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The point of many of the banking regulations, is that it's easy to make mistakes, even for the most honest brokers, when handling other people's money. "Crypto

The point of many of the banking regulations, is that it's easy to make mistakes, even for the most honest brokers, when handling other people's money. "Crypto prophets" have praised freedom from onerous regulation as a benefit; but that position misses that some regulations are more beneficial than not. Or it could all be rich arseholes fleecing the gullible tech bros by dealing in "crypto" labeled ponzi schemes that never had much to do with the distributed, unregulated exchange structures the prophets preached about.

gonehome 4y ago
The advantage of crypto and DeFi is that it’s possible to have everything be 100% transparent and visible on chain. It’s also possible for users to self custody funds which avoids this issue entirely. Exchange failure is mostly an independent phenomenon from the new capabilities of the underlying tech. This was an execution by a rival: https://twitter.com/sbf_ftx/status/1590709197502812160?s=46&t=tmEd-x_mjtxKMN0es0ARBA https://twitter.com/sbf_ftx/status/1590709197502812160?s=46&... (tweet #20) though SBF is right that he fucked up and shouldn’t have been in this position. That FTX US is fine is decent evidence that the regulations there do protect users.
- nonfamous 4y ago
  > The advantage of crypto and DeFi is that it’s possible to have everything be 100% transparent and visible on chain. It wasn’t in this case though, was it? In practice, is it ever?
  - wmf 4y ago
    FTX is not DeFi. FTX exists because, back in the day, DeFi was too slow for proper gambling.
togs 4y ago
> it's easy to make mistakes, even for the most honest brokers, when handling other people's money. If I accidentally charge the wrong card, I can reverse the charge in a few seconds; it's beautiful. The credit card system is amazing. I even forgot my card once, and learned how to use my iPhone in its place. With crypto...well, transacting is like programming except when you make a mistake you lose money. There are no safeguards. Like, sure, it's technically my fault for sending $400 to a null address, but that doesn't change the fact that I'm upset about it! And I consider myself somewhat tech savvy...imagine the customer complaints!

gonehome 4y ago

The advantage of crypto and DeFi is that it’s possible to have everything be 100% transparent and visible on chain. It’s also possible for users to self custody funds which avoids this issue entirely. Exchange failure is mostly an independent phenomenon from the new capabilities of the underlying tech. This was an execution by a rival: https://twitter.com/sbf_ftx/status/1590709197502812160?s=46&t=tmEd-x_mjtxKMN0es0ARBA https://twitter.com/sbf_ftx/status/1590709197502812160?s=46&... (tweet #20) though SBF is right that he fucked up and shouldn’t have been in this position. That FTX US is fine is decent evidence that the regulations there do protect users.

nonfamous 4y ago
> The advantage of crypto and DeFi is that it’s possible to have everything be 100% transparent and visible on chain. It wasn’t in this case though, was it? In practice, is it ever?
- wmf 4y ago
  FTX is not DeFi. FTX exists because, back in the day, DeFi was too slow for proper gambling.

togs 4y ago

> it's easy to make mistakes, even for the most honest brokers, when handling other people's money. If I accidentally charge the wrong card, I can reverse the charge in a few seconds; it's beautiful. The credit card system is amazing. I even forgot my card once, and learned how to use my iPhone in its place. With crypto...well, transacting is like programming except when you make a mistake you lose money. There are no safeguards. Like, sure, it's technically my fault for sending $400 to a null address, but that doesn't change the fact that I'm upset about it! And I consider myself somewhat tech savvy...imagine the customer complaints!