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1. Counterparty risk cannot be eliminated, only reduced. The only counterparty with zero risk is a government, which can print more currency if supply is insuff
by ISL 9y ago
1. Counterparty risk cannot be eliminated, only reduced. The only counterparty with zero risk is a government, which can print more currency if supply is insufficient, devaluing everyone else's currency.
2. Exchanges do go down, the only question is how often. If the exchange does go down, you want the exchange to say, "We're doing our best, but volume has exceeded our capacity. We'll be up as soon as we can." The alternative is to continue to accept trades and pretend that everything is okay. Honesty is good.
- ultraluminous 9y agoThis is childish and disingenuous. Yes, counterparty party risk can only be reduced. And only mathematical constants can actually be absolute. However for practical people operating in the real world there's an infinite difference between 20% risk and 0.005% risk. Infinite. Same with your comment about exchanges - yes the NYSE and NASDAQ can go down. Once or twice a year. For 20 minutes. Coinbase (and Gemini and GDAX and Kraken and everyone) are going down for about x5 times that in any given week. Which is not a "a small qualitative difference". It's an infinite difference.