[ExI] bitcoin again

[Dylan Distasio]

Since we're getting off to a slight side discussion, I would hope that this
is the outcome.   To his credit, the CEO of Kraken has said for years now
to hold your own keys, despite running a CEX.

I remain very concerned about the fallout of FTX damaging crypto policy in
the US however.   Additionally, while I initially brushed off second+ order
effects from the FTX fiasco on other more well run CEXs, I apparently
underestimated it as Kraken has paused to/from fiat transactions for one EU
bank that was collateral damage.   The issue is fully on the bank side, but
it was still wrought by SBF's collapse.

The other elephant in the room, for me, remains the centralized nature of
stablecoins.   USDC is very problematic and has shown a complete
willingness to implement blacklisting when a government agency tells them
to.   USDT also blacklists.

It will be interesting to see what happens with Maker, but I have major
concerns with the "endgame proposal" that passed.   I am fully aligned
with Christensen’s concerns over black listing/centralization, but don't
think a free floating "stable" coin is the answer.   The world traffics in
fiat; there needs to be a reliable way in cryptoland to protect principal
and know that you can get 1:1 fiat.

I had hoped UST might be the answer, but I was fooled very badly there.
 Unfortunately, it is very likely that any entity that holds enough fiat
reserves to maintain a peg is going to be heavily regulated, making
decentralization an extremely difficult problem to solve in stables.





On Sat, Nov 26, 2022 at 5:56 PM Stathis Papaioannou via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

>
>
> On Sun, 27 Nov 2022 at 09:43, Dylan Distasio via extropy-chat <
> extropy-chat at lists.extropy.org> wrote:
>
>> SBF also made a lot of enemies in the community with his self interested
>> lobbying and money laundering operation for the DNC.   He did not exude the
>> typical anarcho capitalist vibe that powers the majority of the space.
>>
>> I'd also point out what he did was fraud, plain and simple.   He's
>> crypto's equivalent of Maddoff.   It just so happens he did it with crypto.
>>
>> If he doesn't end up in jail, it will only be due to the fact that the
>> DNC doesn't want its dirty laundry aired in discovery/at trial.  He was
>> also pals with the head of the SEC, Gensler, who is anti all crypto outside
>> of apparently FTX.
>>
>
> The likely outcome of all this is to push crypto to crypto trading and
> crypto lending to decentralised finance (using smart contracts), with
> centralised exchanges confining themselves to (hopefully closely audited)
> crypto to fiat transactions.
>
>> --
> Stathis Papaioannou
> _______________________________________________
> extropy-chat mailing list
> extropy-chat at lists.extropy.org
> http://lists.extropy.org/mailman/listinfo.cgi/extropy-chat
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.extropy.org/pipermail/extropy-chat/attachments/20221126/be781ae7/attachment.htm>