Quote:
Originally Posted by Wayne 962
Yes, I agree - that doesn't make any sense to use Bitcoin as collateral against another Bitcoin loan - you would need to arbitrage against another currency in a speculative event.
Again, I'm not arguing that Bitcoin and crypto in general are very speculative at this moment - heck BTC changed 10% between the two times I checked it today. I'm sure there's plenty of money to be made. Assuming a currency eventually becomes stable in price relative to other fiat currencies, I'm still struggling to find a compelling real-world advantage for the average Joe (or company) to use it over the conventional banking system? International wire transfers can be a pain in the ass indeed, but converting into a crypto, then sending, and then converting back would also be a pain. Also, in general, accounting is done and reconciled in a single currency - I don't know how one would even account for foreign reserves (I guess International companies have to do it somehow).
What is the primary advantage of a decentralized exchange over a centralized one? Security?
-Wayne
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I think right now its not better for any average person, maybe those in third world countries without access to banking otherwise, but its possibly the building blocks for something better. When the internet started gaining momentum, did you ever imagine it would basically replace the taxi industry with Uber 30 years later? It's hard to forecast where these cryptos sectors will make their mark and what they will touch in the future.
Yes security, availability and speed. No central wallet to be hacked or stolen, available to anyone at all times. Current centralized exchanges are limited to certain regions and countries, a DEX can be accessed anywhere.