Comment by JohnFen
3 years ago
> 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.
> 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
We did, and those startups got into the state they were in because they chose to avoid getting insurance on their deposits that exceeded the FDIC limits. That's not the fault of of the financial system. And the financial system protected them well over and above what it had committed to do.
> All because people had some sort of belief like you do.
Not at all. If I had a large deposit like them, I would have actually used the services that would have protected my deposits.
> This is simply not true.
It isn't? What protection is there?
> That's not the fault of of the financial system.
Hilarious. On one hand, you're saying that cyrpto is this big mess full of bad actors and on the other hand, placing no blame on a financial system that can just blow up in a week because of poor design and oversight.
Just like it isn't the fault of cryptocurrencies that there are bad actors. It is just intrinsic that there will be issues in any functioning system.
> What protection is there?
You said none, but I can provide you with at least 3 different decentralized insurance protocols with proven track records. Here is one: https://nexusmutual.io/
More will come over time and demand. DeFi is still quite new.
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