Credit is and will remain crucial to our economy, but it always implies the possibility of default. Counterparty risk is an unavoidable part of credit, and makes it a less secure basis for a monetary system than a well-implemented and trust-minimized cryptocurrency.https://twitter.com/izakaminska/status/950820062927212545 …
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Replying to @NickSzabo4
A monetary system is bounded in both sides of the coin. Risk of default is how the global economy works. You can't design this out of the system without enslaving people.
4 replies 2 retweets 9 likes -
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Replying to @NickSzabo4
I can agree in good faith to make payments to x, but if/when economic or personal conditions change through no fault of my own to point i can't afford payments, the only thing I have left to pledge to avoid default is my own personal autonomy.
2 replies 2 retweets 6 likes -
Replying to @izakaminska
Good for you, but bad for the also human counterpart(ies) who had been counting on you, and an utterly insecure basis for a monetary system.
6 replies 2 retweets 42 likes
there is no way to avoid risk since the future is unknown and the present is cashflow constrained. bitcoin (for eg) does little to overcome these fundamental realities so it is hard to see what you mean replace the present "utterly insecure" system with.
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