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According to https://web3isgoinggreat.com https://web3isgoinggreat.com we're at about $70M lost to fraud, scams, and hacks this month alone. It's not a full acc

According to https://web3isgoinggreat.com https://web3isgoinggreat.com we're at about $70M lost to fraud, scams, and hacks this month alone. It's not a full accounting but it's a small baseline. It's safe to assume it's probably larger. Governments and regulators are worried about it because when enough people invest their life savings in crypto, and it disappears, that's real capital that is gone from the existing banking system. Fractional reserve banking enables banks to use money they hold in deposits to fund large projects, loans, and invest (with plenty of regulation about how much money they must hold in reserve to ensure customers can always withdraw their funds). If enough people lose their shirts then it starts to have serious effects on an economy.

yucky 4y ago
>According to https://web3isgoinggreat.com https://web3isgoinggreat.com we're at about $70M lost to fraud, scams, and hacks this month alone. It's not a full accounting but it's a small baseline. It's safe to assume it's probably larger. How big is the fraud number for USD or Euros? Billions per month?
- agentultra 4y ago
  Is your argument that someone else is pulling off bigger frauds so this fraud should be overlooked?
  - yucky 4y ago
    No, my argument is that the ability to commit fraud with crypto is not in any way a legit criticism against it. There are actual criticism, fraud isn't one of them.
    - agentultra 4y ago
      In the context of the question, “why should we regulate this,” it’s a legitimate reason. Banking is regulated to prevent these sorts of things. Crypto is designed to enable them. They need to be regulated.
      - yucky 4y ago
        Bitcoin is far easier to monitor than cash, so that doesn't hold water. And Monero may be great for avoiding oversight, but it's barely used by anybody. I think as usual government just wants another thing to tax and control.
        agentultra 4y ago
        Is it? Is that way there are money-laundering-as-a-service systems out there? Can I do the same thing with cash? What Lagarde is saying is that this stuff needs to be regulated before too many people lose their shirts. So far these "crypto assets" have demonstrated no value. Many folks are dumping their life savings into these schemes and losing everything. If enough people lose everything houses foreclose, debts go unpaid, inflation goes up. The same thing was done every time the grifters tried it in traditional currencies. Too many people lost their shirts, government stepped in, we changed the rules and added regulation, and people get better protection. The crypto space is speed-running through all of these scams. What they're doing isn't new, it's all been done before.
- arcticbull 4y ago
  Your problem is you're comparing unregulated securities to a currency. Try comparing it to regulated securities. Then look at volumes. Then check for enforcement action. The SEC regularly (maybe not regularly enough, but regularly) torpedoes these frauds in the real markets. I'm sorry but it's asinine to compare securities and currencies, and straight-up whataboutism.
  - yucky 4y ago
    The IRS says crypto is not a security: https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies https://www.irs.gov/businesses/small-businesses-self-employe... You can create security instruments out of crypto, but that is not the same thing.
  - agentultra 4y ago
    Update: it's probably a lot more than $70M: https://web3isgoinggreat.com/?id=ftc-reports-329-million-lost-to-crypto-scams-in-q1-2022 https://web3isgoinggreat.com/?id=ftc-reports-329-million-los...

yucky 4y ago

>According to https://web3isgoinggreat.com https://web3isgoinggreat.com we're at about $70M lost to fraud, scams, and hacks this month alone. It's not a full accounting but it's a small baseline. It's safe to assume it's probably larger. How big is the fraud number for USD or Euros? Billions per month?

agentultra 4y ago
Is your argument that someone else is pulling off bigger frauds so this fraud should be overlooked?
- yucky 4y ago
  No, my argument is that the ability to commit fraud with crypto is not in any way a legit criticism against it. There are actual criticism, fraud isn't one of them.
  - agentultra 4y ago
    In the context of the question, “why should we regulate this,” it’s a legitimate reason. Banking is regulated to prevent these sorts of things. Crypto is designed to enable them. They need to be regulated.
    - yucky 4y ago
      Bitcoin is far easier to monitor than cash, so that doesn't hold water. And Monero may be great for avoiding oversight, but it's barely used by anybody. I think as usual government just wants another thing to tax and control.
      - agentultra 4y ago
        Is it? Is that way there are money-laundering-as-a-service systems out there? Can I do the same thing with cash? What Lagarde is saying is that this stuff needs to be regulated before too many people lose their shirts. So far these "crypto assets" have demonstrated no value. Many folks are dumping their life savings into these schemes and losing everything. If enough people lose everything houses foreclose, debts go unpaid, inflation goes up. The same thing was done every time the grifters tried it in traditional currencies. Too many people lost their shirts, government stepped in, we changed the rules and added regulation, and people get better protection. The crypto space is speed-running through all of these scams. What they're doing isn't new, it's all been done before.
arcticbull 4y ago
Your problem is you're comparing unregulated securities to a currency. Try comparing it to regulated securities. Then look at volumes. Then check for enforcement action. The SEC regularly (maybe not regularly enough, but regularly) torpedoes these frauds in the real markets. I'm sorry but it's asinine to compare securities and currencies, and straight-up whataboutism.
- yucky 4y ago
  The IRS says crypto is not a security: https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies https://www.irs.gov/businesses/small-businesses-self-employe... You can create security instruments out of crypto, but that is not the same thing.
- agentultra 4y ago
  Update: it's probably a lot more than $70M: https://web3isgoinggreat.com/?id=ftc-reports-329-million-lost-to-crypto-scams-in-q1-2022 https://web3isgoinggreat.com/?id=ftc-reports-329-million-los...