Comment by anonymouskimmer
3 years ago
> People have trusted the developers with 0.40T dollars worth of value
And that's the thing that causes the most cognitive dissonance. If you're going to trust someone, why not trust entities that have had hundreds of years to work out the kinks?
> that's the thing that causes the most cognitive dissonance.
The road is literally being paved and is being done so iteratively. I'm ok with that as that is a standard way to develop things over time.
> why not trust entities that have had hundreds of years to work out the kinks?
Simple. Because they are not acting in your best interest. We've been sold on the idea that money is scary and we shouldn't touch it ourselves. We should put it into 401k's and forget about it until we retire. We should 'trust' people who know these complicated finance things better than us. It is a self fulfilling prophecy.
> We've been sold on the idea that money is scary and we shouldn't touch it ourselves. We should put it into 401k's and forget about it until we retire. We should 'trust' people who know these complicated finance things better than us.
For 95% of the population (including me) crypto is the same trust system. I can't audit a smart contract and the underlying virtual machine it runs on. I would have no clue whether my transactions can be front-ended by bots that take all of the gains I expected, and then some.
I do have a general idea what happens when I use a credit card to make a purchase, and what to expect. I also have a general idea that if I put money into an investment account what fees will be deducted, and what stocks and bonds are being bought and sold.
And if I make the horrible mistake of sending money or NFTs to the wrong account, I know it can at least theoretically be reversed in non-crypto systems (and that often the reversal costs will be eaten by the bank, not paid by me). Whereas with crypto I have no expectation that the validators care about me to do a MakerDAO reversal on my behalf.
Your comment sounds like this:
https://www.smithsonianmag.com/smart-news/people-had-to-be-c...
You obviously have some understanding of the system if you can speak about bots and front running. Fact is that front running exists in all markets, not just crypto.
As for reversible transactions, that's something done with smart contracts and escrow services. We are not there yet in terms of development, but it will happen eventually. Today, people actually appreciate the immutability of transactions. It enables the effective store of infinite wealth as a basis.
Credit card companies are providing the reversal business, which is paid for by the people who are borrowing money at insane interest rates... no reason why it can't be replicated once there is enough demand for it, but honestly, I'd rather move to reverse the model.... over collateralized loans. This is what is done in countries without the whole bogus credit rating systems.
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> We've been sold on the idea that money is scary and we shouldn't touch it ourselves.
We have? I guess I was passed over when that sales job happened.
> > We should 'trust' people who know these complicated finance things better than us.
That's not how I look at it. How I see it is that when I'm operating in the established monetary system, I have some amount of protection and recourse available to me if/when things go wrong. With cryptocurrency, I have none.
To me, that's a really significant difference, and is in the top 3 reasons why I avoid cryptocurrency.
It has nothing to do with "trusting" financial institutions, or feeling like money is too complicated to understand.
> I have some amount of protection and recourse available to me if/when things go wrong.
We just literally witnessed several banks fail in the last few weeks, along with a litany of startups freaking out about how they were going to pay their staff. The government had to step in to prevent things from going totally ape shit and we are still on the edge of things getting worse by the day. All because people had some sort of belief like you do.
> With cryptocurrency, I have none.
This is simply not true.
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