As someone working with African companies (legitimate businesses, mid-sized transactions), the key use case is payments in stablecoins—their banking infrastructure doesn’t allow for reliable and consistent foreign remittances.
These deals would be practically impossible without stablecoins.
(And to be clear, I’m someone who has never been particularly enthusiastic about crypto or blockchain.)
paperpunk · 4m ago
Can you give more details on this? Why is it that the existing banking system cannot do this kind of foreign remittance? E.g. correspondent banking via Swift?
Is it high fees, is it overly burdensome sanctions/AML checks, something else?
tonyhart7 · 2m ago
because their central bank is sucks, simple
whatshisface · 9m ago
Do you know why people would choose to use stablecoins, rather than trade shares in an ETF that held government bonds, or something like that? That's what stablecoins are, effectively just a share in the holding company's bank account.
neumann · 2h ago
This is a really fun well-written and on point set of articles. Thank you for sharing.
I feel like at this point there isn't anybody defending stablecoins who isn't using them primarily speculative investment/trading. There has yet to be a usecase for distributed ledger that isn't solved better by a centralised ledger other than niche counter-culture solutions whose users are typically blinkered to the fact that they are already a self-selected techno-elite who can't bring their utopia to the commons. That ended a bit more nasty sounding that I intended, apologies.
wmf · 2h ago
The other legit use for stablecoins is allowing people in Venezuela, Argentina, etc. to hold US dollars while the US government pretends they don't know this is happening. (Officially the US does not encourage dollarization of other economies against their will.) I agree that a centralized US dollar CBDC that isn't run by scammers would be a simpler way to do this.
pjc50 · 1h ago
This is basically the valid use case, yes. It turns the bitcoin goldbug inflation paranoia on its head: the stable currency is defined to be the US dollar, and an elaborate proxy system allows people to access that stability when their local government doesn't want them to. Circumventing exchange controls and so on.
Although the current government is having a good go at reducing the value of the currency, it's barely budged on the chart.
potamic · 42m ago
If a country does not allow their citizens to exchange currency, then this is as good as a black market and comes with the same risks as obtaining currency through any other black market means.
nlitened · 2m ago
Carrying around or storing piles of foreign currency is much riskier than having a USDT wallet. You also cannot fly to another country with cash.
csomar · 37m ago
The reason they don’t want a CBDC is to be able to collect interest on behalf of the people holding the currency. If the state launches a blockchain CBDC, the state will profit. It’s too much money not to corrupt the most powerful people on the planet.
ChadNauseam · 1h ago
> There has yet to be a usecase for distributed ledger that isn't solved better by a centralised ledger
what about situations where centralized ledgers won't serve you? e.g. someone who wants to buy drugs, or sex workers want to get paid. And you mention "niche counter-culture solutions" but I don't think it's so niche - in 2002, the government of Argentina stole 2/3rds of everyone's savings by forcibly converting their dollar-denominated bank accounts into pesos at a terrible exchange rate. Not having to worry about this because you have a trustworthy government is nice, but it puts you into an elite class of your own.
wakawaka28 · 1h ago
What you're talking about, resistance to government meddling, is more of a function of the currency than the ledger. Cryptocurrencies only work because of people silly enough to buy them in exchange for actual "valuable" or official currencies (which can be imposed on some people in the world at gunpoint). If a cryptocurrency was forced on you at gunpoint, it most certainly would not be one that provided any anonymity.
Do cryptocurrencies provide value to people living in third-rate hellhole countries? Perhaps, because they are connected to the outside world. Ideally you could just have a foreign bank account that your country cannot touch. If the big governments gang up on crypto exchanges, then crypto will be worthless. The only reason they don't gang up on the exchanges seems to be that they (the people in government) use crypto for nefarious activities and money laundering.
The technological innovations of cryptocurrencies make for good thought experiments or puzzles, but serve as a distraction from their inevitable uselessness.
lurk2 · 1m ago
[delayed]
barumrho · 1h ago
This seems to misunderstand stablecoins since it is useless for investing/speculation as the value is just $1 if it's successful in its goal.
bergen · 23m ago
I'd argue crypto casinos (pump.fun comes to mind) would not work without stablecoins because no one would back them with real dollars.
csomar · 40m ago
I agree with the premise that on a tech basis, a centralized ledger is just as good, if not better, than a decentralized one.
The problem stablecoins are solving are self-inflicted: KYC to open a bank account, restricted nationalities, account freezes, capital controls, taxation over-reach, etc.
At some point someone figured out that if they start over, there is a lot of “value” to be unlocked out there; and paid/lobbied/sponsored the right person to execute on that.
johncole · 2h ago
I agree, I see very few (none) use cases for crypto that aren’t human misery trafficking. This article seems to explain that well.
CaptainFever · 1h ago
Buying NSFW things.
eszed · 1h ago
I think the further down the supply chain of "NSFW things" you go the more closely it resembles "human misery trafficking".
GLdRH · 1h ago
Exactly
dotcoma · 3h ago
> They aren’t as stable as they claim to be, and the stability they do have arises from free-riding on the US banking system and monetary policy – and as we’ll come back to, if stablecoins are able to keep gaining market share, these parasites might eventually endanger their hosts.
cactusfrog · 1h ago
I think the biggest problem with fintech is that the financial system is already decentralized, and full of tech. It really just seems like it involves using unregulated technology, which allows the skipping of restrictive regulations. This might actually be a good thing, but once a path has been proven to be non destructive the banks can just take over the market by begging the government for deregulation.
whateveracct · 1h ago
> It really just seems like it involves using unregulated technology, which allows the skipping of restrictive regulations. This might actually be a good thing
Yeah, it's basically Uber for finance/banking/etc. Reap the free real estate created by rules and regulation by..skirting the rules and regulations.
It also adds indirection, which in turn allows all the parties involved to point fingers at each other Spiderman-style. "Oh I thought $X was responsible for $COMPLIANCE." Eventually, y'all get audited and shape up but that's a years-long process. And in that time you've grown and grown and finance/banking/etc is pretty sticky. Kaching :)
mattbillenstein · 1h ago
I looked at crypto a little for a startup - the thing that isn't usually mentioned is the huge downside of custody. Not your keys, not your coin - and holding those keys securely, think fire, theft, hacks, backdoored hardware wallets, etc - is really really hard to get correct. And if you mess up once anywhere - poof - all your money is gone and there's nothing you can do to get it back.
nytesky · 39m ago
Yeah who in this world has never had to reset a password? That’s what this means. That laser inscribed metal fob with you keys on it may as well be made of platinum.
And I’ve never felt clear on how people trust wallet, hot or cold — at some point they connect to the internet for transactions, and all the vendors seem suspect. I really doubt most users are building their wallet from code reviewed cryptographically signed source… but maybe I’m wrong?
mattbillenstein · 31m ago
I think most users have no clue how any of it works - there are so many footguns doing it yourself that probably an exchange like Coinbase is the best bet, but again, not your keys, not your coin...
godelski · 3h ago
A lot of tech is very weird, as the author suggests. It often seems like there's good ideas but everything must go through a hype wave. Unfortunately, the hype wave makes it difficult to distinguish good actors from bad ones. Consequently the bad ones win because it's easier. It's like we've designed everything to be a lemon market. It's like we're not trying to build tech to make life better and make money along the way but to find the most exciting looking or sounding thing and figuring out how much money we can make with it.
I mean look at something like the Rabbit R1. I'm an AI researcher and I saw my peers get fucking excited about it because it was a leap ahead of all the state of the art research we knew. Sorry, but what? It takes time for research to get into a product, sometimes years, even in tech, even in the fast pace AI world. Like you think they put what normally takes at least one $10k GPU and put that into a $200 device? That they could leverage GPT and not have a subscription fee? You're not going to beat ChatGPT by using ChatGPT lol.
