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Regulated banks and currencies have similar issues, for example: - the government can print more money and devaluate your savings (it's like a form of tax one

Regulated banks and currencies have similar issues, for example: - the government can print more money and devaluate your savings (it's like a form of tax one cannot avoid). But it is difficult to "print" more cryptocurrency. - the government can put limits on amount of money one can withdraw from a bank account. So you legally have the money but cannot use it. - the bank can refuse to deal with you under AML acts without need to prove anything. But nobody will ban you from mining and exchanging crypto. - the bank can go bankrupt The most reliable way to keep your savings safe seems to be to store it as gold. However, there are usually high taxes for buying/selling gold (because why let people store their savings safely) and often governments outright ban gold (folks from US are probably familiar with such situations [1]). [1] https://en.wikipedia.org/wiki/Executive_Order_6102 https://en.wikipedia.org/wiki/Executive_Order_6102

parkingrift 4y ago
>But it is difficult to "print" more cryptocurrency. Except it's not. It's trivially easy. Any exchange (or person/entity) can mint a coin, and FTX collapsed in-part because they were backed by their own coin.
- codedokode 4y ago
  I meant cryptocurrency like Bitcoin which is incredibly difficult to mint.
diogenescynic 4y ago
>The most reliable way to keep your savings safe seems to be to store it as gold. This is nonsense. FDIC insurance is adequate for most people and you can open multiple bank accounts without any issues to expand your coverage limit. Stop giving people bad advice. And everything you said about banks is an issue with gold. Most people don't have a vault at home they are storing gold in... they are simply buying a certificate that says they own gold in someone else's vault--which has all the same issues as banks and exchanges.
- codedokode 4y ago
  As I understand, the interest rates for deposits in developed countries are too low to compensate inflation.
  - diogenescynic 4y ago
    Gold is not even keeping track with the S&P500 vs inflation. You're also conflating a savings/checking account with investing. Totally different issues. This is why people really shouldn't listen to random users for financial advice.
    - codedokode 4y ago
      > You're also conflating a savings/checking account with investing As I understand, investing is a risk because you can lose everything and nobody will compensate you. Investments are not covered by FDIC insurance or similar systems in other countries. But as for gold, your gold will stay with you unless the government decides to confiscate it.
      - diogenescynic 4y ago
        >But as for gold, your gold will stay with you unless the government decides to confiscate it. You're infinitely more likely to get robbed than the bank is to fail or the S&P500 is to go to zero. Also, as I said most people invest in gold indirectly and they hold a certificate that says they hold X amount of gold. Idiots store gold at their property and the exchange rates for buying/selling make this by far one of the worst strategies.
dpbriggs 4y ago
A lot of these exchanges have suddenly died because they printed more currency than could be reasonably liquidated on short notice. And borrowed heavily against these tokens. When the bank goes bust there's insurance on your deposits. If the amount stored is greater than that insurance you may want to invest the difference. And gold is practically hard to work with and barely functions as an inflation hedge (point 1) over reasonable time periods (your lifetime).
- codedokode 4y ago
  > When the bank goes bust there's insurance on your deposits Usually it covers only limited amount, not full deposit. In US it seems to be generous $250 000 but in other countries it is much lower (e.g. just about $20 000 here). > gold is practically hard to work with and barely functions as an inflation hedge And deposit interest rates are often below inflation in developed countries.
  - awinder 4y ago
    And gold costs money to store, i.e there’s an interest rate charged to you. Its value does change though — in positive & negative directions that don’t correlate to inflation or an underlying monetary fundamental. Because it’s not money or a money equivalent.
onlyrealcuzzo 4y ago
> Regulated banks and currencies have similar issues, for example: And, yet, it's not an everyday occurrence that some US regulated financial institution loses all customer deposits...
awinder 4y ago
Most people are, in fact, willing to trade the government preventing lawlessness with money for the protection of the law with regards to their money. It’s a great trade, for non-criminals. It also addresses the bankruptcy problem with government loss protection + regulation on net reserves (which worked and are tweaked as multiple overlapping failure conditions are tested, last in 2008).

parkingrift 4y ago

>But it is difficult to "print" more cryptocurrency. Except it's not. It's trivially easy. Any exchange (or person/entity) can mint a coin, and FTX collapsed in-part because they were backed by their own coin.

codedokode 4y ago
I meant cryptocurrency like Bitcoin which is incredibly difficult to mint.

diogenescynic 4y ago

>The most reliable way to keep your savings safe seems to be to store it as gold. This is nonsense. FDIC insurance is adequate for most people and you can open multiple bank accounts without any issues to expand your coverage limit. Stop giving people bad advice. And everything you said about banks is an issue with gold. Most people don't have a vault at home they are storing gold in... they are simply buying a certificate that says they own gold in someone else's vault--which has all the same issues as banks and exchanges.

codedokode 4y ago
As I understand, the interest rates for deposits in developed countries are too low to compensate inflation.
- diogenescynic 4y ago
  Gold is not even keeping track with the S&P500 vs inflation. You're also conflating a savings/checking account with investing. Totally different issues. This is why people really shouldn't listen to random users for financial advice.
  - codedokode 4y ago
    > You're also conflating a savings/checking account with investing As I understand, investing is a risk because you can lose everything and nobody will compensate you. Investments are not covered by FDIC insurance or similar systems in other countries. But as for gold, your gold will stay with you unless the government decides to confiscate it.
    - diogenescynic 4y ago
      >But as for gold, your gold will stay with you unless the government decides to confiscate it. You're infinitely more likely to get robbed than the bank is to fail or the S&P500 is to go to zero. Also, as I said most people invest in gold indirectly and they hold a certificate that says they hold X amount of gold. Idiots store gold at their property and the exchange rates for buying/selling make this by far one of the worst strategies.

dpbriggs 4y ago

A lot of these exchanges have suddenly died because they printed more currency than could be reasonably liquidated on short notice. And borrowed heavily against these tokens. When the bank goes bust there's insurance on your deposits. If the amount stored is greater than that insurance you may want to invest the difference. And gold is practically hard to work with and barely functions as an inflation hedge (point 1) over reasonable time periods (your lifetime).

codedokode 4y ago
> When the bank goes bust there's insurance on your deposits Usually it covers only limited amount, not full deposit. In US it seems to be generous $250 000 but in other countries it is much lower (e.g. just about $20 000 here). > gold is practically hard to work with and barely functions as an inflation hedge And deposit interest rates are often below inflation in developed countries.
- awinder 4y ago
  And gold costs money to store, i.e there’s an interest rate charged to you. Its value does change though — in positive & negative directions that don’t correlate to inflation or an underlying monetary fundamental. Because it’s not money or a money equivalent.

onlyrealcuzzo 4y ago

> Regulated banks and currencies have similar issues, for example: And, yet, it's not an everyday occurrence that some US regulated financial institution loses all customer deposits...

awinder 4y ago

Most people are, in fact, willing to trade the government preventing lawlessness with money for the protection of the law with regards to their money. It’s a great trade, for non-criminals. It also addresses the bankruptcy problem with government loss protection + regulation on net reserves (which worked and are tweaked as multiple overlapping failure conditions are tested, last in 2008).