Yes, but you understand this ‘insurance’ has a economical cost to society yes?
These things like FDIC cost taxpayer money.
So regardless, the cost of ‘fixing’ the problem is probably MORE expensive than if there was not a solution at all to fix it and the consumers absorbed the cost. Think about it, insurance needs to have more funds than it expects to insure to ensure that it can meet equity needs when situations arise, so we are paying for the insurance, plus the premium on top of insurance to make sure the insurance actually can insure, plus we are paying for the regulatory framework, plus we are paying the salaries of all the employee’s and owners of these insurance companies.
9.9 million identity thefts a year. Thats 9.9 million people who cannot get home loans, car loans, business loans and other extentions of credit that enable them to transact in our economy. Every identity theft is a stain on a little cog of our society, and if you corrode enough cogs the gears will not turn efficiently. There is a large economical impact to degrading millions of American’s abilities to transact.
I have seen the effects first hand. My ex was a identity theft victim, and when it came time to buy a house she got raped on her interest rate. She ended up locking herself into a contract, a victim of this vicious circle, and ended up paying 10’s of thousands of dollars more in interest than she should have considering her personal credit history. Instead of being able to buy things, or invest into other things, her capital was all tied up in this predatory home loan all caused by identity theft.
This happens every 2 seconds to a person in America. 9.9 million people a year. And it takes *years* to get your credit fixed. Do you understand how broad and wide that damaging effect is on the overall economy?
THAT is why bitcoin IS a solution to the problem. Bitcoin is the equivalent of digital cash. You need to call a spade a spade. Did you ever *not* feel responsible for the cash sitting in your wallet? Of course not, because *its your cash*. Why would you feel any less responsible for any other forms of assets you have?
Its time for society to stand up as a whole and take responsibility for their own actions. Its time for the taxpayers to stop funneling money into things that are meant to ‘protect’ us from systems that have been established to be broken. We create this circle. The regulatory framework requires companies to follow KYC rules and other regulatory frameworks, and that allows companies to get ‘hacked’, which allows our identities to be stolen, which then allows us to be repaid.
Makes as much sense as dog shit flavored tea.
Edited for clarity and examples.