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lcamtuf :verified: :verified: :verified:

This is a pretty good quote from Matt Levine:

"I used to write a lot about crypto. The reason I liked writing about crypto is that it seemed to be rediscovering all of regular finance from first principles, quickly, in public. It was a fabulous laboratory for understanding financial structures. If you wanted a public demonstration of why, I don’t know, infinitely leveraged shadow banks were bad, you could wait 20 minutes and crypto would give you one."

I made the same point before: the most interesting part of the phenomenon wasn't that it's necessarily good or bad, that it's energy-hungry or not - but that you're getting an empirical validation of many of the crusty old principles of "classical" finance. Funnily, delivered to you by the folks who rejected all that dogma in the first place.

12 comments
kurtseifried (he/him)

@lcamtuf what’s wild to me is to see people struggling to use AI constantly talking about how they have to check the output of the AI to make sure it’s safe and correct. Whenever I ask them why they don’t just apply the same systems that they apply to human work to AI… yeah, I get a lot of awkward looks.

What really blows my mind is when I talk to them about the automated ways you can use AI to check AI output. Some of them get it and it’s interesting to see their expression.

Bill's in the shop for repairs

@lcamtuf Similar to why I loved discussing "NOSQL" data stores a decade or more ago: Watching them all embarrassingly, publicly discover that the CAP theorem was real, that performance rarely scales linearly without tradeoffs, that relational models are efficient, and that SQL was (and remains) an excellent language for interrogating data... We are still sore from laughing about when "NOSQL" stopped meaning "NO SQL" and started being translated as "Not Only SQL"

Worik

@wcbdata @lcamtuf

It depends what you mean by "nosql"

SQL is only good for relational data.

I have seen people put web logs in SQL databases.

A tremendous waste

phonon

@lcamtuf
> It was a fabulous lavatory for understanding
ftfy Matt Levine

Ron Bowes

@lcamtuf I always felt like the crypto industry was learning "all rules are written in blood" the hard way

Chris Adams

@iagox86 @lcamtuf thar seemed almost intentional, too. I remember having conversations a decade ago where people were just blowing off things like fraud recovery as if the fear of losing everything would inspire users to not make mistakes rather than simply not using it.

The Doctor

@acdha @iagox86 @lcamtuf That was exactly so. I worked with a few of those guys.

rateexportpilot

@lcamtuf the man is a national treasure. Money Stuff is the only newsletter I have ever signed up for that I legitimately read every day.

Claudius Link

@lcamtuf
Would you share the source of this quote?
I would like to read more 😀

abadidea

@lcamtuf my husband is a financial lawyer and he did his master’s thesis on this stuff. he’s both a traditional finance expert and a cryptocoin expert and owns zero coins, that should be a hint…

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