This is both great and terrifying news!
Apologies- could you explain by any chance? I think i don’t understand (but i am also quite new to the subject..). Grateful for any additional insights.
Great because it's being seen more and more as a legitimate source of money. Terrifying because it defeats the entire purpose of cryptocurrencies: if you don't possess those private keys, they have the power to control your money (holds, reversals, denials, etc.)
I think overall it's a massive win. There's going to be a rather large subset of individuals that'll never grasp the basics (like if you don't hold the private key, you don't own it). And that's okay, we still need to find means to include them and drive adoption.
I have a mate who is very interested in it but doesn't trust himself enough to not fuck up and lose his assets. Self custody scares him. He is quite technical (codes for fun, some system level stuff) but also knows from time to time he tends to screw up. I know it's a double edged sword but if you want to pick up the masses this is the way to go imo.
How is this any different from what we have today with traditional banks? Isn’t the main selling point of crypto the idea that there is no central bank?
They can't mess with the supply. The bank is only the custodian.
I do completely understand that perspective. However, I guarantee there will be some sort of blockchain-based custody technology available at some point. There are already inheritance platforms coming out that will allow next-of-kin or designated beneficiaries to receive your keys once you pass away, so something like a recovery technology could very well become standard. It's tough because bypassing banks would be SUCH a massive change to the status quo, but at the same time, that's the most exciting thing about blockchain as a whole: there is so much potential to do things better than we have been doing. We've been treating money the same since the great depression, and a lot has changed since then. It's time our money did too.
I also have the power to not give it to them. It’s the government that I’m worried about in all of this.
Well said. I would then expect to see more insurance coverage options in the space too which is also great news.
That's one way to let the sheep know it's safe to buy.
As much as people want to get rid of banks the average person is going to have some form of a bank for many years.
It's like trying to boil the ocean to make a cup of tea to kill the banks and get massive institutional investors in cryptocurrency at the same time.
These types of small wins all add up.
Peer to peer electronic money – sitting in a bank.
I don't know, guys.
its good news lol
Next thing you know there will be a paper money shortage too.#fakenewsmadereal#nocoin
States would create a commodity, a token and peg that token to one US Dollar. Banks would create ETH Wallets linked to each Account Holder. The State govt would then air drop these tokens to each ETH wallet linked to the Account Holder. The Account holder could choose to hold that token or redeem it for one US Dollar each. The bank would reimburse one dollar for each token redeemed. The Banks could choose to hold the token or redeem it with the State for one dollar value + interest or hold it longer for even greater interest. The banks and or token holders would be allowed to trade these tokens.
I get the argument against it. But don't we all want it to be censorship free? That means any party who wants to hold it should be free to do so. And shouldn't that also include banks?
Hope there won't be fractional reserve for crypto in banks, thus having more than 21M bitcoin
I think this is a great news. I know people say that if you don't own your keys you don't own your BTC. But none of us who actually have a bank account own our own money and everyone is fine with that.
Us crypto nerds are not OK with that, but for the 99% of population that's OK. If that means BTC is more mainstream, I am OK with that. I know how to protect my BTC.
This should go over well.
This feels the same to me as when the incumbent car companies began "working on electric vehicles", and everyone thought Tesla had it coming…for a couple years before it became completely obvious that the incumbents are all fucked.
When decentralized exchanges get up and running in full force, I think this effort will look equally pathetic.
wow that's nice thing and at the same time kinda dangerous for us banks