Reason #5734 why cryptocurrency is a non starter for real people.
Challenge: explain to a normie that their life savings is gone forever because of a zero initialization vector.
Challenge: explain to a normie that their life savings is gone forever because of a zero initialization vector.
Somebody who directly invested in MBS is by definition not a normie.
However, morons spamming TikTok, Twitter, Facebook and every social network to find a sucker to invest in their super 20% profit moon monkey future currency can be found in a minute, reaching hundreds of thousands. Plenty of normies lose their money in this.
My retort was half-baked because two wrongs don't make a right. But it is ironic to see that many normies here don't see how MBS caused massive wealth loss across all investors worldwide without them directly speculating in that asset class. While, so far, this hack hasn't caused a crash in crypto assets.
Of course there is no justice in either case, but at least normal people can see who is most appropriate to behead in the case of the traditional financial catastrophes, in the purely theoretical revolution.
If you got burned by mortgage backed derivatives and lost your life savings, it's ultimately because you were (knowingly or not) speculating on the value of real estate assets and making an assumption about future values of said assets.
In the case of Nomad, it's that you put yourself at risk by using their service you could've lost everything you put in.
They claimed high-risk mortgages would turn AAA by the magic of financial and statistical shenanigans. That's not far from "zero initialized vector" shenanigans.
Investing in AAA securities is not speculation, by financial standards, by the way.
I would argue that it is now after seeing the bullshit the ratings agencies pulled during that fleecing of the world.
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>it's ultimately because you were (knowingly or not) speculating on the value of crypto assets
Not seeing how these are different
You mistook a currency for an investment opportunity, and gambled your life savings on one thing. Currencies have always and will always fluctuate against each other. Diversify your investments.
The issue is treating a currency as an investment is just...foolhardy from the get got. Just don't do that. It's silly. People saw the value of it go up - or start to have any in the first place really - and saw a "get rich quick scheme" where there wasn't one. It was the brith of a digital currency, nothing more.
If a currency crashes, not only does that 'really matter' for most regular people who will have some material savings in that currency, it also creates really terrible problems for everyone using the currency.
The value of a currency is in it's integrity over time.
It doesn't have to maintain perfect pricing parity etc. however, it must not just vanish and fall apart.
We can see this with USD and Seigneurage with the Petrollar.
People hold USDs not because they think 'it'll be worth more' but rather, they'll be valuable in the future, because USA won't crash and fall apart.
This crypto stuff is mostly stupidity with bad economics all the way down.
Maybe some day that will change.
Usually just depositing money in a bank doesn't get it stolen so the assumption isn't unreasonable.
Even if it's only 0.25*life saving that's still devastating for most people.
If you want an apple to apples comparison you should be comparing the security of a savings account to that of a cold wallet. Those are much more alike in their function.
I don't think we classify people who engage in cross network token swapping as "normies". That's like classifying algorithmic day traders as an "average joe investor".
This is especially the case for protocols like Nomad that don’t yet have a native token. They’ll get liquidity commitments through over-the-counter SAFT agreements that give the VCs a percent of the future tokens.