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FTX failing is not crypto failing. FTX failing just proves the fundament of crypto to be right - don't use centralized finance (yes, FTX is centralized finance)

FTX failing is not crypto failing. FTX failing just proves the fundament of crypto to be right - don't use centralized finance (yes, FTX is centralized finance).

moomin 4y ago
Yes, but the vast majority of crypto is centralised, so the moral is don’t use crypto.
- spaceman0997 4y ago
  It's perfectly possible to use crypto without centralized exchanges and many people do so. As "centralized crypto" continues to fail, people will use it in a decentralized way more and more. I don't see how the conclusion is "don't use crypto". People seeked simplicity, found out there is no free lunch - that doesn't mean they will throw the baby out with the bathwater.
  - tpxl 4y ago
    How do you enter or exit crypto? Either through a centralized exchange or you buy/sell from/to a shady dude in the alley.
    - landemva 4y ago
      This is the same as entering or exiting the gold coin market. Buy it or earn it or mine it.
jqpabc123 4y ago
(yes, FTX is centralized finance). All finance is centralized. De-centralized finance really doesn't exist --- crypto is just the latest example of this. Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A *centralized* exchange. The crypto market is controlled by companies like FTX. This still holds true even if you don't deal directly with these companies. Money equates to influence and control and crypto is no exception.
- spaceman0997 4y ago
  What central authority controls Bitcoin? > Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A centralized exchange. That's the simplest way today - but definitely not a requirement, and doesn't make it centralized in any way. The centralized exchanges don't set the price (if anything, they suggest it) and they can't control transactions nor wallets. Who doesn't know the private key can't do anything with the funds on a wallet. > The crypto market is controlled by companies like FTX. This still holds true even if you deal directly with these companies. The "crypto market" - maybe. But they don't control the cryptocurrencies themselves in any way. This is like saying that because NASDAQ controls the $MSFT market they control Microsoft - of course they don't.
  - jqpabc123 4y ago
    But they don't control the cryptocurrencies themselves in any way. Binance and Bitfinex have control over the one thing that matters most about Bitcoin --- the price. They exercise this control in the same way a central bank does --- they have access to an unlimited supply of "stablecoins" they can mint at will and use to buy/sell bitcoin as they see fit.
    - spaceman0997 4y ago
      The price isn't the thing that matters the most about Bitcoin... What matters the most is that nobody can take my coins from my wallet if I don't want them to and that I can send the coins to anybody I want, however much I want and whenever I want.
      - jqpabc123 4y ago
        What matters the most is that nobody can take my coins from my wallet Really? So it doesn't matter that the bitcoins in your wallet are now worth about 1/4 of what they were a few months ago? Where did all that value go? My guess is a lot of it is sitting in fiat bank accounts someplace under the control of Binance and Bitfinex. The numbers in your wallet may be the same but 3/4's of the value has been removed. You've been robbed and you don't even know it.

FTX failing is not crypto failing. FTX failing just proves the fundament of crypto to be right - don't use centralized finance (yes, FTX is centralized finance).

moomin 4y ago

Yes, but the vast majority of crypto is centralised, so the moral is don’t use crypto.

spaceman0997 4y ago
It's perfectly possible to use crypto without centralized exchanges and many people do so. As "centralized crypto" continues to fail, people will use it in a decentralized way more and more. I don't see how the conclusion is "don't use crypto". People seeked simplicity, found out there is no free lunch - that doesn't mean they will throw the baby out with the bathwater.
- tpxl 4y ago
  How do you enter or exit crypto? Either through a centralized exchange or you buy/sell from/to a shady dude in the alley.
  - landemva 4y ago
    This is the same as entering or exiting the gold coin market. Buy it or earn it or mine it.

jqpabc123 4y ago

(yes, FTX is centralized finance). All finance is centralized. De-centralized finance really doesn't exist --- crypto is just the latest example of this. Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A *centralized* exchange. The crypto market is controlled by companies like FTX. This still holds true even if you don't deal directly with these companies. Money equates to influence and control and crypto is no exception.

spaceman0997 4y ago
What central authority controls Bitcoin? > Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A centralized exchange. That's the simplest way today - but definitely not a requirement, and doesn't make it centralized in any way. The centralized exchanges don't set the price (if anything, they suggest it) and they can't control transactions nor wallets. Who doesn't know the private key can't do anything with the funds on a wallet. > The crypto market is controlled by companies like FTX. This still holds true even if you deal directly with these companies. The "crypto market" - maybe. But they don't control the cryptocurrencies themselves in any way. This is like saying that because NASDAQ controls the $MSFT market they control Microsoft - of course they don't.
- jqpabc123 4y ago
  But they don't control the cryptocurrencies themselves in any way. Binance and Bitfinex have control over the one thing that matters most about Bitcoin --- the price. They exercise this control in the same way a central bank does --- they have access to an unlimited supply of "stablecoins" they can mint at will and use to buy/sell bitcoin as they see fit.
  - spaceman0997 4y ago
    The price isn't the thing that matters the most about Bitcoin... What matters the most is that nobody can take my coins from my wallet if I don't want them to and that I can send the coins to anybody I want, however much I want and whenever I want.
    - jqpabc123 4y ago
      What matters the most is that nobody can take my coins from my wallet Really? So it doesn't matter that the bitcoins in your wallet are now worth about 1/4 of what they were a few months ago? Where did all that value go? My guess is a lot of it is sitting in fiat bank accounts someplace under the control of Binance and Bitfinex. The numbers in your wallet may be the same but 3/4's of the value has been removed. You've been robbed and you don't even know it.