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> Unlimited copies of a single point of failure remains a single point of failure. There's no single point of failure if any single point can fail without dest

by mopsi 6y ago

> Unlimited copies of a single point of failure remains a single point of failure. There's no single point of failure if any single point can fail without destroying the private key. Cash is inferior in many ways, can't restore from backup if you've burned a $100 bill to ashes by accident. > Traditional bank accounts are insured by the government which is also the sole issuer of the currency. To the extent the government remains functional your cash is secure, safe and insured. Nice in theory, doesn't really work in practice. Look up how little the insurance funds actually have per every insured account. Where I live, accounts are insured up to 100 000 EUR and the insurance fund has 400 EUR per account. Should shit hit the fan with any bigger bank, the money printing press will go brrrrrr and everyone will get poorer through inflation, because the insurance fund has nowhere near the money to cover the promised amount. Crypto exchanges can't rob customers like that, their failures are more obvious.

arcticbull 6y ago
I noticed you completely ignored how all the cryptocurrencies lost way more value than any alternative, but I'll just assume you ceded that point to me. > There's no single point of failure if any single point can fail without destroying the private key. Cash is inferior in many ways, can't restore from backup if you've burned a $100 bill to ashes by accident. Again, the key is a single point of failure. No matter how many copies. And nobody uses or advocates for physical cash specifically for these reasons. > Nice in theory, doesn't really work in practice. Look up how little the insurance funds actually have per every insured account. Where I live, accounts are insured up to 100 000 EUR and the insurance fund has 400 EUR per account. Should shit hit the fan with any bigger bank, the money printing press will go brrrrrr and everyone will get poorer through inflation, because the insurance fund has nowhere near the money to cover the promised amount. Crypto exchanges can't rob customers like that, their failures are more obvious. It's literally worked for a hundred years. The FDIC was put in place after the great depression and since then nobody has lost a single penny of insured deposits. Nobody. Not in 2008, not during COVID, not at any point along the way. Zero dollars. On the other hand, hundreds of millions are lost in crypto exchanges all. The. Time. Not a week goes by without people losing their life savings due to hacks, negligence and fraud. And nobody can help them. Because that's the point. It's intended behavior. Yes, governments could print money. No, printing money doesn't always lead to inflation. Since the 1970s, the M2 money supply has increased 15X and yet inflation has remained a well controlled 2% per year, totaling 7X. Printing money doesn't actually cause inflation. Surprising right? A lot of that has to do with expansion of the population and the economy. I suggest digging in and learning more about macroeconomics. [1] Then the most important part: don't hold large quantities of money -- invest it. Then you're utterly safe from inflation. [1] https://www.forbes.com/sites/johntharvey/2011/05/14/money-growth-does-not-cause-inflation/#268b9c542f58 https://www.forbes.com/sites/johntharvey/2011/05/14/money-gr...

by mopsi 6y ago

arcticbull 6y ago

I noticed you completely ignored how all the cryptocurrencies lost way more value than any alternative, but I'll just assume you ceded that point to me. > There's no single point of failure if any single point can fail without destroying the private key. Cash is inferior in many ways, can't restore from backup if you've burned a $100 bill to ashes by accident. Again, the key is a single point of failure. No matter how many copies. And nobody uses or advocates for physical cash specifically for these reasons. > Nice in theory, doesn't really work in practice. Look up how little the insurance funds actually have per every insured account. Where I live, accounts are insured up to 100 000 EUR and the insurance fund has 400 EUR per account. Should shit hit the fan with any bigger bank, the money printing press will go brrrrrr and everyone will get poorer through inflation, because the insurance fund has nowhere near the money to cover the promised amount. Crypto exchanges can't rob customers like that, their failures are more obvious. It's literally worked for a hundred years. The FDIC was put in place after the great depression and since then nobody has lost a single penny of insured deposits. Nobody. Not in 2008, not during COVID, not at any point along the way. Zero dollars. On the other hand, hundreds of millions are lost in crypto exchanges all. The. Time. Not a week goes by without people losing their life savings due to hacks, negligence and fraud. And nobody can help them. Because that's the point. It's intended behavior. Yes, governments could print money. No, printing money doesn't always lead to inflation. Since the 1970s, the M2 money supply has increased 15X and yet inflation has remained a well controlled 2% per year, totaling 7X. Printing money doesn't actually cause inflation. Surprising right? A lot of that has to do with expansion of the population and the economy. I suggest digging in and learning more about macroeconomics. [1] Then the most important part: don't hold large quantities of money -- invest it. Then you're utterly safe from inflation. [1] https://www.forbes.com/sites/johntharvey/2011/05/14/money-growth-does-not-cause-inflation/#268b9c542f58 https://www.forbes.com/sites/johntharvey/2011/05/14/money-gr...