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Crypto currency (IF banned from CA)


MaupsGoat said:
I have £4.86 in my bank account by the way.
Click to expand...

Buy Bitcoin.

DuuuncanHadaPigeon said:
I agree, FTX and nearly all exchanges are Ponzi's.

I agree Bitcoin is probably a bubble, it's at the end of its s curve for adoption.

I agree, time will tell with hex. It is still very early.
Click to expand...

Little confused here...

Why would a crypto exchange be a ponzi scheme?

Exchanges which are 'market neutral' and dont run or internalise risk cant be ponzi schemes as they are really just acting as a matching engine (matching counterparty trades within the exchange). Their profits are solely derived from volume based commissions.

Likewise if users all used custodians, how would an exchange be a ponzi scheme?

I think were now in the 3rd cycle...this is the 'final' stage where the bad actors are weeded out.

Ive said for a while that end of Q1 2023 is probably where we see or will have seen the results of this unfold.
 
Zatara said:
Buy Bitcoin.



Little confused here...

Why would a crypto exchange be a ponzi scheme?

Exchanges which are 'market neutral' and dont run or internalise risk cant be ponzi schemes as they are really just acting as a matching engine (matching counterparty trades within the exchange). Their profits are solely derived from volume based commissions.

Likewise if users all used custodians, how would an exchange be a ponzi scheme?

I think were now in the 3rd cycle...this is the 'final' stage where the bad actors are weeded out.

Ive said for a while that end of Q1 2023 is probably where we see or will have seen the results of this unfold.
Click to expand...
In theory yes, they are not ponzis - but a lot of exchanges don't just act as matching engines, they gamble with users money and end up collapsing, maybe a ponzi is not best way to describe them, straight up fraud is probably more accurate.

They serve a good purpose for fiat on/off ramps but holding money in an exchange for a long period of time is just stupid as you have so much counterparty risk (whole reason crypto was invented). It is another flaw of BTC that they have no on chain exchange, automated market makers such as uniswap render exchanges in the traditional sense obsolete. With on chain exchanges you have no counterparty risk, can be in control of your own keys and trade as much as you want, provided there is sufficient liquidity.

There is a framing error when discussing crypto at the moment, crypto is not broken, it works just great, the central counterparty risk scumbags are the real problem.

I agree Q1 2023 will probably be the bottom with the halvening not far away.
 


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