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I would argue that's a feature not a bug: the ease with which to potentially attract support. Similar to how kickstarter functions there is a lot of community f

I would argue that's a feature not a bug: the ease with which to potentially attract support. Similar to how kickstarter functions there is a lot of community feedback in the crypto world. If you want to you can find a ton of research on various ICO projects. Finally it's up to the investor to decide. The 24/7 liquidity and global aspect helps, in that the price exploration/valuation occurs continuously without opening price gaps.

loceng 9y ago
With human nature people will take advantage of others who won't or can't know better and get excited by and react to hype. I think it's society's responsibility to prevent people from scamming others out of money - which is generally what stable economies do. I'm not saying blockchain doesn't have a great potential in utility, just not structured with how the popular ones (Bitcoin, Ethereum's Ether) have been incentivized - a stable crypto-asset would allow for utility without unreasonable or insane wealth transfer from occurring.
- novalis78 9y ago
  Absolutely agree. But society has to ways of making sure that there will be a minimum of fraud: let unelected regulators do the job or have a broad range of third party services/companies internationally issue advisories and reviews/audits. The answer to this of course is political/philosophical and crypto in general follows a philosophy of having the market i.e. Private solutions figure it out. That's especially more feasible as it's a global phenomenon.
alexasmyths 9y ago
This has been done before. History repeating itself. The easy ability for corporate entities to dupe smaller investors is the oldest scheme in the book. The 1929 crash was dependent on it. The 2000 crash was dependent on it - it was largely due to the fact that 'online investing' caused a flood of small-time money into the markets pushing up prices. When the 'smart money' decided to end it, they pulled out ahead of the dumb money and left others holding the bag. The housing crisis had elements of this as well. There is definitely an argument to be made that 'regulations hold people back' - surely - but without them there is a 100% guarantee that things will go sour. And when I refer to 1929 - that's not even going back that far. The entire history of economics is about this - the 'quandary' of why supposedly rational markets crash and burn so often. It's seems a rather apparent explanation would be the asymmetry of information (and greed) between some actors, and others.

loceng 9y ago

With human nature people will take advantage of others who won't or can't know better and get excited by and react to hype. I think it's society's responsibility to prevent people from scamming others out of money - which is generally what stable economies do. I'm not saying blockchain doesn't have a great potential in utility, just not structured with how the popular ones (Bitcoin, Ethereum's Ether) have been incentivized - a stable crypto-asset would allow for utility without unreasonable or insane wealth transfer from occurring.

novalis78 9y ago
Absolutely agree. But society has to ways of making sure that there will be a minimum of fraud: let unelected regulators do the job or have a broad range of third party services/companies internationally issue advisories and reviews/audits. The answer to this of course is political/philosophical and crypto in general follows a philosophy of having the market i.e. Private solutions figure it out. That's especially more feasible as it's a global phenomenon.

alexasmyths 9y ago

This has been done before. History repeating itself. The easy ability for corporate entities to dupe smaller investors is the oldest scheme in the book. The 1929 crash was dependent on it. The 2000 crash was dependent on it - it was largely due to the fact that 'online investing' caused a flood of small-time money into the markets pushing up prices. When the 'smart money' decided to end it, they pulled out ahead of the dumb money and left others holding the bag. The housing crisis had elements of this as well. There is definitely an argument to be made that 'regulations hold people back' - surely - but without them there is a 100% guarantee that things will go sour. And when I refer to 1929 - that's not even going back that far. The entire history of economics is about this - the 'quandary' of why supposedly rational markets crash and burn so often. It's seems a rather apparent explanation would be the asymmetry of information (and greed) between some actors, and others.