Cryptocurrency was (and still is to an extent) a really interesting idea that has a ton of real world utility, especially as government surveillance continues its march towards panopticon. It's a shame that the "get rich quick" grifters and speculators took ahold of it and have killed any chance of normal people adopting it as a regular form of payment.
Nearly 14 years in, where exactly is this “ton of real world utility”? Surely someone somewhere would have a product providing this utility, even amidst the sea of fraud and grift. I still don’t see it. Some utility? Okay, sure. A ton? Not even close. Consider that the web launched in 1993. By 2007 (14 years later), virtually the entire planet had changed dramatically as a result. That is a technology with a ton of r…
Binance US No Longer Allows USD Withdrawal for Users
281–290 of 424 posts
Re: Binance US No Longer Allows USD Withdrawal for Users
#282Earlier quoted context omitted.
As much as I would like to believe BTC's market is completely fake, there has to be some real liquidity there. The hashrate is ~421 EH/s which represents a tremendous amount of ongoing spending on mining equipment and energy. That spending has to be funded somehow and the only way that makes sense is by selling the mined BTC. So there may be a lot of wash trading and games played with stablecoins trying to prop up th…
Yes, thank you for your comment. Altcoins are terrible, NFTs are terrible, it was all a trend and I'm glad it's gone now. Bitcoin is different, always has been, always will be. Bitcoin is the digital gold. In my opinion it's not a currency and will not function like a currency but rather like gold. You don't buy your latte with gold, but you own gold stocks. Same thing with Bitcoin. It's the safest, oldest, most test…
The point of mining is to prevent double spend attacks. It does this in a rather brute-force way: the network as a whole always maintains a higher hashrate than any attacker. The network always out-spends the attacker to maintain security. As described in my prior comment the funding for this massive hashrate comes from newly generated BTC.
But Bitcoin is designed to wean itself off of emitting new coins as a mining reward. This is done by halving the block reward arbitrarily every 4 years. This is necessary to fulfill the promise that there will only ever be 21M coins, which has been a huge selling point to anti-inflation investors.
Ultimately the mining is supposed to be funded entirely by fees. But there is no market mechanism to ensure that fees "make up for" the lost emissions of new coins. The only reason to pay a high transaction fee is if there is high transaction volume, causing blocks to fill up, so you are competing for space with other people trying to make transactions. If transaction volume is fairly low, fees remain low. You can see fees only become a meaningful part of the reward at times of unusually high volume[0].
So, it seems plausible to me that if Bitcoin mining was funded entirely on transaction fees, the total mining reward would not be high enough to sustain enough hashrate to be impervious to 51% by a powerful attacker. That's especially true if most users are holding onto BTC as a store of value not attempting to transact in it. As far as I know, there is no successful cryptocurrency that functions using fees alone. Bitcoin is in a very slow march towards being the first to do that.
Basically the network is currently funded with a "tax" on holders of BTC -- newly generated coins dilute the value of held coins. This to me makes a lot of sense for a store-of-value. But the coin is trying to transition to funding security with a "tax" on users of BTC. Nobody really knows whether this will work. In fact nobody knows how much is the "correct" amount for the network to spend on mining at all. All we know is that with the current level of spending we haven't had a 51% attack yet. Are we spending 2x more than needed? 10x? 100x? It's impossible to say but the design of BTC seems like a slowwwww experiment to find the level at which it fails.
Re: Binance US No Longer Allows USD Withdrawal for Users
#283Earlier quoted context omitted.
This really is the key thing. Crypto allows for the evasion of laws. That's its key contribution. In authoritarian states this is probably a net good. In the rest of the world this is a harm. "The killer app for this technology is crime."
[US specific] Without evasion of laws, women wouldn't be allowed to vote, black folks would be slaves, interracial marriage would be a crime...I can go on and on. The ability to disobey unjust laws is absolutely essential to the health of a society.
Just some sort of disobedience technology without plans for change and active work on that (including majority building and policy proposals) is not going to cut it.
You want functioning societies not some dystopia with a tech underground.
