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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#291

Post by tgtweak »

The playblook seems to be the following:

1) Freeze withdrawals

2) Announce they are being frozen at some later time

3) Anyone who is powerful/influential enough to "get to you" gets their withdrawal processed

4) The rest are not dangerous enough to worry about having a hit taken out on you

I hope everyone recognizes that it's about transparency and common sense more than regulation. Sadly this will probably cascade to other exchanges as general awareness forces more people to withdraw from exchanges. Hopefully the stronger exchanges persist.

The real question everyone should be asking is: who is the counterparty to these "losing" leveraged deals?

Re: Crypto exchange AAX suspends withdrawals

#293

Post by Watchwatcher »

0xAFFFF wrote: post #81
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 core truth in this day and age is that nobody (understand this a non-significant minority if you prefer) wants to host their own stuff. It's way more convenient to use centralized services that do the heavy lifting for you. If you don't have that convenience, you can't have mass adoption.

Another way to say, you reap what you sow, right?

Re: Crypto exchange AAX suspends withdrawals

#294

Post by isolli »

mshron wrote: post #55
endorphine wrote: post #48

Earlier quoted context omitted.

Why do you believe that is the case? How is this hypothesis explained?

Higher interest rates mean that investors can earn money by buying bonds, which are lower risk. Riskier investments (stocks, real estate, cryptocurrencies) are less attractive to investors as a result, unless they can provide even more return to compensate for the risk, which is unlikely.

The can provide more return by becoming cheaper first ;)

Re: Crypto exchange AAX suspends withdrawals

#295

Post by Victerius »

jmartin2683 wrote: post #288
gruez wrote: post #267

Earlier quoted context omitted.

>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.

except it doesn't solve either, because it's still risky to keep (whether with a 'trusted third party' or at home on some physical device... at the end of the day it can't be better than physical possession.. i.e. cash). volatility is a lot worse than stable inflation, and deflation (just HODL!) is much, much worse to the point of demonstrating the degree to which bitcoin is not useful as a monetary unit of exchange.

Bank robberies are no longer a thing in the 21st century. No one loses their savings because of thieves.

Re: Crypto exchange AAX suspends withdrawals

#297

Post by qclibre22 »

criddell wrote: post #277
phailhaus wrote: post #233

Earlier quoted context omitted.

> 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…

I put my money into a bank because the bank is FDIC insured. The risk is less than keeping it in a safe in my house.

Plus (during normal times) you get an interest rate that equals inflation. Mattress loses during inflation.

Re: Crypto exchange AAX suspends withdrawals

#298

Post by codedokode »

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."

Regulated banks and currencies have similar issues, for example:

- the government can print more money and devaluate your savings (it's like a form of tax one cannot avoid). But it is difficult to "print" more cryptocurrency.

- the government can put limits on amount of money one can withdraw from a bank account. So you legally have the money but cannot use it.

- the bank can refuse to deal with you under AML acts without need to prove anything. But nobody will ban you from mining and exchanging crypto.

- the bank can go bankrupt

The most reliable way to keep your savings safe seems to be to store it as gold. However, there are usually high taxes for buying/selling gold (because why let people store their savings safely) and often governments outright ban gold (folks from US are probably familiar with such situations [1]).

[1] https://en.wikipedia.org/wiki/Executive_Order_6102

Re: Crypto exchange AAX suspends withdrawals

#299

Post by chasd00 »

goodoldneon wrote: post #239
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…

You still have people with their own wallet. But the vast majority of people don't want to deal with the complexity of decentralization so they prefer centralization

I think the vast vast majority of people just want to increase the balance of their checking account. The fastest way to do that with crypto is speculating on an exchange. I bet 95% of the people getting burned on these exchanges don't even know what a "wallet" is (in the context of crypto currencies).

Re: Crypto exchange AAX suspends withdrawals

#300

Post by boppo1 »

kkielhofner wrote: post #106
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…

As I've noted before on HN the entire concept of people being able to manage their own wallets flies against everything we know about people. People forget stuff, make mistakes, and lose things. The margin of error for a wallet is tiny. It's not rare for crypto forums, twitter, etc to prescribe completely ridiculous processes and systems for securing wallets, backing up seed phrases, etc. There's an entire cottage in…

>There's an entire cottage industry built around people etching their seed phrases on steel plates for people to (I'm not kidding) bury them like they're gold in the 1800s.

I was about to say this isn't the worst opsec until I realized you mean people are sending businesses their passphrases and not purchasing an etching kit to make the plate themselves.

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