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I disagree. I believe there's a lot of areas where crypto can bring much more efficiency and transparency into financial markets, and that's a good thing. I agr

I disagree. I believe there's a lot of areas where crypto can bring much more efficiency and transparency into financial markets, and that's a good thing. I agree the point is not to replace banks, but perhaps evolve them, bring about new types of financial institutions, products and instruments.

civilized 5y ago
What kind of efficiency are you talking about? It's far, far from clear -- at best -- that crypto can be more energy-efficient than traditional banking. Transparency? Really? For whom? Do you want your taxes on the blockchain for everyone to see?
zikduruqe 5y ago
I am not an expert in crypto at all, but what I would love to see maybe, is some type of stablecoin supported by the USPS. USPS used to be in the banking business and are now looking into it again. Is there an opportunity for the USPS to support USDC, to replace money orders to help serve the underbanked? I dunno. https://executivegov.com/2021/10/usps-launches-pilot-banking-program-at-four-postal-service-test-locations/ https://executivegov.com/2021/10/usps-launches-pilot-banking...
- XorNot 5y ago
  Why wouldn't the USPS just be a bank, with accounts with the Fed and FDIC insurance though? The USPS not providing banking services is because Congress won't let it.
ben_w 5y ago
While I expect there are important new types of financial institutions, products and instruments that may be evolved by cryptocurrency experimentation, I would be extremely surprised if normal people could do a coherent analysis of the pros and cons of them, and expect they would not be able to distinguish the good ideas from the scams. I mean, look at how many people think literal lotteries are a good investment, or who are furious about the existence of inflation, or whose mind is blown when they first learn about fractional reserve banking. I don’t know what you mean about efficiency, as there are multiple different ways to count this. Energy efficiency clearly isn’t a selling point, so can you expand on what you do mean?
- josefrichter 5y ago
  well, that has nothing to do with crypto, right? that's the case with current state of affairs already.
  - ben_w 5y ago
    Current state of affairs is regulated to prevent most normal people from getting into serious trouble most of the time, crypto not so much.
    - lowkey 5y ago
      I believe the current state of affairs has governments holding a monopoly on lotteries and actively promoting and marketing said lotteries to the financially illiterate. The odds of coming out ahead are wildly better in crypto vs lotteries. Perhaps we should put an end to government-controlled scams such as lotteries before claiming that regulated industries can do no wrong?
      - ben_w 5y ago
        I’m not saying regulated industry can do no wrong, I’m saying the graph of for frequency vs. quantity of wrong for regulated is smaller overall and closer to the axis than for unregulated.
        lowkey 5y ago
        I would counter with the great financial crisis of 2008 - and the stated reason for the creation of Bitcoin. Those were all regulated banks and financial entities that were deeply involved in a fraudulent scam to mis-represent the quality and contents of their mortgage backed securities. They took sub-prime mortgages and then added massive amounts of leverage and somehow the ratings agencies all gave them a AAA rating. This was all in a heavily regulated environment and as such it proved the need for a decentralized alternative. My questions for those who trust in regulation: -Why was no one ever prosecuted for this fraud? -Why did regulation not work in the case if the 2008 GFC? -If it didn’t work then, why would it work the next time?

civilized 5y ago

What kind of efficiency are you talking about? It's far, far from clear -- at best -- that crypto can be more energy-efficient than traditional banking. Transparency? Really? For whom? Do you want your taxes on the blockchain for everyone to see?

zikduruqe 5y ago

I am not an expert in crypto at all, but what I would love to see maybe, is some type of stablecoin supported by the USPS. USPS used to be in the banking business and are now looking into it again. Is there an opportunity for the USPS to support USDC, to replace money orders to help serve the underbanked? I dunno. https://executivegov.com/2021/10/usps-launches-pilot-banking-program-at-four-postal-service-test-locations/ https://executivegov.com/2021/10/usps-launches-pilot-banking...

XorNot 5y ago
Why wouldn't the USPS just be a bank, with accounts with the Fed and FDIC insurance though? The USPS not providing banking services is because Congress won't let it.

ben_w 5y ago

While I expect there are important new types of financial institutions, products and instruments that may be evolved by cryptocurrency experimentation, I would be extremely surprised if normal people could do a coherent analysis of the pros and cons of them, and expect they would not be able to distinguish the good ideas from the scams. I mean, look at how many people think literal lotteries are a good investment, or who are furious about the existence of inflation, or whose mind is blown when they first learn about fractional reserve banking. I don’t know what you mean about efficiency, as there are multiple different ways to count this. Energy efficiency clearly isn’t a selling point, so can you expand on what you do mean?

josefrichter 5y ago
well, that has nothing to do with crypto, right? that's the case with current state of affairs already.
- ben_w 5y ago
  Current state of affairs is regulated to prevent most normal people from getting into serious trouble most of the time, crypto not so much.
  - lowkey 5y ago
    I believe the current state of affairs has governments holding a monopoly on lotteries and actively promoting and marketing said lotteries to the financially illiterate. The odds of coming out ahead are wildly better in crypto vs lotteries. Perhaps we should put an end to government-controlled scams such as lotteries before claiming that regulated industries can do no wrong?
    - ben_w 5y ago
      I’m not saying regulated industry can do no wrong, I’m saying the graph of for frequency vs. quantity of wrong for regulated is smaller overall and closer to the axis than for unregulated.
      - lowkey 5y ago
        I would counter with the great financial crisis of 2008 - and the stated reason for the creation of Bitcoin. Those were all regulated banks and financial entities that were deeply involved in a fraudulent scam to mis-represent the quality and contents of their mortgage backed securities. They took sub-prime mortgages and then added massive amounts of leverage and somehow the ratings agencies all gave them a AAA rating. This was all in a heavily regulated environment and as such it proved the need for a decentralized alternative. My questions for those who trust in regulation: -Why was no one ever prosecuted for this fraud? -Why did regulation not work in the case if the 2008 GFC? -If it didn’t work then, why would it work the next time?