[HN Gopher] Trust and the Viability of Cryptocurrency
       ___________________________________________________________________
        
       Trust and the Viability of Cryptocurrency
        
       Author : 4zrael
       Score  : 5 points
       Date   : 2021-02-10 21:49 UTC (1 hours ago)
        
 (HTM) web link (jordanugalde.substack.com)
 (TXT) w3m dump (jordanugalde.substack.com)
        
       | nexthash wrote:
       | I've said it before, and I'll say it again. Blockchain and
       | decentralization does not produce trust and integrity. In this
       | article the author gives a statistic: that fewer than 1/3 of
       | Americans trust the financial system. And yet 95% of American
       | households have bank accounts, thereby relying on it and giving
       | it trust their trust through their actions. The key advantage of
       | the current financial system is that there is somebody to keep
       | accountable: the government and banks can be pressured and sued
       | if they renege on their promises, and insurance/regulation can
       | minimize loss.
       | 
       | For a cryptocurrency, if a smart contract has a bug, a hacker
       | steals your crypto, you forget your wallet key, or an ICO goes
       | bust you have zero recourse. Millions can be lost. Therefore,
       | zero trust. By not placing trust in any one actor or system of
       | recourse, you lose all hopes of accountability and are forced to
       | view every person you transact with suspiciously. It's a shitshow
       | that has generated the very thing it hoped to avoid:
       | centralization into exchanges and government regulation. Read
       | more about crypto's issues here:
       | 
       | https://medium.com/@kaistinchcombe/decentralized-and-trustle...
        
       ___________________________________________________________________
       (page generated 2021-02-10 23:02 UTC)