Many crypto exchanges and service providers were trusting FTX with their users’ money, causing users who had no business with FTX to lose money as well.
The entire reason bitcoin exists is to remove trust yet every scum sucking scammer out there tries to weasel around this fact.
Then every low brow in the world that says they understand bitcoin (they be crypto bro) cry like little girls when what they ignored as a fact turns out to be true.
I have ZERO pity for the fools that haven't been listening to what satoshi tried to teach them.
I agree, in spite of the fact I have often complained "Be your own bank" is too simplistic a slogan.
I have been a vocal proponent of the idea of "bitcoin banks" for a long time. For the simple reason that not everyone will be able to safely self custody the way things work now. I hear the phrase "Anyone can write down 12 words" a lot nowadays. Or "If you can remember your password you can remember your seed words". That sort of thing is apples to oranges. There is a BIG DIFFERENCE between someone stealing access to your Spotify account and someone stealing access to your retirement savings when people take a screenshot of their seed words and text it to themselves or upload it to google drive.
What I foresee is technology solving that problem in a trust minimized way. Something like Chaumian mints, covenants, or some other such wizardry that I cannot say I completely understand. But we have to go that direction... or something like it that would work.
What I have NEVER meant is we would trust unregulated single points of failure operating out of the Bahamas. LOL. And if you leave your funds under the exclusive control of someone like that... well I agree with Hueristic AND Mr. T.
And I do not think "regulation" or "proof of reserves" are perfect solutions in any way. In fact I think regulation is going to be used to try to kill Bitcoin (good luck with that) and proof of reserves is a good idea in theory, but is also gameable, and frankly therefore useless. Particularly since no one has ever mentioned "Proof of Liabilities" which would also be needed for that to work in the first place.
Anyway... the recent events are making me reevaluate my stance on "Bitcoin Banks"... and i (we) have a long way to go.
I wish we could ask Hal to expand on what he foretold back in the day... ah well.
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