Somehow stuff like this keeps happening and we never learn our lesson. Author is right, they're just chasing. And the irony is that that chase is actually preventing us from getting what we're really chasing
willprice89 · 3h ago
> people are either still too afraid of looking like they don’t understand, still too deferential to Silicon Valley’s supposed technological expertise, or still too busy doing other things, to voice any skepticism about blockchain-based solutions
I'm not afraid of looking like I don't understand - I simply don't understand. I've tried reading a few "yellow papers" for crypto projects and they are so abstract and full of jargon that I never come away knowing more than when I started reading.
If anyone has a good resource for getting into the technical details of crypto please let me know. I would like to gain a full enough understanding that I can finally decide for myself if it's revolutionary or overhyped.
duskwuff · 2h ago
> I've tried reading a few "yellow papers" for crypto projects and they are so abstract and full of jargon that I never come away knowing more than when I started reading.
In some cases, this is by design. The project is nonsensical and/or a scam, and the white paper is an obfuscatory smokescreen to provide an illusion of sophistication.
steve_adams_86 · 2h ago
I feel like this describes so much of the tech industry.
A lot of what we do might be sophisticated in some far corners, but at the end of the day the end results can be trivially explained.
"Taxi ordered from a phone app, "Sleep in other people's homes", "Restaurant delivery service with GPS tracking", "Exercise bike with a screen showing workout videos", "Someone else shops for you", etc.
Unfortunately with crypto, a lot of it is trivially explained as "obfuscated scam"
ipdashc · 1h ago
> "Taxi ordered from a phone app, "Sleep in other people's homes", "Restaurant delivery service with GPS tracking", "Exercise bike with a screen showing workout videos", "Someone else shops for you", etc.
I don't think anyone ever claimed these were complicated or sophisticated, though? They're straightforward user-facing apps. A more comparable example might be cloud services or a good chunk of security products.
smsm42 · 1h ago
"crypto" is a very wide word, there are a lot of technologies participating in the game, and a lot of technical details in them. Most are completely irrelevant to most regular people.
Blockchain is pretty simple. There's a database, organized in a way that you can add records to it but you can not edit past records - or if you try to, everybody would know you did. There's a network of people maintaining this shared database, as a payment ledger - basically, this database for them says "X has $Y amount of database-money". People participating in maintaining this database get paid in the same database-money. They have incentive to do it properly, otherwise their database-money aren't worth shit. They also have incentive to steal if they could, but since they can't edit the database without other people noticing (who aren't interested in having db-money stolen from them) it's hard. That's the basic level of cryptocurrency systems, very shallowly and simplified, of course. If you want to know the math and protocols, there are full college degree programs dedicated to it (I am not kidding at all, there are). There's even free courses on Coursera and such which deal with the basics.
The second level is allowing to do other, more complicated stuff with the same database. Like keep ownership records for other things (that's basically NFT). The next level is turning it from passive database into a computation engine, so you can make computations that will be reproducible over the database. That's ethereum contracts and such. There also side aspects - like privacy chains, where the information who owns the money is encrypted, so you can prove you own the money but somebody else would have hard time seeing how much you got and where it came from (it's usually very easy in most chains). Etc. etc.
Whether it's revolutionary or overhyped - I have no idea. That's kinda societal question, certainly all the above (and more) can be useful and you can build useful stuff on top of it. Would some people use it? Probably. Will everybody switch to it from existing ways of doing things? I have no idea, but I suspect no. But I am nobody, so it's worth nothing. A lot of people smarter than me thought there's a use case for certain things, and spend a lot of time and money building stuff, and nobody every used it. Take Meta - the whole "metaverse" thing, nobody even remembers it now. There are many things like that. Is crypto one of them? I dunno. We'll see.
GLdRH · 1h ago
To be fair, a lot of people don't understand the old money system either
smsm42 · 59m ago
In fact, there's probably less people who understand the old money system than those that understand the crypto math. After all, the latter can be readily learned from books and whitepapers, go figure where do you learn how actually the real monetary system works, in all its complexity, and how would you even get such level of access without being member of the Fed board.
troupo · 39m ago
Yes. Because no one has ever written any readily available books and white papers on old money.
csomar · 29m ago
Mastering Bitcoin by Andreas A. is the best book you can read on the subject.
didibus · 2h ago
It helped me to start from the problem it tries to solve.
Fundamentally, we've been making digital versions of everything. We have digital phone calls, television, bookkeeping, document writing, drawing, etc.
One thing we didn't have digitally was a currency.
Why would we want a digital currency? For similar reasons to all the other stuff above. It's more convenient. When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on. If the money has to cross a border, that's even more of a hassle, now you have to physically cross a border with a truck full of cash. When a bank "holds onto your money", they need a big vault full of cash, they have to count it, account for every dollar, physically safeguard it, etc.
This is a huge cost, inefficiency, and a big challenge of banking, and it's one reason transaction fees and banking fees are so high.
Now we have an idea of why we might want to make a digital currency. The biggest issue with making one is how do you solve the "double spend problem". That is, if I have 1 unit of a currency and I give it to you, how do we guarantee I no longer have that unit after it was given to you? In a physical world, I'm giving you the actual unit of currency, but in the digital world I'm giving you a copy of it, it would be easy for me to keep my copy as well and have an infinite money glitch.
The solution to that is simple, you have a source of truth that processes the transaction. That source of truth records that I had 10$ and you had 10$, I gave you 1$, and now I have 9$ and you have 11$.
That's easy enough. Here comes the second problem, who would trust owning that source of truth? Would you trust me keeping the official source of truth log of how much money everyone has? I could easily add myself a few 0s to my account, or remove some from yours.
Would you trust the government of your country? Of another country? A big corporation? A US charity?
This is where crypto comes in. Crypto says, nobody would ever trust a single entity, but what if everyone could join a network of nodes that together form the source of truth? Not owned by any single person, but the union of everyone who wants to join the network, and you could join the network, I could join it, anyone is free to join it, and we can all validate and check each other's work to make sure no one else on the network is fudging the numbers.
And now a lot of complex cryptographic math comes in to from this network.
er4hn · 2h ago
> Why would we want a digital currency? For similar reasons to all the other stuff above. It's more convenient. When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on. If the money has to cross a border, that's even more of a hassle, now you have to physically cross a border with a truck full of cash. When a bank "holds onto your money", they need a big vault full of cash, they have to count it, account for every dollar, physically safeguard it, etc.
>
> This is a huge cost, inefficiency, and a big challenge of banking, and it's one reason transaction fees and banking fees are so high.
That's absolutely not how this works though. Banks perform electronic transfers and most of the money is accounted for in databases. The problems are slow, antiquated, technology, which is made worse by the amount of regulation surrounding it that makes it hard for new contenders to enter and drive down prices via competition.
Cryptocurrency is trustless, but there is an interesting tangent about if you _do not_ want a government to control monetary policy.
smsm42 · 56m ago
> When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on
That's several centuries out of date, I'm afraid. Even before computers banks didn't actually do that, but now they certainly never do that. They just change records in their books - it has been paper books once, now it's just database files. I mean, banks do move cash (still do) but not when you transfer money from account to account, it has nothing to do with that, unless when you're running a massive cash-based business (which most banks hate btw, for many reasons).
friendzis · 26m ago
GP: this describes the whole crypto world so well I can almost taste it.
Someone completely misunderstands how the real world works, misrepresents that even more when trying to articulate, uses convoluted wording to hide their total lack of understanding of the real world. Then create a "solution" for the problems that do not exist in the real world in the first place, in the process reinventing problems that are solved for centuries already or running head first into ideas that have been proven multiple times in history to just not work.
