Shallow safety vs. deep safety: Shallow: estimated from volatility, assumes nothing goes wrong at lower layers of the protocol stack Deep: what happens to your assets upon underlying failures? e.g. how would your digitally centralized assets fare against sanctions or cyberwar?
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At the behest of political activists, digitally centralized financial services have frozen accounts and cut off access to a wide variety of people based on their political views.
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In a deep or prolonged recession, attacks by technocratic authorities & political activists against digitally centralized assets will increase in volume & scope. Other forms of political or legal instability could also lower the safety of digitally centralized assets.
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One can think of shallow safety as the technical analysis of safety based on technical factors such as price volatility. Deep safety is a fundamental analysis of the underlying technological, political, and legal environments which actually control the assets.
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Deep safety varies greatly between different people & organizations. Risks to digitally centralized property vary greatly between different people & organizations & their different political & legal environments. Price movements don't tell you much about your particular safety.
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End of conversation
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No. You are confusing government with God. It is extremely far from being either omniscient or omnipotent.
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All things that would encourage more people to use secure instead of an insecure form of money.
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It has also enabled a fairly centralized peer review process that can be perniciously weaponized to manufacture scientific consensus and political authority. Blockchains not only free money, they separate science and state.
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In the 2013 Cyprian financial crisis, savers, pension funds etc worth over 100k euros woke up to an almost 50% haircut, & restrictions on how much can be withdrawn or transferred each day, to avoid a Bank run. This is exactly why the world needs
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