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I can't understand the mentality of anyone who buys crypto...and stores it in a centralized exchange. What's the point of holding USDT or USDC if you're going

by spaceman_2020 4y ago

I can't understand the mentality of anyone who buys crypto...and stores it in a centralized exchange. What's the point of holding USDT or USDC if you're going to keep it in a quasi-bank? Isn't the whole point of crypto NOT to trust governments and centralized authorities?

deleted 4y ago
[deleted]
chinabot 4y ago
Totally agree How do you even know the exchange spent the money on crypto if you dont see the keys, you may have just handed over $$ for a positive transaction on a virtual spreadsheet
hn_throwaway_99 4y ago
> Isn't the whole point of crypto NOT to trust governments and centralized authorities? Perhaps originally, but now it is simply a bunch of get-rich-quick schemes, or maybe more accurately wallstreetbets-style gambling. I.e. even if people know it's going to all go to shit, try to play the game long enough and get out before someone pulls out the Jenga piece below you.
- spaceman_2020 4y ago
  Really sad how crypto devolved into a bunch of "wagmi" nonsense. It was originally meant to be a more serious counterweight to the excess of central bank monetary policies. Now it's just grifters and scammers. Oh well.
  - oblio 4y ago
    Idealistic solutions are vulnerable to this. Decentralized solutions are vulnerable to this. Idealistic decentralized solutions...
    - spaceman_2020 4y ago
      What's ironic is that the meltdown of crypto and crypto culture came right when central bank excesses are at the peak - at least for the vast majority of people alive.
      - hn_throwaway_99 4y ago
        > What's ironic is that the meltdown of crypto and crypto culture came right when central bank excesses are at the peak - at least for the vast majority of people alive. I don't understand. Central banks are finally raising rates after 2 decades of ultra-low rates. If anything, central bank excesses are well below their peak now.
timmytokyo 4y ago
I would never do it but I understand why people do. They're speculators and daytraders. And it's extremely inconvenient (and expensive) to move money out of wallets and into exchanges and back in order to make a trade. So people take short-cuts and just leave their money in the exchange accounts. The problem with crypto evangelists is that they keep forgetting it's humans who use it.
- spaceman_2020 4y ago
  The funny part is that the highest risk, most speculative trading strategies and instruments are available only on-chain (meme coins, high APR token farms, even decentralized margin trading platforms). These people took on risk, but not enough to warrant being on-chain, and in the process, lost it all. Weird place to be in - risky enough to lose it all, not risky enough to be completely speculative. Really in no man's land.
notJim 4y ago
The point of crypto for the vast majority of people is to not be the one left holding the bag. It's just a ponzi scheme that's open for anyone to participate in.

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chinabot 4y ago

Totally agree How do you even know the exchange spent the money on crypto if you dont see the keys, you may have just handed over $$ for a positive transaction on a virtual spreadsheet

hn_throwaway_99 4y ago

> Isn't the whole point of crypto NOT to trust governments and centralized authorities? Perhaps originally, but now it is simply a bunch of get-rich-quick schemes, or maybe more accurately wallstreetbets-style gambling. I.e. even if people know it's going to all go to shit, try to play the game long enough and get out before someone pulls out the Jenga piece below you.

spaceman_2020 4y ago
Really sad how crypto devolved into a bunch of "wagmi" nonsense. It was originally meant to be a more serious counterweight to the excess of central bank monetary policies. Now it's just grifters and scammers. Oh well.
- oblio 4y ago
  Idealistic solutions are vulnerable to this. Decentralized solutions are vulnerable to this. Idealistic decentralized solutions...
  - spaceman_2020 4y ago
    What's ironic is that the meltdown of crypto and crypto culture came right when central bank excesses are at the peak - at least for the vast majority of people alive.
    - hn_throwaway_99 4y ago
      > What's ironic is that the meltdown of crypto and crypto culture came right when central bank excesses are at the peak - at least for the vast majority of people alive. I don't understand. Central banks are finally raising rates after 2 decades of ultra-low rates. If anything, central bank excesses are well below their peak now.

timmytokyo 4y ago

I would never do it but I understand why people do. They're speculators and daytraders. And it's extremely inconvenient (and expensive) to move money out of wallets and into exchanges and back in order to make a trade. So people take short-cuts and just leave their money in the exchange accounts. The problem with crypto evangelists is that they keep forgetting it's humans who use it.

spaceman_2020 4y ago
The funny part is that the highest risk, most speculative trading strategies and instruments are available only on-chain (meme coins, high APR token farms, even decentralized margin trading platforms). These people took on risk, but not enough to warrant being on-chain, and in the process, lost it all. Weird place to be in - risky enough to lose it all, not risky enough to be completely speculative. Really in no man's land.

notJim 4y ago

The point of crypto for the vast majority of people is to not be the one left holding the bag. It's just a ponzi scheme that's open for anyone to participate in.