This whole machinery is then used by criminals to launder money, scammers to scam people out of money and speculants hoping to get rich quick, providing real money liquidity for the previous two.
praptak · 1h ago
"When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on."
Payment settlement is a solved problem and very rarely involves physical cash transfer. Most of this is just numbers moved between accounts which commercial banks have with a central bank.
andsoitis · 47m ago
> When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on.
That’s not at all what happens!
Transfers are done digitally, physical cash does not move between vaults or bank branches.
nytesky · 34m ago
I remember being shocked at some point that my deposits at a bank would actually be a liability on their books not an asset. When you think about it as passing around debt, it makes a bit more sense.
fragmede · 39m ago
Since the invention of the computer, sure, but before that, yes they did at some point reconcile. Even today, cash still physically moves from the mint to banks to consumers.
thwarted · 2h ago
> When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on. If the money has to cross a border, that's even more of a hassle, now you have to physically cross a border with a truck full of cash. When a bank "holds onto your money", they need a big vault full of cash, they have to count it, account for every dollar, physically safeguard it, etc.
While I'm sure some of this is true for some banks at some point in history, this is the kind of understanding of a given industry that results in TechBros reinventing buses or juicing machines.
> This is a huge cost, inefficiency, and a big challenge of banking, and it's one reason transaction fees and banking fees are so high.
The reason banking fees are so high is because they charge what the market will bear, and most of the banks customers are a captive audience. It doesn't cost $2 to perform a transaction at an ATM; it costs pennies, if that. Banks should be paying you for holding, and putting to use, your money.
jcranmer · 1h ago
> When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on.
That hasn't been true for, uh, centuries. It's like literally the entire point of banking, to allow financial transactions to take place without having to physically haul around collateral anywhere.
(And if you want a digital version of what banks actually do, it's called SWIFT, and has been around since checks Wikipedia 1973).
seanhunter · 1h ago
Yes and for people who think “centuries” is an exaggeration, the knights templar gained their power and wealth in the middle ages specifically because people could use their promissory notes to exchange for cash so that they didn’t have to physically transport valuables around between Europe and the middle East during the time of the crusades. They allowed people to deposit cash at temple church in London and withdraw it in Jerusalem.
It’s really telling how poor the knowledge of financial history and the existing state of the art in traditional financial tech there is among people in the crypto-boosting space. Many of the “innovations” they claim have been around in traditional finance for hundreds of years.
smsm42 · 51m ago
Hawala is the same principle and existed pretty much since the same times, maybe earlier (nobody really knows when it started). Still exists and causes major headaches to people like FATF.
GLdRH · 1h ago
knights templar mentioned in a thread about fintechs and banking. Nice.
knowaveragejoe · 1h ago
To steelman the crypto side: I think the stuff that is most interesting is found _around_ crypto and not necessarily within most cryptocurrency projects.
For example, there have been a lot of novel or interesting projects centered around cryptography, consensus, decentralization, anonyimity. On a sociological level, there are a lot of interesting social/economic experiments unfolding in the DeFi world as we speak.
But I think that is where the truly interesting or valuable contributions to humanity as a whole end, and the vast, vast majority of it otherwise is just speculation or scams. It is hard to find that signal in the noise, but it is there, if you look.
lern_too_spel · 2h ago
The article you're commenting on will tell you everything you need to know.
willprice89 · 1h ago
The article I'm commenting on is pretty clearly heavily biased against the entire field, possibly for good reason. I'd like to get my foundational understanding from a more neutral source so I can better consider the arguments put forth in TFA.
antonvs · 3h ago
Try asking an LLM about it. They're good for that kind of introduction, because they can respond appropriately to your level of knowledge. Just ask it to provide references so you can verify what it's saying. But in general, hallucinations aren't a big issue with those kinds of prompts.
edwardbernays · 3h ago
It's a revolutionary technology for the trustless, public exchange of data. It's overhyped as a financial instrument. Anybody who desires a completely public, completely trustless infrastructure for money or property is stupid.
vivzkestrel · 2h ago
I would like to see aidystopia.com that breaks down all the GPTs and LLMs like this
Beside Cryptocurrency and GNU Taler have there been anyother attempts at p2p digital currency?
wmf · 2h ago
There were a bunch of attempts before Bitcoin but they weren't compelling enough to get any users.
fragmede · 45m ago
There was E-gold in 1996 and then there was Paypal and PayPal's doing their own cryptocurrency PyUSD these days.
notpushkin · 2h ago
How do you define “cryptocurrency” and “P2P digital currency”?
yanko · 2h ago
US dollar derivative that will lower government tax collection in long term with all negative consequences...
Despite all talks around - financial blow up in next up to 3-6 months is inevitable so brace for impact
dotcoma · 2h ago
Financial blow-up of what kind, in your opinion? The stock market? Loans? Real estate? Crypto? Thanks.
ptero · 55m ago
IMO US is heavily exporting its inflation by leveraging its world reserve currency status as other countries have to buy it's treasuries (petrodollar system legacy). No other country would be able to run 30+% budget deficits and sell long duration government bonds under 5%.
This will break, sooner or later.
When external buyers stop buying treasuries US will have to massively inflate its money supply, taking bondholders and a bunch of other groups to the cleaners. Such events have a lot of collateral damage, which may fit the definition of financial blow up. But I would place us much further away than 6-12 months, likely at 5-10 years. If there is a viable alternative to US treasuries, potentially sooner, but still not in 12 months. My 2c.
anon-3988 · 3h ago
The other half of technology is the people using it. If that other half is stupid, the technology side will have to overcompensate or will maliciously abuse them. Neither is good.
And I am talking about myself here. My only excuse is that I simply don't use my money. Which is not necessarily a good thing either.
salawat · 3h ago
>If that other half is stupid, the technology side will have to overcompensate or will maliciously abuse them.
Repeat after me. Do not use technology to try to solve people problems.
anon-3988 · 2h ago
> Repeat after me. Do not use technology to try to solve people problems.
I am saying the solution to make people smarter or empower the people. Buy now pay later, credit cards, and all these bespoke algorithms is just an illusion to make people feel better when they get ripped off.
BobbyTables2 · 1h ago
Indeed!
When I was growing up, I didn’t understand check cashing places, payday loans, the layaway counter in the stores, home equity loans, reverse mortgages, auto leasing, and such.
And looking back, I’m amazed how much nonsense is out there. These are more traps than tools.
steve_adams_86 · 2h ago
This reminds me of something I read here the other day. There was an exchange about social implications of technology, and the idea of designing software based around our understanding of these matters more in the future.
Someone responded like "lol, sure, we can find some sociologists to start programming our apps", and I thought Damn. That's really missing the point. And it seems so arrogant. Like, not only do we laugh at the idea of people doing our jobs, we also need to laugh at the idea of the relevance of their fields.
Yet we really should depend on their insights to further our field, in my opinion. No profession truly stands alone, just like no person does.
I think we'll get better about this over time. Right now we've definitely got some growing pains.
BobbyTables2 · 1h ago
Well put! Turns out “tech bros” aren’t that good at sociology either!
Even in computing, a profession dominated by scientists and engineers, has a lot of failing. Even the damn SPEC benchmarks don’t know to average numbers correctly.
esseph · 3h ago
That should be some kind of daily reminder for everyone here
jongjong · 3h ago
I was in relatively early in the web as a developer, I was in early on the crypto movement, also as a developer.
These technologies didn't fix the problems. There is too much regulation, you can't do anything without a license. The only solutions are political, not technological.
Everything feels like a scam within a scam. I feel dizzy just thinking about it. I'm completely demoralised. Everything related to career feels pointless, sisyphean because of the bureaucracy and monopolization. Any work that pays well is useless at best, harmful at worst.
