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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#351

Post by codedokode »

diogenescynic wrote: post #308
codedokode wrote: post #298

Earlier quoted context omitted.

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 wi…

>The most reliable way to keep your savings safe seems to be to store it as gold. This is nonsense. FDIC insurance is adequate for most people and you can open multiple bank accounts without any issues to expand your coverage limit. Stop giving people bad advice. And everything you said about banks is an issue with gold. Most people don't have a vault at home they are storing gold in... they are simply buying a certi…

As I understand, the interest rates for deposits in developed countries are too low to compensate inflation.

Re: Crypto exchange AAX suspends withdrawals

#352

Post by narrator »

0xAFFFF wrote: post #235
netheril96 wrote: post #191

Earlier quoted context omitted.

Centralized exchanges are the polar opposite of what Satoshi was advocating for.

Satoshi was advocating for "digital cash", i.e. something you could do mundane transactions with, yet it's utterly unfit for that puropose. It's 2022, nobody gives a damn about what Satoshi was advocating for and especially not people believing in Bitcoin.

You obviously haven't heard of the lightning network.

Re: Crypto exchange AAX suspends withdrawals

#353

Post by selectodude »

Apocryphon wrote: post #329
xur17 wrote: post #318

Earlier quoted context omitted.

But at least in crypto I have the OPTION of storing it myself. Also, if I do decide to use a custodial provider, I can choose to use a provider that publishes proof of reserves [0], giving me more confidence in the provider. [0] https://www.kraken.com/proof-of-reserves

That’s great, and also moot when the vast variety of coin holders opt for the convenience of a centralized third party service instead. With fiat, you also have the option of storing gold yourself.

You can fit $1 million in a briefcase in a safe. No need to rely on fractional reserve banking to store your money.

Granted, that would be stupid, but it's certainly an option.

Re: Crypto exchange AAX suspends withdrawals

#354

Post by m348e912 »

0xAFFFF wrote: post #235
netheril96 wrote: post #191

Earlier quoted context omitted.

Centralized exchanges are the polar opposite of what Satoshi was advocating for.

Satoshi was advocating for "digital cash", i.e. something you could do mundane transactions with, yet it's utterly unfit for that puropose. It's 2022, nobody gives a damn about what Satoshi was advocating for and especially not people believing in Bitcoin.

>nobody gives a damn about what Satoshi was advocating for

I do.

>and especially not people believing in Bitcoin.

You're partially right there.

Re: Crypto exchange AAX suspends withdrawals

#355

Post by SevenNation »

A common, tired take on HN: crypto bros will re-invent every piece of financial regulation they condemned.

I doubt it.

The reason is simple. If you think this latest round of panics and collapses is anything new, you haven't been paying attention. This is but the latest round in a 10+ year history of shenanigans. They come in waves spaced roughly 4 years apart. Regulation has not and never will fix it.

Nor did that highly-touted financial regulation do anything to stop the panics, scams, and financial idiocy of the 20th and early 21st centuries. Lots of regulation. Lots of oversight. Congressionally-empowered regulators with fancy degrees and highfalutin titles. None of it stopped the Great Depression, the S&L collapse, the crash of 2000, the GFC, or the current brewing crisis in the Eurodollar system.

Indeed, there's an argument to be made that regulation and regulators incited those catastrophes through moral hazard.

Clucking at all the rubes losing their shirts on exchanges is an old game with no reward. It leads nowhere and advances no new insights.

For those interested in a possibly more eye-opening perspective, consider that Bitcoin not only makes financial regulation unnecessary, but practically impossible.

Re: Crypto exchange AAX suspends withdrawals

#356

Post by bmitc »

littlestymaar wrote: post #348
koheripbal wrote: post #230

Earlier quoted context omitted.

Satoshi also never said Bitcoin should have a high value or be an investment vehicle.

Right, they said it should be a payment method over the internet. But they failed, mostly for two reasons: - they not anticipate ASICs, or even GPUs, which destroyed the idea of decentralized mining where individuals would just mine to get coins to spent, and forced people to buy coins instead (leading to the rise of exchanges). - their Austrian economics prejudice misled them about the nature of money, and the link…

> their Austrian economics prejudice misled them about the nature of money, and the link between money and scarcity

Do you have any references or more to say on this? Not arguing. I’d just like to look into it.

I agree with your assessment that they were overly idealist and libertarian in their outlook. It has bled into crypto fundamentalists touting “this isn’t crypto!”.

Re: Crypto exchange AAX suspends withdrawals

#358

Post by bussierem »

pokeymcsnatch wrote: post #218
anon291 wrote: post #205

Earlier quoted context omitted.

This is a major indictment of blockchain technology. Supposedly, all these accounts are recorded on an immutable, verifiable chain. Manual proofreading means something is wrong with your blockchain code, or you're lying to users about where the recording happens.

Transactions on the exchange don't take place on the blockchain. The data they're "proofreading" is probably in a traditional db.

I mean this as a genuine question (not an indictment), and as a complete blockchain/crypto noob who has just been a spectator:

Why is this the case? Isn't this like one of the best use cases of the blockchain in crypto? Why would they not utilize the technology to prevent this exact thing from happening? Are there tradeoffs I'm not aware of?

Re: Crypto exchange AAX suspends withdrawals

#359

Post by lambda_dn »

throwayyy479087 wrote: post #313
jeremyjh wrote: post #99

Earlier quoted context omitted.

We’ve already stolen your money, but hopefully as a community we can work through these troubling times together.

We're sorry for your loss

Some of you will lose all your money that's a risk I am willing to take (CEO of random crypto company)

Re: Crypto exchange AAX suspends withdrawals

#360

Post by selectodude »

this_user wrote: post #314
raspberry1337 wrote: post #244

Earlier quoted context omitted.

> there is no reason why crypto has any value. Given that bitcoin transaction times are nowhere near VISA or cash times, You interchanged crypto with bitcoin, but bitcoin is not all crypto. The value of crypto comes from them being decentralized and independent of a financial bank. This has the negative side effect of it being very valuable to illegal and fradulent activity, too.

> The value of crypto comes from them being decentralized and independent of a financial bank. The value of that is exactly zero when you live in a stable and developed country, and you are not engaged in criminal activity.

Cryptocurrency has value because people are willing to trade for it, whether money or goods. I don't understand why people are willing to trade for it, but to say it has literally zero value isn't exactly accurate.
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