[ExI] lotta splainin to do

[Stathis Papaioannou]

On Wed, 16 Nov 2022 at 06:03, spike jones via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

>
>
> -----Original Message-----
> From: extropy-chat <extropy-chat-bounces at lists.extropy.org> On Behalf Of
> BillK via extropy-chat
> Sent: Tuesday, 15 November, 2022 8:08 AM
> To: ExI chat list <extropy-chat at lists.extropy.org>
> Cc: BillK <pharos at gmail.com>
> Subject: Re: [ExI] lotta splainin to do
>
> On Tue, 15 Nov 2022 at 15:36, Stathis Papaioannou via extropy-chat <
> extropy-chat at lists.extropy.org> wrote:
> > They weren’t just doing that. They were using depositors’ funds for
> risky activities...
> > --
> > Stathis Papaioannou
> > _______________________________________________
>
>
> >...They are now saying that FTX was a years-long billion dollar fraud
> scheme and a federal investigation has started.
> <
> https://cryptobriefing.com/ftx-fraud-who-are-sam-bankman-frieds-biggest-victims/
> >
> ...
>
> >...FTX’s collapse has significantly damaged both the crypto and broader
> financial ecosystems... BillK
>
>
>
>
> Adrian, Stathis, BillK, anyone else who answered, thanks for these
> explanations.
>
> So as I understand it, FTX is a company which (perhaps among other
> services) changes money from fiat currency to digital currency and back?
> That makes sense that such a service must exist if digital currency exists,
> for (as far as I know) the local merchants will not accept BitCoin.  Do I
> have that about right?  The parallel coexistence of digital currency and
> fiat currency establishes the need for companies that allow swapping them?
> Then these companies introduce inherent risk of fraud?  If so, are we not
> back where we were 20 years ago when that weak link was identified on an
> ExI sub-group?


Many crypto enthusiasts say that you should only self-custody your coins,
the equivalent of hiding them under your bed, leaving them on exchanges
only for the time it takes to buy them, which might be minutes. But then
you have the risk of losing your self-custodied coins: you lose your keys,
you get robbed, your friend defrauds you, and so on.

> --
Stathis Papaioannou
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