In my article
a commenter tried to make a point that Paxos manages all of Paypal's bitcoin. Here's the quote:
PayPal never touches the crypto. They are using Paxos to manage it all for them. "That’s why Paypal is custodying and siloing bitcoin. " - Nope, they don’t. Look into the Paxos business model to understand how this works. So maybe Paxos is holding Bitcoin for “conspiratorial” reasons? They are a crypto exchange with deep roots and a long history in crypto, and are getting paid nicely by doing business with PayPal. So, probably they are doing it to make money as a deep liquidity provider.
Ok, great. So I wasn't as precise as I should have been in my wording. Paypal doesn't fuck you alone; you do a threesome with DP. Double paxotration.
Nowhere in any article I saw did it say that Paypal "never touches the crypto." Who can know that? It also does not take away from my point that at any point, big daddy can swoop in and easily create the world he sees fit. I don't give a fuck about if Paxos and Paypal keep me away from my shit or just Paypal keeps me away from my shit. I HAVE NO CUSTODIAL RIGHTS IF I BUY THROUGH PAYPAL. How does your detail address the issue?
Paxos has a reputation for good behavior within the space. So does everyone until a bully comes knocking at the door. In the same way that the infinitely complex relationships between defi protocols have the potential to bring us more value, so do the infinitely complex relationships between government and centralized companies have the potential to bring us less value. ONLY less value. The only positive you can gum up from centralization is quicker bag pumps. That's it. You selfish, sorry motherfucker you.
Paxos is acting right for the moment, while bitcoin is still moving sideways deciding if it will push past its all time highs or not. Once it blows past $25k and government has to deal with a new elite class and shuts everything moving down, we'll see how they act.
You guys don't seem to get it. I'm not interested in blabbing over the details with you until the fundamentals are correct. Crypto has the potential to free us all and create an innovative world, so I don't care if line 3A in the contract between Paxos and Paypal says we, he or she has custody until March 3rd, 2023, then we give it back to hey, her and them.
Imagine if 7 billion people were able to access their higher selves instead of just 70,000. Decentralized finance without government interference or centralized profiteering can do this. Klaus Schwab's ideas are hopelessly caged. That's why they are so bad. Why don't any of the contracts address this concern?
Paypal never touches the crypto.
You naive loony fuckin goonie. Oh, you read the Paxos/Paypal agreement? Congrats on your JD. I didn't know I was talking to a master of the law. Like you'd even know what the hell was going on between those two companies even if you DID read the shit.
This is simple, man. Centralized institutions are the past. They lead to a certain outcome — pyramidal shaped inefficiency and inequality. We don't know what a primarily decentralized world would lead to. We haven't tried.
So shut the fuck up unless you have direct access to Paxos and Paypal lawyers who can say for sure who "touches" the goddamn crypto and just look at the outcome. What I see is government and big business trying to muscle in on something that doesn't need government or big business in the slightest. That's what I see. What else is there to say? Nothing. See ya next time.
Oh yeah, as for the part about defending Paxos as a deep liquidity provider. The entire purpose of defi is that we all share the fucking liquidity fees. Unless you just want to build another JP Morgan Chase. JP Morgan Paxos. That sounds peachy.