Topic: Citibank is offering crypto custody. - page 4. (Read 17777 times)

I hope crypto will soon become more mainstream and we can talk about the crypto currencies.Maybe we can see bloodbath right now in the market but let's look in the long term.

WOW!!

So it has started, This is both Good and Bad for Crypto world.

Good - New money, Boosting investor confidence and Adoption of Cryptocurrency will be coming to the market.
Bad - You can expect Market Regulation and slowly control over Cryptoworld .

I may be wrong about it..but this is what I feel.

This could be the big impact to the crypto community, it is really amazing that crypto keeps growing. They should offer crypto for their consumer, because crypto is really helpful for individual, it will help you in your daily lives.

That is great news!  Hopefully more banks and financial instutions will do the same.  I hope crypto will soon become more mainstream and we can talk about the crypto currencies just like any other forms of currencies in the market today. 

This is a good attitude towards cryptocurrency and this development is going to further straighten the bound between the banking system and cryptocurrency. I believe in a short period from now other financial institutions are going to also take advantage of the potentials that are imbedded in cryptocurrency and the ecosystem entirely.

CitiBank also had operations in my country for a while. They are in doubtful loss. Obviously they do not give me much confidence.

good news for all people

Wooh! That's cool! Mass adaption is really getting near. More and more banks are starting to acknowledge cryptocurrency. Maybe we can see bloodbath right now in the market but let's look in the long term. Crypto will surely dominate the world in the future. I hope more banks will follow Citi Bank.

This seems to be aimed at institutions. Most people in institutions are rather old and not so technologically able to keep coins safe. There will always be a market for custodians to held the coins for them.

If they screw up (in this case Citiybank) then holders will have someone to blame and get their money back, probably with a fee on Citybank because big players can force favorable rules. So the custodian gets paid a decent amount an they have an incentive to do well because otherwise they are fucked.

I don't see anything wrong with this. Let people choose to hold their own coins or pay someone else to do the task for them. As you said the point of bitcoin is to hold it yourself but as you also said we can not avoid this and we shouldn't even bother.

amount of coins held is meaningless.
amount of USER nodes distributed is meaningless.
amount of hashpower is meaningless.

here is why.
core decided they wanted segwit. segwit got activated by threatening pools that if they didnt update to cores proposal. core nodes and businesses agreeing to core nodes will reject mining pools blocks.. and it didnt matter how much hashpower they had.. if they didnt flag acceptance with a version number. they would get rejected.

as for the node. there could be 50,000 nodes. but shill nodes are ignorable. the important nodes are the ones connected to services where people want to sell/user coins (merchants and exchanges)
so if a majority of merchants agree to only accept blocks of a certain version. then people will need to use the version and transact in a way that merchants will see(get) the payments so people can spend their coins.

it doesnt matter if there is 1000 user full nodes or 50000 user nodes.
if the main 20 exchanges and 50 merchants all agree to update to a certain version. then users and pools usually folow or find they cant spend their coins with those merchants.

it doesnt matter if a merchant has 1coin or a million coins. it know if it advertises it only accepts X version. people will use X version.
it doesnt matter if users have 1coin or a million coins. in a fork. they still have 1 coin or 1m coins. but now they have it on both forks.

this is why in 2017. under normal consensus segwit would not have got acceptance as it only had 35% approval.
but with the UASF and the NYA of merchants saying yes to a version of segwit.. segwit got its mandatory split date activated in august

and it had nothing to do with how many coins was held. it was a social cleanse and a bribe the popular USEFUL SERVICE nodes nodes

citibank is no threat. because. citibanks service is not an exchange people will be able to move their coins into. users wont see citibanks node/service as part of the network effect.

i would concentrate on what is known as the BSCartel . the group of core devs and the MERCHANTS that are working together and agree on everything like a heard of sheep. where by most exchanges and retailers who offer products and service for bitcoin operate.

seems people are mis-understanding thinking that citbank custodian means normal people can walk into citibank and secure their bitcoins in the bank like an online wallet.. well no. no and no

what citibank is offering is for INSTITUTIONS not common people. to use citibank as a trust to hold and secure BTC so that institutions can then offer SHARES to investors. shares that meet financial regulations that normal OTC btc cant

also its not a sign that banks will do bitcoin ATM's of offer bitcoin OTC at the local bank branches cashier desk.. again no no no
its not going to b run by its consumer 'bank' division as that has its own regulations to only handle fiat. not btc, not baked beans and not bread. just fiat.
it will be run by its investment division

---

imagine having a service that holds reserves of 200,000 coins.
and they set that it would be 6000 shares per coin.