It's either illegal or impossible to do anything which might provide value to people. Even if all the hurdles could be removed, I'm not even sure I want to contribute... For whose benefit? And I feel totally disconnected from the broader society around me.
I basically completely checked out career-wise. I'm good at faking though so I just fake it. I just started bullshitting my way through life. I hate it but everyone is just eating it up and loving it. What can I do? Just give the people more of what they want I guess. Value creation doesn't pay, bullshitting pays... People are living a lie and they love it when you build on top of it. If you just say the right words, they will deny their own eyes; this is what COVID taught me and I can see this in my day-to-day life. It's depressing, they are good people, that's why they assume good faith. I was just like them before, living in a bubble, I understand, I'm no better than them, just less fortunate. If they saw what I saw, they would probably do what I do. Many would do worse.
I feel like I need therapy from being this way. I have bills to pay though. I think I did everything approximately right but I've been ridiculously unlucky. I was operating on limited info and incorrect assumptions. Now, I'm stuck between a rock and a hard place.
It's illegal to be homeless in my country. It's illegal to live in a tent on 'your own' property, you are not allowed to build your own house without some expensive license and approvals... You can't do shit within your means. All the things which seemed unimportant to me before are now the centre of my life and on that plane of existence, I see scams all around.
roywiggins · 2h ago
a bunch of people quite recently had their money zapped away when their fintech wildcat bank accounts disappeared so clearly there is still some room to dodge rules
> Bradley Lott-Tillery, 24, from Arizona also entrusted Yotta with his savings, thinking his money would be protected by the federal government. “I emailed [Yotta], made sure it was FDIC insured. Of course, they emailed me back and told me, yes, it’s FDIC insured, which we now know is not true,” Lott-Tillery said.
> While the banks with which fintech companies like Yotta and Juno partner are FDIC insured, this only kicks in when a bank is found to have failed. Since the intermediary Synapse filed for bankruptcy, but not any of the banks, the money is not covered by the regulatory agency.
(their money was "insured" in the same way depositing money in a random guy's bank account is insured: it's not insured against the guy! these bank-shaped companies managed to convince a bunch of people that they were close enough to banks and about as safe, and then it turned out they all handed the money over to the same fintech company to interface with the actual banks, and that company went messily bust)
airstrike · 2h ago
> These technologies didn't fix the problems. There is too much regulation, you can't do anything without a license.
The regulation is there to reduce the amount of scamming and con artists. It's the same reason we have Blue Sky Laws.
ryandrake · 3h ago
> These technologies didn't fix the problems. There is too much regulation, you can't do anything without a license. The only solutions are political, not technological.
> Everything feels like a scam within a scam. I feel dizzy just thinking about it. I'm completely demoralised. Everything related to career feels pointless, sisyphean because of the bureaucracy. Any work that pays well is useless at best, harmful at worst. It's either illegal or impossible to do anything which might provide value to people. Even if all the hurdles could be removed, I'm not even sure I want to contribute... For whose benefit?
None of this is because of regulation. It's all because of greed and unchecked grift and profit capture. Technology is making the world worse because of greed and capturing profit, not because of regulations. The work most of us are doing is harmful because of greed and capturing profit, not because of regulations. Everyone is living a lie because of greed and capturing profit, not because of regulations. These uncountable scams are all because of unregulated greed and profit. People on HN are mad, but they're acting out against an imagined "regulation boogieman," not what's actually causing all of the shit.
jongjong · 2h ago
Sure, I agree that greed is the root of all problems. Regulations are a symptom of greed; people want to protect their interests and are willing to incrementally corrupt the system to achieve it; that's what a lot of regulations are.
But it's hard to fix greed. The solution to fix greed is way more radical, it's violent. The greedy will defend their interests with violence when confronted. The only non-violent solution I can think of is to let the system collapse, under their own direction. That's the only way the greedy would relinquish enough control to allow people the freedom to get things going again. There was a bit of this after COVID but it wasn't enough.
I just hope people can maintain their sanity through this. I hope it's not going to be an endless cycle of society repeatedly rebounding off from rock bottom... Never actually lifting itself out of the muck but basically always scraping rock bottom with only short temporary breaks.
As a developer, the system and code complexity we have to work with is increasing to the level that it should be considered mental assault. You need to develop a kind of apathy to get through life.
ecocentrik · 2h ago
Not all regulation is a symptom of greed. Regulation can be written and passed with the intention of protecting the public good, promoting public health, preserving fair competition... That it sometimes works counter to those goals is a function of greed, a lack of accountability and and a lack of transparency. We write these laws with consistent check on accountability and transparency, but we keep electing sociopaths that want to game the system and sometimes go as far as screaming "deep-state" or "fraud, waste and abuse"... when they want to completely remove those checks and people keep falling for that bullshit.
jongjong · 2h ago
True as well but personally I prefer people to regulate themselves though for that to happen, there needs to be very strong punishment for violations. Harm mitigation should be at the forefront of everyone's minds. Not quite compatible with the 'limited liability' legal construct. People won't regulate themselves unless they are afraid of consequences.
The regulation + limited liability combo takes away fear. The big companies doing harm love regulations, they breathe a sigh of relief when regulations are introduced. 'Regulatory clarity' they call it. They barely even know what harms the regulation is trying to prevent. They are disconnected from that.
ecocentrik · 1h ago
I have personal experience with companies that consistently violate environmental regulations with very little understanding of the regulations they are violating beyond their effect on profit margins. They pay the fines or pay environmental engineers to help them pass an inspection that could potentially disrupt operations and are violating the same statutes 6 months later. The only regulatory clarity they care about is knowing which regulations can impact production and which can be gamed or paid off.
yieldcrv · 2h ago
I love automated market making and the varying research there
I think this is successful in its goals
Liquidity providing on concentrated liquidity pools is something I would like to see in the high volume US equities market
But will realistically only exist on tokenized platforms that trade their surrogates
It’s extremely lucrative and was only in the domain of market making firms before this technology
TheCowboy · 2h ago
One problem with this is crypto AMM (automated market making) works best with stability and low volatility. For example, it's terrible in the context of prediction markets. Market makers get hosed due to real life, and traders (me) can profit at their expense. It's a big part of why prediction market traders encouraged Polymarket to develop orderbooks. And if crypto is viewed as disruptive, then it's likely inducing greater volatility.
A lot of these things are lucrative until they're not. If they are inherently lucrative then that profit will diminish as people catch on.
yieldcrv · 1h ago
Every market has a use case, and AMMs are not solving event markets, event markets tried to use AMMs and successfully pivoted to order books. I think Polymarket's implementation still has liquidity challenges, as they still have to centrally bribe people to participate. Honestly I don't like Polymarket's contract at all, but it is fast and low cost. Bribes in the solidly AMM model I think were more efficient at attracting liquidity. Slight tangent, the oracle in Polymarket is a bigger issue, people need to convince them to lower the weight of UMA.
back to what I'm a fan of: CLMMs (Concentrated Liquidity Market Maker) is a very competitive field. The level of profits depends solely on volume and amount of capital participating. You are counting on other capital getting bored and moving away, as well as volume rising. Thats the game, it will always be the game. Its already "lucrative until its not" so its not really a gotcha or that insightful for those passing by. I'm glad you have some experience with it.
rr808 · 3h ago
The funniest thing is why crypto bros talk about the Venezuelan taxi driver who has to pay Western Union $10 to send money home, and that is most of the justification for minting trillions of dollars of riches. Yeah OK Visa/MC have a monopoly but even they are worth less than most bros think.
gora_mohanty · 2h ago
Doesn't that exist already? Mobile payment gateways are available in many countries already. India's UPI, for example,had 18+ billion transactions in June 2025, and is entirely free. Yes, the government, and probably financial institutions, do track the transactions
Prunkton · 41m ago
so much japing, so little substance and to make a point LETS JUST SWITCH TO CAPS and round it off with a reddit comment - this is capitalism baby!
