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I should have said most people, not no one. The reality is most people outside of the HN bubble trust billion dollar companies. Crypto or otherwise. And when I

I should have said most people, not no one. The reality is most people outside of the HN bubble trust billion dollar companies. Crypto or otherwise. And when I say trust, I don’t mean in the sense that they think the company is doing any moral good, but that they expect a product or service in return for payment. You don’t question that the gas you purchase at a gas station is in fact gas, and not water. Why would a sensible person expect a billion dollar exchange to suddenly halt withdrawals? The point of my comment was that most sensible people would expect a billion dollar company to hold up some aspect of the bargain.

crazygringo 4y ago
But it's not a big deal if you show up to the gas station and they're out of gas. We trust these huge companies, but if your local McDonald's is closed today you're not losing your savings. Entrusting a company with your savings is an entirely different matter. The only reason people trust banks is because of government regulation and insurance. And sensible people are well aware of FDIC insurance, and of how losing all your money was not an uncommon thing back in the days when there were runs on banks. Sensible people are also aware of Enron and Lehman Bros and Bernie Madoff. These aren't obscure references -- they're household names. So no, I disagree completely -- sensible people absolutely do not hold large quantities of money on unregulated, uninsured crypto exchanges. Entrusting your savings to an unregulated, uninsured company only 3 years old is a level of risk eons beyond trusting a gas station to fill up your car.
- lupire 4y ago
  "Sensible people" gave billions of dollars to Bernie Madoff with no justification.
kweingar 4y ago
> The reality is most people outside of the HN bubble trust billion dollar companies. Crypto or otherwise. I’m not sure about this. Most people I know outside of tech and finance do not trust crypto at all. They inherently mistrust the concept. “How is it worth anything at all?” is a common question. “It’s just little things on a computer. It’s not real money.” These people would not trust a company that takes your real dollars and gives you bitcoin. I would be willing to guess that a large portion of the country shares this attitude, especially older people and less technical people.
- lupire 4y ago
  Crypto marks mostly "video gamers" and "get rich quick" poor folks. Techies are on the scammer side, building the tools and skimming transactions.
PebblesRox 4y ago
> You don’t question that the gas you purchase at a gas station is in fact gas, and not water. Ooh, I have an analogy! If I park my car at the airport while I go on vacation, I expect it to still be there when I get back. I don’t expect to return from my trip and discover that the airport let the car rental company use it while I was away and now it’s gone because someone crashed it. On the other hand, someone in this thread pointed out the yield that was offered to customers with FTX accounts. [0] I would be more suspicious of a parking lot that said, “Hey, you can park here for free. In fact, do you have any other cars? If you park them all in our parking lot, we’ll pay you $x per day!” [0] https://news.ycombinator.com/item?id=33571873 https://news.ycombinator.com/item?id=33571873
- lupire 4y ago
  You are describing Turo.com The difference to FTX is that FTX hides the crime in a foreign country in a way that a car thief cannot.

crazygringo 4y ago

But it's not a big deal if you show up to the gas station and they're out of gas. We trust these huge companies, but if your local McDonald's is closed today you're not losing your savings. Entrusting a company with your savings is an entirely different matter. The only reason people trust banks is because of government regulation and insurance. And sensible people are well aware of FDIC insurance, and of how losing all your money was not an uncommon thing back in the days when there were runs on banks. Sensible people are also aware of Enron and Lehman Bros and Bernie Madoff. These aren't obscure references -- they're household names. So no, I disagree completely -- sensible people absolutely do not hold large quantities of money on unregulated, uninsured crypto exchanges. Entrusting your savings to an unregulated, uninsured company only 3 years old is a level of risk eons beyond trusting a gas station to fill up your car.

lupire 4y ago
"Sensible people" gave billions of dollars to Bernie Madoff with no justification.

kweingar 4y ago

> The reality is most people outside of the HN bubble trust billion dollar companies. Crypto or otherwise. I’m not sure about this. Most people I know outside of tech and finance do not trust crypto at all. They inherently mistrust the concept. “How is it worth anything at all?” is a common question. “It’s just little things on a computer. It’s not real money.” These people would not trust a company that takes your real dollars and gives you bitcoin. I would be willing to guess that a large portion of the country shares this attitude, especially older people and less technical people.

lupire 4y ago
Crypto marks mostly "video gamers" and "get rich quick" poor folks. Techies are on the scammer side, building the tools and skimming transactions.

PebblesRox 4y ago

> You don’t question that the gas you purchase at a gas station is in fact gas, and not water. Ooh, I have an analogy! If I park my car at the airport while I go on vacation, I expect it to still be there when I get back. I don’t expect to return from my trip and discover that the airport let the car rental company use it while I was away and now it’s gone because someone crashed it. On the other hand, someone in this thread pointed out the yield that was offered to customers with FTX accounts. [0] I would be more suspicious of a parking lot that said, “Hey, you can park here for free. In fact, do you have any other cars? If you park them all in our parking lot, we’ll pay you $x per day!” [0] https://news.ycombinator.com/item?id=33571873 https://news.ycombinator.com/item?id=33571873

lupire 4y ago
You are describing Turo.com The difference to FTX is that FTX hides the crime in a foreign country in a way that a car thief cannot.