One of the interesting elements of crypto/digital currency that doesn't get talked about enough is the auditability of having everything being digital.
Part of the 2008 GFC story that isn't as widely talked about was that a lot of the problems were not just that a lot of bad mortgages had been handed out (they had), but that it was all buried in giant paper contracts so no one know how bad (or not bad) it was.
A lot of the traders that made the most money in 2008/9 were actually buying mortgage-backed securities (MBS) that were trading too low because people were afraid things were even worse than they were.
If something is worth 70 cents on the dollar, buying it at 40 cents on the dollar is still a great trade.
It's kind of crazy that if those contracts had existed in an auditable, digital format that someone could have literally written and run a Python script in a few minutes that would have told you what it took years for people eventually figure out.
This never really gets talked about publicly, but a lot of the issue was just shitty accounting.
It was interesting how well the on-chain DEX/DeFi ecosystem handled the recent sell-off.
A lot of people got blown out but no one was unsure about their position.
It was pretty easy to know if you got blown out or not in real-time.
A lot of people got blown out but no one was unsure about their position.
It was pretty easy to know if you got blown out or not in real-time.
[Insert all appropriate disclaimers about uses of leverage, lack of regulation, it's wild wild west, etc. Just find the audibility angle an underappreciated component}
Should also note that this doesn't necessarily require a public blockchain, could be done via CBDC or any similar digital currency.
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