Also, what is this headline even about? Why the bashing on fintech? I worked for 4 fintechs and communicated with many more, not a single one was blockchain related.
Why is this even on hn?
If you want to read proper criticism of blockchain, read Molly White's essays instead
From a brief skim, this series seems too much "let me tell you my opinions" and not enough "let me tell you a story." I recommend reading Matt Levine and Patrick McKenzie instead.
gronglo · 2h ago
Surely it depends on the problem. NFTs are poised to unlock the sharing of items between video games, for example. The author seems to have conveniently ignored that use case.
bepvte · 2h ago
All of the games that feature this mechanic are bad, empty, fintech husks. Often they feature same neon vaporwave artstyle, maybe with apes, and usually are transparently asset flips designed more to to feature on cryptocurrencies landing page then to be played.
No good games include this ridiculous use case that I cannot imagine anyone who plays games even a little bit to want.
jcranmer · 2h ago
> NFTs are poised to unlock the sharing of items between video games, for example.
Of all of the supposed use cases for NFTs, this is one of the silliest. If you've ever looked into video game modding, one of the things you tend to realize is there is nothing close to a standard model format for art assets, so it's an insane amount of work to get an item in game A imported into game B, and that's only considering the work in mapping the visual design--the work that goes into mapping item properties is in some cases just "there's nothing you can do." (And this is despite there existing just three software packages that gets used in practice to make this stuff!)
gronglo · 58m ago
> it's an insane amount of work to get an item in game A imported into game B
I understand why that would have been a road block in the last, but my hunch is that this type of problem (mapping visuals and item properties) is something AI would make quick work of.
ranger207 · 46m ago
NFTs are ownership (by some definition of "ownership") of assets on the blockchain. The blockchain is a database that's good for trustless transactions between a sufficient number of competing parties. Video game item transfer's problems have nothing to do with the problems blockchains purport to solve. The problems faced by developers wanting to allow transferring items between different games are primarily IP licensing agreements so that developers of one game have a license to use the assets from the other game, followed by actually finding a use for items in two different games. Since the two developers need to have agreements already in place, that obviates the need for a trustless database. The most likely scenario for one item to be useful across two different games is that both games are the same genre (ie, shooter, RTS game, etc), which reduces the likelihood of developers being open to licensing agreements because their games would be competitors. NFT item transfer has never made sense for these reasons
calebh · 2h ago
As a videogame developer, I've always thought this take was just silly. I couldn't even imagine spending the time and effort into integrating someone else's assets into my game and keeping things balanced. The closest thing that we will get to this is something like Fortnite or Roblox, which will limit the type of games and creative choices that can be made.
xwolfi · 2h ago
imbecile, stop repeating this scam...
basilium · 1h ago
The use case for crypto (eth) and stables (dai) at least for me is clear as day 1) to be able to save money
2) to be able to freely take it with me anywhere (on a vacation for example)
Having no other way to do these simple things, from my point of view, it is not a problem of hundred thousand people in Venezuela, it's a valid problem of tens (if not hundreds) of million people around the world.
IMO The author significantly underestimates how limited and inaccessible the current financial system in the world is.
ArtTimeInvestor · 1h ago
I think people here on HN keep underestimating the relevance of crypto for four reasons:
What crypto is already useful for is not to replace the cash in your pocket and your savings account. It is useful to replace SWIFT and Fort Knox.
What crypto will be useful for in the future is uncertain. But uncertainty does not mean pie in the sky. How the internet would be used was uncertain in the 70s.
Yes, nerds were already excited about the internet in the 70s. Have a look ath the "Mother of all demos": https://en.wikipedia.org/wiki/The_Mother_of_All_Demos
It takes decades to iron out the details of how to use fundamentally new technology.
Fear of change. Is there any new technology that HN is in favour of?
BobbyJo · 1h ago
Bitcoin was created 17 years ago. The "the use cases are coming" argument doesn't work anymore.
ArtTimeInvestor · 8m ago
That means you would have given up on the internet in the 80s.
That is what I mean by point 3 in my comment.
GLdRH · 59m ago
They grow up so fast
ranger207 · 43m ago
Why is crypto better at replacing SWIFT and Fort Knox rather than, say, SEPA or fiat currency (which replaced Fort Knox shortly after the invention of ARPANET)?
ArtTimeInvestor · 11m ago
SEPA is not a cross-border payment system for interbank payments.
Fort Knox still exists. US gold reserves are still increasing:
Yeah, there's a line early in the article about use, the gist of which is "[unlike cryptocurrency] the utility of the internet was obvious from the start".
But it seemed pretty obvious to me more than a decade ago what cryptocurrency would be useful for. I remember the ideas flying around in the early days.
It's been a bumpy road...but then, I also remember through the late 90s (and especially after the dotcom crash) when there were countless takes on how the Internet (and PCs in general) had been vastly overhyped. "Computers were supposed to eliminate paper, but we're using more paper than ever! We were supposed to do all our shopping and get our news from the internet, but Sears is thriving and I still get my daily newspaper every morning!"
Somebody could absolutely have made a book out of all the overpromises of the "Internet Superhighway" era.
The path to general use for cryptocurrency has been, and will continue to be, rocky. Moreso than the net. It inherently involves money--lots of money--and so it's been rife with scams. "Nigerian Princes" on steroids.
But I can tell you guys: before the rush of investors and crazy bubbles, before the scams and collapses, long before hucksters like Trump got involved, there was a group of people to whom the potential of cryptocurrency seemed obvious.
ordinaryradical · 1h ago
It has to have better use cases than fraud and gambling for the first ten years of exploration for me to buy this argument.
Analemma_ · 1h ago
I’ve mentioned this before, but I’m really sick of the “ok, crypto doesn’t have any uses now, but they’re coming eventually” defense. For one thing, it’s unfalsifiable, and I suspect this is why it’s so popular, since unfalsifiable claims are pretty much the only ones that crypto boosters have left. It’s also just pathetic: Bitcoin is coming up on 20 years old; how many technologies had no compelling use cases after 20 years? And this hasn’t been a neglected 20 years, it’s been 20 years of massive hype and tens of billions in investment and R&D, with nothing to show for it.
As I pointed out last time, Bitcoin was released at roughly the same time as the iPhone. Nobody needed to wait for use cases for the iPhone: the global economy immediately reoriented itself around the smartphone, because it delivered massive amounts of obvious value to customers. If this isn’t happening around cryptocurrency, at some point you have to face facts that it’s because the value isn’t there.
dni0 · 17m ago
I'm going to get railed for this, but if Bitcoin is still just as worthless as when it was founded, how do you explain it being one of the greatest performing assets of all time? I get that it's hard to make a populist case for it but damn it must be doing something for someone.
itsalotoffun · 18m ago
The compelling use case is grift.
Herring · 3h ago
> Home ownership and the rest of the American dream seem out of reach for many people, and there’s very little safety net available when it comes to healthcare expenses, retirement, or just bad luck.
I empathize with the author, I really do, but you can't care about someone more than they care about themselves. If anyone has had the supremely unpleasant experience of trying to get loved ones to work out, they know. The last time someone (democrats) tried to tackle healthcare, they lost scores of seats all down the ballot.
> but you can't care about someone more than they care about themselves.
I just finished introducing Avatar the Last Air Bender to my partner. I'm pretty sure you have a lot to learn from Iroh.
