Blockchain wouldn’t have mattered for 2008, at least not the crash parts. Blockchain would help with who owned which loans which was also an issue. It wouldn’t do anything for the crash parts as that was bad lending fundamentals of no verified income or unrealistic appraisal.
Blockchain scams are evidence of it’s unreadiness and naivety. Crypto has speed ran the last 200-300 years of financial fraud. Pump and dumps, ponzi schemes, front running, market manipulation, rug pulls, and more.the fact the only viable use case is crime is also pretty telling, anyone that can safely involve a government entity would rather do that.
No it would not prevent the 2008 crash however if you had some money in a cryptocurrency you would be cushioned from some effects of the fallout. Not a replacement, just an addition. Having an alternative is the draw.
Blockchain scams are evidence of it’s unreadiness and naivety.
Hard disagree, it’s evidence of its effectiveness and maturity. No primitive financial system would be capable of being used for:
Pump and dumps, ponzi schemes, front running, market manipulation, rug pulls, and more
Financial systems are primarily tools for fraud and zero-sum transactions, there’s a line there for what is and isn’t legal which is decided by the government, but it’s ultimately all just taking money from one place to another and someone loses.
I had my money - which at the time include the proceedings of working a few years in Finance - spread over 3 bank accounts in 3 countries back then and came through it all with no loss whatsoever.
Further, crypto is so stupidly volatile that even stocks are better at protecting your wealth because you’re actually less likely to see half its value gone in a week with stocks (incredibly unlikely, even, if you get a tracker fund on a major index).
And don’t get me started on the ultimate most conservative (literally capable of surviving the collapse of modern civilization) wealth protection thing around - gold.
The point being that unless you expect the collapse of modern civilization (in which case you might try gold or, even better, tradeable essential needs like the kind of food that doesn’t spoil easily such as dried pulses), the best way to safekeep your wealth is as usual Diversification, with a focus on things with a stable value, which crypto is definitely not.
This volatility isn’t something inherent to all cryptocurrency - bitcoin and eth and pump and dump cryptos are just especially hot speculative assets for people who enjoy holding bags and pump and dump YouTube grifters.
Tradeable essential goods aren’t a good basis for currency, they would be your best bet without the internet, but with the internet in such a collapse cryptocurrency could actually work.
Diversification is not a concept in opposition to cryptocurrency, the former is a viable financial principle for savings and investments, the latter is one type of asset (a currency) that someone can hold if they choose to if they believe that centralisation of financial institutions and growing connections between corporations and governments is a risk - for instance I would not expect S&P500 to survive a major climate or landemic catastrophy/incident, world war, especially with protectionism, and maybe I’m an alarmist prepper but while remote, these things are growing increasingly likely or if the oversight of the powers that be is undesired e.g. such as with buying drugs on the internet.
There’s scams with fiat currency, but you don’t show that as evidence that dollars aren’t ready for mainstream. When people get scammed out of their crypto it’s not blockhain’s naivety, it’s the victim.
Edit: you all are comparing money, banking, AND government regulation to crypto. They are not comparable and that’s not a fair comparison. Crypto is a ledger, like QuickBooks or bank accounts. I’m not even arguing that it should have a great value, but technically it does have value and it serves its purpose. Crypto is only like 15 years old.
When people get scammed in traditional currency, you can revert the transaction. You cannot revert anything with blockchain, and that’s a feature, which means if you get scammed out of your bitcoin, there’s nothing you can do. That money is lost, and the scammer keeps it.
And if you get scammed out of cash by another person how will the government step in to revert it? Theft happens every day. You are talking about banking, you are not talking about money. They are not the same thing.
Blockchain isn’t inherently a scam, Bitcoin, Litecoin, etherium, monero and others are valid ledgers. They serve their intended purpose technically. You are specifically pointing out that there are investment scans in new shitcoins that are pumped up and dumped, or that never even really exist. You are correct that this doesn’t exactly happen with fiat currencies but there are still nearly identical scams, like pyramid scams where people “invest” and they see their account value go up in USD or other fiat, and every month their account balance is inflated. Some people may be able to withdraw their money at first, or maybe nobody can ever withdraw anything.
Blockchain isn’t inherently a scam, pretending to launch a coin or launching a coin and abandoning it is hardly different from existing scams that are settled in USD that sell land that doesn’t exist or scammers that try to get you to invest in their business and then disappear with your money. You’re characterizing all Blockchain currencies as scams, it’s just not true. I spent my career working in IT, I look at Blockchain as a technical invention. There are ways to transact securely on Blockchain.
one of many benifits of the blockchain is that there are ways of using it without directly giving up your name or government ID. A minor side effect is that scams will exist using it.
That is also possible with blockchain, its partly enforced with KYC (know your customer) laws. Granted there isn’t currently a great example that I know of where auditing and reversal is possible but that doesn’t mean it’s not technically possible.
