4 ms·
And the Depression was the driving force that brought about massive bank regulation (notable the 1933 Banking Act), including the FDIC which is what everyone is
by apocalyptic0n3 4y ago
And the Depression was the driving force that brought about massive bank regulation (notable the 1933 Banking Act), including the FDIC which is what everyone is talking about here.
Those regulations simply don't exist (yet) for crypto. They may be coming, but as of right now if you hold crypto in an exchange, it can evaporate if the exchange goes belly up.
- tastyfreeze 4y agoAll of the existing regulation WILL NOT make a bit of difference if everybody wants their money out of the bank at the same time. If you have been watching the half dozen nations going through high/hyper inflation, withdrawal is the first service to be discontinued at signs of trouble.
- apocalyptic0n3 4y agoNo, but it guarantees we're insured up to $250,000. It won't disappear, we just won't be able to withdraw it immediately. That's admittedly not ideal, but it's better than losing it entirely. In the case of most/all crypto exchanges, no such protections exist. If they go under, you lose your holdings with no recourse for having them returned. This is all US-specific, of course.