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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#261

Post by cypress66 »

phone8675309 wrote: post #165
brnt wrote: post #33

So, having been around since the early bitcoin days, core to the salespitch back then was the fact you would have control. You'd have your coins in your wallet, and no need for banks etc. Apparently nobody does this anymore, and gives their wallets to these exchanges (i.e. banks) and balks when the obvious happens in pyramid schemes. People just don't get distributed currency if they promptly undistribute it. Or is i…

The people who were pushing the fact that you'd have sole control over your wallet were those who wanted to be immune from the government seizing their money: scammers, criminals, tax dodgers, and exchange runners (a combination of the first three). Those people put a bunch of money into bitcoin to inflate the price, but they need a bunch of rubes trading the currency to keep the value of the coin (relatively) stable…

> The people who were pushing the fact that you'd have sole control over your wallet were those who wanted to be immune from the government seizing their money: scammers, criminals, tax dodgers, and exchange runners

How sad that you think the only people that cares about not giving governments control of everything are "scammers, criminals, tax dodgers, and exchange runners".

Re: Crypto exchange AAX suspends withdrawals

#262

Post by gruez »

ethanbond wrote: post #220
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right? This prompts the question: why are they so centralized? It turns out the advantages of centralization are more significant than the advantages of decentralization, and this is true even in a market with religious orientation toward decentralization . All you've gotta do to…

>But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right?

The closest you can get to decentralization with the traditional finance system is to withdraw and store cash, which is expensive/risky and causes inflation to eat away at your savings. Good luck with other parts of the finance system (eg. investments or loans). It's ironic how you portray centralization as something that people willingly engaged in because it was beneficial, considering that the disadvantages are all there by design (eg. the government refusing to make high denomination bills, or instituting a monetary policy that causes inflation).

Re: Crypto exchange AAX suspends withdrawals

#263

Post by anonymousab »

disruptalot wrote: post #187
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

> All fundamental crypto values say this.

This feels mighty similar to the old "communism didn't fail people, people failed to do real communism" rationalization.

Re: Crypto exchange AAX suspends withdrawals

#264

Post by roflyear »

djbebs wrote: post #152
acomms wrote: post #61

Earlier quoted context omitted.

In a regulated market sure, but here they seem to be trading with customer assets - which is so much worse.

No regulation would have prevented this crime from happening. I want to be clear here, what happened here is already illegal as is, and no regulation would have prevented it from happening in the first place. Hell, the firm was already being audited, and those auditors didn't catch the accounting discrepancies, so it's doubtful that any additional regulation would have found this earlier either...

back in the day (as in like 30-60 years ago) a popular scam was to create a situation where frontrunning trades was really easy. there are a million examples of similar things.

i don't think regulation is a good thing when a single person is trading with a single person. but, at some point an exchange becomes so big (they deal, seemingly fairly and with honestly, with many people) where people start to trust it. there is an inflection point where people can take advantage of that part of the human condition. then, you need regulation, not because people are stupid, but because we're human and it is easy to fall victim.

in these cases regulation helps to preserve the trust in the systems. otherwise, people just will not use them, or they will use them in ways that are not beneficial to the group.

Re: Crypto exchange AAX suspends withdrawals

#265

Post by dncornholio »

ethanbond wrote: post #220
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right? This prompts the question: why are they so centralized? It turns out the advantages of centralization are more significant than the advantages of decentralization, and this is true even in a market with religious orientation toward decentralization . All you've gotta do to…

Centralisation isn't even a problem. Not getting any money is a problem though. Doesn't matter if the place where it's at is centralised or not.

The decentralised instances are experiencing all kinds of trouble.

I fucking love centralisation!

Re: Crypto exchange AAX suspends withdrawals

#266

Post by jupp0r »

gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

Like: "you don't gamble with other people's money that they didn't give you for that purpose"?

Re: Crypto exchange AAX suspends withdrawals

#267

Post by gruez »

phailhaus wrote: post #233
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

> Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this. You can literally say this about "regular" currency. Just don't put your money in banks! But people do, why? Once you answer that, you'll realize why people do it for crypto too. You can't complain that it's "against fundamental crypto values" when it doesn't have any mechanism for p…

>But people do, why?

1. cash is bulky and risky to keep at home

2. inflation eats away at your savings

Bitcoin is designed to solve both issues.

Re: Crypto exchange AAX suspends withdrawals

#268

Post by jimbokun »

gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

That's a great quote. What's the source?

EDIT: Ah, looks like it's from wise Hacker News contributor gzer0:

https://news.ycombinator.com/item?id=32415093

Re: Crypto exchange AAX suspends withdrawals

#269

Post by status200 »

anon291 wrote: post #200
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

Unfortunately, absent the crypto exchanges, which let you easily convert crypto to fiat, there is no reason why crypto has any value. Given that bitcoin transaction times are nowhere near VISA or cash times, bitcoin is fairly useless to purchase things in person and few online vendors take bitcoin alone (most use an exchange to convert bitcoin to cash instantly). So without exchanges, there is literally no purpose or…

Having sent $100k via traditional banks as well as crypto, I can add my anecdote that the latter was far easier. Some would argue that it shouldn't be that easy, and I agree to some extent.

Setting up our tax system to be transparent and auditable by any citizen would be the greatest benefit to a distributed ledger, but something tells me that the current institutions would heavily resist that transition, so you are correct that it has little current value.

Re: Crypto exchange AAX suspends withdrawals

#270

Post by fleddr »

brnt wrote: post #33

So, having been around since the early bitcoin days, core to the salespitch back then was the fact you would have control. You'd have your coins in your wallet, and no need for banks etc. Apparently nobody does this anymore, and gives their wallets to these exchanges (i.e. banks) and balks when the obvious happens in pyramid schemes. People just don't get distributed currency if they promptly undistribute it. Or is i…

The thing is that the people that are most active in crypto and typically have the largest stacks are traders. They grow their stack by shorting/longing, leverage, staking and DeFi, all of which require an exchange.
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