[HN Gopher] Bittrex to Cease Operations in the US
       ___________________________________________________________________
        
       Bittrex to Cease Operations in the US
        
       Author : cfcfcf
       Score  : 78 points
       Date   : 2023-03-31 19:17 UTC (3 hours ago)
        
 (HTM) web link (bittrex.com)
 (TXT) w3m dump (bittrex.com)
        
       | throwaway4837 wrote:
       | I started using Bittrex in 2017 because they had support for
       | altcoins I wanted to gamble with. Sadly, over the years they
       | abruptly dropped support for coins with barely any notice, and it
       | was a pain to keep up with them. While I'm sad to see them go,
       | I'm sort of looking forward to being forced to move my coins out
       | of their exchange. Unfortunately none of the other exchanges I
       | use have support for some of the altcoins I had on Bittrex, so
       | I'm either going to have to dump those into BTC/DOGE/etc. or spin
       | up my own wallet.
       | 
       | I guess this is good for Bitcoin in the absolute shortest term...
       | I expect Bitcoin/maincoin dominance will go up if Bittrex has any
       | reasonable volume.
        
       | colesantiago wrote:
       | Good.
       | 
       | Crypto has no use case at all and the exchanges harboring these
       | speculative tokens needs to be destroyed.
        
         | repomies69 wrote:
         | They are only ceasing to operate in US, they will continue to
         | serve rest of the world (95.75% of world population).
        
           | Mizoguchi wrote:
           | The US has 20% of the global crypto market and it's
           | responsible for 40% of all transactions. That's pretty
           | significant.
        
           | colesantiago wrote:
           | Usually (and in almost all cases) the world follows the US so
           | will be not surprised when governments will completely ban
           | crypto into the dark web.
        
             | yashg wrote:
             | When it comes to crypto regulations though, US is lagging
             | behind. Crypto is already taxed as gambling in India and is
             | pretty much out of popular discourse. Just one season of
             | crypto platforms advertising on India's biggest sporting
             | league (IPL) made the regulators sit up and take notice of
             | the shady practices and put an end to it. I believe crypto
             | is very much dead in China as well.
        
         | gear54rus wrote:
         | > Crypto has no use case at all
         | 
         | [citation needed] haha
        
           | teekert wrote:
           | I like the podcasting 2.0 ecosystem. With boosting and
           | satoshi streaming. Cool usecases of the btc lightning network
           | if you ask me.
        
         | yieldcrv wrote:
         | financial services, for speculation, is the biggest industry on
         | the planet
         | 
         | saying "no use case" and "speculative" in the same sentence is
         | always hilarious, yeah, service the speculators
         | 
         | its financial services and entertainment, the latter of which
         | is also a big sector and valuable to humans
        
           | colesantiago wrote:
           | I'm not sure what use case is a speculative pyramid scheme
           | like crypto, where there is no intrinsic value at all.
           | 
           | It is a morally repugnant gambling speculative vice which
           | destroys lives and is even worse than fiat.
           | 
           | Not to mention Bitcoin and the like burning the planet trying
           | to solve useless puzzles.
        
             | Atlas22 wrote:
             | Education is speculative gambling that teaching the student
             | will amount to them increasing productivity enough to be
             | worth the resources (time, money, supplies) spent educating
             | them. Driving is speculative gambling that reaching your
             | destination faster will be more profitable than the cost of
             | the vehicle, wear and tear, gas/electricity, cost
             | associated with risk of car crash. Eating is speculative
             | gambling that the one eating will provide more value in
             | some way than the value of the food and water they consume.
        
               | colesantiago wrote:
               | this laughable line of argument isn't even worth a
               | debate, we both no that education, driving and eating
               | aren't pyramid/ponzi schemes.
        
