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And if you do hold the private keys to your crypto, all you hold is an IOU from a risky market full of fraud and rug pulls. Many coins have failed, many more w

And if you do hold the private keys to your crypto, all you hold is an IOU from a risky market full of fraud and rug pulls. Many coins have failed, many more will fail, and many if not all will drop to zero as the mania subsides. When that happens it doesn’t matter where your keys are if the market turns illiquid in seconds during a crash.

everfree 3y ago
You hold "an IOU from a market"? I'm not sure that's how that works.
- grey-area 3y ago
  Markets have varying levels of risk.
lesuorac 3y ago
I mean it still kind of matters where your keys are if the market turns illiquid. Its the difference between losing an asset and not. I can definitely see a lot of cryptocurrencies losing a ton of a value but they do have a legitimate use for remittances. If you're transferring $1000 it doesn't matter if you convert it into 1 bitcoin or 100 bitcoins since your wife is cashing it out the next day for 20,000 pesos.
xk_id 3y ago
Your argument applies equally to fiat finance too: in case of a catastrophe it all goes to zero or turns illiquid. The fact is that billions in locked value have accrued securely over the years in battle tested protocols like curve, aave and yearn.
- grey-area 3y ago
  Well that level of risk certainly applies to some risky instruments (say CDOs), but I'd say there is far less risk in VWRL say than speculating on the value of a plethora of currencies which are almost purely vehicles for speculation rather than used for everyday transactions. Doesn't matter if you own your keys if nobody wants to buy your Crypto/NFT etc. Re your numbers, I'm afraid I don't trust any of the numbers in this market as none of them are audited.
  - xk_id 3y ago
    > I'm afraid I don't trust any of the numbers You don’t have to. That’s the point. It’s a trustless infrastructure, with public data that anybody can audit. There are countless independent services that are reporting the same numbers, from querying the blockchain data.
    - grey-area 3y ago
      Uhm, no, the pricing is mostly provided by exchanges which have been found guilty of wash trades, money printing, front running and every crime in the financial playbook, and most definitely are not audited. So while the blockchains provide public records of transactions, the prices are not set by the blockchains and participants are anonymous enough to be difficult to track.
      - everfree 3y ago
        The smart-contract exchanges agree on the same prices too, though. They can't lie, because the entire exchange is public record on the blockchain. Uniswap, Cowswap, Kyber, Balancer, they all agree.

everfree 3y ago

You hold "an IOU from a market"? I'm not sure that's how that works.

grey-area 3y ago
Markets have varying levels of risk.

lesuorac 3y ago

I mean it still kind of matters where your keys are if the market turns illiquid. Its the difference between losing an asset and not. I can definitely see a lot of cryptocurrencies losing a ton of a value but they do have a legitimate use for remittances. If you're transferring $1000 it doesn't matter if you convert it into 1 bitcoin or 100 bitcoins since your wife is cashing it out the next day for 20,000 pesos.

xk_id 3y ago

Your argument applies equally to fiat finance too: in case of a catastrophe it all goes to zero or turns illiquid. The fact is that billions in locked value have accrued securely over the years in battle tested protocols like curve, aave and yearn.

grey-area 3y ago
Well that level of risk certainly applies to some risky instruments (say CDOs), but I'd say there is far less risk in VWRL say than speculating on the value of a plethora of currencies which are almost purely vehicles for speculation rather than used for everyday transactions. Doesn't matter if you own your keys if nobody wants to buy your Crypto/NFT etc. Re your numbers, I'm afraid I don't trust any of the numbers in this market as none of them are audited.
- xk_id 3y ago
  > I'm afraid I don't trust any of the numbers You don’t have to. That’s the point. It’s a trustless infrastructure, with public data that anybody can audit. There are countless independent services that are reporting the same numbers, from querying the blockchain data.
  - grey-area 3y ago
    Uhm, no, the pricing is mostly provided by exchanges which have been found guilty of wash trades, money printing, front running and every crime in the financial playbook, and most definitely are not audited. So while the blockchains provide public records of transactions, the prices are not set by the blockchains and participants are anonymous enough to be difficult to track.
    - everfree 3y ago
      The smart-contract exchanges agree on the same prices too, though. They can't lie, because the entire exchange is public record on the blockchain. Uniswap, Cowswap, Kyber, Balancer, they all agree.