Blockchain wouldn’t have mattered for 2008, at least not the crash parts. Blockchain would help with who owned which loans which was also an issue. It wouldn’t do anything for the crash parts as that was bad lending fundamentals of no verified income or unrealistic appraisal.
Blockchain scams are evidence of it’s unreadiness and naivety. Crypto has speed ran the last 200-300 years of financial fraud. Pump and dumps, ponzi schemes, front running, market manipulation, rug pulls, and more.the fact the only viable use case is crime is also pretty telling, anyone that can safely involve a government entity would rather do that.
No it would not prevent the 2008 crash however if you had some money in a cryptocurrency you would be cushioned from some effects of the fallout. Not a replacement, just an addition. Having an alternative is the draw.
Hard disagree, it’s evidence of its effectiveness and maturity. No primitive financial system would be capable of being used for:
Financial systems are primarily tools for fraud and zero-sum transactions, there’s a line there for what is and isn’t legal which is decided by the government, but it’s ultimately all just taking money from one place to another and someone loses.
I had my money - which at the time include the proceedings of working a few years in Finance - spread over 3 bank accounts in 3 countries back then and came through it all with no loss whatsoever.
Further, crypto is so stupidly volatile that even stocks are better at protecting your wealth because you’re actually less likely to see half its value gone in a week with stocks (incredibly unlikely, even, if you get a tracker fund on a major index).
And don’t get me started on the ultimate most conservative (literally capable of surviving the collapse of modern civilization) wealth protection thing around - gold.
The point being that unless you expect the collapse of modern civilization (in which case you might try gold or, even better, tradeable essential needs like the kind of food that doesn’t spoil easily such as dried pulses), the best way to safekeep your wealth is as usual Diversification, with a focus on things with a stable value, which crypto is definitely not.
This volatility isn’t something inherent to all cryptocurrency - bitcoin and eth and pump and dump cryptos are just especially hot speculative assets for people who enjoy holding bags and pump and dump YouTube grifters.
Tradeable essential goods aren’t a good basis for currency, they would be your best bet without the internet, but with the internet in such a collapse cryptocurrency could actually work.
Diversification is not a concept in opposition to cryptocurrency, the former is a viable financial principle for savings and investments, the latter is one type of asset (a currency) that someone can hold if they choose to if they believe that centralisation of financial institutions and growing connections between corporations and governments is a risk - for instance I would not expect S&P500 to survive a major climate or landemic catastrophy/incident, world war, especially with protectionism, and maybe I’m an alarmist prepper but while remote, these things are growing increasingly likely or if the oversight of the powers that be is undesired e.g. such as with buying drugs on the internet.
Ultimately it all comes down to that.
There’s scams with fiat currency, but you don’t show that as evidence that dollars aren’t ready for mainstream. When people get scammed out of their crypto it’s not blockhain’s naivety, it’s the victim.
Edit: you all are comparing money, banking, AND government regulation to crypto. They are not comparable and that’s not a fair comparison. Crypto is a ledger, like QuickBooks or bank accounts. I’m not even arguing that it should have a great value, but technically it does have value and it serves its purpose. Crypto is only like 15 years old.
When people get scammed in traditional currency, you can revert the transaction. You cannot revert anything with blockchain, and that’s a feature, which means if you get scammed out of your bitcoin, there’s nothing you can do. That money is lost, and the scammer keeps it.
And if you get scammed out of cash by another person how will the government step in to revert it? Theft happens every day. You are talking about banking, you are not talking about money. They are not the same thing.
Also, when I try to scam someone using my bankaccount, my bank goes “Uhhh, please show us that this isn’t a scam”. My bitcoin wallet doesn’t care.
What schemes exactly? I know there are schemes using fiat currency, but that’s quite different from the currency itself being a scam.
Blockchain isn’t inherently a scam, Bitcoin, Litecoin, etherium, monero and others are valid ledgers. They serve their intended purpose technically. You are specifically pointing out that there are investment scans in new shitcoins that are pumped up and dumped, or that never even really exist. You are correct that this doesn’t exactly happen with fiat currencies but there are still nearly identical scams, like pyramid scams where people “invest” and they see their account value go up in USD or other fiat, and every month their account balance is inflated. Some people may be able to withdraw their money at first, or maybe nobody can ever withdraw anything.
Blockchain isn’t inherently a scam, pretending to launch a coin or launching a coin and abandoning it is hardly different from existing scams that are settled in USD that sell land that doesn’t exist or scammers that try to get you to invest in their business and then disappear with your money. You’re characterizing all Blockchain currencies as scams, it’s just not true. I spent my career working in IT, I look at Blockchain as a technical invention. There are ways to transact securely on Blockchain.
The difference is the government exists to step in and punish scammers, and regulates markets to prevent many scams for being possible.
one of many benifits of the blockchain is that there are ways of using it without directly giving up your name or government ID. A minor side effect is that scams will exist using it.
That is also possible with blockchain, its partly enforced with KYC (know your customer) laws. Granted there isn’t currently a great example that I know of where auditing and reversal is possible but that doesn’t mean it’s not technically possible.