             | super256 wrote:
             | > I'm not sure what use case is a speculative pyramid
             | scheme like crypto, where there is no intrinsic value at
             | all.
             | 
             | Modern currencies like USD, EUR, JPY etc. don't have
             | intrinsic value either.
             | 
             | > It is a morally repugnant gambling speculative vice which
             | destroys lives and is even worse than fiat.
             | 
             | We should ban speculative buying of comics, gaming skins,
             | Pokemon cards and, of course, gambling in casinos worldwide
             | too. Also, the gambling on Robinhood is morally repugnant
             | too, as grown up adults can't be trusted to manage their
             | money.
             | 
             | > Not to mention Bitcoin and the like burning the planet
             | trying to solve useless puzzles.
             | 
             | The value in solving the puzzles is securing the network
             | (no other network is as secure as Bitcoin, see [1]). Gold
             | mining uses the same energy amount as BTC. [2] Only 8% of
             | Gold of the gold dug up is used for productive means by the
             | industry. The rest is bought by speculators, jewelries and
             | central banks because it's shiny. [3]
             | 
             | [1] https://howmanyconfs.com/
             | 
             | [2] https://ccaf.io/cbeci/index
             | 
             | [3] https://www.statista.com/statistics/299609/gold-demand-
             | by-in...
        
               | didibus wrote:
               | > Modern currencies like USD, EUR, JPY etc. don't have
               | intrinsic value either.
               | 
               | Arguably, they are like ownership into the country's GDP
               | and military influence no?
        
             | yieldcrv wrote:
             | speculation is a use case, you're grasping for a
             | distinction that's not found, and if you find it you'll
             | simultaneously be talking about 99% of all transactional
             | activity in the world economy.
             | 
             | yes, gambling is a big industry too, why do you keep naming
             | use cases that have validation of their value?
        
               | colesantiago wrote:
               | What can you do with speculation other than causing
               | people to lose their life savings?
               | 
               | What good is there in a so called currency based on
               | fictitious tokens created out of thin air and backed by
               | completely nothing and adding nothing useful to society?
               | 
               | Even Nvidia agrees:
               | 
               | https://www.theguardian.com/technology/2023/mar/26/crypto
               | cur...
               | 
               | At least gambling is regulated where as crypto is a
               | unregulated decentralised wild west where there is no
               | protections whatsoever.
               | 
               | Where is the use case in people losing money in a pyramid
               | scheme using crypto tokens?
        
               | lcnPylGDnU4H9OF wrote:
               | I'm not convinced you know what you're trying to ask.
               | What do you mean by "use case" other than the reasons for
               | which people want something? The person you're responding
               | to said that people want it so they can speculate and
               | gamble with it. You can dislike these vices all you want
               | but you're seeming to speak to some objectivity which you
               | haven't done much to explain.
        
               | colesantiago wrote:
               | We both know the whole point of the crypto use case is to
               | become an alternative or a replacement to fiat, to which
               | it isn't and cannot be.
               | 
               | Speculation is not a legitimate use case for something
               | that aims to become a currency. If I am trying to buy a
               | loaf of bread with a crypto token and the price plummets
               | and fluctuates wildly for no reason that is backed by
               | nothing, it is not useful at all.
               | 
               | You can try and justify crypto all you want, However and
               | objectively speaking, there are far too many pyramid
               | schemes, far too many ponzi schemes, scams, rugpulls and
               | ransomware crypto payments, unregistered ICOs that crypto
               | is harbouring to even take seriously after 15 years of
               | its existence.
               | 
               | I'm glad the crackdown is happening.
        
         | wslh wrote:
         | Ignoring that I don't agree with you, don't you think the
         | current financial system is a complete mess? From the technical
         | side to the trust side.
        
           | beefield wrote:
           | No. Especially compared to known alternatives, very much
           | including crypto.
           | 
           | Or then we have a very different definition of "complete
           | mess". For the record, I have no reason to doubt the value of
           | my savings account fluctuates wildly and the savings account
           | is guaranteed by government for my practical purposes. I can
           | make all the payments I need to make free/with very modest
           | fee. In most cases, for practical purposes, the payments are
           | immediate. If I happen to need, I can borrow money against my
           | non-money non liquid assets. I can't describe this situation
           | as "a complete mess". To my understanding crypto offers
           | practically none of these benefits in any kind of robust way.
           | This from european perspective.
        
