Ever since Mt. Gox, exchange hacks have become a problem the industry can never completely avoid.
Fortunately, the industry has grown, and exchanges are now capable of dealing with a theft of this scale.
I looked at how much my assets had shrunk. For those of us who hold spot assets long term, it’s still pretty manageable. Especially since the industry embraced TradFi across the board this year: our portfolios now hold quite a bit more U.S. stocks and gold, which has also helped spread out the downside risk.
This seems to be a thorny issue that the crypto industry has never been able to fully resolve. Someone once asked me whether the impact of quantum computing and AI would affect the security of cryptography and blockchains. I said I didn’t understand the academic details, but logically speaking, technological advances bring new ways to attack, while also giving the industry stronger defenses. This isn’t unique to crypto.
But I do have a few thoughts that go against the grain.
First, a lot of people have said that keeping funds in a wallet is less safe than keeping them on Binance, because many people can’t live by “Not your keys, not your coins.” Driven by the victim mindset, what many people want isn’t absolute control over their assets, but the assurance that “the exchange can reimburse me in full.”
As for Binance, it can fully reimburse the stolen funds, so there’s no need to panic too much.
As for the market falling due to the ripple effects, it reminds me of how, not long ago, many people still didn’t believe the bear market would give way to a bull market, because there hadn’t been a black swan event yet.
That’s the habitual way of thinking we crypto folks have developed from years of hardship: unless we take a hard hit, we won’t believe the industry has risen from the ashes once again.
So, can we safely buy the dip now? 😂
No one wants to see a security incident in the industry. But since one has happened, and Binance can fully reimburse the losses, I wonder if there might be a positive side to it too.
Whether it’s the biggest exchange or an individual, a major upgrade and a moment of reflection often need an event to set them in motion. Every time the industry goes through a major risk event, it emerges more alert and more resilient.
Don’t think the sky is falling. That’s just how crypto is: nothing can kill Bitcoin. I’ve always believed that.
It’s like how, after someone gets a severe case of the flu, their body undergoes a deep repair, their immune system and metabolism get an upgrade, and they develop stronger antibodies.
Fortunately, the industry has grown, and exchanges are now capable of dealing with a theft of this scale.
I looked at how much my assets had shrunk. For those of us who hold spot assets long term, it’s still pretty manageable. Especially since the industry embraced TradFi across the board this year: our portfolios now hold quite a bit more U.S. stocks and gold, which has also helped spread out the downside risk.
This seems to be a thorny issue that the crypto industry has never been able to fully resolve. Someone once asked me whether the impact of quantum computing and AI would affect the security of cryptography and blockchains. I said I didn’t understand the academic details, but logically speaking, technological advances bring new ways to attack, while also giving the industry stronger defenses. This isn’t unique to crypto.
But I do have a few thoughts that go against the grain.
First, a lot of people have said that keeping funds in a wallet is less safe than keeping them on Binance, because many people can’t live by “Not your keys, not your coins.” Driven by the victim mindset, what many people want isn’t absolute control over their assets, but the assurance that “the exchange can reimburse me in full.”
As for Binance, it can fully reimburse the stolen funds, so there’s no need to panic too much.
As for the market falling due to the ripple effects, it reminds me of how, not long ago, many people still didn’t believe the bear market would give way to a bull market, because there hadn’t been a black swan event yet.
That’s the habitual way of thinking we crypto folks have developed from years of hardship: unless we take a hard hit, we won’t believe the industry has risen from the ashes once again.
So, can we safely buy the dip now? 😂
No one wants to see a security incident in the industry. But since one has happened, and Binance can fully reimburse the losses, I wonder if there might be a positive side to it too.
Whether it’s the biggest exchange or an individual, a major upgrade and a moment of reflection often need an event to set them in motion. Every time the industry goes through a major risk event, it emerges more alert and more resilient.
Don’t think the sky is falling. That’s just how crypto is: nothing can kill Bitcoin. I’ve always believed that.
It’s like how, after someone gets a severe case of the flu, their body undergoes a deep repair, their immune system and metabolism get an upgrade, and they develop stronger antibodies.