Human history tells us that we don't make it through alone. We thrive on social structures and forming coalitions. Sometimes we get down and our friends and family put in work to pull us back. Your claim is the mental equivalent of "I can't lift someone up more than they can lift themselves up." Sorry, but if all they've got is bootstraps then you bet I can lift them up high into the sky while they can only lift themselves as high as they can jump. I'm pretty sure most people can't jump onto my shoulders and I'm confident none could jump that high and stay without support. Stop asking people to fly and look down at who's shoulders you're standing on
saulpw · 3h ago
I don't understand how this relates to the material. Because people can't get their spouses to exercise, anyone who cares about themselves should have to pay a premium to a private insurance company so they don't lose everything if they get cancer?
Herring · 3h ago
You can't get your spouse to exercise, and if you try too hard they might divorce you.
You can't get most Americans to care about anything they consider "socialism", and if you try too hard you'll get Trump.
airstrike · 2h ago
I don't think Democrats lost those seats because of Obamacare, at least not primarily so.
voxl · 3h ago
Why do you think these two things are connected? Working out is a personal choice that should have zero barring on how we care for and help one another. For example, someone shouldn't have less access to healthcare because they don't or didn't work out.
Democrats losing support can be explained by several reasons that have nothing to do with tackling healthcare. It can be the fact that it ended up being a weak half measure in comparison to the strong desire for a universal healthcare system. Or completely unrelated to healthcare altogether, like the Hilary Clinton scandal fiascos.
t-3 · 2h ago
> For example, someone shouldn't have less access to healthcare because they don't or didn't work out.
One problem with this argument is that insurance companies disagree and nobody with any power in the US seems to want to move away from the "insurance provider" model.
antonvs · 3h ago
They're saying that convincing other people to do what's in their own interests is very difficult if they don't care. Working out is given as an example: it's obviously a beneficial activity, but that's not enough to convince many people to do it regularly.
The claim then is that people don't care enough about having public healthcare (or are actively against it) for it to be a politically popular goal.
(And to be clear, I’m someone who has never been particularly enthusiastic about crypto or blockchain.)
Is it high fees, is it overly burdensome sanctions/AML checks, something else?
I feel like at this point there isn't anybody defending stablecoins who isn't using them primarily speculative investment/trading. There has yet to be a usecase for distributed ledger that isn't solved better by a centralised ledger other than niche counter-culture solutions whose users are typically blinkered to the fact that they are already a self-selected techno-elite who can't bring their utopia to the commons. That ended a bit more nasty sounding that I intended, apologies.
Although the current government is having a good go at reducing the value of the currency, it's barely budged on the chart.
what about situations where centralized ledgers won't serve you? e.g. someone who wants to buy drugs, or sex workers want to get paid. And you mention "niche counter-culture solutions" but I don't think it's so niche - in 2002, the government of Argentina stole 2/3rds of everyone's savings by forcibly converting their dollar-denominated bank accounts into pesos at a terrible exchange rate. Not having to worry about this because you have a trustworthy government is nice, but it puts you into an elite class of your own.
Do cryptocurrencies provide value to people living in third-rate hellhole countries? Perhaps, because they are connected to the outside world. Ideally you could just have a foreign bank account that your country cannot touch. If the big governments gang up on crypto exchanges, then crypto will be worthless. The only reason they don't gang up on the exchanges seems to be that they (the people in government) use crypto for nefarious activities and money laundering.
The technological innovations of cryptocurrencies make for good thought experiments or puzzles, but serve as a distraction from their inevitable uselessness.
The problem stablecoins are solving are self-inflicted: KYC to open a bank account, restricted nationalities, account freezes, capital controls, taxation over-reach, etc.
At some point someone figured out that if they start over, there is a lot of “value” to be unlocked out there; and paid/lobbied/sponsored the right person to execute on that.
Yeah, it's basically Uber for finance/banking/etc. Reap the free real estate created by rules and regulation by..skirting the rules and regulations.
It also adds indirection, which in turn allows all the parties involved to point fingers at each other Spiderman-style. "Oh I thought $X was responsible for $COMPLIANCE." Eventually, y'all get audited and shape up but that's a years-long process. And in that time you've grown and grown and finance/banking/etc is pretty sticky. Kaching :)
And I’ve never felt clear on how people trust wallet, hot or cold — at some point they connect to the internet for transactions, and all the vendors seem suspect. I really doubt most users are building their wallet from code reviewed cryptographically signed source… but maybe I’m wrong?
I mean look at something like the Rabbit R1. I'm an AI researcher and I saw my peers get fucking excited about it because it was a leap ahead of all the state of the art research we knew. Sorry, but what? It takes time for research to get into a product, sometimes years, even in tech, even in the fast pace AI world. Like you think they put what normally takes at least one $10k GPU and put that into a $200 device? That they could leverage GPT and not have a subscription fee? You're not going to beat ChatGPT by using ChatGPT lol.
Somehow stuff like this keeps happening and we never learn our lesson. Author is right, they're just chasing. And the irony is that that chase is actually preventing us from getting what we're really chasing
I'm not afraid of looking like I don't understand - I simply don't understand. I've tried reading a few "yellow papers" for crypto projects and they are so abstract and full of jargon that I never come away knowing more than when I started reading.
If anyone has a good resource for getting into the technical details of crypto please let me know. I would like to gain a full enough understanding that I can finally decide for myself if it's revolutionary or overhyped.
In some cases, this is by design. The project is nonsensical and/or a scam, and the white paper is an obfuscatory smokescreen to provide an illusion of sophistication.
A lot of what we do might be sophisticated in some far corners, but at the end of the day the end results can be trivially explained.
"Taxi ordered from a phone app, "Sleep in other people's homes", "Restaurant delivery service with GPS tracking", "Exercise bike with a screen showing workout videos", "Someone else shops for you", etc.
Unfortunately with crypto, a lot of it is trivially explained as "obfuscated scam"
I don't think anyone ever claimed these were complicated or sophisticated, though? They're straightforward user-facing apps. A more comparable example might be cloud services or a good chunk of security products.
Blockchain is pretty simple. There's a database, organized in a way that you can add records to it but you can not edit past records - or if you try to, everybody would know you did. There's a network of people maintaining this shared database, as a payment ledger - basically, this database for them says "X has $Y amount of database-money". People participating in maintaining this database get paid in the same database-money. They have incentive to do it properly, otherwise their database-money aren't worth shit. They also have incentive to steal if they could, but since they can't edit the database without other people noticing (who aren't interested in having db-money stolen from them) it's hard. That's the basic level of cryptocurrency systems, very shallowly and simplified, of course. If you want to know the math and protocols, there are full college degree programs dedicated to it (I am not kidding at all, there are). There's even free courses on Coursera and such which deal with the basics.
The second level is allowing to do other, more complicated stuff with the same database. Like keep ownership records for other things (that's basically NFT). The next level is turning it from passive database into a computation engine, so you can make computations that will be reproducible over the database. That's ethereum contracts and such. There also side aspects - like privacy chains, where the information who owns the money is encrypted, so you can prove you own the money but somebody else would have hard time seeing how much you got and where it came from (it's usually very easy in most chains). Etc. etc.
Whether it's revolutionary or overhyped - I have no idea. That's kinda societal question, certainly all the above (and more) can be useful and you can build useful stuff on top of it. Would some people use it? Probably. Will everybody switch to it from existing ways of doing things? I have no idea, but I suspect no. But I am nobody, so it's worth nothing. A lot of people smarter than me thought there's a use case for certain things, and spend a lot of time and money building stuff, and nobody every used it. Take Meta - the whole "metaverse" thing, nobody even remembers it now. There are many things like that. Is crypto one of them? I dunno. We'll see.
Fundamentally, we've been making digital versions of everything. We have digital phone calls, television, bookkeeping, document writing, drawing, etc.
One thing we didn't have digitally was a currency.
