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Comment by jakelazaroff | Hacker News Reader

The total crypto market cap is just over $1 trillion. The two biggest hacks alone have made off with almost $1 billion. That’s just under .1% of all cryptocurrency stolen, with no recourse for those on the losing end. When can we acknowledge that this is an absolutely insane basis for a financial system?

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You have to compare that to the equivalent of the float in stocks. Most crypto holdings are not that liquid and come from early backers. If the big holders (mostly pump and dump) sell, the market will collapse.

The overall crypto market is already down 50% in 2.5 months with no sign of slowing. the problem of crypto crime will fix itself as the market keeps crashing. This market is propped up by air.

It’s closer to two trillion. But I think 0.1% is a hilarious number to assert is too high a price to pay. How much is skimmed as central banks flow money to citizens? How much is embezzled in corrupt orgs/nations?

Traditional finance puts power in men that don’t even need to hack anything to take far more than 0.1%.

Half of everything would be likely worth it if crypto lives upto even a smidge of it’s true promise.

90% of Coinbase’s Q3 revenue was from transaction fees. One benefit of crypto is you have options to move to a zero-fee alternative, but let’s not get overly optimistic either. Many tradfi solutions will be copied at the outset because they work.

For comparison, in the US four-party system provided by credit card networks (Visa/Mastercard), interchange fees paid by consumers (~2%) more than cover the costs of fraud. (IIRC < 0.5% of transaction volume.)

In my view, the insanity there is that the amount of money sloshing around in the system is enough to mask the effects of fraud with close to zero consumer liability.

I'd rather have 0.1% of my money stolen than do business with banks.

lol ask the victims of the mtgox scam and ask if they only lost .1% of their money

Didn't mtgox end up with dollar-valued assets in excess of the losses due to the massive rise in BTC?

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