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It continues to baffle me why anyone would want to deal with Crypto if a failure like FTX causes the entire "decentralized" ecosystem to collapse.
by thrillgore 4y ago
It continues to baffle me why anyone would want to deal with Crypto if a failure like FTX causes the entire "decentralized" ecosystem to collapse.
- jpeterson 4y agoExchanges and trading firms are not "Crypto". They're human institutions which happen to sit atop cryptocurrency instruments. What we're seeing play out in realtime is what happens when unregulated human institutions come to possess fantastical amounts of wealth -- in short, they go pathological.
- chitowneats 4y ago"Happen to sit atop" is so far from an accurate accounting of the multi-headed hydra that is the crypto/defi space. Good thing I'm not expecting much in the way of accurate accounting.
- ninepoints 4y agoIt's almost as if the unregulated anti-establishment ethos of crypto allowed this to happen, and allows it to keep happening.
- jpeterson 4y agoIf crypto has an "ethos", it's decentralization and departure from human institutions. The FTX fiasco is the opposite of that.
- rurp 4y agoWhat percent of crypto activity happens on centralized platforms. 90%? 95%? Whatever the precise number, it's really high. It's hard to argue that 95% of people in Scotland aren't true Scots.
- MacsHeadroom 4y agoAround 15%
- arise 4y agoIt's a two-faced ethos, praising decentralization and thumbing its nose at banks while simultaneously entrusting the bulk of its assets to entities that are strictly worse than banks.
- zhdc1 4y ago> They're human institutions Anything that involves a person one both ends of a transaction chain inherently has one or more 'human institution' dependencies.
- deleted 4y ago[deleted]
- k__ 4y agoBecause it doesn't? In fact, many crypto proponents are happy that these centralized pseudo-banks get all flushed the out.
- ceejayoz 4y agoClaim to be happy. There's a reason "this is good for Bitcoin" is a meme.
- k__ 4y agoAnd rightfully so. Competing with centralized entities is hard.
- throwup 4y agoIf a person wants an industry to succeed, they will want companies in the industry to behave honestly. And if a company behaves dishonestly, they will want the dishonest company to leave that industry. Why is that so hard to believe?
- ceejayoz 4y agoBecause shills exist, who claim something is good when they know it's bad. Typically due to a vested interest, like wanting the industry to succeed. "This is good for Bitcoin" is a meme precisely because these people exist, publicly trying to spin any negative into a positive. Pretending collapses like FTX don't impact the cryptocurrency space in negative ways is dishonest.
- throwup 4y agoCompanies like FTX collapsing do negatively affect the space. But what's even worse is companies like FTX that are irresponsible and haven't collapsed yet. What's a guy to do? I warned people last year not to use FTX. Now FTX is gone. Please tell me what feelings I'm allowed to feel now that they're finally gone.
- 4y ago
- warinukraine 4y agoBecause it's easy to convince people of anything if you promise that it'll get them rich quick.
- francisofascii 4y agoBanks fail, too. See Bear Sterns and Lehman brothers.
- Tenoke 4y ago>the entire "decentralized" ecosystem to collapse. Because it doesn't? While all centralized exchanges are suffering from FTX's collapse, decentralized ones like Uniswap aren't facing any existential risks from it.