311–320 of 361 posts
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Definitely that, but also the man is an investor. He should have both the knowledge and the money.
Knowledge is heavily domain specific, it's about being 'smart' or not. Franky Cuban was just invested in a crappy coin he understood nothing about, and didn't get lucky.
> But to stop mirrored stocks and other synthetic assets from trading, you would have to shut down the underlying open-source software code that makes up the blockchain and is used by a global user base that includes many anonymous players, he added. Don't these synthetic assets need an oracle to inject the price of the real assets into the blockchain? To stop these synthetic assets from working, couldn't they just g…
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Saying that they were intended for hedging sounds like a very strong proposition to me. Chicago-style futures have (and have had, for as long as we know) numerous features that indicate speculation (or gambling, as it's also known) as one of their big reasons for existence. They are also used to sell unconventional services (being long corn in August and short corn in July is effectively selling the service of transp…
>Saying that they were intended for hedging sounds like a very strong proposition to me I think most people believe this since every textbook I've seen explains them and implies that this is what they are for.
I can strongly recommend Williams' The Economic Function of Futures Markets[1]. It gave me a lot of those "ooh, now that makes more sense" experiences after having heard the faulty model used in textbooks over and over.
[1]: https://www.amazon.com/Economic-Function-Futures-Markets-Wil...
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You can read Maker DAO whitepaper to see how a stablecoin can be created without trust.
I did, and it doesn't. The mechanism behind Maker DAO simply doesn't work. That's why it lost the peg so badly, and for so long. There simply wasn't any working mechanism to deal with the situation where the price rises above one dollar. When people create ETH-collateralized DAI and sell them they are basically doing so in order to go leveraged-long on the ETH/USD pair. So when you use ETH to buy DAI from one of thes…
..inflation?
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> Yes you can provide liquidity for eur-usd if you jump through all the hoops . The emphasized part is important. Most people either can't or don't know how to jump through these hoops. Is it even worth it to jump through these hoops, when I only have 100 USD to "invest"? Entities like Uniswap make the process much easier and widely-accessible, which makes a big difference (particularly if you live outside the develo…
I appreciate the effort you put into your response! I think the conversation has diverged quite a bit from my original point. I’m not even trying to argue that uniswap is not useful or an improvement. Instead I’m pointing out that when we compare defi protocols to the traditional system, the core services are largely the same. Defi is an attempt to allow anyone to participate in the roles which are usually accessible…
Sorry, I misread what you wrote, then.
> Instead I’m pointing out that when we compare defi protocols to the traditional system, the core services are largely the same.
Sure, I don't disagree. Why reinvent the wheel if it has already been invented? But... just because the wheel has already been invented, doesn't mean that inventing a "tire" is not novel (because a tire is just a fancy wheel, after all, no?).
My point: in many ways, defi is replicating "service-types" that already existed in the traditional financial system (as you say); on the other hand, it is not replicating the exact same services (note: my bank does not allow me to borrow BTC from them) and in the same exact way.
In a nutshell, defi is a "copy" of the traditional financial system the same way that "a tire is a copy of a wheel" (i.e. they are clearly not the same thing, and a tire is an innovation over a wheel, but they can also be thought as being "more or less the same thing", since they both are used to make cars move).
> Defi is an attempt to allow anyone to participate in the roles which are usually accessible only for institutions.
More than that. Even an institution cannot convince a bank to give them a USD loan using BTC as collateral.
> That doesn’t mean those roles are just now being invented by uniswap/aave/whatever.
Agreed. The same way that, when Dunlop and Goodyear invented tires, they did not try to claim that they had invented wheels. I am not sure you'll find anyone trying to argue that (e.g. that AAVE invented "loaning against a collateral").
> Unrelated Opinion: defi’s practical utility comes from circumventing regulation and adding leverage to a crypto position. (Eg no KYC, selling AAPL tokens, borrow tether against an ETH position to buy more ETH)
Not necessarily just that. Even if I have no problems with any regulation that needs circumventing (i.e. I'm not doing anything illegal), and have no need to borrow crypto-assets, the traditional financial system (currently) provides no way to lend crypto-assets. If, for some reason, you have 100 ETH, you're going to use Uniswap et al., and not the traditional financial system (since that's not even an option, currently).
