The Breakdown Why the Internet Crash Made Bitcoin Look Stronger
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Oct 22, 2025 A massive AWS outage recently disrupted internet services, revealing the vulnerabilities of centralized crypto platforms. While services like Coinbase faltered, Bitcoin and Ethereum maintained uptime, showcasing their resilience. The discussion highlights the importance of personal nodes and self-custody in a decentralized world. Additionally, crypto executives are gearing up for a critical roundtable with senators to discuss market structure, hinting at potential bipartisan efforts. Coinbase also proposes reforms to improve AML regulations using AI and privacy tech.
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Users Saw Zero Balances And Cash-Only Shops
- MetaMask users saw zero balances and Coinbase's Base network and exchange went offline during the AWS outage, sparking user panic.
- Local businesses in Austin reverted to cash when payment systems failed, prompting interest in Bitcoin as a backup payment method.
Cloud Outage Revealed Crypto's Centralization Problem
- The AWS outage exposed crypto's dependence on centralized cloud infrastructure despite blockchains themselves staying online.
- Bitcoin and many decentralized chains continued operating, highlighting resilience when services run permissionless nodes.
Validators On AWS Create Single Points Of Failure
- Running validators or services on AWS is not inherently wrong but creates single points of failure for crypto projects.
- Centralized L2s and custodial services sacrificed uptime even while base-layer networks like Bitcoin and Ethereum remained operational.