Oddbean new post about login | logout When Coinbase ever gets hacked, this industry is going into an economic depression of its own: - All the BTC held in the ETFs gone - All of $MSTR BTC gone - BTC held by Public companies gone - BTC held by US Mining companies gone 🍿 https://m.primal.net/Kgbw.jpg
They are not gone, just someone else has them 😅
MicroStrategy is split between Fidelity and Coinbase iirc. But yeah, huge centralization risk.
Yikes 😬
Mt. Gox 2.0 gonna be lit 🔥
Even $MSTR?? Shouldn’t Saylor know better?
Coinbase and or those hedge funds would still cover the losses to the customers that’s the whole appeal of an ETF or am I wrong?
If this ever happens we'd see a hard fork attempt to try and recover the funds which will most likely result in another bitcoin cash situation where they lose value immediately against the real BTC. nostr:nevent1qqsydrr4gaae2axpv5v5q2mm0t8k8m6z3cd228czluen2slarnmps4gpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg8knftkc4ap06t83qjjpd46e5lhzd05ex4af5zctpw0clh63ckxjupsgqqqqqqslttsze
That is reason enough to hate Coinbase.
Big reason i must say!
It’s going to be a glorious show
🔥 the fire works show is going to be Splendid.
Hear me out ... If Coinbase gets hacked Bitcoins moons. Why? Because millions of coins will be considered non spendable. Sure it might take a dip in the short term but after the market settles down hodlers who keep utxo within their self custody will be rewarded. The same thing happened with Gox and Finex. The real play will be to short coinbase. nostr:nevent1qqsydrr4gaae2axpv5v5q2mm0t8k8m6z3cd228czluen2slarnmps4gpz9mhxue69uhkummnw3ezuamfdejj7q3q76d9wmzh59lfv7yz2g9khtxn7uf47ny6h4xstpv9elr7l28zc6tsxpqqqqqqz39dnhm
This is the biggest existential risk to btc and will be used to justify punitive regulation
Unless there is a coordinated plan with Coinbase, it’s impossible to hack Cold storage where they allegedly keep their coins offline. Any hot wallets you’d hope they keep to an operational minimum 🤷♂️
We can only hope
I'll be buying.
Coinbase holds all MSTR???
The important part is how it is kept in cold storage, no? I mean funds doesn't necessarily get lost or stolen because Coinbase gets hacked? I mean, maybe if a Oceans eleven kind of style heist happens but man, I'd love to see that movie so it'd be ok.
Onramp and multi-institutional multisig makes more sense by the day
The more centralized it gets, the better the loot. The better the loot, the more incentives are increase for a hack, rugpull or executive order. nostr:nevent1qqsydrr4gaae2axpv5v5q2mm0t8k8m6z3cd228czluen2slarnmps4gpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg8knftkc4ap06t83qjjpd46e5lhzd05ex4af5zctpw0clh63ckxjupsgqqqqqqslttsze
it'll be practically impossible to do anything with such high profile coins stolen nostr:nevent1qqsydrr4gaae2axpv5v5q2mm0t8k8m6z3cd228czluen2slarnmps4gppemhxue69uhkummn9ekx7mp0qgs0dxjhd3t6zl5k0zp9yzmt4nflwy6lfjdt6ng9skzul3l04r3vd9crqsqqqqqpxq3c26
People is defending Coinbase because they use very robust cold storage, with three different wallets held by different groups of people etc. But a hack is not the only source of havoc. Unpaid debt from fractional reserve or state attack could happen. Giving your coins to Coinbase does not align with the principles of decentralization.
Exactly You will be fucked This WILL happen Coinbase will cash you out and take your coin It WILL happen eventually
As the price goes up at some point having individual citizens holding spot bitcoin will become a national security issue and the FEDS will notify every KYC exchange to turn over their bitcoin in exchange for fiat Some exchanges will fold MOST will Coinbase 100% will Some exchanges will say fuck you to the feds
It’s just 10% of total supply. And scarcity ^ up
That calms me down a little, but blimey, still huge.
I really respect and appreciate what Saylor has done for the space. But it is INSANE to me that he just has all his BTC custodially on Coinbase. It’s a matter of time before they get hacked. It’s too big of a honeypot and too many state actors are already actively trying to infiltrate the company.
Do they really have ALL of MSTRs coins?
Don’t know. I’ve read conflicting reports. From all the interviews I’ve seen Saylor has not specified exactly where it is. So I think it’s possible it may not be all Coinbase. Hard to say…
Why is mstr in there? This guys is smart enough to not do that right?
I think b/c they are publicly traded they have to have a custodian
Could they create a holding company?
what will happen to the price of btc held in private wallets ?
This thread is kind of silly. First Coinbase does have its own bitcoin wallet addresses. Second, if you have your bitcoin in a wallet with your own set of keys that are not on the Internet / one bitcoin equals one bitcoin. The price will probably go down and then quickly rebound. It doesn’t matter cause you’re not gonna lose your bitcoin.
A hack isn't even the biggest concern; a 6102 attack is so easily executed through an asset seizure on Coinbase, which would be trivial for the government to do. Not your keys, NOT your coins. nostr:nevent1qqsydrr4gaae2axpv5v5q2mm0t8k8m6z3cd228czluen2slarnmps4gpzemhxue69uhk2er9dchxummnw3ezumrpdejz7q3q76d9wmzh59lfv7yz2g9khtxn7uf47ny6h4xstpv9elr7l28zc6tsxpqqqqqqzntnddu
More likely a 6102-like government grab, as they’ve shown us they’re happy to do already with gold. The US Gov (or the Network behind them) don’t need to hack anything, they can just force through a confiscation and no US company is going to stop them if they want to do it
I am sure MSTR for example holds either one key of 2 of 2 multisig or 2 out of 3, this is an obvious attack vector they must have covered
Yes, I would assume so and I’m pretty sure Saylor has said multi-institutions and multisig but I’m not on Twitter so can’t verify. Whatever people think of his motivations he’s a smart enough guy so I’m sure he’s 💯 aware. It’s the retail plebs I’m more concerned about of course, they’d be the first to lose it
It would suck but at this point I don't know if I would feel as bad as with previous hacks/thefts. There were enough precedents and warnings and this is litteraly the first thing that everyone in the space learns when they decide to do their due diligence.
True, and taking personal responsibility is the way out of most problems. Most people unfortunately don’t want to. Of all the people I have personally orange pilled, only a handful have actually swallowed and self-custodied, normies just can’t see the threat. And it will still be my fault/bitcoin’s 🤣😖😭
Yeah, or my personal favorite - I trust you, can you store it for me?
I know! Even the ones that have ‘got it’, most ask me to help them transfer etc. They’re always trying to give me their keys!!!
Hahaha yeah, like is that supposed to be a compliment you dumb fuck, to keep me responsible when you eventually lose it because you have your seed on your forehead 🤣
Coinbase kontrolliert mehr als doppelt so viele Bitcoin, als MtGox zu seinen besten Zeiten 😱 nostr:nevent1qqsydrr4gaae2axpv5v5q2mm0t8k8m6z3cd228czluen2slarnmps4gpremhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet59upzpa562ak90gt7jeugy5stdwkd8acntaxf402dqkzctn78a75w935hqvzqqqqqqywxjd84
