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Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

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Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#61

Post by UltraViolence »

shkkmo wrote: post #54
UltraViolence wrote: post #43

In other news: the several international banks are moving forward with their "Digital Dollar" experiment. It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

Wouldn't functional digital currencies simply remove any remaning non-speculative use for Bitcoin and further tank it? I fail to see how it provides any confidence that bitcoin will regain value.

Because there's no added value in having a digital dollar variant which is ultimately controlled by the government and Big Money.

But its existence will give independent digital cryptocurrencies like Bitcoin more legitimacy, which translates into higher demand, which translates into a higher price.

I foresee countries like Russia, China and other rogue nations betting big on digital cryptocurrencies to evade sanctions. From what I gather they're already doing this now, but in the future more non-aligned countries in Africa, Asia and South America may join them. The best way for them to do so would be to use Bitcoin since most financial networks (SWIFT) are controlled by Western nations.

These countries are fed up with the West's incessant financial terrorism and misuse of financial institutions to strangle them or to put them on a leash.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#62

Post by EMM_386 »

coffeebeqn wrote: post #44
UltraViolence wrote: post #43

In other news: the several international banks are moving forward with their "Digital Dollar" experiment. It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

I don’t really get the point. My dollars are already digital. It’s not like my employer sends a stack of 100s to my banks vault every two weeks

But you won't have the option of cash, the Fed getting into digital currency implies an all-digital future.

No cash, and everything is traced. Nobody gets to be "paid under the table", no exchanging cash with your dealer for drugs, no buying things you may be ashmed to buy with cash.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#63

Post by reaperducer »

woah wrote: post #8
danaris wrote: post #3

What is this, four organizations suspending withdrawals after FTX's demise? Five? I'm not the most plugged-in to the cryptocurrency community; anyone know what proportion of cryptocurrency business this makes up?

This isn’t cryptocurrency, these are sketchy unlicensed banks with a cryptocurrency theme. People holding coins in their own wallets are entirely unaffected. I hope that crypto exchanges are outlawed soon.

People holding coins in their own wallets are entirely unaffected.

I'm not a crypto guy, so this may be a very basic question: If people can hold coins in their own wallets, why did they give them to these companies acting like banks? Were they promised interest or something?

I hope that crypto exchanges are outlawed soon.

Isn't the primary use case for crypto that it's beyond the reach of laws?

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#64

Post by shp0ngle »

UltraViolence wrote: post #43

In other news: the several international banks are moving forward with their "Digital Dollar" experiment. It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

I don’t get what are these “digital dollars” supposed to do.

There already is a digital dollar. It’s called “dollar”.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#65

Post by kmonsen »

shkkmo wrote: post #50
danuker wrote: post #25

Earlier quoted context omitted.

You are correct. What I was pointing out is that actual regulated banks are also prone to failures, especially in these trying times. Because they also hold a fractional reserve.

We haven't seen any indication that a wave of bank failures is coming. We haven't seen any failed banks in a couple of years. Now, that could change and we could see a recurrence of the wave of bank failures that started in 2008 and slowly tapered off, but your argument for that can't just be a hand wave at "trying times" and "fractional reserve" because the numbers currently show the opposite: https://www.fdic.gov/b…

Did any depositors loose money in 2008 from bank failures? If not when was the last time regular depositors lost money?

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#66

Post by nappy-doo »

bvrmn wrote: post #31
danuker wrote: post #21

Earlier quoted context omitted.

I hope they are regulated, not outlawed. As in, "you have to be ready for a 90% withdrawal at any time". This would have solved every problem.

And how to make it work with largely unstable crypto/fiat ratio?

arguably, all the crypto exchanges are proving crypto's a fiat too.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#67

Post by ronsor »

shp0ngle wrote: post #64
UltraViolence wrote: post #43

In other news: the several international banks are moving forward with their "Digital Dollar" experiment. It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

I don’t get what are these “digital dollars” supposed to do. There already is a digital dollar. It’s called “dollar”.

It's a scheme to give the government more control over your money than they already have.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#68

Post by ronsor »

nayuki wrote: post #59
alexb_ wrote: post #48

Earlier quoted context omitted.

But you can still withdraw that for stacks of 100s if you so please. And these dollars cannot be tracked by large corporations hungry for any bit of data about you.

Banknotes have serial numbers printed on them. It's not inconceivable for ATMs to record serial numbers when withdrawing and banks to record serial numbers when depositing cash.

You always can exchange banknotes for other banknotes of equivalent value, with anyone.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#69

Post by rglullis »

AndrewStephens wrote: post #39
rglullis wrote: post #22

Earlier quoted context omitted.

> None of that exists in the crypto space. Bullshit. It exists, it's just that the UI/UX is awful and most people in the developed world have no need for it. But they do exist. My work on hub20 [0] is exactly that, to have a system that would let people and communities create their actual self-custodial "crypto banks". [0]: https://hub20.io

I should have made myself clearer - none of that (agents, lawyers, etc) exists in crypto _apart_ from the exchanges, which are meant to facilitate the transfer of crypto assets. The two problems with this setup are: * The exchanges are dishonest and unregulated. * The exchanges are exploding like a chain of firecrackers. So crypto is going from a state of having most transactions go through dishonest exchanges to bei…

> since without exchanges you can't actually use it for anything

Before repeating your baseless argument, please read about my project. Start with the about page. Understand that we can have global commerce with crypto without the big centralized exchanges. It's only an issue of scaling down and accepting that even though "trust" is needed for efficient transactions, this can happen at a much lower level.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#70

Post by [deleted] »

marticode wrote: post #38
danuker wrote: post #25

Earlier quoted context omitted.

You are correct. What I was pointing out is that actual regulated banks are also prone to failures, especially in these trying times. Because they also hold a fractional reserve.

In developed countries, banks are rarely left to completely fail nowadays, the small ones are usually taken over by the big ones, and the big ones are bailed by governments/regulators.

[deleted]
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