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I don't disagree, but as I said in my previous post, the outcome is the same, regardless of the reason behind why people are leaving their coins with third parties, be it convenience, laziness, greed, impatience, lack of knowledge, etc. If you leave your coins with a third party, that third party could go bankrupt resulting in your losing everything, regardless of how reputable or trustworthy you think that third party is. It can happen to these lending platforms, but it can also happy to centralized exchanges.
but if you go into the millions, hundreds of millions, or even billions of dollars and are not able to repay, the one who is worried is not you, but the lender.
Absolutely. Take a look at something like Coinbase's SEC filings, which explicitly state that if anything happens to Coinbase, all its users will be treated as "unsecured creditors", meaning any coins you have on Coinbase will be used to pay off their debts and liquidations, you will not get your coins back, and there is nothing you can do about it.
To me, what this makes me wonder is how BTC has progressed on the basis of its market becoming a kind of financial casino that the whitepaper wanted to run away from.
I think it is important to note that
bitcoin hasn't done this. Bitcoin is still a peer to peer currency. It is these centralized scam platforms and get-rich-quick users who buy bitcoin only to try to make more fiat who are doing this.
It has just come to my attention that BlockFi is closed today for the Juneteenth holiday, and that will not be processing any withdrawals:
https://nitter.net/BlockFi/status/1537105514399670273Why? Has the bitcoin network shutdown? Have miners stopped mining? No, of course not.
Seems very much like they are stalling for time to try to claw back some of their risky investments so they can refill their wallets for the ongoing onslaught of people trying desperately to withdraw their coins. I suspect the next thing will be random bugs and errors preventing withdrawals (like Binance's "stuck transaction" nonsense).
Edit: I stand corrected on this last point:
https://bitcointalksearch.org/topic/m.60404376. Still doesn't make sense to me that a bitcoin based company can't process any transactions on federal holidays. And people are totally fine leaving their coins on a platform which only works business hours? Crazy.