Celsius, you are an alternative to a <b>brick-and-mortar</b> bank. You are not an alternative to banks writ large. You do banking activity, and are subject to the same causes and effects a brick-and-mortar bank is subject to.<br><br>I would love for there to be an alternative to FDIC insurance because that doesn't have the healthiest history. But for that to happen Celsius, you need to acknowledge who you are and what the relevant history is.<br><br>Those who do not know their history Celsius... I would say "Those who do not learn from history," but we did already. It was called branch banking and ledger-operation schemes. So Celsius managed to anti-learn from history.,(reply>), Insurance only works until everyone needs it at the same time.,(reply>), @KajunBowser In fairness to... someone, I feel that should be said but I'm not sure to whom, Celsius going under like this does not surprise me one bit because they weren't even doing the ledger system. That was an unmitigated fuckup. I'm just angrier at the fact they fucked up in such a preventable fashion and the fallout will affect innocent people given the foundation of crypto really is no different than modern currency and competition is good.<br><br>Put another way, Celsius has gotten me, a classical economist type of the Austrian persuasion, to pay FDR respects. You need to fuck up real hard to get me to praise the closest thing to a satanic figure to the Austrians.,(reply>), @Harley Mitchelly And given that the FDIC changed their rules in the past 36 months, now everyone with a bank that goes 'Tango Uniform' will get crumbs after the creditors... However, it will at least be something compared to what just may happen if Celcius manages to continue their demise.,(reply>), @Mitchell The ledger system was insurance of a different sort. (The FDIC itself can be accurately described as a solution to a problem government made worse by getting involved in the first place.) Instead of what amounts to a government bailout, there was an understanding among banks that runs are a given in banking. You will eventually have a situation where there are more people at a bank withdrawing money over depositing it. The catch is that these runs do not all happen to all banks at the same time in the same degrees. So, a group of banks can essentially all insure each other with loans on a need-to-access basis. They managed to pull this off efficiently in the 1920's, and the Great Depression happened precisely because access to this was arbitrarily stopped. (Benjamin Strong, who all but made this system with a multi-step process for addressing a banking run, died in an accident and the New York bankers decided to freeze out some Jewish banks in an otherwise routine banking run because 1929 and antisemitism and forgot everything after step 2.) The reason the FDIC exists is quite literally because FDR was a classical fascist looking to make yet another power grab, but I digress...<br><br>The simple fact is, insurance for a bank doesn't need to be paid for with money. The novelty of the ledger system was that, barring a complete currency collapse not even the FDIC could stop, it allowed a bank to pay in time what it otherwise could not pay in raw funds, with the added benefit of allowing banks to pay for a loan with further debt. If Bank A had a run and got a loan from Bank B, they could put up a loan payment Bank C owed to Bank A as collateral, and thus banks operating completely off their ledgers was hardly unheard of back in the day. The law requiring insurance is honestly a farce more than anything, the very entity that would need it the most is a government and no such law applies to them, but if I'm going to begrudgingly accept that insurance be mandatory, then it also must be accepted that payments that aren't in dollars and cents must also be accepted. I know first hand running a business that insurance can easily be a gigantic boondoggle that is more harm than good.,(reply>), Insurance costs money. Some people are willing to bet on not needing insurance so they can pocket the money otherwise spent on insurance. That's why in a lot of cases having proper insurance is a requirement if not a law ;-)