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Going to need some rules and regulations. Last thing we need are big banks overleveraging on crypto currencies for the excess return. When, not if, this bubble
by sedtrader 9y ago
Going to need some rules and regulations. Last thing we need are big banks overleveraging on crypto currencies for the excess return. When, not if, this bubble bursts hopefully it doesn't take the whole economy down with it. The whole financial market wants exposure to crypto at this point.
- stuffedBelly 9y agoburst of ICO bubble likely won't take down the whole economy. BTC contracts are high return + extremely high risk, which are typical traits of junk bonds, meaning they won't be treated as investment-grade securities.
- nerdponx 9y agoOK, except we've all heard that one before.
- stuffedBelly 9y agoYou have all heard it for sure. I am just laying out the fact that low-grade securities won't move the market as much as people thought they would. BTC is an exception on popularity given everyone knows about it, but it doesn't change the fact that BTC contracts will never be rated as A/AA/AAA given its ridiculous level of volatility.
- nullbyte 9y agoYou can't regulate cyptocurrencies. That's the beauty of the whole thing.
- pmlnr 9y agoHell you can. For example, you can make exchanges illegal. Done.
- nimchimpsky 9y agoThe definition of exchange would be hard to keep watertight.
- occamrazor 9y agoBut you can regulate how banks can invest their money.
- jstanley 9y agoRegulations like that are just driving commerce away from the traditional system and into cryptocurrencies. The further the regulators try to reach, the further their opponents move away. That's a game the regulators won't win. It ends with complete anonymity for everybody.
- fasquoika 9y agoThe government has literally regulated cryptography before https://en.wikipedia.org/wiki/Crypto_Wars https://en.wikipedia.org/wiki/Crypto_Wars
- tim333 9y agoI'm not sure any banks have crypto on their balance sheets so you may be a bit ahead of things there.