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It is so amusing to see crypto redoing 100 years of financial scandals at accelerated pace: mass money laundering, ponzi schemes, non separation of client and f
by cm2187 4y ago
It is so amusing to see crypto redoing 100 years of financial scandals at accelerated pace: mass money laundering, ponzi schemes, non separation of client and firm money by brokers, market manipulation, inability to sustain a “bank”run, misleading marketing material sold to retail investors. This is something fascinating for a finance professional.
The paradox being that crypto is proving the benefits of heavy financial regulation by showing us a world without financial regulation (and I am talking as someone who has to deal with banking regulation and think the current massive amount of regulations is ridiculous and kills competition).
- thetis 4y agoand don't forget the "i lost my bitcoin password so i lost all my assets" and "my hard drive has been destroyed so i lost all my bitcoins" All those stories were solved across 120y of crisis and financials regulations. Not all of course, but finance, as a basis of the XXI century economy is far more robust that it was
- dvngnt_ 4y agodark markets tho
- hoseja 4y agoSolved mostly by applying monopolized violence.
- deleted 4y ago[deleted]
- MrMan 4y agonot sure I want to live in a world where violence is evenly distributed, look at the US right now. that is still only a small number of shootings a day. imagine when there is no monopoly on violence, you won't be able to do anything but join a militia or work as a slave to a local militia
- hoseja 4y agoI'm just pointing out those "120 years of evolution" are not about some clever solutions but the state forcibly preventing hustlers from parting fools and their money so the legitimacy of state parting everyone and their money isn't questioned.
- andrewflnr 4y agoBelieve it or not, even with a monopoly in violence you still have to create clever solutions, even more so when you're trying to broadly preserve liberty as opposed to just being a dictator.
- ethanbond 4y agoUh, yeah. Why do people act like this is a bad thing? I’m a big fan of the fact that when someone is pissed off at me they’re not allowed to just punch me in the face. I’m also a big fan of the fact that someone CAN metaphorically punch me in the face if I manage to piss off a whole slew of people, elected by and comprised of my compatriots, with various systems designed to mitigate emotionality and unfairness. Duh this is a strictly good thing, when paired with democracy.
- pa7x1 4y agoWe are also experiencing record-levels of inflation due to Central Bank monetary policies, which have led to massive asset bubbles and wealth inequality due to Cantillon effect of said policies. So it's hard to think the status quo is working as intended. Cryptocurrencies are antithetical to centralized monetary policy not regulation. Regulation can exist and probably will exist, there are some proposals currently on the table. There is currently no regulation because regulators are laggards, not because it's contrary in spirit to cryptocurrencies. Fraud is not an intrinsic characteristic to cryptocurrencies, it's an intrinsic characteristic to human nature. Regulation simply provides tools to fight fraud, either by making it more difficult to execute or by establishing discouraging penalties. That the alternative monetary policy proposed by cryptocurrencies is better than the status-quo is still to be seen.