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My hope, personally, is that the pressure would NOT work. Market dynamics are fine in their place, even useful, but nothing about them is inherently free from
by Applejinx 5y ago
My hope, personally, is that the pressure would NOT work.
Market dynamics are fine in their place, even useful, but nothing about them is inherently free from exploit. Crypto and finance operate in a context that's set by law and custom. We agree 'if your crypto fails, hard luck, you lost money'.
If it was beneficial to literally threaten government until they changed the rule to 'if your crypto fails, but you are entity X, Y or Z, then you are to apply to the government and they will make you whole, printing 'money' if necessary'. This would be pitched in the name of 'stability' but it'd be a straight power play. The benefit to X, Y, and Z is obvious.
Doesn't matter much what kind of pressure they would impose, only the end result matters. It could be negotiation, blackmail, threat of physical harm: view this pressure as stepping outside the rules of the system to rig the rules of the system, secretly or explicitly. The idea is to legislate that markets can't be irrational, because (if you're X, Y, or Z) markets will be guaranteed to do what you want. No risk. Therefore, rational.