Author Topic: Cryptocurrency  (Read 55502 times)

seafoid

  • Hero Member
  • *****
  • Posts: 27325
    • View Profile
Re: Cryptocurrency
« Reply #570 on: May 21, 2022, 09:06:33 AM »
Punters  need to look under the bonnet in order to understand how robust their investments are likely to be under pressure

https://www.ft.com/content/7e0e2e24-cb4c-4694-be86-5cad9fc26d3e



Regulators need to extend some oversight. In America, tokens that act like funky derivatives or mutual funds are best overseen by the Commodity Futures Trading Commission or Securities and Exchange Commission. Coins that operate like mini banks are better monitored by the Office of the Comptroller of the Currency. (Circle, which issues USDC coins, is now in active discussions with the OCC for precisely this.)

 If regulators get involved, they should require stable coin issuers to provide audited, detailed statements about their assets, and impose big reserve requirements. That sounds obvious. But it is notably not what Tether, the largest stablecoin issuer, has done.

Regulators should demand that crypto exchanges uphold basic listing standards.

And finally, clarity is urgently needed around custody, given that the exchanges are not just acting as platforms for cutting deals, but often holding customers’ assets as well. This oft-ignored concentration of power makes a mockery of the decentralisation mantra that supposedly drives the crypto dream (and, as I recently noted, is just one contradiction in this sector’s creation mythology.) But it also creates a practical risk: failure could spark market panic. Some small non-US jurisdictions have custody rules that protect investors if an exchange goes bankrupt.
Not so on a federal level in America, as Coinbase executives were forced to admit to investors last week. This definitely needs to change.
Lookit

Armagh18

  • Hero Member
  • *****
  • Posts: 1884
    • View Profile
Re: Cryptocurrency
« Reply #571 on: May 21, 2022, 12:22:39 PM »
Crypto isn't scalable in a world of climate change

https://www.ft.com/content/446e0e6a-6858-4e33-a6cf-8c2e302dc75d

According to a New York Times analysis, bitcoin mining uses 0.5 per cent of all the world’s electricity. That’s seven times more than that used by all of Google’s global operations. There is also a growing e-waste problem: a recent study by researchers from MIT and the Dutch central bank estimated that the waste produced by every single bitcoin transaction — there are usually about 300,000 each day — is equivalent to that of two iPhones, due to the short lifespans of the mining hardware
Holy feck.

bennydorano

  • Hero Member
  • *****
  • Posts: 6510
    • View Profile
Re: Cryptocurrency
« Reply #572 on: May 26, 2022, 02:25:40 PM »
Another attack? Dropping again - Ethereum related tokens