The point is not that banks are faultless (no one claimed they were) but that remediation is possible, as you have just attested to: your friend got his/her money back. Your story shows the system is working—that's precisely what "legal intervention" is for.
The issue with banks is that the battle is legal/social, for example as someone who get paid by international wires often let me tell you that sometimes (rare cases but when it happens it happen to many) the money just disappears for months, and there is no way to troubleshoot it as a normal individual, you just go to the bank and ask about your money and either they just deny there is anything they can do and blame it on the sender, or just give you looks and question the legitimacy of what you are doing.
Sometimes banks freeze international wires until the government investigate the source of the funds to make sure they are not funding terrorism, this happen to any sum higher than $5k in my country for example. I just wish to never be in such a position.
If crypto is to be legitimized, the government isn’t simply gonna say, too bad, the stuff we think is absolutely necessary to the point we suspended civil liberties for, that stuff we will ignore for you.
Whether you agree with what the govt is doing or not, they aren’t gonna stop doing it because it’s crypto.
Not to mention when doing large wires with countries that have to do exchanges through a national bank your third party can just forget to accept it. Then you get a wire reversed for a large amount in some cases and the bank freezes your assets because you just got a huge amount of money from some random place. The thin vail of freedom is quickly lifted whenever you want to do anything international from sending money to getting married.
This happened to me when purchasing a house in another country.
They didn’t get their money back. The bank lost money, but they have a lot so they don’t care. In cryptocurrency every sat or Wei is accounted for. You can’t make them up. A loss can never be undone.
People need to look at this as like chartering a 17th century galleon. It sank. Gold was lost at sea, unreachable by todays tech. Maybe in 200 years someone can crack ECDSA and recover it.
Right — however it was always an abstraction. Lose gold at sea? Well just because the bank ignores this event and issues more paper doesn’t mean the ship didn’t sink.
I understand that the concept of reversibility is highly desirable, but that bank can not raise the sunken ship right now. It has to take the loss and not just pretend it didn’t happen. Reversibility is always an illusion. Most things in this universe are actually permanent.
It approximates a different risk game, and as such has a different reward schedule. Some people like to play games on hardcore mode (eg: permadeath, 1 life) too.
Not everything needs to be sanitized for one’s safety.
Well, are you advocating crypto for investing, or for the future of money? If the future of money, then you can't ask everyone in society to "well it's going to be more risky! But it's better!". If it's for investing, go ahead, I can also suggest putting all your money on black and have a 50-50 risk of doubling it or going home empty handed.
