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It's better for society than our current banking system, because the government considers our current system "too big to fail," so banks know that the governmen
by octopoc 5y ago
It's better for society than our current banking system, because the government considers our current system "too big to fail," so banks know that the government will bail them out if things get too bad, and the banks engage in risky behavior accordingly.
- yazaddaruvala 5y agoThat will always be true. Even with a 100% crypto world governments can use taxes/reserves/bonds/tariffs to prop up / bail out failing companies. They just wouldn’t be able to use quantitative easing (easily - i.e. without global consensus) to do it.
- shkkmo 5y agoWhy not? Tether showed that quantative easing works just fine in cryptoland.
- ShamelessC 5y agohttps://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my... Tether is a counterfeiting operation.
- reese_john 5y agoYes but banks are subject to a wide array of regulations, liquidity requirements and frequent third-party audits. And then, in crypto, you have Tether, whose reserves claims are dubious at best
- mupuff1234 5y agoPlenty of banks went bankrupt or were acquired, so it's not quite true that the government will just bail out failed actors. https://en.wikipedia.org/wiki/List_of_banks_acquired_or_bankrupted_during_the_Great_Recession https://en.wikipedia.org/wiki/List_of_banks_acquired_or_bank... And of course the financial system as a whole is "too big to fail", but that would be true regardless of the implementation. Are you saying that if we switch to crypto then suddenly the financial system failing is OK?