Why does the left hate crypto so much?


θερμοδυναμικός καπιταλιστής
The crypto bank (technically still a lending platform, pending regulatory definition) I use makes it virtually impossible to be in a position of debt. Also no such thing as credit scores to take out a loan. Marvelously liquid assets being borrowed and leveraged (if even too precariously, but how can we expect otherwise).

Deposit crypto assets as collateral, instantly borrow fiat/stablecoins at a loan-to-value ratio which varies from asset to asset, platform to platform, and if the value of the collateral depreciates below the value your outstanding loan, incremental liquidations are automatically triggered.

In principle, this makes the institution more resistant to runs, but I suppose there are manifold other factors to consider before such a conclusion is reached. My thinking is that if their assets - specifically the interest paid by borrowers - can be instantly claimed in a time of crisis (edit: a time of crisis being defined by the borrower being underwater, rather than the institution just seizing collateral to cover themselves), their risk is diminished to such an extent, rather than if they needed to manually procure the money owed them. I'm unaware of how traditional banks would operate here.

I don't think the revolutionary potential lies in crypto assets as new systematic currency, at least not in the short term. I think the shorter term revolutionary potential is in smart contracts.
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