> I'm disappointed of HN comments whenever cryptocurrency topics come up.
Couldn't agree with you more, however, this story is not about a significant advancement in technology and people are reading too much blockchain into it.
This new investment product is nothing to do with 'proof of stake' or the ethics of bitcoin mining. In essence it is a fund that is backed by bitcoin that has been purchased privately without going through exchanges people know about, e.g. Coinbase.
People investing in this fund do not have their transactions recorded on the blockchain. The bank simply have bitcoin in cold storage to back the fund in a similar way to how banks used to have gold in a vault. With legacy banking the gold did not physically move every time someone used the ATM. Same here, no bitcoins get moved.
This is not a difficult story to understand. There is no need for people to be getting uppity about it and to downvote those that bring information to the story that is obfuscated by how the crypto-media have described it thus far from their understanding of the press releases made available.
Couldn't agree with you more, however, this story is not about a significant advancement in technology and people are reading too much blockchain into it.
This new investment product is nothing to do with 'proof of stake' or the ethics of bitcoin mining. In essence it is a fund that is backed by bitcoin that has been purchased privately without going through exchanges people know about, e.g. Coinbase.
People investing in this fund do not have their transactions recorded on the blockchain. The bank simply have bitcoin in cold storage to back the fund in a similar way to how banks used to have gold in a vault. With legacy banking the gold did not physically move every time someone used the ATM. Same here, no bitcoins get moved.
This is not a difficult story to understand. There is no need for people to be getting uppity about it and to downvote those that bring information to the story that is obfuscated by how the crypto-media have described it thus far from their understanding of the press releases made available.