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by brilliantcode 3416 days ago
For one, a theft on banks is extremely hard and rest of the system hums along. Mt Gox and DAO however resulted in catastrophic failure where everyone was collectively punished.

On a personal level, there are good channels to get your money back where in a decentralized market, there's zero chance. It's better to have other humans keeping check on each other than code watching other code because it will not take into account the "spirit of contract".
2 comments
mrb 3416 days ago
"a theft on banks is extremely hard and rest of the system hums along. Mt Gox and DAO however resulted in catastrophic failure where everyone was collectively punished."

Not "everyone" was punished. Only users of Mt Gox. And only investors of the DAO. Also both Bitcoin and Ethereum survived these incidents very well.

With legacy financial systems (banks, cash) there are plenty of scenarios where you may never get your money back, eg.: lose your wallet/cash, 2016 Bangladesh Bank SWIFT hack where $60M was never recovered, etc.

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guard-of-terra 3416 days ago
In a centralized system, sometimes people can help you get your money back, but it is also possible that they'll help taking money away from you.

"Spirit of contract" is usually taking money from less well-connected and awarding it to more well-connected. Have zero faith in it in XXI century.

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