[latchkey]

Yes. All of this is why "web3" is not bullshit and why I've dedicated years of my energy and my funds to it.

Try living in another country too, I have. Banking is the number one pain point. Even more than language issues. Ever tried to get your own money out of a western union in a country that doesn't speak your language?

If you're doubting "web3" then you've probably never experienced these sorts of pain yourself and I could understand your trepidation. But since I'm understanding you, how about understanding me too.

[granddemolisher]

IMO, the term web3 is tainted by VCs using retail to dump their tokens faster than they can dump equity in traditional IPO which is less transparent to average schmuck because most of the money comes from the retirement funds passively investing in everything.

It's their shortcut to liquidity which resulted in overpromises and dumps.

It's not unreasonable for someone to be sceptical but to dismiss it all together is a mistake.

We need to go back to the core. Decentralized financial instruments built to help people prosper economicly. To uplift poor people in unbanked countries. To stop dictators from rugging poor people and investors. To provide individual freedom and highest level of personal attainment.

The yield bullshit needs to stop.

Edit: I don't mean all yield strategies, just ones which are unsustainable (most of them).

I want unsecured lending products in crypto based on on-chain reputation which happens automatically on taking small loans or doing a lot of transactions maybe endorsement system where institutions stake money in return of verification.

Banks won't provide loans to people who need them the most. Even self employment people and founders with millions of dollars in exit struggle with a home loan because banks refuse to deal with anyone who doesn't fit their cookie cutter.

I believe crypto has potential to disrupt it.

I love flash loans for this exact reason. They are unique to crypto, allowing freedom to anyone to increase market efficiency by taking advantage of arbitrage without creditionals and needing absurd amount of capital to start.

[latchkey]

Certainly, the marketing around web3 went to shit. But I've been in it for 4 years now so I don't really care about the VC's because I see the larger picture already.

I agree with everything you said, but the end. The ponzi tokenomics definitely needs to stop, but the lego yield stuff has potential. It is more than just unbanked, it is people without lines of credit. It is teaching people how to be fiscally responsible.

Based on my Vietnam example below. Woman with gold teeth instead deposits her stable money into her phone. That money earns yield automatically. She can also use a portion of it as collateral for a Kiva-style loan to help with her farm crops (or whatever small business she has). People who buy her products effectively pay back her loan directly by submitting to her phone app. She's in control of it herself.

[mmcnl]

Banking is a solved problem, has been for decades. Seeking an alternative in technological complex solutions is running away from the actual problem.

[granddemolisher]

An international swift transaction takes days or sometimes weeks to clear. In developing countries, bank will take its sweet time to clear it which may take even more than two weeks.

It costs tens of dollars in fees and significant percentage in currency conversion cost if you live in a country where you cannot hold foreign currency received directly (Many unbanked countries have these kind of absurd laws).

So you will lose hundreds of dollars on currency conversion on a transaction of a few thousand easily.

This is taking into account the best bank account you can get with high income. At best, you might end up paying tens of dollars on a few thousand transaction in conversion.

Solved problem? Not at all.

I can provide so many examples where banking is broken. People buy registered companies for a company bank account in middle East because you cannot easily open a bank account if you are a foreigner or foreign company. You need to have hundreds of thousands in seed capital to start a current account.

In developed countries, I have seen friends struggle with getting a home loan because they are self employed or founder.

Maybe you don't believe crypto is the solution and I can accept that but banking system is nowhere solved.

[latchkey]

If banking was a solved problem, then how come so many people don’t have an account?

[mmcnl]

Because the problem isn't banking. There are lots of people who don't have access to clean water either. Doesn't mean we need new solutions to provide clean water, but rather we need to figure out why existing solutions don't always work.

[latchkey]

> Doesn't mean we need new solutions to provide clean water, but rather we need to figure out why existing solutions don't always work.

Solution doesn't work, we need a new solution. It doesn't need to be 'new', it needs to be 'different'! Play on words, at the end of the day, people still don't have bank accounts or clean water. Something isn't working. I'd rather be part of the solution and not part of the problem, even if the solution isn't perfect.

It is also an apple/orange comparison. Water != Bank Account.

[mateo411]

Because they have little to no money.

[latchkey]

By that same logic, taxis were a solved problem and uber shouldn't exist, yet here we are today.

It doesn't matter how much money someone has.

Everyone has a right to have a safe place to store it.