[2019-12-26] Binance Blockade of Wasabi Wallet Could Point to a Crypto Crack-Up

[squatter]

I would've thought not too far off everything has something questionable somewhere once you look hard enough.

That's the long and short of it. Exchange wallets themselves are full of once tainted coins.

I think it has to do with this new model of KYCC -- "Know Your Customer's Customer" -- especially in this atmosphere where cryptocurrency exchanges are increasingly viewed as financial institutions. Exchanges (particularly fiat exchanges like Binance SG) are trying to appease their banking partners in addition to regulators.

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[bbc.reporter]

Is bitcoin losing in its fight versus the fiat system? I reckon there is nothing users could do versus exchanges, which might be the real power overseeing everything behind the cryptospace.

Nah. Some day there'll be a significant proportion of people earning and paying in crypto and it'll be the thing they'll want above anything else in return for selling their shit.

There'll always be the need for fiat but it won't be the absolute be all and end all as it is now. This is a transitional period.

The quicker the loop closes the less power the old system has. Just as their anality reaches fever pitch they may find a whole section of the world's population has drifted away with little requirement to dip into their anus in future.

Right this very moment I am earning BTC writing this bilge. I've paid a few people with it for repairs and a few bits of tat and they've paid others with it. Next year I'm renting a place in the US with BTC. I directed the bloke to Bitpay but he said wasn't interested and intended to see where it went. Times that by a few countries and off you go.

Someday. How long will this be? We speculated that the cryptospace would disrupt and tame the fiat system, however, it is the system that is taming bitcoin through strict regulations, KYC.

[gentlemand]

Someday. How long will this be? We speculated that the cryptospace would disrupt and tame the fiat system, however, it is the system that is taming bitcoin through strict regulations, KYC.

Most people are using the crypto space to increase their position in the fiat system. That's a very different proposition and coming across all of these regulations is an inevitable outcome of that.

Only small numbers are looking to truly bypass it but it will be faction that slowly grows. Could take a good while but it will happen until it's a significant size.

[bbc.reporter]

@gentlemand. Agreed. I might also have triggered some holders when I mentioned that bitcoin was more used as a speculative investment. When I posted about an article about its most important application, I reckon that it might have triggered them further hehehehe.

[cr1776]

https://www.coindesk.com/binance-blockade-of-wasabi-wallet-could-point-to-a-crypto-crack-up

I've often wondered whether clearly mixed coins would be considered 'hot' and in this case at least it seems they do.

Do you think they'll be heading towards an unworkable dead end with this or it's the start of something others will try to emulate?

The former, but the end will be that people will stop needing to exchange out of crypto and more and more people will just stay in it and not need the exchanges.

I'll be happy to buy these tainted coins at a few cents on the dollar.

[figmentofmyass]

I'll be happy to buy these tainted coins at a few cents on the dollar.

you and me both, but good luck actually finding discounts like that. the OTC markets (especially in china, russia, etc) can swallow up so much "tainted" supply and wash them back into the exchange economy, that you'll never find people who are that desperate to offload coins. as the OTC markets grow larger---and as actual p2p/b2b usage grows (removing the need for centralized exchanges at all)---fungibility will only further improve.

between this and protocol-level privacy improvements like taproot (and someday, cross-input aggregation), i see bright days ahead for bitcoin's fungibility.

[Carlton Banks]

as the OTC markets grow larger---and as actual p2p/b2b usage grows (removing the need for centralized exchanges at all)---fungibility will only further improve.

between this and protocol-level privacy improvements like taproot (and someday, cross-input aggregation), i see bright days ahead for bitcoin's fungibility.

it's easy to underestimate what the first version of Lightning channels has already done to improve BTC fungibility; using a Coinswap-like process, one can easily get most of the benefits of coinjoins/ring signatures without any of the drawbacks, and this can be done today, without any upgrades to the Bitcoin protocol. And taproot will (as you say) improve the privacy of lightning use even further (though at the on-chain level), resulting in increased fungibility of taproot based Lightning channels