Central risks and short memories star-news.press/wp

What a golden age in which we live! Bitcoin (BTC) is prosperous, and everywhere you look at it, someone offers you an opportunity to earn more.

Nobody benefits more than this golden age more than big men. You know who are these big players – central encryption exchanges, central lending and borrowing platforms, central instructions, and central payment and transport platforms. If you are an investor for encryption, there is one or more good chance of these big players with your money now.

You may not see this is a problem. These central companies carry billions of dollars in assets. They are strongly supported by blue investors and other concerned stakeholders, which enhances their reputation in the eyes of many. Less experience of decentralized systems often requires, and comes with FIAT converter options to Crypto, and can serve as one store to meet your encryption needs.

Looks … wonderful, right?

Ah, the risk of a short memory. Return a few years, or contracts, and we face some of the worst disasters in the history of encryption – many of these things that are caused by very large entities, you may be classified as greater than failing. Just as the supposed banks that failed to paralyze everyone from the Pisces investors to the daily screaming during the 2008 financial crisis, the central encryption entities brought us a disaster after a disaster.

It will happen again. And again. And again.

Do not remember the collapses that emphasize the risk of using central entities (instead of unreliable) to deal with your BTC? This is a brief renewal:

FTX / Alameda Research Collaps

Central Failure: FTX, which was one day, the largest central exchange exchange in the world collapsed in 2022 after the abuse of customer money, interior trading, and shaded leverage practices that include its symbol for FTT and Crypto Trading Aladeda Research. The FTX and Alameeda have been owned by the same person (Sam Bankman-Fred), who is now serving a 25-year prison sentence.

Lost amount: End 8 billion dollars.

Terra / Luna Steplkwin collapsed

Central Failure: Terraust Stablecoin relied on Luna -backed algorithm, instead of a more central approach that would have a safer and more sophisticated side design and more transparent reviews. The result: The market shrinkage of 2022 led to a huge sale of Luna, the death of Terrausd, and the collapse of many huge central entities that work in risk -framed behavior.

The lost amount: around it 45 billion dollars.

Celsius and Three Arrows Capital (3AC)

Celsius offered very good returns, and millions of users fell for it. Celsius’s ability to provide these revenues depend on fragile projects, including the great exposure to Terrausd. The catastrophe led to another round of criminal charges, in this case, CEO Alex Machinski obtained 12 years of fraud and manipulation of the market. Celsius has led to at least $ 1.7 billion of losses, in addition to another 4.7 billion dollars In the besieged customer boxes.

Three Arrows Capital was a star hedge box that delivered its high returns to its customers. But relying on one central entity will again prove a catastrophic decision, as excessive positions in 3AC in Terra/Luna and other risk -framed investments raised a wave of losses of $ 3.3 billion.

Mount Gox Hack and collapsed

Central failure: Here, we will return further, to the 2011-2014 term from Jooks.

One of the first successful central coding exchange, Gox Mountain, in PEA, I dealt with about 70 % of all BTC transactions. The penetration pushed Mount Gox for losing 850,000 BTC In user boxes – an amount of about $ 100 billion today. While the central exchanges have improved its security significantly in the excessive contract since this event, the huge size of the Mount Gox disaster still resonates with those smart enough to remember the date of encryption, and the risks that any central encoding entity requires.

These encryption examples are just scratching the surface, though. There are endless examples of financial disasters in traditional financing that was also mitigated or even completely prevented with the help of decentralization and transparency.

2008 global financial crisis

With the prosperity of the housing market, some of the largest banks in the world and other huge financial institutions that pervade them in the mortgage -backed securities, using a high lever from the sky to develop their display, and thus their risks.

Then everything collapsed, as companies consider more than failing to fail directly from existence. U.S. Global Financial Juggernaut Lehman Brothers, based in the United States, was one of the largest disasters, as it faded to bankruptcy and started the pancake of Wall Street, which spread all over the world, as the economies were paralyzed from Iceland to Greece to the same. The crisis eliminated more than 10 trillion dollars – This trillion, with T – in the wealth off the face of the earth.

Enron

In essence, Blockchains are general books that are changeable, and ways for anyone to shed light on financial transactions, using any required time frame.

The fall of Enron, the power giant in the United States, which was heading, showed what was happening when it was buried in the benefit of greed. The company used many flavors of complex accounting fraud to pump profit reports and hide huge amounts of debt. Once the truth appears, Enron ShatteredShe is interested in the road to bankruptcy and wiping the value of shareholders 74 billion dollars.

Fast food

We can continue to (search in Thaodes, Bevinix, Quadrigacx, and other FIASCOS, as well as MF Global, Wells Fargo, Bernie Madoff and other Tadfi Hindenburgs, which all could have been prevented or mitigated at decentralization). The bottom line is that centralization and obfuscation are the enemies of fair trade, and they represent a constant threat-one of them is not limited to a long moment of time, but rather a threat at the present time for both society as a whole, and on your bags in particular.

It should never be forgotten by the central principle of encryption (and thus funding as a whole): “not your keys, not your metal currencies”, which means when it comes to your origins, do not trust yourself.

So what does this mean for you, BTC holder?

For beginners, read the beautiful print. As much as the central companies seem safe, the central companies may seem, consider all the risks involved in delivering your assets custody to another person.

The applicable alternative to central exchanges and guardians is decentralized decentrations. It enables you to keep exclusive access to your money through special keys.

Better, there are a small number of decentralized options to appear for people who seek to win the return on BTC. Less number of edges and decentralized applications provide BTC investment options that pay the real BTC return.

So search you. If you don’t, you may ask yourself a painful question: Why do I think this disaster will not strike again?