their ID system had not worked for MONTHs. https://status.coinbase.com/
i cant buy or sell while traveling outside the USA.
Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
71–80 of 233 posts
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#72Earlier quoted context omitted.
>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…
There's a deeper problem. Bitcoin is very deflationary and strictly limited in supply. What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? They can refund in fiat of course, but that's the point. If fiat didn't exist then this would be a potentially insurmountable problem if the theft were large enough. Now what happens if the thief panics or screws up and deletes…
> limited in supply
Limited? Uh, where did you get that idea? You can split a coin into ONE MILLION satoshi pieces
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#73Earlier quoted context omitted.
There's a deeper problem. Bitcoin is very deflationary and strictly limited in supply. What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? They can refund in fiat of course, but that's the point. If fiat didn't exist then this would be a potentially insurmountable problem if the theft were large enough. Now what happens if the thief panics or screws up and deletes…
>What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? People lose their bitcoins. It's as simple as that. That's a risk everyone should understand before buying. They might be compensated in some other way, like fiat, and then the insurance company either picks up the bill or goes under. Then it's just business as usual as far as bankruptcy goes. So yes, you have ev…
> They might be compensated in some other way
Like how Mt Gox returnedt peoples coins...
/s
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#74> 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…
What about this is WTF? Please explain, in detail, how somebody with $10M in BTC should store it.
I think the WTF is that the original point of cryptocurrency was that it was supposed to be decentralized, with no big institutions that you must trust. Coinbase Custody is essentially reinventing the exact institutions that bitcoin was supposed to cut out of the loop.
You're supposed to store $10M in BTC on the blockchain, which - after all - records ownership of every bitcoin ever mined. And keep access to it in a paper wallet; control of those $10M lies in access to a private key, so if you keep the key secret, nobody can access them (like with Satoshi's $40B or so in Bitcoin).
That people don't seem to want to do this is perhaps a lesson in human nature that crypto-anarchists and other aficionados of "trustless completely-distributed systems" should perhaps heed. This same dynamic comes up over and over again, from open-source to the Internet to P2P and now to cryptocurrency.
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#75Earlier quoted context omitted.
>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…
There's a deeper problem. Bitcoin is very deflationary and strictly limited in supply. What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? They can refund in fiat of course, but that's the point. If fiat didn't exist then this would be a potentially insurmountable problem if the theft were large enough. Now what happens if the thief panics or screws up and deletes…
>There's a deeper problem. Bitcoin is very deflationary and strictly limited in supply. What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out?
By only promising depositors -- and only having insurance for the case that -- they will pay out some flat USD amount per bitcoin in the case of loss, so that anyone putting BTC in Coinbase wallets knows the possible downside.
Same logic as with most insurance: they don't write policies that promise to get you that a good-enough copy of that neat classic showerhead fitting when your house burns down, only the money to buy a replacement, even if it falls short of the sentimental value.
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#76Earlier quoted context omitted.
You’re very literally recreating, step by step, the current centralized, trust-based system that cryptocurrencies are seeking to remedy. If you need someone to trust, you’re doing it wrong.
What I read sounds like OP is asking for uptime and service resiliency. That's a tenant of basic business practice. Cryptocurrencies have nothing to do with it. > If you need someone to trust, you’re doing it wrong. You can't do anything in crypto without having to rely on someone else. Trust is not irrelevant in cryptocurrencies - it matters just as much as in traditional markets.
I didn’t say trust is irrelevant. I said That if you require trust to transact in a cryptocurrency, you misunderstand a basic tenant of the thing. You can still choose to trust whoever you want. There’s a difference between “not needed” and “not allowed”.
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#77Earlier quoted context omitted.
There's a deeper problem. Bitcoin is very deflationary and strictly limited in supply. What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? They can refund in fiat of course, but that's the point. If fiat didn't exist then this would be a potentially insurmountable problem if the theft were large enough. Now what happens if the thief panics or screws up and deletes…
> limited in supply Limited? Uh, where did you get that idea? You can split a coin into ONE MILLION satoshi pieces
Uh... you can subdivide a single unit into a million pieces, but if the equilibrium price based on demand and supply rises because of scarcity, each individual million satoshi piece will also rise in value.
Hence its deflationary nature.
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#78Earlier quoted context omitted.
You’re very literally recreating, step by step, the current centralized, trust-based system that cryptocurrencies are seeking to remedy. If you need someone to trust, you’re doing it wrong.
Someone has to trust someone in order to do a transaction between a cryptocurrency and something else such as USD. That's because the transaction is actually two transfers, one of cryptocurrency and one of USD, that have different clearing and settlement properties.
What’s your point? I thought we were talking about cryptocurrency transactions and the need for uptime on exchanges.
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#79EDIT 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…
You may not know this, but any stocks you own in your brokerage aren't owned by you. They're owned by your brokerage. In all likelihood, your shares are currently being lent to someone and used in short sales. It's entirely possible your brokerage will go bust, and you will lose every share of stock you own.
SIPC insurance will protect you up to a certain amount. Even then, though, you won't have your shares returned to you -- merely the dollar value of those shares will be reimbursed.
Re: Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues
#80It is not easy to build a company/service like Coinbase; having said that, I think that Coinbase in its current state is slightly better than a joke, starting from their customer support.
Contacted their support 13 days ago about my account somehow being restricted (can't buy or sell). Not a peep besides the automated response. 13 days and counting...
Wonder if anyone has an outstanding ticket being ignored that's longer than that