Why would we want a digital currency? For similar reasons to all the other stuff above. It's more convenient. When you "transfer money" from your bank account to another, your bank has to physically move the associated cash from it's vault to the other banks vault, by hiring secure trucks, people, and so on. If the money has to cross a border, that's even more of a hassle, now you have to physically cross a border with a truck full of cash. When a bank "holds onto your money", they need a big vault full of cash, they have to count it, account for every dollar, physically safeguard it, etc.
This is a huge cost, inefficiency, and a big challenge of banking, and it's one reason transaction fees and banking fees are so high.
Now we have an idea of why we might want to make a digital currency. The biggest issue with making one is how do you solve the "double spend problem". That is, if I have 1 unit of a currency and I give it to you, how do we guarantee I no longer have that unit after it was given to you? In a physical world, I'm giving you the actual unit of currency, but in the digital world I'm giving you a copy of it, it would be easy for me to keep my copy as well and have an infinite money glitch.
The solution to that is simple, you have a source of truth that processes the transaction. That source of truth records that I had 10$ and you had 10$, I gave you 1$, and now I have 9$ and you have 11$.
That's easy enough. Here comes the second problem, who would trust owning that source of truth? Would you trust me keeping the official source of truth log of how much money everyone has? I could easily add myself a few 0s to my account, or remove some from yours.
Would you trust the government of your country? Of another country? A big corporation? A US charity?
This is where crypto comes in. Crypto says, nobody would ever trust a single entity, but what if everyone could join a network of nodes that together form the source of truth? Not owned by any single person, but the union of everyone who wants to join the network, and you could join the network, I could join it, anyone is free to join it, and we can all validate and check each other's work to make sure no one else on the network is fudging the numbers.
And now a lot of complex cryptographic math comes in to from this network.
>
> This is a huge cost, inefficiency, and a big challenge of banking, and it's one reason transaction fees and banking fees are so high.
That's absolutely not how this works though. Banks perform electronic transfers and most of the money is accounted for in databases. The problems are slow, antiquated, technology, which is made worse by the amount of regulation surrounding it that makes it hard for new contenders to enter and drive down prices via competition.
Cryptocurrency is trustless, but there is an interesting tangent about if you _do not_ want a government to control monetary policy.
That's several centuries out of date, I'm afraid. Even before computers banks didn't actually do that, but now they certainly never do that. They just change records in their books - it has been paper books once, now it's just database files. I mean, banks do move cash (still do) but not when you transfer money from account to account, it has nothing to do with that, unless when you're running a massive cash-based business (which most banks hate btw, for many reasons).
Someone completely misunderstands how the real world works, misrepresents that even more when trying to articulate, uses convoluted wording to hide their total lack of understanding of the real world. Then create a "solution" for the problems that do not exist in the real world in the first place, in the process reinventing problems that are solved for centuries already or running head first into ideas that have been proven multiple times in history to just not work.
This whole machinery is then used by criminals to launder money, scammers to scam people out of money and speculants hoping to get rich quick, providing real money liquidity for the previous two.
Payment settlement is a solved problem and very rarely involves physical cash transfer. Most of this is just numbers moved between accounts which commercial banks have with a central bank.
That’s not at all what happens!
Transfers are done digitally, physical cash does not move between vaults or bank branches.
While I'm sure some of this is true for some banks at some point in history, this is the kind of understanding of a given industry that results in TechBros reinventing buses or juicing machines.
> This is a huge cost, inefficiency, and a big challenge of banking, and it's one reason transaction fees and banking fees are so high.
The reason banking fees are so high is because they charge what the market will bear, and most of the banks customers are a captive audience. It doesn't cost $2 to perform a transaction at an ATM; it costs pennies, if that. Banks should be paying you for holding, and putting to use, your money.
That hasn't been true for, uh, centuries. It's like literally the entire point of banking, to allow financial transactions to take place without having to physically haul around collateral anywhere.
(And if you want a digital version of what banks actually do, it's called SWIFT, and has been around since checks Wikipedia 1973).
See https://www.bbc.com/news/business-38499883 and elsewhere.
It’s really telling how poor the knowledge of financial history and the existing state of the art in traditional financial tech there is among people in the crypto-boosting space. Many of the “innovations” they claim have been around in traditional finance for hundreds of years.
For example, there have been a lot of novel or interesting projects centered around cryptography, consensus, decentralization, anonyimity. On a sociological level, there are a lot of interesting social/economic experiments unfolding in the DeFi world as we speak.
But I think that is where the truly interesting or valuable contributions to humanity as a whole end, and the vast, vast majority of it otherwise is just speculation or scams. It is hard to find that signal in the noise, but it is there, if you look.
This will break, sooner or later.
When external buyers stop buying treasuries US will have to massively inflate its money supply, taking bondholders and a bunch of other groups to the cleaners. Such events have a lot of collateral damage, which may fit the definition of financial blow up. But I would place us much further away than 6-12 months, likely at 5-10 years. If there is a viable alternative to US treasuries, potentially sooner, but still not in 12 months. My 2c.
And I am talking about myself here. My only excuse is that I simply don't use my money. Which is not necessarily a good thing either.
Repeat after me. Do not use technology to try to solve people problems.
I am saying the solution to make people smarter or empower the people. Buy now pay later, credit cards, and all these bespoke algorithms is just an illusion to make people feel better when they get ripped off.
When I was growing up, I didn’t understand check cashing places, payday loans, the layaway counter in the stores, home equity loans, reverse mortgages, auto leasing, and such.
And looking back, I’m amazed how much nonsense is out there. These are more traps than tools.
Someone responded like "lol, sure, we can find some sociologists to start programming our apps", and I thought Damn. That's really missing the point. And it seems so arrogant. Like, not only do we laugh at the idea of people doing our jobs, we also need to laugh at the idea of the relevance of their fields.
Yet we really should depend on their insights to further our field, in my opinion. No profession truly stands alone, just like no person does.
I think we'll get better about this over time. Right now we've definitely got some growing pains.
Even in computing, a profession dominated by scientists and engineers, has a lot of failing. Even the damn SPEC benchmarks don’t know to average numbers correctly.
These technologies didn't fix the problems. There is too much regulation, you can't do anything without a license. The only solutions are political, not technological.
Everything feels like a scam within a scam. I feel dizzy just thinking about it. I'm completely demoralised. Everything related to career feels pointless, sisyphean because of the bureaucracy and monopolization. Any work that pays well is useless at best, harmful at worst. It's either illegal or impossible to do anything which might provide value to people. Even if all the hurdles could be removed, I'm not even sure I want to contribute... For whose benefit? And I feel totally disconnected from the broader society around me.
I basically completely checked out career-wise. I'm good at faking though so I just fake it. I just started bullshitting my way through life. I hate it but everyone is just eating it up and loving it. What can I do? Just give the people more of what they want I guess. Value creation doesn't pay, bullshitting pays... People are living a lie and they love it when you build on top of it. If you just say the right words, they will deny their own eyes; this is what COVID taught me and I can see this in my day-to-day life. It's depressing, they are good people, that's why they assume good faith. I was just like them before, living in a bubble, I understand, I'm no better than them, just less fortunate. If they saw what I saw, they would probably do what I do. Many would do worse.
I feel like I need therapy from being this way. I have bills to pay though. I think I did everything approximately right but I've been ridiculously unlucky. I was operating on limited info and incorrect assumptions. Now, I'm stuck between a rock and a hard place.
It's illegal to be homeless in my country. It's illegal to live in a tent on 'your own' property, you are not allowed to build your own house without some expensive license and approvals... You can't do shit within your means. All the things which seemed unimportant to me before are now the centre of my life and on that plane of existence, I see scams all around.