             | Atlas22 wrote:
             | Everything you mentioned and implied here is the case for
             | every fiat currency also. Using Japanese Yen to buy food at
             | a US grocery store is unlikely to be practical. Just as
             | trying to use USD in Japan is impractical. The only
             | substantial difference is that crypto's practical
             | jurisdiction is primarily the internet, with some adoption
             | in the "real-world" (shops/services that choose to accept
             | crypto). This makes crypto incredibly practical for online
             | transactions but only practical for real-world applications
             | where it has been adopted. Most crypto payments can be done
             | for cheap, quickly (seconds to minutes), in a practically
             | trust-less environment (not the case for fiat), and are
             | irrevocable (which is a benefit for many). You can borrow
             | crypto with crypto lenders against just about anything
             | legally enforceable, including your house or car (although
             | willing crypto lenders are becoming scarcer and more
             | expensive with the increasingly inconsistent regulatory
             | behavior of the US Government). A major advantage
             | cryptocurrencies such as Ethereum have, is that they
             | provide practically trust-less contracts between entities,
             | evaluated by code rather than a possibly incompetent or
             | compromised judge as you might get in the real-world.
             | 
             | Just FYI, payments in the traditional banking systems are
             | very much not immediate, they just appear that way from
             | your perspective. The perspective usually breaks down if
             | you try to move a large amount of currency around, you will
             | get anything from straight up denials, many month waiting
             | periods, money getting "lost" in processing for months, and
             | large surprise fees. The "immediate" transaction illusion
             | you see are just agreements between major financial
             | entities to make transactions appear fast but are limited
             | volume to reduce banks risk. For example, common credit
             | card transactions, no matter how small, are not actually
             | cleared for over 150 days. Based on my experience European
             | banks are no different although I haven't tried it as often
             | as I have in the US.
        
           | jasmer wrote:
           | How is the current system 'a mess'?
           | 
           | It powers the whole world. Almost every kind of transaction
           | you can think of.
           | 
           | If people would follow the regs most things would work.
           | 
           | I think the biggest issue is transactional drag aka something
           | needs to replace VISA, and should be nicer consumer
           | protections for personal accounts but for the most part it
           | works.
           | 
           | Nothing Crypto has offered is better, not even close.
           | 
           | I suggest someday that may happen, but it will 'feel' much
           | more like traditional bakning when it happens.
           | 
           | There is a reason why banking is the most 'buttoned down,
           | small-c conservative' industry because oversight, competency
           | etc. all of that matters. It's that world.
           | 
           | ... notwithstanding some other issues that would exist with
           | crypto as well, such as mortgage lending etc..
        
             | humanizersequel wrote:
             | >How is the current system 'a mess'? >It powers the whole
             | world.
             | 
             | This is a sentence that could be said at any point in
             | history, about any dominant "system", financial or
             | otherwise.
             | 
             | How could slavery be a 'a mess'? It powers the whole world.
             | How could feudalism be 'a mess'? It powers the whole world.
             | How could nomadic hunter-gatherer tribes be 'a mess'? It
             | powers the whole world.
        
           | colesantiago wrote:
           | We should not be replacing a system with a completely
           | destructive and even worse one which is crypto.
           | 
           | Government backed money is the worst form of money, except
           | all the others have been tried including crypto.
        
             | BLKNSLVR wrote:
             | On the timescale of money, crypto has not existed long
             | enough to say it's been "tried" (or at least not long
             | enough to say it's not worth continuing the experiment /
             | continuing to try).
             | 
             | What it has done, which seems to exist outside the
             | blinkered view, is that for a number of years now, bitcoin
             | and some other cryptocurrencies have been very successful
             | at being transferable between two parties no matter their
             | geographical location and without a third party acting as
             | intermediary or authority.
             | 
             | For those who participate, this is an exchange of value.
             | For those who don't participate it should be at least seen
             | as a half decent proof of concept of something that could
             | be used as an exchange of value (money).
        
               | colesantiago wrote:
               | > proof of concept
               | 
               | Yet this 'proof of concept' is too slow to be used in the
               | real world after 15+ years with little to nobody using it
               | at all.
               | 
               | UPI has been available for 6 years with almost 700
               | million users and is expanding their network globally.
               | 
               | So even by trying to send money, there is no need for
               | crypto at all for this case as this has already been
               | improved and done by the current system.
               | 
               | You might as well use Wise, UPI and other regulated money
               | transfer services that exist in current system.
               | 
               | I look forward to FedNow removing even more need for
               | crypto to exist.
        
