Hurr people never gonna sell so number go up not actually money made! These guys will never ever sell even tho it's a volatile asset and buying low and selling high is feasible!
he makes a lot of really common points, some of which are valid and some which show fundamental misunderstanding
Which ones are valid to you
yes we can not model true value of bitcoin at the moment so this is mostly true. bitcoin would not have this high valuation if not for extensive QE and a decade long bull market. this is perhaps becoming less and less true as bitcoin is being seen more and more as a store of value
also true. there are many downsides to decentralization that need to be addressed, such as theft. this point will probably be invalidated as technology advances and the blockchain trilemma is defeated. the author overstates how negative the impacts are, but there are certainly negatives nonetheless
this was also true. mt gox was heavily manipulating the price by internally buying spot from themselves over and over. this no longer happens however, these exchanges are heavily regulated and monitored by the SEC
entire section is true. there is currently zero way to handle theft in the crypto space. once your coins are stolen they are gone
What about exchanges that weasel out of SEC regulations like FTX? And yeah, not sure what to do about theft, atleast in Bitcoin. A DAO could be a potential solution to help process theft claims but unless it were an underlying like centralized aspect of crypto it wouldn't really have any way to reverse txs lol. I could atleast see ETH considering this possibility
how does ftx weasel out of regulation?
good read
Oh FTX straight up doesn't interface with the US lol. I thought they did
I just knew they were one of the biggest exchanges that specifically started in the US and moved to avoid regulations
i think it was probably smart to wait for crypto etfs until now. the infrastructure has really been built and the technology is much more generally understood than before.
1 Like
Is there any solution to theft besides like the lightning network implementing a DAO or smth
Really hope I can shift my IRA/401k into em lol
Exchanges currently blacklist addresses involved in theft events so that those coins cannot be traded there.
Usdt has the ability to freeze accounts and has been doing so at the request of nation states when a theft has occurred
Coinbase has insurance on stolen funds to an extent.
But they are under no legal obligation to do so, and if there was ever a mass theft you'd definitely not see a payoutb
1 Like
I'm sure that blacklist is super easy to circumvent and figured Coinbase does that, but it's not a universal solution. I feel like there should probably be one
Funnily enough a lot of the major thefts that occurred the thiefs have never been able to cash out
It's a scary thought to think that like these institutions that invest in Bitcoin have a single point of failure. They can super encrypt their shit but it complicates acquiring/selling in the future and if anyone ever managed to transact it anyways it's curtains for their coins lol
1 Like
Is that actually true? I feel like they safely could with no repercussions