoin withdrawals on Binance

#220

Post by dubswithus »

jstx1 wrote: post #2

> due to a stuck transaction causing a backlog How convenient for a transaction to get stuck on such a bad day for crypto prices.

Half the days are bad days. The volatility is wild. So why don't they have more issues if they are committing fraud is the question?
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