Comment by latchkey
3 years ago
> 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.
> 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.
You've taken my stance on both counts to an extreme that mischaracterizes them. I never said cryptocurrency was a "big mess", and I never said that the established financial system is some paragon of virtue and perfection.
What I said is that the financial system did what it promised to do for those people who were affected by the bank failures.
> You said none, but I can provide you with at least 3 different decentralized insurance protocols with proven track records.
And yet, until now, you didn't actually mention any of them. I can't read your mind.
The one you link to doesn't seem to cover the most important protection (to me), though. I could be wrong -- the website isn't exactly clear. Does it offer the same coverage as I can get through chargebacks on a credit card? Does it cover me if I accidentally send money to the wrong destination?
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