What prevents companies from "losing" money in crypto? - page 2.

The Sceptical Chymist

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Quote from: cleygaux on June 17, 2017, 08:32:05 AM

Price volatility of bitcoin I think is one of the reasons and of course bitcoin is not regulated at all.

I love how you morons only read the title of the thread.

OP, most companies are responsible to far more people than their customers. Shareholders, regulators, etc. So that's one reason why your scenario doesn't happen. Nobody is going to read what I write anyway, so you can all suck me.

bamboylee

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If the companies commit fraud by declaring they got hacked, then the authorities just have to flag the addresses the money was sent to. In one point, you have to move the fund or exchange it to fiat. The authorities will follow that trail and soon the company will be busted. Nothing is totally anonymous especially if you have to use exchanges to exchange to fiat.

Yakamoto

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Quote from: elektra on June 17, 2017, 08:05:25 AM

I know it is possible to sign up as a company to invest in Bitcoins on almost all exchanges where they sell Bitcoins.

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

Most companies don't invest in Bitcoin. They may receive Bitcoin but most of the time they exchange said Bitcoin almost immediately so that they don't lose on value, and most of them don't hold beyond maybe a few days' worth.

What would they gain from pretending that all of the coins were hacked to begin with? If there is no benefit to them, and it just results in bad PR, then what is the point? It'll just drive people away from their services. They won't be able to pretend they got money if they exchange it later and the tax agencies now ask the companies where all this money suddenly came from.

AicecreaME

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Just like the traditional banks, to avoid losses from the money that they have from their depositor they just use their money to invest it into something so they can have a chance to get profits from their crypto money and because most of the coins are pumping they can easily make money from it and they can both avoid getting losses and also earn profits at the same time.

Pettuh4

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I think these companies have the financial muscles to skip their way through challenging times and so might not be directly affected by the losses they've incurred through cryptocurrencies. I know major exchanges hedge both Bitcoin and Altcoins in their line of business and they have their ways around with the help of financial investment experts who minimizes their losses in cases of major tumbles and maximize their profits when its soaring.

amacar2

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I think you mean hedge funds by companies, a team of experts will be there to make any investment decision and I don't think everyone on that team will agree to do what you have suggested above Wink

Talking about other companies like exchanges themselves, yes they can do it but they can't use those funds because every team member will be monitored. Bitfinex got hacked recently and many believes that this is just an inside job and team members of the exchange are the one who are involved in this shit show, but nobody can prove that. Grin

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Quote from: FA wings on June 17, 2017, 09:36:49 AM

Also why have a third party or an "insider" to the "hack". Why not just move the coins to another address, no one can prove who moved the coins anyway?

You look more legitimate if you claim to be "hacked" when you're having problems or you stole your customers' coins. Mt. Gox is a prime example of this, with "all your coins are safe" being the classic line. No one can prove what you did but if you haven't already provided some kind of explanation, the authorities will rapidly be on your ass.

FA wings

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That is not true, at least not in my country. You can invest in pretty much anything as a company.

Also why have a third party or an "insider" to the "hack". Why not just move the coins to another address, no one can prove who moved the coins anyway?
[/quote]They will focus on tracking that address，Prevent virtual currency transfers

elektra

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Quote from: maku on June 17, 2017, 08:34:35 AM

Quote from: elektra on June 17, 2017, 08:05:25 AM

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

A company can't buy bitcoin just like that because they think it is nice to have. There need to be whole business plan associated with buying bitcoin, storing and managing it.
The purchase needs to be documented, and some sort of countermeasures set. Bitcoin is not some regulated asset and most money mangers can't touch it.
Buying bitcoin by some company can be compared to buying Baseball cards just because someone at the company thinks that they are cool.

That is not true, at least not in my country. You can invest in pretty much anything as a company.

Also why have a third party or an "insider" to the "hack". Why not just move the coins to another address, no one can prove who moved the coins anyway?

maku

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Quote from: elektra on June 17, 2017, 08:05:25 AM

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

A company can't buy bitcoin just like that because they think it is nice to have. There need to be whole business plan associated with buying bitcoin, storing and managing it.
The purchase needs to be documented, and some sort of countermeasures set. Bitcoin is not some regulated asset and most money mangers can't touch it.
Buying bitcoin by some company can be compared to buying Baseball cards just because someone at the company thinks that they are cool.

cleygaux

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Price volatility of bitcoin I think is one of the reasons and of course bitcoin is not regulated at all.

ASHLIUSZ

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The volatility is the one that keeps the bitcoin not getting included into the big companies. Also big companies make larger transaction which will cause a major financial collapse as the bitcoin price varies with regards to the time. Another reason is that right now the acceptance is not that high to grab a big profit through cryptocurrency.

Red-Apple

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the question is not why they are not doing it, the question is why should they even bother doing this.
i mean there are a lot of other easier ways of achieving the same result but why should anyone go through all the trouble of using a third party exchange which is not regulated i should add, and take all the risks just to hide their money and say it was stolen/lost.

not to mention all the fees that is going to cost! each transaction will cost 0.2% fee on average to exchange fiat > bitcoin > different currency > bitcoin > fiat. and on a large sum of money that is a lot.

Wendigo

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Every respectable online cryptocoin exchange has experienced at least one security breach and has had funds stolen in their existence Grin

They can certainly fake getting fleeced out of their hard-earned investment money by hiring an inside man acting as the hacker. This has happened before on multiple occasions and it sure as heck can happen again.

elektra

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I know it is possible to sign up as a company to invest in Bitcoins on almost all exchanges where they sell Bitcoins.

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

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