Fake seems like a strange choice of words here. These things arent attempting to deceive anyone into believing they are the real thing. They clearly label themselves as derivatives. We don't call corn futures fake corn, we don't call derivatives of other types fake those things and we shouldn't call these fake stocks. I'm really not defending or not defending whatever these platforms are. I wouldn't be surprised if t…
Unregulated would be a better description. This is a perfect example of the kind of financial asset that should be heavily regulated. How do these assets track the price and what guarantees they will always do so? If the answer is trust us (like stablecoins, nfts, etc), people buying them are marks, not customers.
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You should read up on the last decade in Venezuela, which used to be the richest country in Latin America, and having wealthy professionals see their savings evaporate due to 1,000,000% inflation because of the actions of a government they democratically elected. Belief is the only thing holding together a lot of the things that we rely on to keep society functioning the way it does. I'm guessing (though not assuming…
It's not like if hyperinflation could be avoided everything else should be fine. No, hyperinflation is a sign that the economy is grossly mismanaged, and that in turn is likely the result of desperate, incompetent government facing all sorts of economic, social and political problems. Switching to a different currency isn't going to fix a failed state, sorry.
My friend from Venezuela certainly would've benefited from owning a currency that wasn't regulated by his government, which made exchanging Bolivars for external currency illegal except for those with government connections.
Are you saying one should only be concerned about the state itself, that citizens ought to go down with the ship and be victims of the government they were born into?
I'm hoping you're simply ignorant of the very real personal problems of people born into corrupt and unfortunate countries have that are mitigated or solved by crypto currencies (even if it doesn't solve the problems of the state) rather than simply uncaring for their plight and unwilling to care about solitons for them that don't involve also fixing the entire corrupt nation they were born into.
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You should read up on the last decade in Venezuela, which used to be the richest country in Latin America, and having wealthy professionals see their savings evaporate due to 1,000,000% inflation because of the actions of a government they democratically elected. Belief is the only thing holding together a lot of the things that we rely on to keep society functioning the way it does. I'm guessing (though not assuming…
> You should read up on the last decade in Venezuela, which used to be the richest country in Latin America, I'm well aware of the last decade in Venezuela. Hasn't cryptocurrency been so helpful there? > and having wealthy professionals see their savings evaporate due to 1,000,000% inflation because of the actions of a government they democratically elected. It's kinda weird that you focus on the fortunes of "wealthy…
Digital forms of currency which aren't regulated by the state control of the banking system are the only safe way to get an alternative currency, since the Venezuelan government made exchanging Bolivars for stabler currencies like the USD illegal.
Im talking about solving the problems of individual Venezuelans, not the government or state. And if people with savings can't rely on them, then a country has no hope of attracting or retaining high talent professionals. Hence why it's so hard to find people left in Venezuela with highly sought after talents anymore.
Fake seems like a strange choice of words here. These things arent attempting to deceive anyone into believing they are the real thing. They clearly label themselves as derivatives. We don't call corn futures fake corn, we don't call derivatives of other types fake those things and we shouldn't call these fake stocks. I'm really not defending or not defending whatever these platforms are. I wouldn't be surprised if t…
Are these assets backed by legally binding contracts? If the answer is no it doesn't seem like a stretch. If I sold you a stock in my company that gave you none of the traditional shareholder rights I'd also call those shares "fake", which seems to be what's going on here.
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You should read up on the last decade in Venezuela, which used to be the richest country in Latin America, and having wealthy professionals see their savings evaporate due to 1,000,000% inflation because of the actions of a government they democratically elected. Belief is the only thing holding together a lot of the things that we rely on to keep society functioning the way it does. I'm guessing (though not assuming…
> Belief is the only thing holding together a lot of the things that we rely on to keep society functioning the way it does. Which is why alot of people feel threatened by the ever shifting sands in the global financial landscape
The demographics of the crowd:
wealthy, living in the most stable country in history, with access to digital forms of banking worldwide, ability to emigrate wherever they'd like, able to transfer money as they see fit, and holding their savings in the global reserve currency for a country which they're a citizen of.
Doesn't help many empathise with why many people around the world can't trust their governments centrap bank, or open a bank account elsewhere, or convert their savings to a stable currency and assume it won't be seized or banned locally.
It's best to just build cryotocurrency and not bother explaining to Americans who aren't willing to listen why it's necessary.
It's like explaining public transportation to people at a country club.