• Johanno@feddit.org
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    2 months ago

    Afaik coinbase does not actually use the Blockchain. It has a centralized own system for accounts in its system. It mirrors the value of bitcoin in its internal bitcoin. But you can’t buy bitcoin on coinbase and then send it to a real bitcoin wallet.

    I mean in the case of bitcoin it makes no sense for normal people. You have several hundred $ of transaction fees. If that would happen in coinbase nobody would buy btc.

    So your best platform for crypto is only mirroring the prices of the real Blockchains.

    • Varyk@sh.itjust.works
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      2 months ago

      If you’re referring to the coinbase wallet, that’s on the blockchain.

      you’re sending it to a custodial account owned by coinbase, not your own personal Bitcoin account.

      It’s the same thing as having a bank account and giving all of your money to the bank.

      You’re giving up absolute control of your funds for convenience, absolution of responsibility and imagined security.

      That’s how broad societal financial operations still work for the moment. centralization isn’t always nefarious, but it is largely archaic at this point.