Okay, the Summary First | TLDR | Wallets Next?

Until Bitcoin really took off, we saw cycles of Bitcoin and assumed that’s where the fun ended. But nah - that’s not where the fun ended. Then there were these other types who bought at the peak and sold when the price fell triggering the meme – “buy high sell low”.
Remember this famous chart?

Then comes the end of 2021 and everyone from Celsius, Gemini, FTX, Block-Fi, and their likes creamed the customers so bad that there were reported suicides.

But scammers and bad actors follow the crypto funds, right? Where are the funds right now? In your hot and cold wallets? Not your key, not your crypto was and is the buzzword, right? But what if we have bad actors in the hot wallet space? What will happen then? I can still understand the cold wallet being cut off from the net, but they too could become victims of bad actors.

Don’t get me wrong, but before FTX became what it became, didn’t people think that nothing wrong could happen with FTX? Wasn’t it one of the Reddit users who warned of an impending doom about FTX and got downvoted so heavily that he was banned for seven days?

Anything can happen, but I worry about the wallets now.

Now Everything Other Than TLDR | Price Cycles and Nefarious Exchanges

I had briefly entered the crypto space in 2015 and did not understand head or toe of what was going on. Everyone was talking of this – Bitcoin – which had tanked so hard that the flavor and talk of the town were the "Crypto-Ponzi-Scheme”. Well, that’s history now, but an important lesson of crypto cycles was taught. Of course, if you were a stock trader you already knew this, but you never knew or understood the volatility of the crypto market. Correct?

Then was the shattering of the belief that our funds were safe with exchanges. Not only exchanges but their earn program where you could earn solid returns. No one cross-checked this part when unreal returns were the hallmark of Ponzi schemes. Result? FTX, Gemini, Block-Fi, Celsius, and others totaled customers and their confidence.

Remember – crypto cycles and unreal returns – were both known phenomena, and yet we faltered. The hope that nothing could go wrong sometimes leads to something wrong. Really wrong.

What about wallets then?

Wallets the New Trusted Avenue | Your Key and Your Crypto!

But is it? If it is your key and your crypto then how come Metamask can withhold taxes? This point has been debated to be inaccurate but what if this is possible? How is it that your crypto wallet has another key from the maker of that wallet?

I am not even talking about the wallet hacks that scammers are involved in. These were true with exchanges also. With wallets, it is just that scammers and bad actors are following the funds. All of us have become smarter since the 2022 exchange fiascos, and the scammers have followed us to our most trusted place to hold our funds. Remember what happened with Mark Cuban?

Scammers after our funds, I understand, but what about the wallet makers themselves turning bad actors? Before the FTX fiasco, nobody believed that FTX could go rogue, right? So, will anyone believe that a Metamask or Trezor could go rogue? Not until that actually happens.

But then, if it happens then what?

What If Wallets Do Go Bust? | What Then?

I wish I knew the answer to this.

I hope just like a Binance stands despite an FTX, there would be wallets standing when the bad actors play out. Nobody knows who the bad actor could be and this is why I want regulations.

While many may argue regulations are just the way for the government to control the crypto space, what is the alternative? Without government control, or the government held accountable to get our money back, how do you expect to act against the bad actors? SBF is a great example of this.

Not only did SBF play the customers, but was in a non-regulated environment and therefore safe. When the skeletons fell out of the closet, we realized even government beneficiaries existed. But could you sue the government? No. Why? Because the government never asked you to put your funds in crypto, nor did they regulate it. Technicality, right?

And since governments are not involved in safeguarding us, we fight a long battle. This is the current news after nearly a year of FTX. Take a look.

And the fight will continue longer. Same with wallets or anything that happens in the future. We need a framework to stay safe.

SAFU is Nice To Hear | But Regulations Is The Real Safety

A crypto framework at the country level or an association of countries like the G20 is not a bad idea. It may take away our crypto freedom and anonymity, but hey, were you here to hide? No, right? So, what’s wrong if you are seen by the government? At least, they can’t deny you your funds and rights then.

While many of the things seem wishful thinking or outright ludicrous, I am ruling out nothing. Celsius happened, and so did FTX, so let’s hope nothing of that sort happens in the wallet space.

Image Courtesy: The Economic Times, India dated 21st September 2023

Some Useful Sites to Give You More

Unique NFTs to buy:

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Some of the good crypto-writing-earning sites:

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Some crypto-faucets and jewelry earners:

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Few Gaming-cum-earning sites

Splinterlands || NFTPanda