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Coinbase is a bank, says Andreas Antonopoulos; cites two reasons for “centralized” exchange’s popularity

Namrata Shukla

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Coinbase is a bank, claims Andreas Antonopoulos; talks about two reasons for the 'centralized exchnage's' popularity
Source: Pixabay

In a podcast interview with Adam B. Levine, the host of the Let’s Talk Bitcoin podcast, Andreas Antonopoulos, a Bitcoin proponent and author of Mastering Bitcoin, said that Coinbase was a bank.

Levine and Antonopoulos were joined by Jonathan Mohan, a blockchain consultant, to discuss privacy and banks, during which Levine raised a concern about Coinbase, calling it a centralized exchange with no privacy. Levine went on to ask,

“So is there a use case for decentralized exchanges, or do we need to have a different type of centralized exchange? Is there a solution to this problem?”

Antonopoulos said that we were battling for privacy in the 21st century, in every domain. He clarified that banks were obligated to carry all round surveillance of every financial transaction in and out of every bank account, credit card, and payment under the Patriot Act. He added,

“So whenever you do a transaction on your Visa card, or your Paypal transaction, or your bank accounts, you can assume that not only are the Five Eyes agencies of Australia, New Zealand, the UK, Canada, and the United States watching, but you can assume that half of the European intelligence agencies, the Chinese, and Russians are watching that transaction too, and are all doing statistical analysis scoring.”

That is how traditional finance worked, he said. Talking about the role exchanges play, Antonopoulos opined that they were a mere subset of what is happening across the financial world. Due to the lack of visibility in crypto, they can be “thwarted, which means you can obfuscate and build better privacy into these systems.”



He called Coinbase a crypto-friendly bank. However, being a bank, signing up on Coinbase meant “compromising your privacy,” which is completely opposite of what cryptocurrency stands for, he added. He explained two reasons for the exchange’s popularity,

“One is, for people who see cryptocurrency as an investment, which in my opinion has always been the wrong way to look at this. If you’re not earning cryptocurrency you’re buying cryptocurrency, then you need an exchange. You don’t use cryptocurrency, so you keep moving between the two economies of fiat and crypto.”

Security in crypto was another issue, he said. He claimed that this lack of security led people to choose banks for outsourcing, banks who “don’t know how to handle their own custody.” He concluded by urging people in the space to help others with self-custody and security of their crypto, to keep people from outsourcing to a company where problems of privacy emerged.





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Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.

Bitcoin

Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra

Febin Jose

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Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra
Source: Pixabay

Bitcoin [BTC], the world’s largest cryptocurrency, saw a significant surge earlier this month, helping the coin break strong resistance at $5,000 and $5,200. Following the great fall of the king coin in early 2018, the Bitcoin ecosystem was struggling with scalability and technological issues, eventually leading to the hard fork.

Bitcoin.org’s Cobra, who is also the co-owner of Bitcointalk.org, has always maintained that Bitcoin was the cryptocurrency to look out for through his various Twitter bouts with prominent personalities in the cryptoverse. Due to his strong, unbridled support for Bitcoin, he has often trashed altcoins for their low market dominance.

In a new Twitter thread, Cobra spoke about the “biggest threat” to the Bitcoin ecosystem. Even though many crypto-enthusiasts believe that governments and technological issues were the biggest threats to the king coin, Cobra had a completely different opinion.

According to the Bitcoin maximalist, users have the potential to signal Bitcoin’s doom. His tweet read,

Source: Twitter

Source: Twitter

Though most Bitcoin supporters usually support his opinions, this tweet was met with a lot of resistance. Twitterati swarmed the thread in an attempt to prove him wrong. A user named @MrHodl alleged that this could not be true as Bitcoin had “no community.” He added that this, in turn, prevented toxicity in the ecosystem.

Cobra replied to the tweet stating,



“I think there is a community, it’s just not fully representative of everyone with a stake in Bitcoin. Most holders are quiet and not too familiar with what’s going on. There’s people with 1000+ BTC and they don’t engage at all with discussion platforms, just lurk.”

Some Twitter users took it as an attack on Bitcoin investors and opposed Cobra’s stance. A user @CarstenBKK commented,

“Maybe I am lost in translation. What do you wanna tell us? That you are part of Bitcoin network of people owning/using it, but you are just disgusted by the idea, that the network is called community in the sense of direct human collaboration and affection to the groups ideals?”

Previously, Cobra had accused Twitter’s Jack Dorsey and Square Crypto of pandering to Bitcoin users, while also suggesting that the crypto project was merely a way to bring in more users for Dorsey’s CashApp. His tweet read,

“Gotta respect how hard @sqcrypto is pandering to Bitcoiners. Very clever how @Jack has embedded himself in the community; in return the community promotes @CashApp, which gives that service a small but dedicated and activist group of early users.”





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