Re: Binance US No Longer Allows USD Withdrawal for Users
#284I have had a little money stuck with them since they banned US customers to the original site. There has been absolutely no way to transfer the money out of my account, even to Binance US, and I eventually had to just call it a loss.
Convert to a stablecoin and transfer out?
Re: Binance US No Longer Allows USD Withdrawal for Users
#285Every bit of evidence is that the crypto boom has crashed to Earth. In tech it is basically a dirty word now and is overwhelmingly associated with the worst products, the worst teams and the worst get rich and quick sorts. In the rest of the market it has made little to no impact. Yet somehow BTC is still trading at close to historic highs. Now to be fair the market cap of all of BTC is 1/4 Apple, but if it were remo…
Wait, WHAT? Your argument is: because a ton of people have put a ton of money into it, that proves that it's a scam? So the stock market, which has a much bigger market cap is therefore MORE of a scam? What are you trying to do here?
No, that isn't what I said. I said that clearly crypto in any rational sense has failed. Not just failed, overwhelmingly, catastrophically failed. It has zero relevance to the broader market. It has retreated from even where it was five years ago, that being a massively failed experiment.
BTC has held value because most of the people who hold it didn't "put a ton of money into it". BTC is the very definition of HODL behaviour, with negligible daily liquidity. It is a house of cards.
Re: Binance US No Longer Allows USD Withdrawal for Users
#286Earlier quoted context omitted.
While it may be hard to see in first world countries, imagine being in a third world country and having a place you can store value that can't be debased by your crackpot dictator. That's huge.
It can't be debased by a crackpot dictator but it can be debased by the crackpot market. If you "stored value" from 2021 in BTC, you'd only have about half of that value right now. Granted, if you "stored value" from 10 months ago, you'd have 50% more than you put in. But, I think those big swings make it a poor instrument for most people to view it as a real way to store value.
Re: Binance US No Longer Allows USD Withdrawal for Users
#287Re: Binance US No Longer Allows USD Withdrawal for Users
#288Earlier quoted context omitted.
This really is the key thing. Crypto allows for the evasion of laws. That's its key contribution. In authoritarian states this is probably a net good. In the rest of the world this is a harm. "The killer app for this technology is crime."
> Crypto allows for the evasion of laws. Uber allowed anyone to drive without a taxi medallion. AirBnB allowed anyone to turn a home into a hotel. Amazon allowed anyone to buy a book online, without having to go to a book store. Not everything is about evasion of laws.
Re: Binance US No Longer Allows USD Withdrawal for Users
#289Earlier quoted context omitted.
Wait, WHAT? Your argument is: because a ton of people have put a ton of money into it, that proves that it's a scam? So the stock market, which has a much bigger market cap is therefore MORE of a scam? What are you trying to do here?
What a bizarre bit of strawmanning. The crypto brigade has arrived so this has all gone very desperately defensive. No, that isn't what I said. I said that clearly crypto in any rational sense has failed . Not just failed, overwhelmingly, catastrophically failed. It has zero relevance to the broader market. It has retreated from even where it was five years ago, that being a massively failed experiment. BTC has held…
And perhaps, more do the point -- why is BTC maintaining a pretty high price?
Your point on liquidity only stands if you presume what I think a lot of people incorrectly presume: which is, crypto as an alternative to day-to-day currency (edit: or perhaps other generally designed-to-be-liquid thing). Which, I agree with most, it will almost certainly NEVER be.
But that doesn't exclude the possibility of crypto as long-term investment/hedge against inflation.
I wouldn't necessarily argue that "crypto in the future will definitely be a big and useful thing," but I think it's wildly premature to call it dead.
Re: Binance US No Longer Allows USD Withdrawal for Users
#290Earlier quoted context omitted.
This really is the key thing. Crypto allows for the evasion of laws. That's its key contribution. In authoritarian states this is probably a net good. In the rest of the world this is a harm. "The killer app for this technology is crime."
[US specific] Without evasion of laws, women wouldn't be allowed to vote, black folks would be slaves, interracial marriage would be a crime...I can go on and on. The ability to disobey unjust laws is absolutely essential to the health of a society.