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The Crypto industry continues their speedrun of rediscovering all of the reasons for why the global financial system exists. What you've described is the same

The Crypto industry continues their speedrun of rediscovering all of the reasons for why the global financial system exists. What you've described is the same thing that many Crypto enthusiasts call a "Bank"

knowitnone 1y ago
except banks staff can easily be bribed too. There is plenty of bank fraud happening.
- rib3ye 1y ago
  I can walk into a bank branch and show documents. I guess I can walk downtown to CB HQ, but something tells me I won't get past the front desk.
- suzzer99 1y ago
  If my bank money gets stolen from me via fraud (unless I literally just Zelle the scammer), I get it back. That's the big difference.
  - SoftTalker 1y ago
    Zelle is ultimately a bank transfer. Yes they say to consider them like sending cash, but a bank transaction is at least tracable to a real account owner, who could then be pursued in the case of fraud, and it well might be reversible if push came to shove or if there is documented fraud.
  - anton-c 1y ago
    I know it's the massive exception but I was reimbursed when the exchange that tried to rugpull its users felt legal pressure. Things have changed slightly over the years - don't get me wrong, scams are still rampant. It's been ages since I was in college and had an overdraft or some other bs bank related fee, but the bank manages to 'scam' you legally too. I'm just playing devils advocate and sharing an anecdote, I'm minimally involved in crypto anymore.
- victorbjorklund 1y ago
  Can you show us that? Where the consumer is left with no money at all and bank does not take the loss.
  - hiatus 1y ago
    Go Zelle someone and try to get the money back.
    - xeromal 1y ago
      When I was "hacked" two years ago, their final hurrah before I finally got everything offline for a time, they sent zelles as much as they could and was able to recover it without any loss on my end.
      - hiatus 1y ago
        I guess things have changed since it has not always been the case that the bank would reimburse you. https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html https://www.nytimes.com/2022/03/06/business/payments-fraud-z...
        xeromal 1y ago
        Yeah, I think it truly depends on whether you hit the send button or not. Since I was hacked, it wasn't me hitting the send button.
    - victorbjorklund 1y ago
      If YOU are the one sending the money of course it is not a hack etc becuase YOU are sending it. If Zelle is hacked and someone steals your money through that hack you will not be left with the loss.
woah 1y ago
Coinbase is identical to a bank because it holds customer funds. Your comment isn't quite the dunk you think it is. Blockchains allow money to be held anonymously without any banks involved. Centralized exchanges are just profiting on speculation and probably should be banned.
- scarface_74 1y ago
  My money in the bank in case of fraud is protected unless I voluntarily gave the fraudster my money. If a bank goes bankrupt, my money is protected by the government
  - csomar 1y ago
    First one might be kind true in the US. Second one is only true up to $250k and how much Yellen likes you. But they are not true around the world and probably for most of it.
    - scarface_74 1y ago
      By law yes it’s only $250K. But when the banks collapsed last year, the government made sure that no one lost money. In fact, no one has ever lost money because of an FDIC insured bank failure.
- AStonesThrow 1y ago
  No they don’t. “Cryptocurrency” isn’t money at all. Just because you can trade it in for money, doesn’t make it so. I can also trade in my hat to the Buffalo Exchange for money. But my hat is not money.
  - woah 1y ago
    There is no bright line separating "money" from any other type of fungible asset
    - AStonesThrow 1y ago
lxgr 1y ago
Many banks don't have physical branches. One that I'm using does, but I find it extremely annoying when they have me go to a branch to unblock my account that they locked due to a poorly calibrated risk system (that they need due to not supporting actually secure 2FA methods).

knowitnone 1y ago

except banks staff can easily be bribed too. There is plenty of bank fraud happening.

rib3ye 1y ago
I can walk into a bank branch and show documents. I guess I can walk downtown to CB HQ, but something tells me I won't get past the front desk.
suzzer99 1y ago
If my bank money gets stolen from me via fraud (unless I literally just Zelle the scammer), I get it back. That's the big difference.
- SoftTalker 1y ago
  Zelle is ultimately a bank transfer. Yes they say to consider them like sending cash, but a bank transaction is at least tracable to a real account owner, who could then be pursued in the case of fraud, and it well might be reversible if push came to shove or if there is documented fraud.
- anton-c 1y ago
  I know it's the massive exception but I was reimbursed when the exchange that tried to rugpull its users felt legal pressure. Things have changed slightly over the years - don't get me wrong, scams are still rampant. It's been ages since I was in college and had an overdraft or some other bs bank related fee, but the bank manages to 'scam' you legally too. I'm just playing devils advocate and sharing an anecdote, I'm minimally involved in crypto anymore.
victorbjorklund 1y ago
Can you show us that? Where the consumer is left with no money at all and bank does not take the loss.
- hiatus 1y ago
  Go Zelle someone and try to get the money back.
  - xeromal 1y ago
    When I was "hacked" two years ago, their final hurrah before I finally got everything offline for a time, they sent zelles as much as they could and was able to recover it without any loss on my end.
    - hiatus 1y ago
      I guess things have changed since it has not always been the case that the bank would reimburse you. https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html https://www.nytimes.com/2022/03/06/business/payments-fraud-z...
      - xeromal 1y ago
        Yeah, I think it truly depends on whether you hit the send button or not. Since I was hacked, it wasn't me hitting the send button.
  - victorbjorklund 1y ago
    If YOU are the one sending the money of course it is not a hack etc becuase YOU are sending it. If Zelle is hacked and someone steals your money through that hack you will not be left with the loss.

woah 1y ago

Coinbase is identical to a bank because it holds customer funds. Your comment isn't quite the dunk you think it is. Blockchains allow money to be held anonymously without any banks involved. Centralized exchanges are just profiting on speculation and probably should be banned.

scarface_74 1y ago
My money in the bank in case of fraud is protected unless I voluntarily gave the fraudster my money. If a bank goes bankrupt, my money is protected by the government
- csomar 1y ago
  First one might be kind true in the US. Second one is only true up to $250k and how much Yellen likes you. But they are not true around the world and probably for most of it.
  - scarface_74 1y ago
    By law yes it’s only $250K. But when the banks collapsed last year, the government made sure that no one lost money. In fact, no one has ever lost money because of an FDIC insured bank failure.
AStonesThrow 1y ago
No they don’t. “Cryptocurrency” isn’t money at all. Just because you can trade it in for money, doesn’t make it so. I can also trade in my hat to the Buffalo Exchange for money. But my hat is not money.
- woah 1y ago
  There is no bright line separating "money" from any other type of fungible asset
  - AStonesThrow 1y ago

lxgr 1y ago

Many banks don't have physical branches. One that I'm using does, but I find it extremely annoying when they have me go to a branch to unblock my account that they locked due to a poorly calibrated risk system (that they need due to not supporting actually secure 2FA methods).