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I'm honestly curious, at first glance this looks that could potentially affect cryptocurrencies in a sizable way downwards. I checked CoinMarketCap and it seems

by elkos 3y ago

I'm honestly curious, at first glance this looks that could potentially affect cryptocurrencies in a sizable way downwards. I checked CoinMarketCap and it seems that the trend is comparatively stable. Can someone explain this? Please do take into account that I'm not very well versed with cryptocurrencies and I usually need an explainer in several financial concepts.

EscapeFromNY 3y ago
Binance is an exchange, and exchanges are not needed for cryptocurrency to work. They just make it easier to enter/exit the ecosystem.
- deleted 3y ago
  [deleted]
- unyttigfjelltol 3y ago
  Without exchanges, you would be justified to use crypto to buy pizza again.
  - ISL 3y ago
    I never found a way to buy pizza with crypto without maintaining a FIFO ledger I could file with the IRS detailing every single transaction. Without that onerous administrative tax-compliance requirement, I'd have made many purchases with bitcoin.
dontupvoteme 3y ago
The americans were priced in.
dthakur 3y ago
CoinMarketCap is owned by CZ. I’m not claiming anything malicious, just FYI.
crtified 3y ago
Your assumption could come to pass. It's not a certainty. Keep in mind that these squabbles center around ownership, custody and handling - not seeking to destroy, or to cast the assets themselves as 'bad' per se.
UncleOxidant 3y ago
There was a crypto critic on Bill Maher a couple months ago and he was asked essentially that question. IIRC He suggested that there's a lot of cryptocurrency out there that is essentially not sellable - it's been stolen, stuck in dead exchanges, etc. And then there are state actors that are likely helping to prop it up.
syntheweave 3y ago
The SEC action is actually a signal of weakness in USD. This was precipitated somewhat with the pandemic, and more so after there were financial sanctions leveled against Russia. The reason why currency has relative strength or weakness comes from the idea of a "national balance sheet": if your nation's assets exceed its liabilities, your local currency is gaining buying power, because it can take on additional debt from other countries and therefore, when we measure it in terms of "how much a unit of currency can purchase", we are getting them at a relative discount. You don't necessarily want the currency to be strong if your economy is based on exporting, but as a net importer, the US has assumed the role of strength for some time, and a large part of its system is to "export the dollar" as the international settlement currency. So, with the pandemic, we got a round of fiscal stimulus, inflating the currency. Not necessarily insurmountable by itself. But then Russia invaded Ukraine and the US decided to punish the action with sanctions. That prevents Russia from doing some business, but it also has a blowback to it: if the usage of USD is becoming more restricted, it becomes less appealing as a settlement currency. Many smaller countries have peeled away to alternatives, with a handful even opting to hold BTC. Therefore, dollar strength is under serious threat now. The recent bank implosions have added to that uncertainty: there is a real question, often discussed in the crypto space now, of whether USD is going to survive intact. Under Gary Gensler's administration, the MO of the SEC has been to swing around a billy club and drum up a bunch of charges against exchanges. The charges aren't very sound in nature: they don't adhere to a consistent framework, and don't suggest cooperation with exchanges like Coinbase that have taken pains to ask for regulatory clarity. The rationale for why that's happening now is obvious: if the overriding concern is protecting the dollar, the SEC has to burn any possible lifeboats to maintain control of its own currency. But...if you're doing that, that's the "then they fight you" part of the story. There are several countries where an informal crypto sector has taken hold to handle payments and remittance precisely because it bypasses financial controls. In many cases, people will still prefer settlement in USD, but they can hold a stablecoin if needed. There is a fate in which USD pulls through without falling into an inflationary spiral, but it requires the economy to do extremely well(with a mix of labor mobilization and technological improvements) so that the balance sheet is fixed and faith is restored. The market reaction in this case suggests that people don't think the US is in control of its money, and they expect the action to be toothless - and they have a point, since if an exchange goes down, they can continue holding in self-custody and wait for the market to provide alternatives.
_9omd 3y ago
1) The US isn’t the entire world, and crypto is a very global thing since it’s essentially borderless finance (outside of exchanges anyway) 2) Crypto cannot be killed due to its decentralized nature and every attempt makes it more clear how anti-fragile it is. You cut off one head in the US, two more will spring up in other countries.
codehalo 3y ago
You should look elsewhere (even google) for advice or to understand cryptocurrencies. Avoid at all costs this site (extremely uninformed negativity) and YouTube (extremely uninformed shillers).
csomar 3y ago
Some people overestimate the influence of the US. Maybe because the US has quite an influence over Japan and Europe. You need to realize the US is not the world and the world doesn’t care what the US institutions think or do.
- hbbio 3y ago
  That should be the top comment! The US is not (anymore?) the center of the world attention. In a way, it's just that more countries "open their eyes" on the impact the US has on many countries. For instance, the US is an "ally" of France, but does a lot of damage to the French economy, on purpose.
  - Our_Benefactors 3y ago
    > For instance, the US is an "ally" of France, but does a lot of damage to the French economy, on purpose. Please provide examples for more self-directed research?
    - hbbio 3y ago
      https://www.radiofrance.fr/franceinter/podcasts/affaires-sensibles/alstom-un-scandale-d-etat-6751390 https://www.radiofrance.fr/franceinter/podcasts/affaires-sen...

