[michaelscott]

> (1) Trust is not a problem, it's a huge optimization. The sheer power consumption of cryptocurrencies is hard, demonstrable proof that trust is an efficiency.

This is a conflation. Trust can certainly be a problem, and the demonstrable proof is the 2008 bubble and any other historical bubble with similar features.

> (3) Banks are trusted and regulated.

Again, until they're not or they collude. This isn't slippery slope stuff, this has actually happened in the recent past.

> (4) Fractional reserve lending is fine because the FDIC guarantees the funds in the event of a run.

It's difficult to judge whether this is true because as far as I know it's never been put to the test. Historically, banks aren't great at guaranteeing funds during a run no matter what they say (Great Depression).

The majority of your arguments centre around efficiency over trust (i.e. you trust in the system enough that efficiency has become your only concern when it comes to transacting with value). For most day-to-day operations you're probably in the right here. The problem is when you're wrong (and there are always these events in economic history where the "system" fails) then you're really wrong.

[Firadeoclus]

> The problem is when you're wrong (and there are always these events in economic history where the "system" fails) then you're really wrong.

And that is not a problem cryptocurrencies solve. These systems can also fail.

[michaelscott]

Well cryptocurrencies do solve those specific issues, i.e. the ones inherent to centralised, government-backed financial systems. Of course, as you say, they introduce a raft of their own issues to deal with, but this would be a separate set that I imagine (in a reasonable economic system) would be hedged against by using our pre-existing financial system, and vice versa.