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Thread: Central Bank Digital Currency ??

  1. #31
    Just this guy Inor's Avatar
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    Quote Originally Posted by Jester-ND View Post
    Wondering how the latest FTX crypto fiasco has affected yall's thoughts on it's security? couldn't the creator of bitcoin do something similar and crater the price?
    The FTX mess is more of a curiosity to me than anything else. It has zero effect on what I am doing since I am using Bitcoin and Monero as a purchasing medium and to maintain privacy. As I explained in post #9 on this thread, keeping your crypto in an exchange is a roll of the dice. I have always kept mine in a local wallet, so I have no risk associated with any exchange playing games. The only thing I use an exchange for is my initial purchase of BTC. As soon as the purchase order fills, I immediately move the BTC from my exchange account to my local offline wallet. There is a very small window of time, between when I move my fiat currency onto the exchange to make the purchase and when I move my newly purchased crypto onto my local wallet where I could be at some risk. But that is a very small window, between about 10 and 30 minutes, and it is a risk I am willing to take since the amounts we are talking about are pretty small - usually less than $1000 USD.

    As far as Satoshi Nakamoto (the creator of Bitcoin) building in a backdoor either to steal or otherwise cause havoc, it would have been possible when BTC was first created. But once BTC went live (2007), the entire source code base was also made public. In my particular case, I did spend a fair bit of time studying the source code before I decided to experiment with buying it to satisfy myself that no such backdoor exists. I am sure millions of others have as well.

    I fully expected FTX to fall apart at some time, not because of fraud, but because they had a stupid business model. They were supposedly paying "depositors/account holders" 8% on their crypto deposits when they could have just issued corporate bonds or even borrowed USD from a commercial bank for 3% and bought the crypto outright. What the hell kind of business model plans to lose 5% on every transaction and make up the difference on volume?!? The fraud was bad, but in reality, all it did was speed up a massive wipe out that was already baked into the cake. The FTX founder was a media darling so they could have maybe stretched it out for a few more years without the fraud, but in the end they were going die spectacularly with or without the fraud. Keep an eye on Coinbase and Crypto.com. I expect they will meet a similar fate in the not too distant future.

    But in terms of keeping a crypto wallet offline and maintaining privacy in your transactions, I am still a fan. My only wish is that the Ethereum transaction fees would come back to earth a little bit. The exchange rates on it have held up much better than most of the others so it would be my hands down favorite if it weren't so damn expensive to use it for purchasing things.
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  3. #32
    VIP Member! MountainGirl's Avatar
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    Quote Originally Posted by Inor View Post
    The FTX mess is more of a curiosity to me than anything else. It has zero effect on what I am doing since I am using Bitcoin and Monero as a purchasing medium and to maintain privacy. As I explained in post #9 on this thread, keeping your crypto in an exchange is a roll of the dice. I have always kept mine in a local wallet, so I have no risk associated with any exchange playing games. The only thing I use an exchange for is my initial purchase of BTC. As soon as the purchase order fills, I immediately move the BTC from my exchange account to my local offline wallet. There is a very small window of time, between when I move my fiat currency onto the exchange to make the purchase and when I move my newly purchased crypto onto my local wallet where I could be at some risk. But that is a very small window, between about 10 and 30 minutes, and it is a risk I am willing to take since the amounts we are talking about are pretty small - usually less than $1000 USD.

    As far as Satoshi Nakamoto (the creator of Bitcoin) building in a backdoor either to steal or otherwise cause havoc, it would have been possible when BTC was first created. But once BTC went live (2007), the entire source code base was also made public. In my particular case, I did spend a fair bit of time studying the source code before I decided to experiment with buying it to satisfy myself that no such backdoor exists. I am sure millions of others have as well.

    I fully expected FTX to fall apart at some time, not because of fraud, but because they had a stupid business model. They were supposedly paying "depositors/account holders" 8% on their crypto deposits when they could have just issued corporate bonds or even borrowed USD from a commercial bank for 3% and bought the crypto outright. What the hell kind of business model plans to lose 5% on every transaction and make up the difference on volume?!? The fraud was bad, but in reality, all it did was speed up a massive wipe out that was already baked into the cake. The FTX founder was a media darling so they could have maybe stretched it out for a few more years without the fraud, but in the end they were going die spectacularly with or without the fraud. Keep an eye on Coinbase and Crypto.com. I expect they will meet a similar fate in the not too distant future.

    But in terms of keeping a crypto wallet offline and maintaining privacy in your transactions, I am still a fan. My only wish is that the Ethereum transaction fees would come back to earth a little bit. The exchange rates on it have held up much better than most of the others so it would be my hands down favorite if it weren't so damn expensive to use it for purchasing things.
    With FTX, and eventually Coinbase and Crypto.com, it seems the overall public confidence in the whole crypto idea would be diminished - causing less vendors to be willing to accept it, etc. Especially when 'the masses' don't understand it as well as you and others do.

    On an unrelated but similar note - PO stopped at our fav booze house yesterday to stock up - and their 'card reader' wasn't working. He had no cash on him so came home without my blackberry moonshine. Grrrrr.

    I doubt he and I will still be alive when Cash is finally 'retired' - but I truly feel for y'all and your young'uns when the whole system is digitized, monitored and controlled; and it will be.
    Now deferring to the judgement of horses.

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    Prepared One (11-16-2022),shootbrownelk (11-16-2022)

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