I agree with the PoV concept, but elites are coming around to crypto now that they realize dollars will be the foundation for DeFi globally, as DeFi requires stablecoins, and USDC/Tether/DAI are all backed by dollars or dollar equivalent assets.
I think you’re missing one of the most important regimes that is not there with defi that does exist with fiat: the legal system and ability to enforce contracts. The American banking system provides all sorts of consumer protections that simply don’t exist with crypto because it’s inherently extra governmental. If I buy a product from someone in Japan and they never send it, I can usually get a bank to report the charges as fraudulent and take action against the non-sender. If I send them a fraction of a bitcoin to do the same what protections do I have? None. The trustless, extra regulatory aspect of defi is its strength but also a glaring weakness (along with its simple impracticality) that I think doom it to large scale irrelevance for the foreseeable future.
Amazing post.
thanks man
You established elsewhere that violence monopolies beget peace. What does it mean if crypto undermines US violence monopoly as you outline here?
I agree with the PoV concept, but elites are coming around to crypto now that they realize dollars will be the foundation for DeFi globally, as DeFi requires stablecoins, and USDC/Tether/DAI are all backed by dollars or dollar equivalent assets.
I think you’re missing one of the most important regimes that is not there with defi that does exist with fiat: the legal system and ability to enforce contracts. The American banking system provides all sorts of consumer protections that simply don’t exist with crypto because it’s inherently extra governmental. If I buy a product from someone in Japan and they never send it, I can usually get a bank to report the charges as fraudulent and take action against the non-sender. If I send them a fraction of a bitcoin to do the same what protections do I have? None. The trustless, extra regulatory aspect of defi is its strength but also a glaring weakness (along with its simple impracticality) that I think doom it to large scale irrelevance for the foreseeable future.