> Bradley Lott-Tillery, 24, from Arizona also entrusted Yotta with his savings, thinking his money would be protected by the federal government. “I emailed [Yotta], made sure it was FDIC insured. Of course, they emailed me back and told me, yes, it’s FDIC insured, which we now know is not true,” Lott-Tillery said.
> While the banks with which fintech companies like Yotta and Juno partner are FDIC insured, this only kicks in when a bank is found to have failed. Since the intermediary Synapse filed for bankruptcy, but not any of the banks, the money is not covered by the regulatory agency.
https://businessjournalism.org/2025/03/synapse-collapse/
(their money was "insured" in the same way depositing money in a random guy's bank account is insured: it's not insured against the guy! these bank-shaped companies managed to convince a bunch of people that they were close enough to banks and about as safe, and then it turned out they all handed the money over to the same fintech company to interface with the actual banks, and that company went messily bust)
The regulation is there to reduce the amount of scamming and con artists. It's the same reason we have Blue Sky Laws.
> Everything feels like a scam within a scam. I feel dizzy just thinking about it. I'm completely demoralised. Everything related to career feels pointless, sisyphean because of the bureaucracy. Any work that pays well is useless at best, harmful at worst. It's either illegal or impossible to do anything which might provide value to people. Even if all the hurdles could be removed, I'm not even sure I want to contribute... For whose benefit?
None of this is because of regulation. It's all because of greed and unchecked grift and profit capture. Technology is making the world worse because of greed and capturing profit, not because of regulations. The work most of us are doing is harmful because of greed and capturing profit, not because of regulations. Everyone is living a lie because of greed and capturing profit, not because of regulations. These uncountable scams are all because of unregulated greed and profit. People on HN are mad, but they're acting out against an imagined "regulation boogieman," not what's actually causing all of the shit.
But it's hard to fix greed. The solution to fix greed is way more radical, it's violent. The greedy will defend their interests with violence when confronted. The only non-violent solution I can think of is to let the system collapse, under their own direction. That's the only way the greedy would relinquish enough control to allow people the freedom to get things going again. There was a bit of this after COVID but it wasn't enough.
I just hope people can maintain their sanity through this. I hope it's not going to be an endless cycle of society repeatedly rebounding off from rock bottom... Never actually lifting itself out of the muck but basically always scraping rock bottom with only short temporary breaks.
As a developer, the system and code complexity we have to work with is increasing to the level that it should be considered mental assault. You need to develop a kind of apathy to get through life.
The regulation + limited liability combo takes away fear. The big companies doing harm love regulations, they breathe a sigh of relief when regulations are introduced. 'Regulatory clarity' they call it. They barely even know what harms the regulation is trying to prevent. They are disconnected from that.
I think this is successful in its goals
Liquidity providing on concentrated liquidity pools is something I would like to see in the high volume US equities market
But will realistically only exist on tokenized platforms that trade their surrogates
It’s extremely lucrative and was only in the domain of market making firms before this technology
A lot of these things are lucrative until they're not. If they are inherently lucrative then that profit will diminish as people catch on.
back to what I'm a fan of: CLMMs (Concentrated Liquidity Market Maker) is a very competitive field. The level of profits depends solely on volume and amount of capital participating. You are counting on other capital getting bored and moving away, as well as volume rising. Thats the game, it will always be the game. Its already "lucrative until its not" so its not really a gotcha or that insightful for those passing by. I'm glad you have some experience with it.
Also, what is this headline even about? Why the bashing on fintech? I worked for 4 fintechs and communicated with many more, not a single one was blockchain related.
Why is this even on hn?
If you want to read proper criticism of blockchain, read Molly White's essays instead
https://blog.mollywhite.net/blockchain/
Of all of the supposed use cases for NFTs, this is one of the silliest. If you've ever looked into video game modding, one of the things you tend to realize is there is nothing close to a standard model format for art assets, so it's an insane amount of work to get an item in game A imported into game B, and that's only considering the work in mapping the visual design--the work that goes into mapping item properties is in some cases just "there's nothing you can do." (And this is despite there existing just three software packages that gets used in practice to make this stuff!)
I understand why that would have been a road block in the last, but my hunch is that this type of problem (mapping visuals and item properties) is something AI would make quick work of.
Having no other way to do these simple things, from my point of view, it is not a problem of hundred thousand people in Venezuela, it's a valid problem of tens (if not hundreds) of million people around the world.
IMO The author significantly underestimates how limited and inaccessible the current financial system in the world is.
What crypto is already useful for is not to replace the cash in your pocket and your savings account. It is useful to replace SWIFT and Fort Knox.
What crypto will be useful for in the future is uncertain. But uncertainty does not mean pie in the sky. How the internet would be used was uncertain in the 70s.
Yes, nerds were already excited about the internet in the 70s. Have a look ath the "Mother of all demos": https://en.wikipedia.org/wiki/The_Mother_of_All_Demos It takes decades to iron out the details of how to use fundamentally new technology.
Fear of change. Is there any new technology that HN is in favour of?
That is what I mean by point 3 in my comment.
Fort Knox still exists. US gold reserves are still increasing:
https://www.statista.com/graphic/1/188843/united-states-offi...
But it seemed pretty obvious to me more than a decade ago what cryptocurrency would be useful for. I remember the ideas flying around in the early days.
It's been a bumpy road...but then, I also remember through the late 90s (and especially after the dotcom crash) when there were countless takes on how the Internet (and PCs in general) had been vastly overhyped. "Computers were supposed to eliminate paper, but we're using more paper than ever! We were supposed to do all our shopping and get our news from the internet, but Sears is thriving and I still get my daily newspaper every morning!"
Somebody could absolutely have made a book out of all the overpromises of the "Internet Superhighway" era.
The path to general use for cryptocurrency has been, and will continue to be, rocky. Moreso than the net. It inherently involves money--lots of money--and so it's been rife with scams. "Nigerian Princes" on steroids.
But I can tell you guys: before the rush of investors and crazy bubbles, before the scams and collapses, long before hucksters like Trump got involved, there was a group of people to whom the potential of cryptocurrency seemed obvious.
As I pointed out last time, Bitcoin was released at roughly the same time as the iPhone. Nobody needed to wait for use cases for the iPhone: the global economy immediately reoriented itself around the smartphone, because it delivered massive amounts of obvious value to customers. If this isn’t happening around cryptocurrency, at some point you have to face facts that it’s because the value isn’t there.
I empathize with the author, I really do, but you can't care about someone more than they care about themselves. If anyone has had the supremely unpleasant experience of trying to get loved ones to work out, they know. The last time someone (democrats) tried to tackle healthcare, they lost scores of seats all down the ballot.
https://www.quorum.us/data-driven-insights/under-obama-democ...
Human history tells us that we don't make it through alone. We thrive on social structures and forming coalitions. Sometimes we get down and our friends and family put in work to pull us back. Your claim is the mental equivalent of "I can't lift someone up more than they can lift themselves up." Sorry, but if all they've got is bootstraps then you bet I can lift them up high into the sky while they can only lift themselves as high as they can jump. I'm pretty sure most people can't jump onto my shoulders and I'm confident none could jump that high and stay without support. Stop asking people to fly and look down at who's shoulders you're standing on
You can't get most Americans to care about anything they consider "socialism", and if you try too hard you'll get Trump.
Democrats losing support can be explained by several reasons that have nothing to do with tackling healthcare. It can be the fact that it ended up being a weak half measure in comparison to the strong desire for a universal healthcare system. Or completely unrelated to healthcare altogether, like the Hilary Clinton scandal fiascos.
One problem with this argument is that insurance companies disagree and nobody with any power in the US seems to want to move away from the "insurance provider" model.
The claim then is that people don't care enough about having public healthcare (or are actively against it) for it to be a politically popular goal.