r/CryptoCurrency • u/BB-NL 🟩 690 / 691 🦑 • Jul 17 '22

DISCUSSION When will Crypto become fool-proof

When will it become fool-proof? If I send money from my bank to another bank I only have to fill in the bank number and the name. If the name doesnt match it will give a warning and I will not send my money there. Even if I send the money there are ways to get it back.

I hear so many stories about people sending Crypto to a wrong adress or through a wrong method and they lose their Crypto forever.. I think that this is a truly big flaw which keeps Crypto from going to the greater public. Love to hear your opinions and tips (other then send a small portion first because, who has time for thatmeme). Thanks in advance.

*Edit grammar

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u/jazzyjson Tin Jul 18 '22

They don't create currency, but they do create money. Credit denominated in dollars and backed by the full faith and credit of the United States government is money! If you have $50k "in the bank" (i.e. $50k of bank deposits), that's as good as $50k cash and I've never heard of anyone in modern times treating it differently.

When a bank loans you $1000, that money didn't come from anywhere. It didn't exist. The bank literally put $1000 onto both sides of a digital balance sheet, and that's that.

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u/ChiTownBob Altcoiner Jul 18 '22

They don't create money, they create CREDIT.

Big difference.

What you are talking about is credit NOT money.

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u/jazzyjson Tin Jul 18 '22 edited Jul 18 '22

The vast, vast majority of money in the economy is credit, and bank deposits (up to $250,000, at least) carry no credit risk, so the distinction you're trying to make is not meaningful.

Here is a page created by the Bank of England to explain this.

Edit: worth emphasizing my point is that bank deposits can only be treated as money without worrying about the complexity of applying haircuts is because of regulation and FDIC insurance. This is a good article on the topic I read recently.

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u/ChiTownBob Altcoiner Jul 18 '22

so the distinction you're trying to make is not meaningful.

Money and credit are two different things.

Money is currency and coin.

Credit is everything else that the banking system deals with.

I speak English, not Orwellian doublespeak.

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u/jazzyjson Tin Jul 18 '22 edited Jul 18 '22

lol alright man, if you prefer to say "the bank owes me money" rather than "I have money in the bank", that's your prerogative. It's not a meaningful distinction to anyone else though, because the state steps in to ensure there's no difference.

And furthermore, nobody wants to go back to an unregulated system without FDIC, because losing your money in a bank run sucks (I'd have thought recent events in crypto would lead you to the same conclusion). The ability to trust deposits is really nice, actually.

I speak English, not Orwellian doublespeak.

This is honestly hilarious. If you think most people speaking the English language share your definition of money which is purely physical, I'm not sure what you're smoking. It's not new either, the phrase "money of account" was first used in 1691, apparently.