6 ms·

I'm done worrying. I withdrew everything and closed my account. Crypto is a fools errand.

achow 4y ago
Bill Gates has a very different view: Not a 'Fools Errand' but a 'Greater Fool Theory' https://www.wsj.com/articles/bill-gates-says-cryptocurrencies-and-nfts-are-100-based-on-greater-fool-theory-11655302143 https://www.wsj.com/articles/bill-gates-says-cryptocurrencie...
Zetaphor 4y ago
I take it this is your first market cycle?
- quartesixte 4y ago
  Crypto has the delightful additional risk of access that other securities don’t really have. If you don’t offload to a private wallet and Coinbase goes completely defunct, there is no protection. Coinbase’s continued existence (and thus, your coins) and the market cycle of cryptocurrencies are mutually exclusive events.
  - ishjoh 4y ago
    I agree with your broad point. Crypto really is just speed running early banking and financial systems. Many bank runs would destroy banks and depositors were left with nothing. Eventually the FDIC was created to make sure people wouldn't lose everything and to prevent additional bank runs. What's also interesting to think about is if we will ever see a coin halt transactions to prevent price changes. BTC is unlikely to face this since it's based on proof of work, but maybe a proof of stake protocol might have something like this happen, or a coin that has a small number of miners. Maybe it would be similar to the few times NYSE has halted trading: https://www.thestreet.com/markets/history-of-notable-market-halts https://www.thestreet.com/markets/history-of-notable-market-...
    - smrtinsert 4y ago
      If we're to believe crypto is ideally unregulated then the crypto fdic isn't coming
  - devoutsalsa 4y ago
    You are mostly right. USD (not USDC) deposits are insured by FDIC up to $250,000. Crypto assets are (I believe) not insured. https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured https://help.coinbase.com/en/coinbase/other-topics/legal-pol...
- Hchanni 4y ago
  It is, I'm 20 :P
randomopining 4y ago
Like you sold everything for USD or withdrew to cold storage?
- SpikeDad 4y ago
  Yes. The twin anxiety makers - crypto volatility and threat of Coinbase bankruptcy made my decision to convert everything to cash.
  - daniel-cussen 4y ago
    Cash is great, cash is the new gold. Before they were printing money, last millennium. This millennium, they just shift numbers to the left, on a computer. It's all numbers in your app. This is currently considered better, but is much worse. $20 at most, bigger denominations aren't worth much. I wouldn't accept $100 as payment without someone to verify it, or going together to a bank to deposit it. And like the bills have to be in pristine condition, always complain if someone is trying to give you a damaged bill, that limits its spendability. Gotta know the bills well, maybe ask your bank if they can let you see for yourself the difference between real and fake bills so you can tell the difference. Banks can always get fresh bills by turning in your old ones, to keep up their condition. Plus newer bills have better copy-protection, and are therefore easier to verify. And guess what? Your purchases will generally not be traced if you pay cash. This is important for books, stationary, electronics, medicine, and charity.
    - mr-pink 4y ago
      why is it important for charity?
      - daniel-cussen 4y ago
        So people don't know how much you're giving.
    - SpikeDad 4y ago
      You're paranoid. I have no issue with credit. I pay for everything with Apple Pay and online banking. I limit my online tracking using sensible tools that are available but I don't go to extreme. My decision had nothing to do with having cash, merely not wanting to be part of the insane volatility of Crypto and the potential loss of assets should Coinbase go bankrupt (which is a very non-zero possibility). Cash is merely the buffer to pay expenses until markets start to return to profitability at which point I'll move it all back to my usual safe index funds and Apple stock (aaaaaaahhhhh). 8-)

Bill Gates has a very different view: Not a 'Fools Errand' but a 'Greater Fool Theory' https://www.wsj.com/articles/bill-gates-says-cryptocurrencies-and-nfts-are-100-based-on-greater-fool-theory-11655302143 https://www.wsj.com/articles/bill-gates-says-cryptocurrencie...

Zetaphor 4y ago

I take it this is your first market cycle?

quartesixte 4y ago
Crypto has the delightful additional risk of access that other securities don’t really have. If you don’t offload to a private wallet and Coinbase goes completely defunct, there is no protection. Coinbase’s continued existence (and thus, your coins) and the market cycle of cryptocurrencies are mutually exclusive events.
- ishjoh 4y ago
  I agree with your broad point. Crypto really is just speed running early banking and financial systems. Many bank runs would destroy banks and depositors were left with nothing. Eventually the FDIC was created to make sure people wouldn't lose everything and to prevent additional bank runs. What's also interesting to think about is if we will ever see a coin halt transactions to prevent price changes. BTC is unlikely to face this since it's based on proof of work, but maybe a proof of stake protocol might have something like this happen, or a coin that has a small number of miners. Maybe it would be similar to the few times NYSE has halted trading: https://www.thestreet.com/markets/history-of-notable-market-halts https://www.thestreet.com/markets/history-of-notable-market-...
  - smrtinsert 4y ago
    If we're to believe crypto is ideally unregulated then the crypto fdic isn't coming
- devoutsalsa 4y ago
  You are mostly right. USD (not USDC) deposits are insured by FDIC up to $250,000. Crypto assets are (I believe) not insured. https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured https://help.coinbase.com/en/coinbase/other-topics/legal-pol...
Hchanni 4y ago
It is, I'm 20 :P

randomopining 4y ago

Like you sold everything for USD or withdrew to cold storage?

SpikeDad 4y ago
Yes. The twin anxiety makers - crypto volatility and threat of Coinbase bankruptcy made my decision to convert everything to cash.
- daniel-cussen 4y ago
  Cash is great, cash is the new gold. Before they were printing money, last millennium. This millennium, they just shift numbers to the left, on a computer. It's all numbers in your app. This is currently considered better, but is much worse. $20 at most, bigger denominations aren't worth much. I wouldn't accept $100 as payment without someone to verify it, or going together to a bank to deposit it. And like the bills have to be in pristine condition, always complain if someone is trying to give you a damaged bill, that limits its spendability. Gotta know the bills well, maybe ask your bank if they can let you see for yourself the difference between real and fake bills so you can tell the difference. Banks can always get fresh bills by turning in your old ones, to keep up their condition. Plus newer bills have better copy-protection, and are therefore easier to verify. And guess what? Your purchases will generally not be traced if you pay cash. This is important for books, stationary, electronics, medicine, and charity.
  - mr-pink 4y ago
    why is it important for charity?
    - daniel-cussen 4y ago
      So people don't know how much you're giving.
  - SpikeDad 4y ago
    You're paranoid. I have no issue with credit. I pay for everything with Apple Pay and online banking. I limit my online tracking using sensible tools that are available but I don't go to extreme. My decision had nothing to do with having cash, merely not wanting to be part of the insane volatility of Crypto and the potential loss of assets should Coinbase go bankrupt (which is a very non-zero possibility). Cash is merely the buffer to pay expenses until markets start to return to profitability at which point I'll move it all back to my usual safe index funds and Apple stock (aaaaaaahhhhh). 8-)