lottin

29 ms·

451.
by lottin 4y ago
TradFi is built around providing financial services. It's not built around issuing virtual assets and then pumping & dumping them, I don't know where you get this notion from.
452.
by lottin 4y ago
What exactly turned out to be false?
453.
by lottin 4y ago
Exchanges are a crucial part of the bitcoin economy. Miners need to sell the bitcoins that they earn in order to pay the bills.
454.
by lottin 4y ago
There is no implicit promise of buying back their own coins. This is ridiculous.
455.
by lottin 4y ago
I don't know, it looks like a half-baked idea, like everything surrounding crypto-currencies. Someone probably came up with this proof of reserves idea, and everybody else said yeah let's do this, because it sounded like it does
456.
by lottin 4y ago
Proof of reserves only proves (for the sake of the argument let's assume it's an actual proof) the exchange has some amount of reserves, which is mostly meaningless. The quantity of interest is the share of deposits that are backe
457.
by lottin 4y ago
The software in the user's computer can't, but the software in the hardware wallet can. It's probably more secure than running the software on a conventional computer, this I can see.
458.
by lottin 4y ago
The problem with DeFi is it can't handle credit risk. You see, banks can also eliminate credit risk. They could lend money, and then insist that the money be kept in a box under their supervision. That would eliminate credit risk, a
459.
by lottin 4y ago
Sorry, I can't agree that there's some unspoken promise, or even a faint expectation, that that the central bank will buy its own currency back. This is simply not true.
460.
by lottin 4y ago
> The user has to physically confirm a transfer on the hardware wallet And once the user has confirmed the transfer, the software could send the coins to a different address, right?
461.
by lottin 4y ago
Your "own wallet" is just a piece of software, so it could potentially steal your "coins" could it not?
462.
by lottin 4y ago
The banking industry is not centralised. Banks provide financial services and compete against each other for customers. DeFi can't even get the most basic terminology right, yet somehow thinks that it can replace the entire financial
463.
by lottin 4y ago
You're stretching the meaning of 'debt' and 'bankruptcy' beyond what these words are generally accepted to mean.
464.
by lottin 4y ago
Central bank reserves are not a liability because they don't entail a financial obligation. They're only listed as a liability on the balance sheet because it's convenient from an accounting perspective. When a central bank
465.
by lottin 4y ago
You got it the other way around. The only reason they buy bonds to increase the money supply. So if they do buy a bond, they will pay with newly created reserves. That's the whole point. And it's impossible to lose money by pu
466.
by lottin 4y ago
You have 1 dollar in your account, and the bank owes you 1 dollar. So you have 2 dollars?
467.
by lottin 4y ago
You're repeating the same nonsense. How can a bond that the central bank got for free make the central bank lose money? Please explain.
468.
by lottin 4y ago
I think my understanding of central banking is quite correct. They don't incur a loss because the money they paid those assets with came out of nowhere. If you buy a car with $1000 that you printed with your money printer, and then s
469.
by lottin 4y ago
You're probably understanding it wrong. Central banks have little or no debt, and they can "print" reserves at no cost. Reserves is the stuff they pay their debts off with. As a result it's virtually impossible for a
470.
by lottin 4y ago
This is incorrect. Currency issued by a central bank is not a real liability, since its issuance does not entail a future payment obligation. It's a liability only for accounting purposes. The government bonds on a central bank&#x
471.
by lottin 4y ago
> is 100% times better I think this says it all.
472.
by lottin 4y ago
This method doesn't eliminate counter-party risk does it? You'd need to use open-source hardware, write your own C compiler in assembler, then write a Python interpreter, along with the standard library and cryptographic functions
473.
by lottin 4y ago
Every dollar that you have is not somebody else's debt. You're completely misinterpreting what a dollar is.
474.
by lottin 4y ago
If it took 7 days it was probably due to AML/KYC issues. Bitcoin would have been faster, of course, because it doesn't do AML/KYC, but that just means it's unsuitable for conducting business (other than businesses that
475.
by lottin 4y ago
Sorry, I don't understand what you're trying to say.
476.
by lottin 4y ago
Get out, man. Learn investment theory. All you need is a couple of index funds and bonds. Investing isn't supposed to be exciting or make you rich quick.
477.
by lottin 4y ago
To be clear, "crypto" is just a book that says these individuals own however many tokens. It doesn't guarantee that anyone will abide by what the books says. It doesn't guarantee that nobody will take your real wealth
478.
by lottin 4y ago
Who will be in charge of deciding which transactions need to be reversed and when? It seems to me that the ability to have reversible transactions is at odds with the descentralised nature of blockchains.
479.
by lottin 4y ago
Buying your own imaginary confetti doesn't magically turn your confetti into a stock or into a financial derivative. A stock confers ownership of the firm that issued the stock. These tokens don't confer ownership of anything, a
480.
by lottin 4y ago
Removing the possibility for human intervention doesn't make things more resilient quite the contrary. Removing human control of public policies, such as those involving the management of public resources, is downright anti-democratic

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