Bitcoin stops bank runs - own your keys!

[James_CRYPTOSTAR.MONEY]

In 2008 there was a banking scandal and there was a run on the banks because knew that they could not access their money. Yesterday Bitfinex has a scandal and everyone with their own keys just smiles.

https://cryptostar.money/blog/bitfinex-scandal-bitcoin-stops-bank-runs/

[Nadziratel]

I think we all have money in exchange. And not only 1-2, but dozens of exchanges. Because each ICO is negotiating with another platform after a certain period of time. Therefore, it is useful to be very careful. I think we should use our own personal wallet as much as possible.

[rijaljun]

That's what Satoshi is always want (in my opinion). Bitcoin was invented to make people controls their own money by holding their own private keys. This is to avoid fraud, and I think bank system is full of corruption that practiced by bankers and governments. We don't need bank anyway!

[FlightyPouch]

That is just great. That is the reason we are our own banks. We own the BTC we have and take care of it. We should always check our keys and seeds that might be taken by hackers. Be careful on putting your cryptos on exchanges since we don't really know how they are managing or planning behind those sites or apps.

[hatshepsut93]

In 2008 there was a banking scandal and there was a run on the banks because knew that they could not access their money. Yesterday Bitfinex has a scandal and everyone with their own keys just smiles.

https://cryptostar.money/blog/bitfinex-scandal-bitcoin-stops-bank-runs/

The problem with Bitfinex is that some people suspect that they use Tethers to manipulate Bitcoin's price, so even if you control your private keys, it still affects you, because it negatively impacts the price. The value of Bitcoin as store of value is being undermined by shady ecosystem. Hopefully Bitcoin today is more mature than when it was during the Gox fiasco.

[Harlot]

What is most interesting about this scandal is that it shows the strength of Bitcoin. Bitfinex is one of the largest crypto exchanges and holds several percent of the whole market crypto capitalisation in escrow. In spite of this, the market only dipped 5% which is pretty much a normal-day in the crypto world.

I think this article speaks for itself, a big scandal like this in the stock market would have brought down a company's stock and maybe some along with it. No matter how much money was involved through that scandal it felt like Bitcoin has somewhat not shaken about it because really the crypto market have been in a similar if not the same situation a few times before. To be honest I didn't even felt Bitcoin had dropped significantly for me to have a quick move in it, I just went back online again in a few hours and I notice that BTC was climbing back up again.

[Genemind]

That's the advantage of cryptocurrency in banks. We are in control of our own funds and accounts.
By securing our private keys, we can do and transact whenever and whatever we want.
Bitfinex is a good choice but I don't think that they stick on bitcoin as an independent coin.

[Haunebu]

The problem with Bitfinex is that some people suspect that they use Tethers to manipulate Bitcoin's price, so even if you control your private keys, it still affects you, because it negatively impacts the price. The value of Bitcoin as store of value is being undermined by shady ecosystem. Hopefully Bitcoin today is more mature than when it was during the Gox fiasco.

Interesting theory and it is something I have heard of on multiple occasions before thanks to all the shady controversies surrounding Tether. Price manipulation will always exist no matter what if you ask me.

What we need to focus on is trying in whatever manner possible to lower the centralization aspect of the crypto ecosystem.

[pooya87]

if you ask me this is a very good thing that is happening with Bitfinex and their Tether recently.
we have all known that Bitfinex and Tether are shady and should not be trusted but somewhere along the line people started forgetting that and instead trusted more and more in USDT to the point where some of them even hold Tether whenever their favorite altcoin is getting dumped pretty hard. incidents like this can help wake everyone up to see what Tether is and stop risking their money in it and only use it for very special cases like transferring fiat between exchanges.

[CryptoReggae]

if you ask me this is a very good thing that is happening with Bitfinex and their Tether recently.
we have all known that Bitfinex and Tether are shady and should not be trusted but somewhere along the line people started forgetting that and instead trusted more and more in USDT to the point where some of them even hold Tether whenever their favorite altcoin is getting dumped pretty hard. incidents like this can help wake everyone up to see what Tether is and stop risking their money in it and only use it for very special cases like transferring fiat between exchanges.

It is not forgetting, it is stupidity.

With MtGox we had days in advance, with Bitconnect we had days in advance, with Bitfinex we have years in advance.

If that happens then it will only be thanks to their stupidity!

[xvids]

That's what Satoshi is always want (in my opinion). Bitcoin was invented to make people controls their own money by holding their own private keys. This is to avoid fraud, and I think bank system is full of corruption that practiced by bankers and governments. We don't need bank anyway!

It is true this is why Bitcoin is decentralized you should be the one who keeps your own crypto.
I never leave some crypto on my trading account because of those scandals.

[jakelyson]

A scandal that huge and we only see a 5% drop. This just shows that bitcoin has become much stronger, stable and the holder more diversified. A few years ago, if the same scandal happens, we will see a massive dump. It is different now. There is no bank run because there is no bank. Except for those who still trust centralized exchanges, most hold their bitcoin in their own wallets.

