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Boy, did that touch a nerve! Hate to break it to you, buddy, but you can't do these things with defi tokens either. > Let me ask you, if you want to be a mark

by jude- 5y ago

Boy, did that touch a nerve! Hate to break it to you, buddy, but you can't do these things with defi tokens either. > Let me ask you, if you want to be a market maker for the NASDAQ, can you do so with $1K in capital? Can you do it 24/7 from any country in the world? If you're implying that NASDAQ won't let me be a market maker with $1k capital, then why should I believe that they'll do it if I offer $1k-equivalent of defi tokens instead? Also, I can do this today. I'd start a market maker company with my funds and with funds from other like-minded people. > Can you loan money to someone in Thailand in 15 seconds? Show me a defi protocol that lends money, and I'll show you a protocol that only permits over-collaterialized loans, backed by other defi tokens that are just as limited. Also, yes -- I can lend money to people in Thailand in 15 seconds. I simply invest my money in a local bank that will do it for me. > Can you borrow money from a pool of lenders from 84 different countries? Absolutely. Do you understand how banking works? > Can you build an app that plugs into your bank, NASDAQ, and a video game API without paying anyone any service or API fees? I don't know if you've ever tried to actually write software before, but I can say with 100% confidence that defi isn't going to open up my bank's APIs, NASDAQ's APIs, and video games' APIs to me. That's because these entities make money by charging for API access, and the existence of defi isn't going to change this. Even if each of these entities were realized as defi contracts, the underlying blockchain miners still charge me a fee to mutate state within them. > Buddy, I'm not worried about taxes on profits vs. losses. It's no different than stock trading. Then you clearly do not understand how tax law or finance works. I humbly suggest you get familiar with it, and quickly, lest you end up with completely-avoidable penalty fees (or in a jail cell).

chrisco255 5y ago
Some research for you: https://en.cryptonomist.ch/2020/11/09/uniswap-liquidity-pools/ https://en.cryptonomist.ch/2020/11/09/uniswap-liquidity-pool... https://docs.aave.com/faq/borrowing https://docs.aave.com/faq/borrowing https://defirate.com/synthetix/ https://defirate.com/synthetix/ https://defi.cx/makerdao-how-does-it-work/ https://defi.cx/makerdao-how-does-it-work/ As for collateralized loans, they are the norm in traditional finance, too. When you take out a mortgage, it's collateralized by the house. When you borrow for a car, guess what happens if you don't pay? Unsecured, revolving loans are usually credit cards, with very high interest rates. If you're snarking about the $30B in lending activity on crypto (up from less than $1B a year ago, on pace to 10x over the next 12 months), because it's collateralized, you don't understand what percentage of lending is collateralized and how big that market is worldwide (hint: its hundreds of trillions). > That's because these entities make money by charging for API access, and the existence of defi isn't going to change this. The point, for your intentional ignorance, is that the DeFi system is completely open. Open source, open access, pluggable, and composable. In that sense DeFi follows the Unix philosophy. And that is just one reason why DeFi will take over ever greater portions of the existing system. It is going to eat traditional finance. https://en.m.wikipedia.org/wiki/Unix_philosophy https://en.m.wikipedia.org/wiki/Unix_philosophy > Then you clearly do not understand how tax law or finance works. I humbly suggest you get familiar with it, and quickly, lest you end up with completely-avoidable penalty fees (or in a jail cell). You clearly don't understand that Coinbase just went public as a company and that many more legal entities exist fully legally in the crypto ecosystem such as Gemini, Avanti, Greyscale, Galaxy, Kraken, etc not to mention overseas entities in Europe and Asia. There's nothing illegal about participating in crypto. I understand how to do addition and subtraction and how to do FIFO and LIFO. In fact, there's software programs to automate it. Who woulda thunk it.
- jude- 5y ago
  Then I guess you don't really understand UNIX either. Software modularity is a necessary part of the UNIX philosophy, but it's far from the only part. If it was that simple, then Windows would be UNIX thanks to COM. But that's not really the topic at hand. > It is going to eat traditional finance. Why should I believe this? Even if high transaction fees, bad UX, and non-existent scalability weren't significant barriers to adoption, why should I believe that traditional finance won't simply co-opt successful defi projects? The fact that traditional finance does not do some things that defi does has nothing to do with technical capabilities, and everything to do with legality and market sizes. There's no grand conspiracy afoot -- traditional finance would let you do a lot more with your money than you can right now if it was profitable and legal. If you're telling me that defi is going to "eat traditional finance" because traditional finance won't touch unprofitable or illegal activities, then what are you really saying about defi's prospects? > There's nothing illegal about participating in crypto. No one said that crypto is illegal. Tax evasion, on the other hand...

by jude- 5y ago

chrisco255 5y ago

Some research for you: https://en.cryptonomist.ch/2020/11/09/uniswap-liquidity-pools/ https://en.cryptonomist.ch/2020/11/09/uniswap-liquidity-pool... https://docs.aave.com/faq/borrowing https://docs.aave.com/faq/borrowing https://defirate.com/synthetix/ https://defirate.com/synthetix/ https://defi.cx/makerdao-how-does-it-work/ https://defi.cx/makerdao-how-does-it-work/ As for collateralized loans, they are the norm in traditional finance, too. When you take out a mortgage, it's collateralized by the house. When you borrow for a car, guess what happens if you don't pay? Unsecured, revolving loans are usually credit cards, with very high interest rates. If you're snarking about the $30B in lending activity on crypto (up from less than $1B a year ago, on pace to 10x over the next 12 months), because it's collateralized, you don't understand what percentage of lending is collateralized and how big that market is worldwide (hint: its hundreds of trillions). > That's because these entities make money by charging for API access, and the existence of defi isn't going to change this. The point, for your intentional ignorance, is that the DeFi system is completely open. Open source, open access, pluggable, and composable. In that sense DeFi follows the Unix philosophy. And that is just one reason why DeFi will take over ever greater portions of the existing system. It is going to eat traditional finance. https://en.m.wikipedia.org/wiki/Unix_philosophy https://en.m.wikipedia.org/wiki/Unix_philosophy > Then you clearly do not understand how tax law or finance works. I humbly suggest you get familiar with it, and quickly, lest you end up with completely-avoidable penalty fees (or in a jail cell). You clearly don't understand that Coinbase just went public as a company and that many more legal entities exist fully legally in the crypto ecosystem such as Gemini, Avanti, Greyscale, Galaxy, Kraken, etc not to mention overseas entities in Europe and Asia. There's nothing illegal about participating in crypto. I understand how to do addition and subtraction and how to do FIFO and LIFO. In fact, there's software programs to automate it. Who woulda thunk it.

jude- 5y ago
Then I guess you don't really understand UNIX either. Software modularity is a necessary part of the UNIX philosophy, but it's far from the only part. If it was that simple, then Windows would be UNIX thanks to COM. But that's not really the topic at hand. > It is going to eat traditional finance. Why should I believe this? Even if high transaction fees, bad UX, and non-existent scalability weren't significant barriers to adoption, why should I believe that traditional finance won't simply co-opt successful defi projects? The fact that traditional finance does not do some things that defi does has nothing to do with technical capabilities, and everything to do with legality and market sizes. There's no grand conspiracy afoot -- traditional finance would let you do a lot more with your money than you can right now if it was profitable and legal. If you're telling me that defi is going to "eat traditional finance" because traditional finance won't touch unprofitable or illegal activities, then what are you really saying about defi's prospects? > There's nothing illegal about participating in crypto. No one said that crypto is illegal. Tax evasion, on the other hand...