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The impossibility of bail-outs is a feature, not a bug in crypto It’s how honest financial systems should work Make ill-advised, over-levered trades? Sorry but you’re now wiped out A cascading “contagion” effect is healthy. Like a forest fire hardening a Sequoia grove

Dave Friedman (not parody)

@friedmandave

Jul 6

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@rsg

Except there are bailouts in crypto, courtesy of

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and

That’s private capital stepping in to buy distressed assets. Not public money, not governments Just the free market operating as it should

Dave Friedman (not parody)

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and

Eh, it's still a bailout. "Bailout" need not imply government money.

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and

bailouts are also very different if primarily aimed at customer assets & contagion vs at equity shareholders the first is much healthier than the second I think

3:09 PM · Jul 6, 2022Twitter Web App

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Dave Friedman (not parody)

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and

I agree with this.

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and

I like the first better too. I would even vote for it.

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and

The private vs public distinction is also incredibly important morally Why should a government tax their citizens to bail out a wealthy financial institution going under? Why should a random plumber have to pay for that? There’s no moral dilemma if the “bail out” is private

Dave Friedman (not parody)

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and

I generally agree, though some systemically important institutions will affect many more people than just a plumber if they fail. Which is likely an indictment of the system we've created.

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and

Do you have any plans to help bail out

@investvoyager

customers now that they have filed bankruptcy?

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