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Could you outline why they’re better than traditional banking right now? Gas fees can be hundreds of dollars to interact with a DAO (even simple contracts like

by tyre 5y ago

Could you outline why they’re better than traditional banking right now? Gas fees can be hundreds of dollars to interact with a DAO (even simple contracts like Uniswap to get the right tokens is expensive.) There are not banks hacked where people lose all of their money. People lose passwords all the time. With banks, you can get access to your account back. With DAOs, if you lose your private key…RIP. Coin prices are absurdly volatile. This is awful for currencies. The cryptokids point out all the time that 5% inflation means USD is a bad currency. Bitcoin dropped 20% in 24 hours. Imagine you need your savings right now. First you’d have to pay hundreds of dollars to access those funds and then you’d have 20% less than you expected. That’s garbage. Those are things to start off with. Can you make a serious case that DAOs are better _right now_? And if so, which _specific_ projects are better?

mgraczyk 5y ago
Yeah sure > Gas fees can be hundreds of dollars to interact with a DAO It's not "hundreds of dollars" to withdraw tokens from a savings account. More like $50. That's still way too much, but I don't pull money out of my savings account often enough for it to matter. It will get better over time. > There are not banks hacked where people lose all of their money. Not in the US, but there are other countries that exist. None of the DeFi platforms I have ever used have been hacked, but I'm glad for the possibility! It gives me more options in terms of risk vs. reward. > People lose passwords all the time. Yep this one is bad, but there are ways to improve it (social key recovery etc) that people are working on. On the other hand, I've spent a ton of time on the phone with banks trying to get access to my own accounts every time I move. I've never had that problem with DeFi because they don't KYC. > Coin prices are absurdly volatile. Doesn't matter at all, I'm talking about stablecoins. I only really use fiat backed stablecoins, so there's almost no principle risk. Also from this point I think it's pretty clear you don't understand how people use DeFi. Nobody is holding strait unleveraged BTC in a DeFi platform. You would just hold BTC directly, in which case the cost to withdraw would be ~$3 right now. > Can you make a serious case that DAOs are better For me they are infinitely more convenient. I've spent at least 10 hours this year on the phone with banks and financial institutions. I've spent 0 minutes trying to get access to my defi accounts. I use a trezor for cold storage. The rates are better because I'm willing to tolerate more risk (and I think that smart contract and collateral risk for certain platforms is currently mispriced). > which _specific_ projects are better Compound, other savings platforms (I don't want to name them). Centralized exchange savings products are mostly made possible by DeFi, and these are also better products than traditional banks for people like me. Including Coinbase, Binance, even OKEx.

by tyre 5y ago

mgraczyk 5y ago

Yeah sure > Gas fees can be hundreds of dollars to interact with a DAO It's not "hundreds of dollars" to withdraw tokens from a savings account. More like $50. That's still way too much, but I don't pull money out of my savings account often enough for it to matter. It will get better over time. > There are not banks hacked where people lose all of their money. Not in the US, but there are other countries that exist. None of the DeFi platforms I have ever used have been hacked, but I'm glad for the possibility! It gives me more options in terms of risk vs. reward. > People lose passwords all the time. Yep this one is bad, but there are ways to improve it (social key recovery etc) that people are working on. On the other hand, I've spent a ton of time on the phone with banks trying to get access to my own accounts every time I move. I've never had that problem with DeFi because they don't KYC. > Coin prices are absurdly volatile. Doesn't matter at all, I'm talking about stablecoins. I only really use fiat backed stablecoins, so there's almost no principle risk. Also from this point I think it's pretty clear you don't understand how people use DeFi. Nobody is holding strait unleveraged BTC in a DeFi platform. You would just hold BTC directly, in which case the cost to withdraw would be ~$3 right now. > Can you make a serious case that DAOs are better For me they are infinitely more convenient. I've spent at least 10 hours this year on the phone with banks and financial institutions. I've spent 0 minutes trying to get access to my defi accounts. I use a trezor for cold storage. The rates are better because I'm willing to tolerate more risk (and I think that smart contract and collateral risk for certain platforms is currently mispriced). > which _specific_ projects are better Compound, other savings platforms (I don't want to name them). Centralized exchange savings products are mostly made possible by DeFi, and these are also better products than traditional banks for people like me. Including Coinbase, Binance, even OKEx.