Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Crypto exchange AAX suspends withdrawals

trends.aax.com

Post reply on HN
Print view View original

431–440 of 843 posts

Re: Crypto exchange AAX suspends withdrawals

#431

Post by notch656a »

Victerius wrote: post #295
jmartin2683 wrote: post #288

Earlier quoted context omitted.

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.

They still do, it's just the thieves have the backing of the court system.

https://ij.org/report/seize-first-question-later/

Re: Crypto exchange AAX suspends withdrawals

#432

Post by xur17 »

Closi wrote: post #333
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

> But at least in crypto I have the OPTION of storing it myself. You have the option with Fiat too - you can get paper currency and store it yourself in a secure location. $10,000 can be stored in $100 bills in as little as c0.03 meters^3. Using a bank is much more convenient to store Fiat though if you want to buy/sell things, much like using an exchange to store Crypto is much more convenient if you want to trade c…

> You have the option with Fiat too - you can get paper currency and store it yourself in a secure location. $10,000 can be stored in $100 bills in as little as c0.03 meters^3.

That's really not the same though. With crypto I can store on a hardware wallet that requires a pin to unlock (and resets after 3 attempts) with a backup seed stored elsewhere (potentially split up in n of m shares). How do I backup my cash? How do I lock up my cash in a similar way?

In addition, I can setup "smart" wallets that require an approval from another person to initiate the transfer. Or forces a cooldown period on transfers. None of this is possible with cash.

Re: Crypto exchange AAX suspends withdrawals

#433

Post by jmartin2683 »

Victerius wrote: post #295
jmartin2683 wrote: post #288

Earlier quoted context omitted.

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.

At least when you do, you’re fdic insured up to 100k typically

Re: Crypto exchange AAX suspends withdrawals

#434

Post by Karzyn »

bussierem wrote: post #377
timemct wrote: post #172

Earlier quoted context omitted.

> 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 write these words in steel, for anything not set in metal cannot be trusted." - The Well of Ascension, by Brandon Sanderson

I know this type of comment (and my own) is more common to reddit and commonly frowned upon in HN threads, but by god this made my morning thank you.

FYI, that's what the little arrow next to their name is for.

Re: Crypto exchange AAX suspends withdrawals

#435

Post by pc86 »

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 same thing has happened with git over time, no? Decentralized source control, forking whatever you want/have access to when you have a flash of inspiration, etc.

Now everything is in github, gitlab, or bitbucket, and centralized there.

Re: Crypto exchange AAX suspends withdrawals

#436

Post by rabuse »

wg0 wrote: post #64

Whenever people need to withdraw, "systems can't handle load" is a constant theme with crypto exchanges or is this an overstatement?

Having worked on a crpyto exchange myself in the past, it's almost never a technical issue; the traffic isn't bloated with media resources or anything, and those requests were just thrown in a backend queue until they were pushed to the chains.

Re: Crypto exchange AAX suspends withdrawals

#437

Post by danaris »

sydd wrote: post #415
SV_BubbleTime wrote: post #371

Earlier quoted context omitted.

The venn of arts and crafts, paranoid delusions, and blockchain.

Heh I would not call them paranoid after all these crypto collapses. Say I'd have $100000 in a crypto wallet, I'd etch it too and keep it in a safe instead of giving it to a website with no state backed guarantees.

The delusion part is believing that it would still be worth $100k after an amount of time that would warrant burying something in the ground.

Re: Crypto exchange AAX suspends withdrawals

#438

Post by anon84873628 »

narrator wrote: post #321
gjulianm wrote: post #206

Earlier quoted context omitted.

Precisely the failure of crypto is thinking that people will follow "fundamental crypto values" and underestimating the power of convenience and ignorance. "Traditional financial institutions" are inevitable in crypto.

Fractional reserving is taken as something that is good and wonderful, but before you had the fed who could print money at will, you had banking crashes caused by it on a regular basis. In a fixed money supply currency, fractional reserve banking should be illegal and banks should instead make money off fees. Venture capital should put their own money at risk to invest in the economy. How will people afford houses th…

I can't really follow the comment. You seem to start a thesis about

>In a fixed money supply currency, fractional reserve banking should be illegal and banks should instead make money off fees

Which, ok... But then jump to

>The housing market booms and busts because of the wildly fluctuating availability of credit caused by the money multiplier

Which seems to be a thesis about our current world. I can't figure out the connection between them. Are you saying this is evidence of why the first thesis is correct? But USD is not a "fixed money supply currency", which was how we started out.

I understand that easy credit induces demand for housing which has inelastic supply and somewhat sticky prices. This doesn't seem to be a problem of Fractional Reserve banking though. The VCs in your proposed system will still invest in mortgages as a fairly safe bet, because people are highly motivated to have a place to live.

And mortgages are an important tool so people have a place to live _before_ saving for 30 years. Given our current population dynamics and everything else...

Re: Crypto exchange AAX suspends withdrawals

#439

Post by setgree »

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…

Trading is addictive. Like all forms of gambling, it lights our reward centers up.

On decentralized exchanges, you pay each time you trade (gas fees and such). That cuts right through the endorphin rush.

Centralized exchanges keep those fees low by making everything centralized. It's akin to casinos keeping their guests comfortable and liquored up.

As a person who works in crypto, I'd like to see us engage with this more forthrightly. When we cut out gambling, how many use cases are left? How many are viable today?

Re: Crypto exchange AAX suspends withdrawals

#440

Post by MrStonedOne »

tinco wrote: post #108
constantcrying wrote: post #85

Earlier quoted context omitted.

An exchange shouldn't count deposited crypto as their asset. It is an asset of their customer. I do not think the actual problem here is crypto exchanges being unprofitable. Even if a crypto exchange goes under, it could (and frankly should ) still be able to go under gracefully, e.g. letting all customers withdraw their assets for a month (and E-Mailing private keys as a last resort). The issue here is crypto exchan…

You can say that, but when MtGox went bankrupt, and also lost 4 fifths of its stored crypto, the court just heaped together all assets into one big pile and all creditors into one big pile and let them fight it out. So now there's a bunch of assholes including but not limited to Peter Vessenes, that are suing the bankrupt entity for billions (completely frivolous of course) and all the depositors have waited for 8 ye…

No post body was provided.
Post reply on HN