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So doesn't crypto fail the exact same way as traditional banks did in the US before deposits got FDIC-insured?
by otagekki 4y ago
So doesn't crypto fail the exact same way as traditional banks did in the US before deposits got FDIC-insured?
- FlacoJones 4y agoCentralized exchanges do absolutely. No guarantees on deposits beyond a consumer Terms and Conditions check box. Decentralized exchanges with proofs of reserves on chain less so, e.g. MakerDAO's over-collateralized stablecoin called DAI: https://www.statista.com/statistics/1316928/dai-reserves-breakdown/ https://www.statista.com/statistics/1316928/dai-reserves-bre...
- nytesky 4y agoDecentralized crypto fails more quietly and spread out overt time as people are hacked or simply forget and lose their private keys. Being your own digital bank is high risk, and most people barely can keep their email secure. I can’t believe even among HN none of us had to use a password recovery option at one point?