Man has two more chances before $232 million is lost forever

[Ed48]

The cost for this is of course consistent theft in the form of inflation.

Economies don't tend to do very well without some inflation. If everyone had their money in a deflationary "currency" like BTC, then there would be a propensity to HODL and defer purchases, which would create a major drag on the economy.

 

[maxinger]

 

[Tokenz]

Your fiat still exists. You may not have it but it is gone forever.

Same with crypto

 

[newwurldmn]

FDIC exists because banks are required to pay into an insurance fund and are required to maintain certain reserves. When a bank fails the Fed comes in and seizes the assets and manages the liquidation.

When a crypto firm fails the founder fakes his death and goes to India.

Read a book on the history of financial markets. We’ve tried all this before. It ends in centralization and fiat currencies for a very good reason: it reduces risk and creates stability overall.

Also, do you think the government would be so eager to rescue everyone or bail out everyone if they couldn't print up the difference?

The only reason why bank accounts for example are FDIC insured is because worst case scenario, governments just print whatever is necessary. The actual fund is tiny compared to the risk because there really is no risk. The cost for this is of course consistent theft in the form of inflation. The benefit of governments being able to make people feel safe and whole again is actually very costly on a long enough the horizon.

 

[newwurldmn]

Well what happens when someone breaks into your house and steals your fiat?

same thing. Except much of it is traceable. You know that crazy wire scam that many companies fall prey to? Someone hijacks an email account and convinces payable depts to change wiring instructions. The fbi can recover most of the funds because they trace everything including cashiers checks.

 

[Tokenz]

yeah. unlike a traditional bank, or brokerage account. Government regulation has some benefits.

Oh ok, so you're one of those people that think the government is here for your protection, gotcha....

 

[Tokenz]

same thing. Except much of it is traceable. You know that crazy wire scam that many companies fall prey to? Someone hijacks an email account and convinces payable depts to change wiring instructions. The fbi can recover most of the funds because they trace everything including cashiers checks.

Can they really? If you were a scam artist would you leave that money in your bank account? I'd hate to see what would happen if you were in a life or death situation with no FBI to help you

 

[newwurldmn]

Can they really? If you were a scam artist would you leave that money in your bank account? I'd hate to see what would happen if you were in a life or death situation with no FBI to help you

They can. It's happened to my company and to someone else's i know. I was able to recover about 100k. the other guy, almost 400k.

The banks also can put holds on funds if you notify them fast enough (typically 24 hours).

 

[newwurldmn]

Oh ok, so you're one of those people that think the government is here for your protection, gotcha....

I know Somalia is a paradise for people like you, but....

 

[NoahA]

Read a book on the history of financial markets. We’ve tried all this before. It ends in centralization and fiat currencies for a very good reason: it reduces risk and creates stability overall.

Yes, it works well for the very rich, like you. I can see how you wouldn't want anything to change.

Crypto firms failing is a non-issue for people who store their bitcoin themselves. But when a bank fails, somehow everyone has to take a haircut on the purchasing power of their money. Its all about socializing the losses but privatizing the profits.