           | short_sells_poo wrote:
           | While the crypto industry has shown itself to be a pillar of
           | ethics, engineering and usability?
        
             | joemazerino wrote:
             | Yes?
        
         | alphanullmeric wrote:
         | Crypto does a pretty great job of keeping your hands off of
         | other people's money, is that a problem?
        
       | [deleted]
        
       | teekert wrote:
       | I have always liked Bittrex. Have been a user for many years now.
       | Indeed they've never been hacked and their support is pretty
       | good. Sad to see this happen.
       | 
       | Have to say that as an EU based user I feel a bit uneasy about
       | this though. Perhaps it's time for some cold wallets or, as I'm
       | reading here, a dex.
        
       | LeoPanthera wrote:
       | How confusing! I thought the headline referred to the ultra-
       | bitter chemical that stops kids eating things they shouldn't. But
       | that "bitrex" just has one T.
       | 
       | Fun fact, Nintendo Switch cartridges are coated in it.
        
         | jasonjayr wrote:
         | Sure way to get my older kids to lick the cartridges is to tell
         | them about that :)
        
           | BLKNSLVR wrote:
           | Yeah, I don't have a Switch myself but now I'm going to need
           | to find a friend's and work out how to slip in a sneaky
           | cartridge lick just to have this experience.
        
         | ziml77 wrote:
         | I thought that's what it was too! I expected to be reading
         | about how they were forced to shut down because the chemical
         | was super toxic after extended exposure or something like that.
        
       | barnabee wrote:
       | Not a Bittrex user but this makes me genuinely glad not to live
       | in the US.
        
         | sdfghswe wrote:
         | Imagine being happy for not leaving on the wealthiest nation on
         | earth because a specific magic beans trading venue is shutting
         | down.
         | 
         | It's like the maga incels work at walmart but complain taxes
         | are too high.
        
       | troymc wrote:
       | I am in Canada and when I went to their website I found that it's
       | not available for me either. I wonder what they do.
        
       | smithcoin wrote:
       | @dang can this title have "in the United States" appended to it?
       | They're still continuing worldwide operations.
        
         | bdcravens wrote:
         | The original title is "Important Message For Bittrex U.S.
         | Customers"
        
         | sosuke wrote:
         | Yes please. I wasn't surprised they were closing the US access
         | but I was absolutely floored to think they were closing
         | everything.
        
       | monero-xmr wrote:
       | Dexes destroyed the long-tail crypto exchange. Consolidation and
       | shut downs are coming. Regulation is certainly an issue but the
       | truth is Bittrex doesn't really need to exist anymore. Cross-
       | chain swaps are possible with wrapped assets, atomic swaps, and
       | operations like FixedFloat. End of an era but the market has
       | spoken. Whatever benefits a centralized exchange provides are
       | better with deeper liquidity and larger exchanges like Coinbase
       | and Binance.
       | 
       | I also believe Gemini is on its last legs. The SEC combined with
       | anemic volumes, GUSD went nowhere, Nifty Gateway market
       | collapsed, Gemini Earn is in bankruptcy. Winklevoss will just buy
       | and hold BTC from now on.
        
         | orangepurple wrote:
         | Coinbase and Binance are firmly under the microscope of the US
         | Department of Justice (DOJ)
        
         | yieldcrv wrote:
         | End of a crappy era, in the US
         | 
         | The extortion racket bucket shops cant go fast enough!
         | 
         | Long live DEX's, liquidity pool technology has been an
         | incredible boon to the crypto space, shifting dynamics away
         | from exchanges directly to the project issuers and community.
        
           | gear54rus wrote:
           | yeah except now you will exchange your fiat into crypto with
           | some shady guy instead of a somewhat-trustable big entity
           | with reputation.
        
             | yieldcrv wrote:
             | there are, and will be, other fiat onramps
             | 
             | Even Paypal and Cashapp are trusted crypto exchanges now.
             | The crypto you receive there can be withdrawn and access
             | the entire crypto economy.
        
             | alphanullmeric wrote:
             | The code is open source, your only risks are bugs, exploits
             | and the government.
        
