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A reason in search of a problem. Intermediaries in finance exist the same way that lawyers exist - to translate technical gibberish for you, and to bear some bu
by Tyrek 9y ago
A reason in search of a problem. Intermediaries in finance exist the same way that lawyers exist - to translate technical gibberish for you, and to bear some burden of the risk if they do so negligently.
As pointed out in the main text, the blockchain doesn't truly remove the intermediary, it just switches it from the previous intermediary to the underlying blockchain code + governance structure, which is subjectively a higher risk intermediary, at least right now.
- slivym 9y agoNot to mention that since people aren't actually conducting business exclusively in bitcoin they are forced to transfer back to fiat currency constantly which is a transaction that has all the same risks.
- sparkie 9y agoIt's possible to exchange between cryptocurrencies without trust by utilizing time-bound multi-signature transactions. You can't do that when there's a non-cryptocurrency involved. The fact that the latter is riskier says a lot more about non-cryptocurrencies than it does about cryptocurrencies.