4 ms·

"Someone should really regulate this whole system, it's getting ridiculous."

__s 9y ago
People should really understand that trustless systems mean not trusting an exchange. If the coins aren't in your own wallet, you don't own them An exchange is not a bank
- otachack 9y ago
  True, but it doesn't help that exchanges are pitching themselves as a bank.
- ceejayoz 9y ago
  Of course, then you have to trust your own infosec. I don't, personally. Too many ways to fuck it up, and the bad guys only need to get it right once.
  - AlexCoventry 9y ago
    Dedicated hardware and encrypted backups go a long way.
    - ceejayoz 9y ago
      Sure, until this happens: http://www.dailymail.co.uk/news/article-5323601/Bitcoin-robbers-alerted-fortune-prolific-trading.html http://www.dailymail.co.uk/news/article-5323601/Bitcoin-robb... Harder to do that to an exchange.
CryptoPunk 9y ago
If people want the safety of regulated banks they have that option. If they want to risk their money with an unregulated exchange (though I think all Japanese exchanges are regulated) they should have that option.
- Daishiman 9y ago
  If a million fools cause a systemic risk in the economy when their money gets lost or stolen, no, it turns out that there is a level of collective responsibility.
  - jessaustin 9y ago
    That's a nice thought, but it's not what happened when the fools crashed the "real" economy. Still zero prosecutions!
    - michaelchisari 9y ago
      I thought crypto was supposed to be a better system.
    - Daishiman 9y ago
      That the available protections don't cover the entire history of every possible financial scam or system risk doesn't change the fact that regulations have effectively kept a lot pump-and-dump scams and securities fraud at bay.
      - jessaustin 9y ago
        Above you were talking about "systemic risk". Is that something pump&dump can cause? Those seem to be just plain old frauds...
  - branchless 9y ago
    Where is the risk to the real economy? No fiat was destroyed.
    - deleted 9y ago
      [deleted]
  - CryptoPunk 9y ago
    They're not children. I would strongly caution that we don't have a moral right to forbid them from using their own money how they wish. To think one does have that right is conceited, and the road to social ruin. And with respect to the 'systemic risk' argument, a million fools squander billions on state-run lotteries, and probably trillions on frivolous consumer goods, every year. I'm sure our system can withstand a few hundred million dollars worth of losses in cryptocurrency hacks. It's also not clear that it is actually in the long term systemically harmful, given there is at least some technological innovation, especially in the areas of distributed computing architectures and web security (there's never been a better bug bounty or a canary for un-known security vulnerabilities than cryptocurrency on a target hard drive), being generated from this activity.

__s 9y ago

People should really understand that trustless systems mean not trusting an exchange. If the coins aren't in your own wallet, you don't own them An exchange is not a bank

otachack 9y ago
True, but it doesn't help that exchanges are pitching themselves as a bank.
ceejayoz 9y ago
Of course, then you have to trust your own infosec. I don't, personally. Too many ways to fuck it up, and the bad guys only need to get it right once.
- AlexCoventry 9y ago
  Dedicated hardware and encrypted backups go a long way.
  - ceejayoz 9y ago
    Sure, until this happens: http://www.dailymail.co.uk/news/article-5323601/Bitcoin-robbers-alerted-fortune-prolific-trading.html http://www.dailymail.co.uk/news/article-5323601/Bitcoin-robb... Harder to do that to an exchange.

CryptoPunk 9y ago

If people want the safety of regulated banks they have that option. If they want to risk their money with an unregulated exchange (though I think all Japanese exchanges are regulated) they should have that option.

Daishiman 9y ago
If a million fools cause a systemic risk in the economy when their money gets lost or stolen, no, it turns out that there is a level of collective responsibility.
- jessaustin 9y ago
  That's a nice thought, but it's not what happened when the fools crashed the "real" economy. Still zero prosecutions!
  - michaelchisari 9y ago
    I thought crypto was supposed to be a better system.
  - Daishiman 9y ago
    That the available protections don't cover the entire history of every possible financial scam or system risk doesn't change the fact that regulations have effectively kept a lot pump-and-dump scams and securities fraud at bay.
    - jessaustin 9y ago
      Above you were talking about "systemic risk". Is that something pump&dump can cause? Those seem to be just plain old frauds...
- branchless 9y ago
  Where is the risk to the real economy? No fiat was destroyed.
  - deleted 9y ago
    [deleted]
- CryptoPunk 9y ago
  They're not children. I would strongly caution that we don't have a moral right to forbid them from using their own money how they wish. To think one does have that right is conceited, and the road to social ruin. And with respect to the 'systemic risk' argument, a million fools squander billions on state-run lotteries, and probably trillions on frivolous consumer goods, every year. I'm sure our system can withstand a few hundred million dollars worth of losses in cryptocurrency hacks. It's also not clear that it is actually in the long term systemically harmful, given there is at least some technological innovation, especially in the areas of distributed computing architectures and web security (there's never been a better bug bounty or a canary for un-known security vulnerabilities than cryptocurrency on a target hard drive), being generated from this activity.