[BrewMaster]

A scandal that huge and we only see a 5% drop. This just shows that bitcoin has become much stronger, stable and the holder more diversified. A few years ago, if the same scandal happens, we will see a massive dump. It is different now. There is no bank run because there is no bank. Except for those who still trust centralized exchanges, most hold their bitcoin in their own wallets.

true but also there is one major reasons that prevented the drop.
* this is the most important reason in my opinion. and that is the fact that drama or FUD like this can only cause a big drop during the bear market or basically whenever the market is leaning towards a downtrend. nowadays we are seeing a trend change and market is leaning more towards an uptrend so the FUD is against the market direction hence is ineffective.

[miner32342]

A scandal that huge and we only see a 5% drop. This just shows that bitcoin has become much stronger, stable and the holder more diversified. A few years ago, if the same scandal happens, we will see a massive dump. It is different now. There is no bank run because there is no bank. Except for those who still trust centralized exchanges, most hold their bitcoin in their own wallets.

That's true, but I believe it is people who have become less compliant to negative news related to crypto. It, in turn, prevents them from selling bitcoin in a fear of losing money. Sooner or later, banks will have to deal with cryptocurrencies in order not to be thrown to the dustbin of history. Bitcoin legitimation is just a matter of time since there are already a few fintech companies in the market that are trying to tackle the problem of massive adoption through a crypto-acquiring terminals (POS). Conventional banks should think about it until it's not too late for them. Everything is good in its season.

[Ucy]

Do people control their own keys on the Bitfinex exchange? Or you are talking about the general bitcoiners who control their private keys and don't use or have too much coins on the exchange?

Anyway, people who didn't learn anything from the 2008 crash would probably repeat the mistake of keeping lots of money  on centralized crypto exchanges.

[Kakmakr]

In 2008 there was a banking scandal and there was a run on the banks because knew that they could not access their money. Yesterday Bitfinex has a scandal and everyone with their own keys just smiles.

https://cryptostar.money/blog/bitfinex-scandal-bitcoin-stops-bank-runs/

The problem with Bitfinex is that some people suspect that they use Tethers to manipulate Bitcoin's price, so even if you control your private keys, it still affects you, because it negatively impacts the price. The value of Bitcoin as store of value is being undermined by shady ecosystem. Hopefully Bitcoin today is more mature than when it was during the Gox fiasco.

OP is not saying that the clamp down of Bitfinex is not effecting the Bitcoin price, he is saying that people with "only access" to their private keys are unaffected, because they can still access their own coins, because they are not sharing the access with any centralized service. 

This is why a sudden "Bank run" or "Exchange run" will not affect people who are not sharing access to their private keys. A centralized service can block access to people's accounts in times of panic, but this cannot happen if you own and manage your own private keys. 

[kawetsriyanto]

There are times when we have to be more vigilant in taking control of our finances, especially in Bitcoin. We may have learned a lot about the various scandals carried out by banks that have even been trusted. In holding Bitcoin, we have also been taught to be more careful and vigilant to secure our private keys security system, both in one exchange and another. For, everyone will have several wallets and exchange. Protect and secure your private keys while you can. Never forget the security system for the security of your own Bitcoin, like you are in control of the security of your own bank.

[jossiel]

I think we all have money in exchange. And not only 1-2, but dozens of exchanges. Because each ICO is negotiating with another platform after a certain period of time. Therefore, it is useful to be very careful. I think we should use our own personal wallet as much as possible.

Everyone who trade, invest and to make profit does have money in exchange. You're defining the IEOs here which would really require the platform itself and as much as possible you should stop investing with any of them, ICO or IEO.

And as for your wallet, you should hold the keys no matter what. Don't entrust large fund to any exchange whether they are reputable and running as long as you don't hold your private keys, your money isn't in your hands.

[mustangy]

my strateji is deposit every day max %50 of funds and withdraw when done!!!
and keep tracking health of those guys.
It is not only shitfinex bnb marketcap is already over tusd crazy to me..

[pooya87]

if you ask me this is a very good thing that is happening with Bitfinex and their Tether recently.
we have all known that Bitfinex and Tether are shady and should not be trusted but somewhere along the line people started forgetting that and instead trusted more and more in USDT to the point where some of them even hold Tether whenever their favorite altcoin is getting dumped pretty hard. incidents like this can help wake everyone up to see what Tether is and stop risking their money in it and only use it for very special cases like transferring fiat between exchanges.

It is not forgetting, it is stupidity.

With MtGox we had days in advance, with Bitconnect we had days in advance, with Bitfinex we have years in advance.

If that happens then it will only be thanks to their stupidity!

i honestly wouldn't call it "stupidity" (apart from the bitconnect thing which wasn't an exchange). i call it lack of other better options. and that is the case for everyone who trades on these exchanges. they don't have anywhere else to go, others are just as bad if not worse so they remain where they are even when there is red flags since there are red flags there most of the times.