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Pump and dump schemes, among others, are a good example of why unregulated does not necessarily mean good.

by ruytlm 9y ago

sputknick 9y ago
Agreed, I think that's my favorite lesson from the crypto experiment. Sure there are people who use regulation as a gatekeeping function, or as a way to magnify their power, but regulations really do exist for the good of the people.
- 2muchcoffeeman 9y ago
  It’s a bit like finding a piece of code that does something crazy. If you ask around, there could be a really good reason for it. I don’t think we’re going to have a usable crypto currency until economists get involved, or we simply relearn all the lessons we’ve learnt to date.
  - VMG 9y ago
    Yes, crypto is not complete until there are synthetic CDOs!
    - sanxiyn 9y ago
      Now we at least have futures market, which is a progress.
    - Agebor 9y ago
      CDOs are in the research phase currently: https://ethresear.ch/t/collateralized-debt-obligations-for-issuer-backed-tokens/525 https://ethresear.ch/t/collateralized-debt-obligations-for-i...
    - tankenmate 9y ago
      You can do CDOs in Ethereum today if you want.
pfisch 9y ago
I guess. I mean the regulated stock market has dark pools and super fast algorithms jumping in front of people's trades stealing from them. I actually feel like the playing field is more uneven between individuals and firms in the regulated stock market vs the btc exchanges. I also think the bitcoin exchanges are backroom dealing and insider trading, but I feel like they are less sophisticated vs the "legal" theft that is taking place on wall street. I mean bitcoin exchanges are certainly the wild west, but I honestly don't care if people want to run pump and dumps on unsophisticated investors. That is something you can pretty easily defend against by doing your own research. There are far more nefarious things going on on both bitcoin exchanges and the real stock market.
- jstanley 9y ago
  > I actually feel like the playing field is more uneven between individuals and firms in the regulated stock market vs the btc exchanges. This is definitely true. I first got into bitcoin as a way to do algotrading on an exchange without having to navigate whatever processes are required in order to be allowed to do so in "real" markets.
- codecamper 9y ago
  I agree. People who chase whatever is going up deserve to lose their shirt at least once.
indubitable 9y ago
"Hedge fund schemes, among others, are a good example of why regulated does not necessarily mean good." One extreme negative, or extreme positive, derivative of a view does not condemn nor justify it. You need to consider the merits as a whole, not with piecemeal bias confirmation or condemnation.

Pump and dump schemes, among others, are a good example of why unregulated does not necessarily mean good.

by ruytlm 9y ago

Pump and dump schemes, among others, are a good example of why unregulated does not necessarily mean good.

Agreed, I think that's my favorite lesson from the crypto experiment. Sure there are people who use regulation as a gatekeeping function, or as a way to magnify their power, but regulations really do exist for the good of the people.

2muchcoffeeman 9y ago
It’s a bit like finding a piece of code that does something crazy. If you ask around, there could be a really good reason for it. I don’t think we’re going to have a usable crypto currency until economists get involved, or we simply relearn all the lessons we’ve learnt to date.
- VMG 9y ago
  Yes, crypto is not complete until there are synthetic CDOs!
  - sanxiyn 9y ago
    Now we at least have futures market, which is a progress.
  - Agebor 9y ago
    CDOs are in the research phase currently: https://ethresear.ch/t/collateralized-debt-obligations-for-issuer-backed-tokens/525 https://ethresear.ch/t/collateralized-debt-obligations-for-i...
  - tankenmate 9y ago
    You can do CDOs in Ethereum today if you want.

pfisch 9y ago

I guess. I mean the regulated stock market has dark pools and super fast algorithms jumping in front of people's trades stealing from them. I actually feel like the playing field is more uneven between individuals and firms in the regulated stock market vs the btc exchanges. I also think the bitcoin exchanges are backroom dealing and insider trading, but I feel like they are less sophisticated vs the "legal" theft that is taking place on wall street. I mean bitcoin exchanges are certainly the wild west, but I honestly don't care if people want to run pump and dumps on unsophisticated investors. That is something you can pretty easily defend against by doing your own research. There are far more nefarious things going on on both bitcoin exchanges and the real stock market.

jstanley 9y ago
> I actually feel like the playing field is more uneven between individuals and firms in the regulated stock market vs the btc exchanges. This is definitely true. I first got into bitcoin as a way to do algotrading on an exchange without having to navigate whatever processes are required in order to be allowed to do so in "real" markets.
codecamper 9y ago
I agree. People who chase whatever is going up deserve to lose their shirt at least once.

indubitable 9y ago

"Hedge fund schemes, among others, are a good example of why regulated does not necessarily mean good." One extreme negative, or extreme positive, derivative of a view does not condemn nor justify it. You need to consider the merits as a whole, not with piecemeal bias confirmation or condemnation.