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Coinbase Warns During Times of High Volatility, Access Could Become 'Unavailable' (cityam.com)
An anonymous reader quotes City AM:
A leading bitcoin exchange has warned that customers may be unable to get their money out quickly in the event of a crash in the cryptocurrency's price. Writing in a blog post last week, Coinbase's co-founder and chief executive Brian Armstrong, said despite "sizeable and ongoing" increases in the firm's technical infrastructure and engineering staff, access to Coinbase services could become "degraded or unavailable during times of significant volatility or volume. This could result in the inability to buy or sell for period of time," he said.
Armstrong added that there would be restrictions on how much customers could sell, or sell limits, to "protect client accounts and assets"... Bitcoin's market capitalisation rose above $300 billion for the first time earlier this week when its price rocketed to an all-time high of just over $17,000. Many analysts have warned that bitcoin represents an unsustainable bubble, though no one is quite sure when it will burst.
Armstrong added that there would be restrictions on how much customers could sell, or sell limits, to "protect client accounts and assets"... Bitcoin's market capitalisation rose above $300 billion for the first time earlier this week when its price rocketed to an all-time high of just over $17,000. Many analysts have warned that bitcoin represents an unsustainable bubble, though no one is quite sure when it will burst.
There is no cryptocurrency rooted in reality. There are too many external factors required for it to exist. Electricity. Network communication. Programming. More than a cursory understanding of computers and keeping files protected and organized. And these are all easy links in the chain (no pun intended) to break with just one disaster whether natural or man made (or government made). Ultimately, it's totally impractical. We did and will learn a lot from this technology, however. Perhaps the most important knowledge gained is that governments should not and cannot be allowed to control the means of exchange. Other solutions exist and should be explored--most of which have existed since time immemorial. Precious metals. Bartering. Trade of services. These are first tier currencies that require nothing more than their existence and belief in the importance of that existence by humans.
This is by 100% by design and is intentional.
Look at who backs Coinbase. By conveniently shutting down during a large price swing, they prevent a run on their capitalization which to me speaks volumes as to the quality of the bitcoin exchange.
I already took profits during its initial run-up. Yeah, I missed an opportunity from the freaking 8k to 15k run, but screw it. It's better to leave the casino with a wad of cash than be a basket holder.
I've had some crpyofanboys flame me in another community because I sold so long ago and who seem to think their coins will always be worth several thousand dollars. Here's hoping they make something out of the transaction.
Any kind of currency which requires a third party to take part in the transaction, and which the full value can't simple change hands without a processing fee simply isn't practical or viable.
What exactly do you think Visa/MasterCard/Amex/Discover do??? 2.9% of every transaction, plus $0.35 per swipe. The problem isn't paying a 3rd party to authenticate your transaction. The problem is that BTC only can handle a fraction of the transactions that credit card networks can. Low supply of authorized transactions per minute with high demand for them leads to high BTC fees.
Waiting to have your transaction complete and having the price change during the transaction is going to be the BTC's biggest hurdle, IMHO. Even things like SWIFT and Western Union have significant fees to move money, but you always know up front how much you're going to get when all is settled due to (comparatively) low volatility with traditional currencies (dollar, euro, yuan, etc.)
Perhaps the most important knowledge gained is that governments should not and cannot be allowed to control the means of exchange.
Have you been asleep these past 17 years? Did you not see the instability wrought by repealing the Glass-Steagle act? Have you an understanding of the effect such things such as insider trading laws in helping maintain a close semblance of a Free Market in Financial markets?
Are you aware in the 1800's where there was little or no regulation of the markets there were 16 collapses, depressions and panics. In a much smaller economy. Between 1873 and 1896, a period called "The Long Depression" there were 6 of them.
The S&L crisis only occurred after it was deregulation. It destroyed S&Ls, a major competitor of banks, and now they are going after credit unions.
Because it is unregulated when the crash comes the fat cats, the exchanges and insiders, will walk away with huge sums and everyone else gets screwed.
The only way to even approximate a Free Market, a level playing field highly efficient and unbiased, is through regulation. Free Market != unregulated market. Unregulated Market usually means a captured market. That is the problem of libertarianism.
putting the 'B' in LGBTQ+