               | skee8383 wrote:
               | Without any fiat on-ramp crypto is worthless. its value
               | is always measured by how much fiat it can be sold for.
               | without that it has no value. what are you gonna do, go
               | mail a stranger cash for coins? send him gold bars for
               | coins? lol. this crap is OVER. please wake up! or dont, i
               | don't really care..
        
               | alphanullmeric wrote:
               | Glad we agree the IRS shouldn't be taxing something that
               | has no value.
        
               | pawelduda wrote:
               | Bugs, exploits, and "only problems" in the same sentence
               | are what makes it funny, especially when your money is on
               | the line and the most popular smart contract lang is
               | JavaScript for blockchain edition
               | 
               | I mean it certainly does the job but I'd die from stress
               | if I would risk releasing a bug that could wipe hundreds
               | of millions of users' money. I respect people who are
               | good enough at Solidity to be reasonably confident.
        
               | Atlas22 wrote:
               | By shady guy, the commenter is likey referring to peer-
               | to-peer marketplace swapping of fiat and crypto, not
               | DEXes. DEXes cannot offer fiat currencies since it is
               | inherently centralized. AFAIK, the only options to
               | exchange fiat are centralized exchanges and peer-to-peer
               | marketplaces, both of which rely on extensive trust in a
               | very small number of people, and are not open-source or
               | publicly-auditable.
        
         | detrites wrote:
         | *in the US
         | 
         | Bittrex Global continues, along with the other 600+ centralised
         | exchanges [0] unfortunately excluded in American-centric
         | reality.
         | 
         | [0] https://blockspot.io/exchange/
        
         | tsimionescu wrote:
         | Too bad DEXs can't actually get money into the ecosystem,
         | they're only about swapping one funny token for another.
        
           | monero-xmr wrote:
           | Buy USDC on Coinbase, withdraw to personal wallet, now you
           | can use on dex. Or that's what I do. I pay all my taxes and I
           | pay a lot of them.
        
             | lcnPylGDnU4H9OF wrote:
             | This works but it's also specifically not using the dex
             | (decentralized exchange, for anyone confused) to exchange
             | fiat / crypto in either direction. Coinbase is doing that.
        
               | monero-xmr wrote:
               | Yes but the benefits of dexes, specifically the ability
               | to earn fees by being a liquidity provider (LP) in an
               | automatic market maker pool (AMM) are very useful. You
               | can maintain your exposure to assets and not need to
               | maintain a trading bot with all of its risks and still
               | earn fees.
        
               | saurik wrote:
               | But that relegates the centralized exchange into the
               | position of being nothing more than a "fiat on-ramp", and
               | potentially literally nothing more than a trivial wrapper
               | around Circle (in the case of Coinbase and USDC), which
               | effectively undermines their business model of operating
               | the whole exchange apparatus. (Hell: does Coinbase even
               | make any money at all if you deposit USD and withdraw
               | USDC? I think they don't have deposit fees in general, do
               | the USD<>USDC 1:1, and then offer free withdrawals on
               | USDC due to some fancy new "gasless" withdrawal mechanism
               | Circle came up with.)
               | 
               | Regardless, the point being made in the comment upthread
               | wasn't "you will never need a centralized entity ever
               | again": that was a total strawman. It wasn't even that
               | you wouldn't want _any_ centralized exchanges! It was
               | merely that the  "long tail" of random exchanges who
               | specialize in listing more random tokens is effectively
               | dead as who would bother with all that trouble to
               | navigate all the red tape--particularly to operate in the
               | United States--to support and vet these tokens when every
               | token ever can be made available on a decentralized
               | exchange. You might thereby still want a handful of the
               | largest exchanges... but do you really need Bittrex
               | enough for them to make enough money to put much effort
               | into existing?
        
               | quanticle wrote:
               | But that relegates the centralized exchange into the
               | position of being nothing more than a "fiat on-ramp"
               | 
               | That's actually a pretty profitable business. "If you
               | want to interact in any way with crypto, you either have
               | to go through Coinbase or some shady black market crypto
               | dealer," is actually great news for Coinbase.
        
