3 ms·

That’s true, but I think people overall are pretty happy with crypto. You can move more money, faster, cheaper and with way less hassle than a wire transfer. In

That’s true, but I think people overall are pretty happy with crypto. You can move more money, faster, cheaper and with way less hassle than a wire transfer. In addition crypto exchanges and services have proven pretty reliable. It really is night and day vs traditional banking.

thr0wawayf00 5y ago
> You can move more money, faster, cheaper and with way less hassle than a wire transfer. My point is that the speed and cheapness a crypto system comes at a pretty significant risk. Another major benefit to the banking system is that all solid banks are insured by the FDIC, meaning that if the bank fails, the FDIC guarantees all accounts held by the bank for up to $250k. In order to do this, banks have to meet capital liquidity requirements set out by auditors and meet certain benchmarks. Again, another thing that doesn't exist in crypto but should. When everything goes smoothly, crypto works great. But if the day ever comes that a big company like Coinbase gets hacked and crypto is exfiltrated, it'll be a real test for the community because these are problems that have been solved for decades. > In addition crypto exchanges and services have proven pretty reliable. Look at the mt gox hack, millions upon millions in crypto was stolen in that hack, and there was no recourse for any of those folks. Who knows what is going to happen with Tether? You don't have look that hard to find the kind of financial criminality banking is so often accused of persisting in the crypto community as well.
- trixie_ 5y ago
  Mt gox happened 8 years ago, and Tether just survived a pretty big test. These things actually build confidence in crypto. FDIC is only possible because the government can print money which underscores the how prone dollars are to inflation. As with everything - diversify, hold both.

3 ms·

That’s true, but I think people overall are pretty happy with crypto. You can move more money, faster, cheaper and with way less hassle than a wire transfer. In

by trixie_ 5y ago

thr0wawayf00 5y ago
> You can move more money, faster, cheaper and with way less hassle than a wire transfer. My point is that the speed and cheapness a crypto system comes at a pretty significant risk. Another major benefit to the banking system is that all solid banks are insured by the FDIC, meaning that if the bank fails, the FDIC guarantees all accounts held by the bank for up to $250k. In order to do this, banks have to meet capital liquidity requirements set out by auditors and meet certain benchmarks. Again, another thing that doesn't exist in crypto but should. When everything goes smoothly, crypto works great. But if the day ever comes that a big company like Coinbase gets hacked and crypto is exfiltrated, it'll be a real test for the community because these are problems that have been solved for decades. > In addition crypto exchanges and services have proven pretty reliable. Look at the mt gox hack, millions upon millions in crypto was stolen in that hack, and there was no recourse for any of those folks. Who knows what is going to happen with Tether? You don't have look that hard to find the kind of financial criminality banking is so often accused of persisting in the crypto community as well.
- trixie_ 5y ago
  Mt gox happened 8 years ago, and Tether just survived a pretty big test. These things actually build confidence in crypto. FDIC is only possible because the government can print money which underscores the how prone dollars are to inflation. As with everything - diversify, hold both.