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> You don't have to do 100% of your finance on blockchain. I like the freedom of knowing that my funds cannot be controlled by any third party entity, who may o

by xkjkls 6y ago

> You don't have to do 100% of your finance on blockchain. I like the freedom of knowing that my funds cannot be controlled by any third party entity, who may object to my spending on the basis of some arbitrary criteria. We've seen people shut out of PayPal for very arbitrary reasons. We've seen the marijuana industry in Colorado shut out of banking (https://www.acams.org/aml-white-paper-marijuana/ https://www.acams.org/aml-white-paper-marijuana/). See, I see Crypto people mostly arguing that Crypto is going to take over a some huge percentage of transactions in order to justify some skyhigh valuation, and then when pushed back on whether it is actually superior for large percentages of transactions, they revert back to an argument that there are certain (normally politically motivated) transactions that its important for. Unfortunately I don't see a universe where you can justify any of the valuations or importance of Crypto if the main use is the much smaller set of transactions.

chrisco255 6y ago
No, my argument is that it will eat the whole financial system over the next few decades. Buying ETH or BTC is like buying a share of HTTP. The value of the ecosystem is captured at the protocol layer. If crypto bulls are right, the market cap for Bitcoin and Ethereum will be in the trillions and a significant portion of the financial system from banking to insurance to derivatives to stock market trading will all be traded on these chains.
- xkjkls 6y ago
  Why? What advantage does Crypto offer that the current financial system doesn’t. It feels to me to be inferior in the fact that transactions can’t be taken back, and don’t have a firm legal framework behind it; in terms of cost and latency, a third party is always going to be able to set up a cheaper to run system. What about current banking and finance makes crypto superior in any way?

by xkjkls 6y ago

chrisco255 6y ago

No, my argument is that it will eat the whole financial system over the next few decades. Buying ETH or BTC is like buying a share of HTTP. The value of the ecosystem is captured at the protocol layer. If crypto bulls are right, the market cap for Bitcoin and Ethereum will be in the trillions and a significant portion of the financial system from banking to insurance to derivatives to stock market trading will all be traded on these chains.

xkjkls 6y ago
Why? What advantage does Crypto offer that the current financial system doesn’t. It feels to me to be inferior in the fact that transactions can’t be taken back, and don’t have a firm legal framework behind it; in terms of cost and latency, a third party is always going to be able to set up a cheaper to run system. What about current banking and finance makes crypto superior in any way?