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> A better conversation is whether IMF/credit scores deserve to exist in the first place. You're right about this. People's access to necessities like housing

> A better conversation is whether IMF/credit scores deserve to exist in the first place. You're right about this. People's access to necessities like housing shouldn't depend on whether they are making money for the finance industry. And developing countries' access to the resources needed to improve the quality of life of their citizens shouldn't depend on making the development process profitable to US/European institutions. > Bitcon/DeFi will render them obsolete in a few years' time anyway. Unlikely. Bitcoin and other proof of work systems are likely to be banned in many places because of their environmental impact. And systems that survive that are likely to be banned as vehicles for financial fraud. The future of blockchain currencies is probably in making transactions more traceable to shut down tax avoidance schemes.

josephcsible 5y ago
> > A better conversation is whether IMF/credit scores deserve to exist in the first place. > You're right about this. People's access to necessities like housing shouldn't depend on whether they are making money for the finance industry. And developing countries' access to the resources needed to improve the quality of life of their citizens shouldn't depend on making the development process profitable to US/European institutions. While there's definitely issues with how credit scores are implemented, it's absolutely essential for something like them to exist. People who habitually default on their debts shouldn't be able to keep borrowing money as easily as the rest of us.
- infamouscow 5y ago
  Lenders should be able to make a determination by looking at the person's history of defaulting. An opaque number doesn't tell you that.
  - ianmcgowan 5y ago
    I mean, that's exactly what the opaque number is trying to do - typically you have some thresholds, below X deny the loan request, above Y approve, in the gray area review.. The number will have some complex weighting, but I'm not sure how you get away from assigning a score if you want to make an automated decision.
    - infamouscow 5y ago
      The way the credit bureaus derived scores is automated, so what's the point of the score?

josephcsible 5y ago

> > A better conversation is whether IMF/credit scores deserve to exist in the first place. > You're right about this. People's access to necessities like housing shouldn't depend on whether they are making money for the finance industry. And developing countries' access to the resources needed to improve the quality of life of their citizens shouldn't depend on making the development process profitable to US/European institutions. While there's definitely issues with how credit scores are implemented, it's absolutely essential for something like them to exist. People who habitually default on their debts shouldn't be able to keep borrowing money as easily as the rest of us.

infamouscow 5y ago
Lenders should be able to make a determination by looking at the person's history of defaulting. An opaque number doesn't tell you that.
- ianmcgowan 5y ago
  I mean, that's exactly what the opaque number is trying to do - typically you have some thresholds, below X deny the loan request, above Y approve, in the gray area review.. The number will have some complex weighting, but I'm not sure how you get away from assigning a score if you want to make an automated decision.
  - infamouscow 5y ago
    The way the credit bureaus derived scores is automated, so what's the point of the score?