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The shame is the consumer putting savings into a space bank lottery scheme instead of t-bills or whatever. If Yotta passed the sniff test of being a real bank,
by snypher 2y ago
The shame is the consumer putting savings into a space bank lottery scheme instead of t-bills or whatever. If Yotta passed the sniff test of being a real bank, people are less likely to shame the people who lost their savings.
- wat10000 2y agoYotta claimed to be functionally equivalent to having a normal interest-bearing account with an excellent interest rate, and using a small portion of the interest to buy some lottery tickets. Buying lottery tickets might be dumb, perhaps even shameful (although I disagree as long as it’s not to excess), but it by no means implies that you deserve to lose your savings.
- kgwgk 2y agoFor what it's worth, some countries also offer "lottery bonds": https://en.wikipedia.org/wiki/Lottery_bond https://en.wikipedia.org/wiki/Lottery_bond
- multjoy 2y agoIn the UK, those are Premium Bonds backed by HM Government. The day that they can't be redeemed is the day you have significantly bigger problems.
- wat10000 2y agoYotta’s funds were backed by the US government. The trouble is that the link between Yotta’s funds and Yotta’s customers’ funds was somewhat more tenuous than they implied.
- lesuorac 2y agoIs a space bank lottery really worse than t-bills? Like is the average utility gained from a depositor from their $1000 turning into $1001 for 1000 depositors greater than the utility gained from a single depositor turning $1000 into $2000 while the other 999 depositors utility remains flat?