41–50 of 233 posts
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> When was the last time you heard of Goldman Sachs begin hacked Goldman Sachs is not an exchange. > it has absolutely nothing to do with what we are talking about:) Exactly. You are confusing others by giving GS as an example, while we're talking about exchanges.
Good question, I can see why you are confused. Coinbase right now acts in two ways. 1) as an exchange who allows you to trade on it. 2) as a prime broker who holds your coins. In this capacity they are just like Goldman Sachs who can function as a prime broker for hedge funds. (a prime broker is like a bank who holds your securities for you). So in this case Goldman is relevant as they do the same function that coinb…
No, it adds.
> So in this case Goldman is relevant as they do the same function that coinbase does with respect to holding securities on behalf of a client.
Then why did you write in your other message that Goldman Sachs has got nothing to do with this discussion? It seems to me that you are confused. Please decide whether you think the Goldman Sachs is relevant or not before proceeding.
I'm sure you all have very insightful comments about why bitcoin is in a bubble and will fail. Meanwhile, I ignored your comments years ago and I'm very, very comfortably retired now. But please, do go on with your smart insightful comments.
I completely disagree with that. Wallstreet and big banks have lost trillions of dollars investing in "Safe" stuff before.
2) Coinbase needs to make sure they deliver what they say they can deliver. No hacking. No delivery issues. Minor to none technical issues.
That's how you build trust long term. Honestly, Wallstreet won't matter if your goal is to be around in 10 or 20 years.
3) This brings me to my last point, if you really are trying to do this thing long term, why would even care about Wallstreet? Asking them for help just screams to me, "We want to make a shit ton of money right now before everything falls apart"
I am seriously worried about the large exchanges ability to handle the amount and size of the transactions. Especially the growth.
EDIT Yuck, this blew up and I think alot of people took it the wrong way. I think Coinbase is great, and I'm sure everyone who works there is awesome and terrific at their job. Anyone who has worked on any half way successful project knows just how hard both uptime and security are and I'm in no way upset at Coinbase for having growth issues. I've done this for years and might not even get an interview with them. The…
>1) No counterparty risk. Everyone can get hacked, but coinbase being hacked shouldn't every, under any circumstances result in me loosing any bitcoin they hold on my behalf. Coinbase is insured by AON Insurance for their hot wallet balance. However, we won't know how Coinbase/AON will handle that until it happens. I believe any fiat balance is also insured by the FDIC, but I'm less sure about that. >2) The exchange…
The NYSE is not vulnerable to this kind of attack. Anyone dealing with BTC is.
> In traditional finance, custody banks like State Street Corp. hold securities, keep records and provide other services for investment advisers. A lack of similar offerings in the cryptocurrency world has kept many institutions on the sidelines. >Coinbase has offered a solution: crypto custodial services, slated to roll out next year. Called Coinbase Custody, it'll be available to investors with at least $10 million…
Please explain, in detail, how somebody with $10M in BTC should store it.
I'm sure you all have very insightful comments about why bitcoin is in a bubble and will fail. Meanwhile, I ignored your comments years ago and I'm very, very comfortably retired now. But please, do go on with your smart insightful comments.
Most of the comments here aren't about Bitcoin being in a bubble and falling, they're about Coinbase and varying aspects of their growing pains (security, scalability, lack of insurance and so forth). Maybe becoming very, very comfortably retired as a bazillionaire has a deleterious effect on reading and attention.
I still made money ignoring people like you.
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I don't know what reality you operate in, but hedge funds don't provide anywhere close to those types of guarantees. Exchanges do indeed go down, and when they do they shrug their shoulders and say "woops". Source: I work for a hedge fund.
> I don't know what reality you operate in, but hedge funds don't provide anywhere close to those types of guarantees. Strange comment, I think I've confused you. All this was about exchanges and what hedge funds expect from them, not guarantees about what hedge funds provide. And you are right, exchanges do go down, and its news when they do because they are so good at what they do that its very rare. > I don't know…
I used to work for a startup that wrote software for hedge funds (this was back in 05-07). The guys from Fidelity would come in and they'd have a huge checklist of IT best practices that you need to adhere to, everything from security to backups to SLAs with financial penalties for violating them. The guys from Magnetar would come in and be like "Sure, we'll try anything that gives us an advantage in the markets."
I suspect that your idea of what's "par for the course" and the "very lowest base" is pretty far from what's actually the lowest base in the financial industry, and similarly I suspect that brndnmtthws's view of what's typical for a hedge fund isn't typical for all hedge funds.
> In traditional finance, custody banks like State Street Corp. hold securities, keep records and provide other services for investment advisers. A lack of similar offerings in the cryptocurrency world has kept many institutions on the sidelines. >Coinbase has offered a solution: crypto custodial services, slated to roll out next year. Called Coinbase Custody, it'll be available to investors with at least $10 million…
EDIT Yuck, this blew up and I think alot of people took it the wrong way. I think Coinbase is great, and I'm sure everyone who works there is awesome and terrific at their job. Anyone who has worked on any half way successful project knows just how hard both uptime and security are and I'm in no way upset at Coinbase for having growth issues. I've done this for years and might not even get an interview with them. The…
No counterparty risk - and what instrument exactly has this amazing property?