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I'd argue that's not a problem that cryptocurrencies somehow uniquely solve, and in fact even this is solved inefficiently by them. Enormous amounts of energy h
by short_sells_poo 5y ago
I'd argue that's not a problem that cryptocurrencies somehow uniquely solve, and in fact even this is solved inefficiently by them. Enormous amounts of energy have to be expended to facilitate a fairly low number of transactions. There are zero technical reasons why non-crypto/non-blockchain technologies wouldn't allow instantaneous money transfer. And in many places of the world, they do. I can instantly transfer money from one bank account to another in Europe. The only reason this is not the case in many parts of the world is that the banking system still runs on archaic technical and procedural frameworks.
And finally:
> without the need to rely to the "system" of banks, governments etc
I consider this a severe bug. When hackers empty out your wallet, you'll wish there was a system of banks and governments that provide some sort of insurance - like most western banks and governments do.
The sole case that can be made for cryptos is that alongside enabling money laundering and tax dodging, their unregulated nature allows people in oppressive regimes to funnel out money. I'd say that may be a valuable tradeoff, but somehow it's not the one being discussed usually.
- anonymoushn 5y agoIn Europe, you cannot send wire transfers to Japan on weekends in a couple seconds. So the problem is not solved in Europe. Posting "there's no technical reason why every bank cant coordinate to provide a non-terrible experience eventually in a hundred years" is not helpful. We have working international settlements for any origin to any destination for any amount of money in seconds today.
- short_sells_poo 5y agoProposing cryptocurrencies as somehow uniquely capable of solving this problem is incorrect. Furthermore, there are also valid reasons why payments may take longer when crossing certain national boundaries. E.g. KYC/AML checks and so forth.
- anonymoushn 5y agoI do not propose cryptocurrencies as uniquely capable of solving the problem. I propose them as actually solving the problem today. Similarly, I don't propose that you *couldn't* travel internationally using a personal jetpack or an ornithopter. I just think that a passenger jet is a likely to be better choice for now. My experience with international wire transfers so far is that KYC/AML performed at the time of the transaction is cursory. They're just slow because I have to wait for business hours at the sending bank, then wait for the bank to call me (if it's my personal bank rather than my business bank which just sends them automatically), then wait for the funds to make their way to the recipient through intermediary banks who will skim off an unknowable-up-front amount of money.