5 ms·

I am unclear how audits, regulation, taxation serve as protections or safety nets for the average person. Seems like the kind of thing large corporations can m

I am unclear how audits, regulation, taxation serve as protections or safety nets for the average person. Seems like the kind of thing large corporations can manipulate and avoid whereas individuals cannot. I'm not a crypto person but it seems like crypto at least has the potential to offer some of those protections to individuals that were once the province of the powerful.

helsinkiandrew 5y ago
You can put fiet money ($€£) in a western bank and earn a fixed interest and be sure you can get it out when you want, if you forget your account number or password you’ll be ok and if the bank goes bust, you’ll get (upto ~$250K in US and similar around the world). You can spend those dollars instantly anywhere around the world - as cash or online. Buy Bitcoin purchasing items is a pain, the value may be higher or lower than last week or yesterday, seemingly manipulated by unknown whales totally legally. If the money is in an unregulated exchange it can be lost with little recompense. Buy one of the more exotic coins you may make a fortune or loose everything overnight because of a coding error or just because.
Hokusai 5y ago
> I am unclear how audits, regulation, taxation serve as protections or safety nets for the average person. There is much literature about the topic that explain why regulation and audits are needed to protect not only the average person but the whole economy. You can find some information here https://opentextbc.ca/principlesofeconomics/chapter/28-2-bank-regulation/ https://opentextbc.ca/principlesofeconomics/chapter/28-2-ban... The "taxation" part is mention as cryptocurrencies are used for tax-avoidance and fraud. - https://www.cnbc.com/2021/05/31/cryptocurrency-poses-a-significant-risk-of-tax-evasion.html https://www.cnbc.com/2021/05/31/cryptocurrency-poses-a-signi... - https://www.ft.com/content/aa9834a1-8e3a-46c9-a2d8-13b10882c1c9 https://www.ft.com/content/aa9834a1-8e3a-46c9-a2d8-13b10882c... ... Banking, at high level, is not complicated and it is very interesting to see how regulation keeps a safe and sound economic system and how failures to regulate make markets collapse. For a historical perspective you can study The Great Depression, as many regulations were created to avoid similar systematic failures.

helsinkiandrew 5y ago

You can put fiet money ($€£) in a western bank and earn a fixed interest and be sure you can get it out when you want, if you forget your account number or password you’ll be ok and if the bank goes bust, you’ll get (upto ~$250K in US and similar around the world). You can spend those dollars instantly anywhere around the world - as cash or online. Buy Bitcoin purchasing items is a pain, the value may be higher or lower than last week or yesterday, seemingly manipulated by unknown whales totally legally. If the money is in an unregulated exchange it can be lost with little recompense. Buy one of the more exotic coins you may make a fortune or loose everything overnight because of a coding error or just because.

Hokusai 5y ago

> I am unclear how audits, regulation, taxation serve as protections or safety nets for the average person. There is much literature about the topic that explain why regulation and audits are needed to protect not only the average person but the whole economy. You can find some information here https://opentextbc.ca/principlesofeconomics/chapter/28-2-bank-regulation/ https://opentextbc.ca/principlesofeconomics/chapter/28-2-ban... The "taxation" part is mention as cryptocurrencies are used for tax-avoidance and fraud. - https://www.cnbc.com/2021/05/31/cryptocurrency-poses-a-significant-risk-of-tax-evasion.html https://www.cnbc.com/2021/05/31/cryptocurrency-poses-a-signi... - https://www.ft.com/content/aa9834a1-8e3a-46c9-a2d8-13b10882c1c9 https://www.ft.com/content/aa9834a1-8e3a-46c9-a2d8-13b10882c... ... Banking, at high level, is not complicated and it is very interesting to see how regulation keeps a safe and sound economic system and how failures to regulate make markets collapse. For a historical perspective you can study The Great Depression, as many regulations were created to avoid similar systematic failures.