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The technology doesn't really matter that much. If the US banking system wants to compete, it could try paying yield on savings. That's one weird trick that has
by mountainb 5y ago
The technology doesn't really matter that much. If the US banking system wants to compete, it could try paying yield on savings. That's one weird trick that has made banking attractive for well over 1,000 years. A banking system that does not pay yields to savers is just a glorified collection of ledgers.
- toomuchtodo 5y agoA crypto system that pays yields on monopoly money is just a glorified collection of ledgers moving fake money around, no? What are yields a product of with crypto? If not productivity of underlying assets, it must be speculation, which isn't sustainable. You eventually run out of greater fools.
- mountainb 5y agoThere are hundreds of fake monies used all over the world, including many countries with dual currency systems in which they use one fake money internally and one fake money externally. Bitcoin and frankly many other random altcoins are more credible than many of those hundreds of moneys. The history of banking is replete with unsustainable arrangements involving the quest for yields deriving from speculative assets. Banking systems are continually expanding, exploding, and then expanding again. If we want to make the normal banking system competitive, it has to pay yields even though doing so means risk. The crypto explosion is best understood as a technologically enabled resumption of the usual cycle of banking despite the industrial west's attempt to suspend that cycle through extraordinary regulatory action.
- MrMan 5y agoThe reason yields are low has nothing to do with the denomination of the currency but with the macro economy. Like gravity you can't fight it.