The promise of crypto was that someone found a way to make a non-duplicable, tradeable token. First by proof of work and then by proof stake.
The problem is that they forgot the 1 against all adversarial nature of internet security. A trillion dollar empire set against one way of securing assets is in essence a trillion dollar bounty on breaking your security regime. And what was found? That the system was complex enough that most security "hacks" were mostly social engineering with a sprinkling of insecure gateways and passwords. Neither the users of wallets or the engineers of exchanges put in enough time and effort to secure their holdings in relation to the dollar values they held. Wild swings in the stability of coin values created arbitrage opportunities which made some users exceedingly rich, prompting more dumb money to enter the system. That's a bug, not a feature.
I still think there's value for crypto to evade censorship and manipulation of populations via legislation of the money supply. But that requires a whole slew of low level techs to maintain and verify transactions. At some level that may make it as onerous and bureaucratic as our current financial systems.
I just hope that this doesn't cause financial contagion in the traditional sectors.
The problem is that they forgot the 1 against all adversarial nature of internet security. A trillion dollar empire set against one way of securing assets is in essence a trillion dollar bounty on breaking your security regime. And what was found? That the system was complex enough that most security "hacks" were mostly social engineering with a sprinkling of insecure gateways and passwords. Neither the users of wallets or the engineers of exchanges put in enough time and effort to secure their holdings in relation to the dollar values they held. Wild swings in the stability of coin values created arbitrage opportunities which made some users exceedingly rich, prompting more dumb money to enter the system. That's a bug, not a feature.
I still think there's value for crypto to evade censorship and manipulation of populations via legislation of the money supply. But that requires a whole slew of low level techs to maintain and verify transactions. At some level that may make it as onerous and bureaucratic as our current financial systems.
I just hope that this doesn't cause financial contagion in the traditional sectors.