Clinamenic

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You could call crypto most broadly a possible Ponzi scheme, but then again you could also call some of the existing financial markets Ponzi schemes, when you take into account market manipulation, various techniques for defrauding investors, etc.

Gets into an area of semantics. How is being tricked into a Ponzi scheme different than speculatively investing in securities? I think research is the primary solution, and investor protection would seem to help greatly.

The latter is ostensibly lacking entirely in crypto, and the former is something many crypto investors don't seem to bother with.
 

Clinamenic

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But with Bitcoin, for example, the actual code is open source, which is a basis for trust, in my opinion. I lack the literacy to personally audit the code, but I trust that such a secret (i.e. backdoors in the code) would be virtually impossible to keep from such monied interests as the major financial institutions in the US.
 

Clinamenic

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Plus, it makes sense to me, how a system like Bitcoin's blockchain can work.
 

Clinamenic

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But without taking the time to understand it, it is perfectly reasonable to be suspicious. It is unlike anything else, a financial system that can operate almost without supervision.
 

Clinamenic

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I’m not doing any trading, which is what would be time-consuming, I just like tracking the market and getting a sense of the rhythms and how they may relate to business/political news.
Reddit has been helpful here. I don't go to reddit to find facts, but to gauge market sentiment, and to see what popular trends there are in crypto culture.
 

Clinamenic

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I can't name an industry that is as far ahead of regulators as crypto/blockchain is, in terms of technical advancement. It's insane.
 

Clinamenic

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Maybe genetic engineering, maybe artificial intelligence, but these are guesses.
 

Clinamenic

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Nexo is a centralized platform though, a custodian, not too different from the incumbent financial institutions today, just with the novel practices afforded by blockchain.
 

Clinamenic

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Yeah for me actual DeFi isn't worth the transaction costs, plus I've already tucked everything away in CeFi.
 

Clinamenic

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Nexo is a centralized platform though, a custodian, not too different from the incumbent financial institutions today, just with the novel practices afforded by blockchain.
Platforms like this (Nexo, Celsius, Gemini, BlockFi, etc) could enter global incumbency, depending on how they take this big initial wave of regulation and policy definition.
 

Clinamenic

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Is that the one that channels your APR yield to automatically pay off loans? I made that mechanism suggestion in a subreddit and someone said that Alchemix already did it, unless I’m confusing it with something else.

In any case no I haven’t tried it. For DeFi I’ve only used Uniswap and I beta-tested the Gravity Dex on Cosmos.
 
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