The Phoenix Գին

Why These Ponzi Collapses and Exchange Defaults are GOOD for Crypto over the Long Term

<!-- SC_OFF --><div class="md"><p>We've seen some amazing crypto price action this month after a period of calm and quiet. The FTX default was yet another stark reminder that crypto exchanges are corrupt to the core, and furthermore, they're antithetical to Satoshi's original vision for Bitcoin. Satoshi always intended for everyone to be their own bank, but then shady businesses like Mt Gox, Coinbase, Cryptsy, Binance, Quadriga CX, and FTX simply created a Banking 2.0 system on top of Bitcoin and lured people in with promises they didn't keep. </p> <p>Much of the mainstream public still believes that crypto is just a balance on their KYCed crypto exchange, they don't even know how to use a wallet! But this is changing quickly as more people get scammed by exchanges. When they hear "not your keys, not your coins", they don't understand the phrase, but they now know that they need to figure out wallets and practice self-custody to protect their wealth. On the whole, this is a huge development! More people taking their coins off exchanges means far less price speculation, bot trading, risk of defaults, risk of government seizures (coming soon to exchanges that haven't defaulted/exited...), and concentrated wallets filled with coins attracting hackers. One could argue that when crypto exchanges are obselete, crypto will be functioning in the way that was intended by Satoshi. The current Wall St speculative stock trading model for crypto could even be obseleted soon. </p> <p>People are also catching on that stablecoins and premined tokens are a scam. When someone is issuing a token, we all know to ask "how is the supply created and who controls it"?, again this is something that is trickling down to the mainstream. Each time another stable shitcoin or token project craters, more speculative value is destroyed, leaving room for real value to grow organically. </p> <p>Now more than ever before, we need to EDUCATE THE MASSES about why crypto was invented and what the true purpose of it is and always will be: PEER TO PEER ELECTRONIC CASH! A forest fire is sweeping through the crypto ecosystem, and after it has burned out we will have green shoots growing!</p> </div><!-- SC_ON -->   submitted by   <a href="https://www.reddit.com/user/wtfCraigwtf"> /u/wtfCraigwtf </a> <br/> <span><a href="https://www.reddit.com/r/btc/comments/z1dnst/why_these_ponzi_collapses_and_exchange_defaults/">[link]</a></span>   <span><a href="https://www.reddit.com/r/btc/comments/z1dnst/why_these_ponzi_collapses_and_exchange_defaults/">[comments]</a></span>