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RE: Bitfinex Update: Executives Take Their Fair Share Of Hack Losses (The Cryptoverse #72)
@marketingmonk, so for the sake of trying to be in compliance with the CFTC (a $75,000 fine seems rather serious), BitFinex took bitcoin out of cold storage and switched to a different system, which made them vulnerable to this hack/security breach?
THAT is odd.
You've got it mate.
This is what happens when the regulators make judgement without fully understanding what they are dealing with. They are using their fiat currency mindset to apply legal rules to crypto. They're not 100% compatible.
I got word from a friend of mine about a group of people that expressed a number of misconceptions about bitcoin to a new investor of mine.
A recurring theme with them seems to be their not understanding the differences between the bitcoin protocol and the legacy banking system of fiat national currency that they grew up with.
I don't know what they found in their attempts to research bitcoin, but I'm sure that articles written by people who have no practical experience with bitcoin and cryptocurrencies in general didn't help.
I agree with you. If someone has spent the whole career with a fiat mindset, they can be forgiven for finding it difficult to switch to a new paradigm.