by elkos 3y ago

EscapeFromNY 3y ago

Binance is an exchange, and exchanges are not needed for cryptocurrency to work. They just make it easier to enter/exit the ecosystem.

deleted 3y ago
[deleted]
unyttigfjelltol 3y ago
Without exchanges, you would be justified to use crypto to buy pizza again.
- ISL 3y ago
  I never found a way to buy pizza with crypto without maintaining a FIFO ledger I could file with the IRS detailing every single transaction. Without that onerous administrative tax-compliance requirement, I'd have made many purchases with bitcoin.

dontupvoteme 3y ago

The americans were priced in.

dthakur 3y ago

CoinMarketCap is owned by CZ. I’m not claiming anything malicious, just FYI.

crtified 3y ago

Your assumption could come to pass. It's not a certainty. Keep in mind that these squabbles center around ownership, custody and handling - not seeking to destroy, or to cast the assets themselves as 'bad' per se.

UncleOxidant 3y ago

There was a crypto critic on Bill Maher a couple months ago and he was asked essentially that question. IIRC He suggested that there's a lot of cryptocurrency out there that is essentially not sellable - it's been stolen, stuck in dead exchanges, etc. And then there are state actors that are likely helping to prop it up.

syntheweave 3y ago

The SEC action is actually a signal of weakness in USD. This was precipitated somewhat with the pandemic, and more so after there were financial sanctions leveled against Russia. The reason why currency has relative strength or weakness comes from the idea of a "national balance sheet": if your nation's assets exceed its liabilities, your local currency is gaining buying power, because it can take on additional debt from other countries and therefore, when we measure it in terms of "how much a unit of currency can purchase", we are getting them at a relative discount. You don't necessarily want the currency to be strong if your economy is based on exporting, but as a net importer, the US has assumed the role of strength for some time, and a large part of its system is to "export the dollar" as the international settlement currency. So, with the pandemic, we got a round of fiscal stimulus, inflating the currency. Not necessarily insurmountable by itself. But then Russia invaded Ukraine and the US decided to punish the action with sanctions. That prevents Russia from doing some business, but it also has a blowback to it: if the usage of USD is becoming more restricted, it becomes less appealing as a settlement currency. Many smaller countries have peeled away to alternatives, with a handful even opting to hold BTC. Therefore, dollar strength is under serious threat now. The recent bank implosions have added to that uncertainty: there is a real question, often discussed in the crypto space now, of whether USD is going to survive intact. Under Gary Gensler's administration, the MO of the SEC has been to swing around a billy club and drum up a bunch of charges against exchanges. The charges aren't very sound in nature: they don't adhere to a consistent framework, and don't suggest cooperation with exchanges like Coinbase that have taken pains to ask for regulatory clarity. The rationale for why that's happening now is obvious: if the overriding concern is protecting the dollar, the SEC has to burn any possible lifeboats to maintain control of its own currency. But...if you're doing that, that's the "then they fight you" part of the story. There are several countries where an informal crypto sector has taken hold to handle payments and remittance precisely because it bypasses financial controls. In many cases, people will still prefer settlement in USD, but they can hold a stablecoin if needed. There is a fate in which USD pulls through without falling into an inflationary spiral, but it requires the economy to do extremely well(with a mix of labor mobilization and technological improvements) so that the balance sheet is fixed and faith is restored. The market reaction in this case suggests that people don't think the US is in control of its money, and they expect the action to be toothless - and they have a point, since if an exchange goes down, they can continue holding in self-custody and wait for the market to provide alternatives.

_9omd 3y ago

1) The US isn’t the entire world, and crypto is a very global thing since it’s essentially borderless finance (outside of exchanges anyway) 2) Crypto cannot be killed due to its decentralized nature and every attempt makes it more clear how anti-fragile it is. You cut off one head in the US, two more will spring up in other countries.

codehalo 3y ago

You should look elsewhere (even google) for advice or to understand cryptocurrencies. Avoid at all costs this site (extremely uninformed negativity) and YouTube (extremely uninformed shillers).

csomar 3y ago

Some people overestimate the influence of the US. Maybe because the US has quite an influence over Japan and Europe. You need to realize the US is not the world and the world doesn’t care what the US institutions think or do.

hbbio 3y ago
That should be the top comment! The US is not (anymore?) the center of the world attention. In a way, it's just that more countries "open their eyes" on the impact the US has on many countries. For instance, the US is an "ally" of France, but does a lot of damage to the French economy, on purpose.
- Our_Benefactors 3y ago
  > For instance, the US is an "ally" of France, but does a lot of damage to the French economy, on purpose. Please provide examples for more self-directed research?
  - hbbio 3y ago
    https://www.radiofrance.fr/franceinter/podcasts/affaires-sensibles/alstom-un-scandale-d-etat-6751390 https://www.radiofrance.fr/franceinter/podcasts/affaires-sen...