6 ms·

This exists in cryptoland and these are called custodians. Banks are here to stay, even in crypto imo

by baby 3y ago

arbuge 3y ago
At that point, what's the purpose oF crypto then? Wasn't decentralized supposed to be the benefit of it?
- baby 3y ago
  To paraphrase the first episode of https://podcasts.apple.com/us/podcast/two-and-a-half-coins/id1642630194 https://podcasts.apple.com/us/podcast/two-and-a-half-coins/i... the banking world was already decentralized, so much that it’s inefficient and insecure. Crypto, at least part of the technology, is about simulating some sort of centralization by using a distributed database (which is resilient to byzantine faults). So banks can switch backbone for a more efficient and secure one, users don’t have to know or care about it.
- hn_throwaway_99 3y ago
  Exactly. Crypto enthusiasts are slowly building up the traditional banking system, a couple million-dollar hacks at a time.
- andrewmutz 3y ago
  > At that point, what's the purpose oF crypto then? Rugpulls and ponzi schemes
  - 6D794163636F756 3y ago
    I'm sure there are other types of scams too right?
    - martin8412 3y ago
      Front running
- johnyzee 3y ago
  That you can choose.
lxgr 3y ago
What would be the benefit of crypto over the current monetary and financial system in that scenario?
- baby 3y ago
  Faster, more secure, easier to use without being a bank, programmable, some add some level of privacy, etc.
- cypress66 3y ago
  Supply is limited (for something like bitcoin), cheaper, faster settlement and less burocracy when sending money abroad (instead of the awful SWIFT)
  - arlcode 3y ago
    I see this as a great opportunity to learn the next few lessons of traditional Finance system that lead to them not being finite and only driven by market forces. Crypto really feels like a speed run of human monetary history.
    - baby 3y ago
      Not all crypto are finite
    - everfree 3y ago
      > only driven by market forces Which money are you talking about? Most monies are driven substantially by monetary policy and other direct government intervention. The very reason fiat is no longer finite is due to government intervention in the 1930s (going off the gold standard). Bitcoin (e.g.) is actually much more like gold in that the amount of it in circulation isn't determined by any law, policy or intervention.
      - tsimionescu 3y ago
        The amount of bitcoin in circulation is very much determined by policies - the software of the bitcoin clients and servers. It is quite possible that mining rewards will be altered in the future as the amount dries up.
fbdab103 3y ago
"Crypto Custodian" Prime Trust just "lost" their keys[0] to customer money. [0] https://news.ycombinator.com/item?id=37268750 https://news.ycombinator.com/item?id=37268750

This exists in cryptoland and these are called custodians. Banks are here to stay, even in crypto imo

by baby 3y ago

This exists in cryptoland and these are called custodians. Banks are here to stay, even in crypto imo

arbuge 3y ago

At that point, what's the purpose oF crypto then? Wasn't decentralized supposed to be the benefit of it?

baby 3y ago
To paraphrase the first episode of https://podcasts.apple.com/us/podcast/two-and-a-half-coins/id1642630194 https://podcasts.apple.com/us/podcast/two-and-a-half-coins/i... the banking world was already decentralized, so much that it’s inefficient and insecure. Crypto, at least part of the technology, is about simulating some sort of centralization by using a distributed database (which is resilient to byzantine faults). So banks can switch backbone for a more efficient and secure one, users don’t have to know or care about it.
hn_throwaway_99 3y ago
Exactly. Crypto enthusiasts are slowly building up the traditional banking system, a couple million-dollar hacks at a time.
andrewmutz 3y ago
> At that point, what's the purpose oF crypto then? Rugpulls and ponzi schemes
- 6D794163636F756 3y ago
  I'm sure there are other types of scams too right?
  - martin8412 3y ago
    Front running
johnyzee 3y ago
That you can choose.

lxgr 3y ago

What would be the benefit of crypto over the current monetary and financial system in that scenario?

baby 3y ago
Faster, more secure, easier to use without being a bank, programmable, some add some level of privacy, etc.
cypress66 3y ago
Supply is limited (for something like bitcoin), cheaper, faster settlement and less burocracy when sending money abroad (instead of the awful SWIFT)
- arlcode 3y ago
  I see this as a great opportunity to learn the next few lessons of traditional Finance system that lead to them not being finite and only driven by market forces. Crypto really feels like a speed run of human monetary history.
  - baby 3y ago
    Not all crypto are finite
  - everfree 3y ago
    > only driven by market forces Which money are you talking about? Most monies are driven substantially by monetary policy and other direct government intervention. The very reason fiat is no longer finite is due to government intervention in the 1930s (going off the gold standard). Bitcoin (e.g.) is actually much more like gold in that the amount of it in circulation isn't determined by any law, policy or intervention.
    - tsimionescu 3y ago
      The amount of bitcoin in circulation is very much determined by policies - the software of the bitcoin clients and servers. It is quite possible that mining rewards will be altered in the future as the amount dries up.

fbdab103 3y ago

"Crypto Custodian" Prime Trust just "lost" their keys[0] to customer money. [0] https://news.ycombinator.com/item?id=37268750 https://news.ycombinator.com/item?id=37268750