               | saurik wrote:
               | I mean, you cut off the rest of that paragraph ;P. Sure:
               | it sounds like maybe a reasonable opportunity for
               | _Circle_ , but Coinbase would effectively be adding no
               | value anymore and would have to attempt to charge ( _a
               | lot_ , if they wanted to have any hope of making anywhere
               | near as much money as their current business model) for
               | something that not only are they currently doing for free
               | but which they aren't really doing in the first place (as
               | they are just a thin wrapper around Circle). The only
               | reason Circle isn't bothering with this market is
               | seemingly that they didn't want to deal directly with
               | retail and they don't really have to because Coinbase was
               | willing to integrate it for free... but like, Paxos
               | (which is also regulated) does deal with individual
               | users, so there is no reason Circle _can 't_ in a world
               | where Coinbase is otherwise irrelevant. (The reality,
               | though, is that there is still benefit for traders to
               | having centralized exchanges due to their limit order
               | book model, so I wouldn't discount Coinbase just yet,
               | anyway ;P.)
        
               | TacticalCoder wrote:
               | > does Coinbase even make any money at all if you deposit
               | USD and withdraw USDC?
               | 
               | They have 75% of $33 billions (with a 'b') of the USDC
               | circulating as short-term US treasuries (with every
               | single individual ID of the short-term treasuries
               | publicly posted).
               | 
               | So someone is basically printing free money by having
               | about $25 bn in short term US treasuries yielding atm
               | something insane like 4% yearly.
               | 
               | I don't know who's pocketing that money but that's about
               | $1 billion, yearly, in yields from the short term US
               | treasuries.
               | 
               | If somehow Coinbase (or "Centre" but Centre is Circle +
               | Coinbase) is pocketing that money, they probably could
               | allow 0% fees trading everywhere and still be one of the
               | most profitable HN unicorn out there.
               | 
               | Does Coinbase give APY on people keeping USDC at
               | Coinbase? I have no idea. Does Coinbase give APY on
               | people withdrawing USDC to private wallets? I think they
               | don't. I'm nearly sure they don't.
               | 
               | What happens to that money?
               | 
               | I've never seen anything posted on the subject.
        
             | latchkey wrote:
             | This is what my friend was doing, until CB just locked his
             | account after making two $10k USDC purchases. He was fully
             | KYC'd. No warning or reason given, just "convert back to
             | USD and withdraw your money please, that's our final
             | answer".
        
         | WFHRenaissance wrote:
         | I guess the issue I foresee is that many perp DEXes aren't
         | available in the USA. Gemini is opening a perp CEX soon I
         | think. May be the last bastion for smaller CEXes: having enough
         | regulatory favorability/connections to copy DeFi until the
         | music stops.
        
           | saurik wrote:
           | A DEX wouldn't fundamentally exist in any specific regulatory
           | environment... how would one somehow not be available in the
           | US?
        
             | quanticle wrote:
             | It would be unavailable in the sense that US entities would
             | be legally prohibited from transacting with it, in the same
             | way that US entities are prohibited from transacting with
             | Binance (and, to the extent that they're flouting this
             | prohibition, they're getting in trouble for it).
        
         | babyshake wrote:
         | Would you expect they will rug pull GUSD? I assume this, like
         | with USDC, would be seriously illegal, but it also wouldn't
         | surprise me if they had some ToS provisions somewhere waiving
         | their obligation to redeem GUSD for USD.
        
       | hungryforcodes wrote:
       | This is a stupid title though. It's just Bittrex US. I can't
       | think of a worse country to do crypto business in so it should
       | come as no surprise. Bittrex Global seems perfectly fine.
        
         | bdcravens wrote:
         | Yes, the original title is "Important Message For Bittrex U.S.
         | Customers"
        
         | rchaud wrote:
         | What are the good countries? In crypto, most business seems to
         | come down to converting an unstable fiat currency into a stable
         | fiat one. DeFi is just the middleman.
        
           | quanticle wrote:
           | The problem is that the countries that are good for crypto,
           | e.g. Venezuela, Nicaragua, Lebanon, etc, aren't really all
           | that good for _anything else_.
        
       ___________________________________________________________________
       (page generated 2023-03-31 23:01 UTC)