1,200,000,000 shares at ~$1 each
now imagine the bitcoin price never changed.

but imagine more than 1.2 million people wanted a share.

1. they cant just raise the share price to tempt some to sell or due to high demand. the share needs to be fixed to a 6000th of a btc.
2. they cant just dilute the shares(add more shares per btc) because then if they wanted to double shares. suddenly each share is only 50cents

what will happen is that the trust has to buy more btc. where for every btc gives the trust 6000 new shares to offer.
(it was something i learned in 2014, forgot and remembered)

so although ETF are not letting investors buy bitcoin direct. if all 1.2mill shares are bought the trust cant dilute or raise price of share but can buy more bitcoin privately to add to the trust to add more shares

which unlike gold and forex etf/dar's bitcoin ETF can INSTANTLY get audited at no cost. with a simple publishing the bitcoin address of the trust

wow, its great for us, we know that the citibank is the big company in banking and they will involve with bitcoin, i hope that all bank will involve in bitcoin too and will use bitcoin as their asset in the bank.

In addition this fiat based custodian will have a lot of control and possible that they can alter the course of bitcoin's price. You don't have control of your keys, the custodian does and in cases like another split or fork, since they are the majority, they can choose not to follow that split or go on different direction. This is very dangerous for bitcoin crypto verse.

Its good news indeed but I don't think that we can sustain that growth, sooner or later those custodian starts their manipulation, and we will be affected in the long run.

I see this as a big plus. People can die peacefully now. Came to the Bank, wrote a statement of inheritance. and can be to die ) This joke of course, but on fact Citibank can help very large number of people in this issue.

Given that so many cases were like people lost their bitcoins, by stealing hackers or people themselves forgot their key file. By the way, discussed here, that if a man dies, what will happen to bitcoin. Here is you and the answer to bequeath to accrue... Banks can do it

The only thing that im wondering about right now is why the hell bitcoin is not going up while we're having so many great and positive news about integration in the world?

benefit, how? bitcoin is peer-to-peer. there shouldn't be any need for custodians to hold it on behalf of clients, and for banks to issue notes against it. that's what this is.

don't get me wrong. this stuff is inevitable. but it's not good. a deposit receipt is a piece of paper. it's not BTC. the benefits of bitcoin are lost when you reintroduce trust to peoples' finances like this.

This is a very good thing because it will encourage more banks to do the same thing and will create conditions for many governments to create lighter cryptos regulations. One of the things that makes governments take tough measures against bitcoin is because banks accuse bitcoin of being used for money laundering, used to fund terrorism and that has high volatility. but if banks look bitcoin in a positive way, then governments will look bitcoin in a positive way


The future will be very good.

They're aimed for investor or anyone who don't care about Bitcoin's advantage such as no-censorshop/have full control.


I agree that regulations are unavoidable, but with this custody, you lost many aspect that you control when you use real wallet. There are different kind of regulation which could be applied such as taxing when buy/pay something with bitcoin.

That's why privacy-centric cryptocurrency market has a nice future coming. Such platforms like Horizen are working on it. And yes, the uses in the real life is coming. Horizen will have ATMs. And with privacy coins, you don't care about any regulations. This guy is using Zen (Horizen) at a restaurant with his/her phone wallet

https://ip.bitcointalk.org/?u=https%3A%2F%2Fsteemitimages.com%2F0x0%2Fhttps%3A%2F%2Fipfs.busy.org%2Fipfs%2FQmUJCoybvpbsQENXSGqv6HV7RFr5wis11xMdWeKxaCsEPT&t=592&c=_fgbh2zD7jAKIA