lottin

66 ms·

901.
by lottin 5y ago
The argument isn't that they couldn't become knowledgeable in finance and economics, if they invested enough time and effort, but that they aren't, because they haven't, because they think that their expertise in one a
902.
by lottin 5y ago
According to contract theory, it may not be possible, in practice, to write "complete contracts", that is contracts that specify what is to be done in every possible contingency. See https://en.wikipedia.org/wiki&
903.
by lottin 5y ago
I didn't introduce the notion of freedom. You introduced the notion of command economy which implies a lack of freedom. A command economy, or more commonly a planned economy, is an economic system in which a central planner decides w
904.
by lottin 5y ago
> That obviously could be replaced by crypto It's not obvious at all that it could be replaced by crypto.
905.
by lottin 5y ago
So you weren't talking about freedom (or lack thereof) when you were rambling about a "command economy"? Then, sorry, I missed your point.
906.
by lottin 5y ago
Freedom to use a currency doesn't mean that you can force others to accept said currency. Depending on your choice of a currency you may find nobody that will accept it. Yes, this means you'll be compelled to use whatever curren
907.
by lottin 5y ago
Thank you. Currency is not subject to a command economy. Governments don't have a monopoly on the issuance currency. Private entities are free to issue currencies.
908.
by lottin 5y ago
You use a dumb contract in a situation where otherwise you'd need a solicitor? Please, explain.
909.
by lottin 5y ago
Inflation is a tax on savings, but the poor don't have savings by definition so... I think you need to think a little harder.
910.
by lottin 5y ago
Can you elaborate?
911.
by lottin 5y ago
There's a theoretical relationship between the inflation rate and the unemployment rate [1], and the Federal Reserve has a dual mandate which is price stability and maximal employment. You may not agree with the theory, but the Fed&#x
912.
by lottin 5y ago
No. A dumb contract doesn't replace a solicitor and it doesn't replace a bank. You're just saying things now.
913.
by lottin 5y ago
If the borrower and the lender sign a loan agreement with an intermediary, or among themselves, then sure, but this is conventional finance, not decentralised finance. In this situation the dumb contract becomes redundant. It doesn't
914.
by lottin 5y ago
The counter-party to both the borrower and the lender is a dumb contract. A dumb contract is not a legal person, and therefore it cannot initiate legal action, nor legal action can be initiated against it. Furthermore, there's no leg
915.
by lottin 5y ago
In decentralised finance the legal system, which in conventional finance has the power to seize the borrower's assets in the event of default, is replaced with "dumb contracts", but dumb contracts don't have such a power
916.
by lottin 5y ago
The financial system cannot run on blockchain technology, even if the technology worked well. This is because "decentralisation" requires blockchain assets to be "unconfiscable", but financing is only feasible if the as
917.
by lottin 5y ago
"Dumb procedures" is more descriptive IMO.
918.
by lottin 5y ago
A better term would be dumb contracts.
919.
by lottin 5y ago
Welcome to 'being your own bank'.
920.
by lottin 5y ago
Inflation rates even vary among different regions within the same country.
921.
by lottin 5y ago
Currencies don't have inflation rates. Countries do.
922.
by lottin 5y ago
No, Maker & Aave haven't confiscated anything in the past few days. Either you don't know what 'confiscate' means or you don't know how Maker & Aave, and DeFi lending in general, work.
923.
by lottin 5y ago
You can solve it with grep and /usr/share/dict/words but where's the fun in that?
924.
by lottin 5y ago
Nothing prevents crypto-currency denominated loans in traditional finance. That was not the claim. The claim is that financing operations are not possible in so-called "decentralised finance".
925.
by lottin 5y ago
Nobody says defaults don't happen. Defaults happen all the time. When they happen the creditor will initiate legal action against the borrower. If the borrower continues to refuse to pay or is unable to do so, the court will seize t
926.
by lottin 5y ago
What? Of course borrowers can be made to repay the debt in traditional finance. Get a loan from your bank, and refuse to pay it back. See what happens. If don't understand the basic mechanisms behind a loan agreement, there's n
927.
by lottin 5y ago
Debt financing is definitely not simply harder but entirely impossible. If you think otherwise, please explain how the borrower can be made to repay the debt with this technology.
928.
by lottin 5y ago
If the collateral is "held by a smart contract" it means your buying power hasn't changed and you haven't financed anything.
929.
by lottin 5y ago
A mortgage is indeed a form of financing because the lender does not keep the collateral until the debt is paid off in full. If they did, there would be no financing going on. It would be equivalent to saving for 30 years and then buying
930.
by lottin 5y ago
The problem isn't overcollateralisation itself but the inability to seize the collateral in particular, and assets in general. A mortgage depends crucially on the bank's ability to seize the collateral in the event of default, an

More ›