Re:Mass Layoffs and Absentee Bosses Create a Morale Crisis a...
by roenxi on Thursday April 13, 2023 @04:48AM
(#35552704)
> When a crypto exchange fails, depositor funds are unrecoverable. There is no system to protect the depositors, no system to recover funds from the failed exchange.
That is why I'm anticipating that crypto will be a stronger ecosystem than the traditional financial sector. If we punish people for bad decisions, then by Darwinian logic the crypto ecosystem will not funnel capital towards the sort of idiot depositors who give Joseph Gentile their money. If they cared to check what their money was funding they could have seen this coming.
The traditional finance system is protecting those people. That weakens it. Which has always been the strongest argument against governments handing out money to failed banks. They've been doing that for at least a decade and it means the financial system is shaky enough that it falls over when hit it with 5% interest rates!
That is why I'm anticipating that crypto will be a stronger ecosystem than the traditional financial sector. If we punish people for bad decisions, then by Darwinian logic the crypto ecosystem will not funnel capital towards the sort of idiot depositors who give Joseph Gentile their money. If they cared to check what their money was funding they could have seen this coming.
The traditional finance system is protecting those people. That weakens it. Which has always been the strongest argument against governments handing out money to failed banks. They've been doing that for at least a decade and it means the financial system is shaky enough that it falls over when hit it with 5% interest rates!