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RE: Imagine when people understand

in #bloomberg5 years ago

The thing is that money is always "safe" in the bank in the sense that the government (and I can only speak for the US) will never allow for people to lose their bank deposits. That's what happened during the great depression and the govt has learned from that. They will make sure (via insurance, bailouts, etc) that no matter what the banks do that people won't lose their deposited funds, otherwise it would collapse the banking system which they will avoid at any cost. Plus, it's very easy for them, they just print more money to cover any losses (like what they did in the 2008 bailouts).

This will lead to higher inflation, of course, but the genius of inflation is that's it's typically relatively slow and the general public doesn't notice. So people will lose their money but it will be a slow process and they won't realize it's happening, or what exactly is going on.

This is one main reason why it's so hard to get people to stop trusting the banks. On top of that, crypto is still WAY too hard for most people, so good luck trying to convince most anyone to take their money out of the bank, which they consider extremely safe and convenient, for something they have no idea how to use and adding a huge responsibility on them to secure.

People don't want to have "full control over their money" because that's a lot of responsibility. They want someone to manage it for them. They don't really care if their money is "non-confiscatable", they want it to be secured/insured, because it's a million times more likely that they will get stuff stolen than confiscated (again, speaking currently in the US). Lastly, they don't care about inflation because they don't even realize it's happening.

At the end of the day, crypto is solving problems that very few people have or care about right now while the economy is doing "well" and the system is "working". Unfortunately, I think it will really take a great depression type of event before any significant amount of people around the world will really start to understand the benefits of all the things you've mentioned in this post.

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Great thoughts Matt! I think you are hitting the nail on the head.