3 ms·
The markets that cryptocurrencies are potentially going to replace include NASDAQ, NYSE, LSE, TSE and all the other national centralized stock exchanges. Crypt
by grosjona 8y ago
The markets that cryptocurrencies are potentially going to replace include NASDAQ, NYSE, LSE, TSE and all the other national centralized stock exchanges.
Cryptocurrencies are a superior way to represent stocks, especially software company stocks where the service can be tightly coupled to the currency itself.
There are multiple reasons why cryptocurrencies are better at representing company ownership shares:
- There is no need to trust a middleman or government to maintain your holdings. There is no room for bad actors.
- Transparency regarding who owns what (assuming that the ledger is public).
- It can never go bankrupt unless all users of the network abandon it - But they all have a strong financial incentive to keep it running.
- It doesn't need government regulation to function properly; in fact, it transcends government boundaries. Loose government regulation makes it extremely liquid. Imagine if you could buy your lunch using company stocks directly instead of cash.
- pjc50 8y agoI find it hard to see why people would go for a system where the transaction times are comparatively huge - you can't HFT on the blockchain, for example. And it's revealing that the cryptocurrency infrastructure has basically replicated the exchange system, complete with central counterparties and broker-dealers. > Imagine if you could buy your lunch using company stocks directly instead of cash. This sounds like an excellent way to complicate your tax return.