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Don’t leave coins in exchanges! It is this simple. Cryptocurrency teaches you bitter truths about reality; No do overs. Look after your shit yourself. You can’

Don’t leave coins in exchanges! It is this simple. Cryptocurrency teaches you bitter truths about reality; No do overs. Look after your shit yourself. You can’t trust anyone with your property except yourself.

dragonwriter 5y ago
That's a one way of trying to put a positive spin on “cryptocurrency spends a lot of resources to prevent the social technologies developed over the length of human history for securing property from working with it, because it has a supposedly superior technical solution to the problem which...doesn't work nearly as well.”
- randomhodler84 5y ago
  Yes. I don’t want any of those social technologies, they are bad. I want money where nobody can spend it except for knowledge of 256bit integers. Securing property with ints is better than anything else we have ever come up with. It makes many bad things much harder and less likely.
  - deleted 5y ago
    [deleted]
- P18g4rKns6Q 5y ago
  My understanding was that BTC was to provide permissionless transactions on a public ledger, not replace "the social technologies developed over the length of human history for securing property." Those social technologies haven't worked out great recently I might add https://www.bloomberg.com/news/articles/2021-06-01/bank-of-america-fixes-ordered-after-hacked-customers-go-hungry https://www.bloomberg.com/news/articles/2021-06-01/bank-of-a... https://www.nytimes.com/2019/07/29/business/capital-one-data-breach-hacked.html https://www.nytimes.com/2019/07/29/business/capital-one-data...
P18g4rKns6Q 5y ago
The thing is, now there are a lot of ways to earn interest on your crypto holdings, not just yield farming but simple products like exchanges offering compound interest on your balances. You have to weigh the risk of theft vs the financial losses from holding your money in a place that it does not earn interest (and in fact loses value to inflation). I say that as someone that lost quite a bit when Cryptsy went down.
- randomhodler84 5y ago
  I think it ‘twas the interest rates that big vern was paying on coins that reminded me that it is a precarious house of cards and nobody should leave coins on exchanges. For those that were not around, they would pay interest to incentivize leaving the coins in the exchange. Same thing is happening today. They will be stolen.
  - P18g4rKns6Q 5y ago
    Cryptsy (and Coinbase) in 2013-14 were the wild west compared to today, I don't believe either had 2FA and if they did it was SMS-based. Neither had licenses, KYC, things like that. You could also argue the opposite: there are many more would-be attackers now that crypto is so much more popular; and the adage "not your keys, not your coins" still holds true. Still, I don't think it's naive to place more trust in exchanges today compared to that era in crypto. These people had $1M in crypto on Coinbase, if you had $1M in cash would a good financial advisor tell you to store it in an account that doesn't earn any interest? (I know there are many flaws in the cash-to-crypto comparison.)
    - randomhodler84 5y ago
      Indeed there are many flaws. One loses 15% per year in value; the other gains >100% per year. You don’t need interest payments on Bitcoin for it to be economical to hold. It seems so foolish to risk such returns for a measly few percent on such an asset class. I think it’s some kind of greed test.

dragonwriter 5y ago

That's a one way of trying to put a positive spin on “cryptocurrency spends a lot of resources to prevent the social technologies developed over the length of human history for securing property from working with it, because it has a supposedly superior technical solution to the problem which...doesn't work nearly as well.”

randomhodler84 5y ago
Yes. I don’t want any of those social technologies, they are bad. I want money where nobody can spend it except for knowledge of 256bit integers. Securing property with ints is better than anything else we have ever come up with. It makes many bad things much harder and less likely.
- deleted 5y ago
  [deleted]
P18g4rKns6Q 5y ago
My understanding was that BTC was to provide permissionless transactions on a public ledger, not replace "the social technologies developed over the length of human history for securing property." Those social technologies haven't worked out great recently I might add https://www.bloomberg.com/news/articles/2021-06-01/bank-of-america-fixes-ordered-after-hacked-customers-go-hungry https://www.bloomberg.com/news/articles/2021-06-01/bank-of-a... https://www.nytimes.com/2019/07/29/business/capital-one-data-breach-hacked.html https://www.nytimes.com/2019/07/29/business/capital-one-data...

P18g4rKns6Q 5y ago

The thing is, now there are a lot of ways to earn interest on your crypto holdings, not just yield farming but simple products like exchanges offering compound interest on your balances. You have to weigh the risk of theft vs the financial losses from holding your money in a place that it does not earn interest (and in fact loses value to inflation). I say that as someone that lost quite a bit when Cryptsy went down.

randomhodler84 5y ago
I think it ‘twas the interest rates that big vern was paying on coins that reminded me that it is a precarious house of cards and nobody should leave coins on exchanges. For those that were not around, they would pay interest to incentivize leaving the coins in the exchange. Same thing is happening today. They will be stolen.
- P18g4rKns6Q 5y ago
  Cryptsy (and Coinbase) in 2013-14 were the wild west compared to today, I don't believe either had 2FA and if they did it was SMS-based. Neither had licenses, KYC, things like that. You could also argue the opposite: there are many more would-be attackers now that crypto is so much more popular; and the adage "not your keys, not your coins" still holds true. Still, I don't think it's naive to place more trust in exchanges today compared to that era in crypto. These people had $1M in crypto on Coinbase, if you had $1M in cash would a good financial advisor tell you to store it in an account that doesn't earn any interest? (I know there are many flaws in the cash-to-crypto comparison.)
  - randomhodler84 5y ago
    Indeed there are many flaws. One loses 15% per year in value; the other gains >100% per year. You don’t need interest payments on Bitcoin for it to be economical to hold. It seems so foolish to risk such returns for a measly few percent on such an asset class. I think it’s some kind of greed test.