5 ms·

This is the correct take, and why American regulators need to address crypto sooner rather than later.

gitfan86 4y ago
But the WHOLE point of crypto was to avoid governmental control. If the government is regulating it that means they can control it. And it becomes completely worthless. If you want digital gold as an inflation hedge you can literally buy a GLD ETF. It gives you digital shares in actual GOLD.
- jacknews 4y ago
  There's nothing to stop people using crypto to buy/sell goods directly, or to trade directly between themselves, completely outside of government control. And crypto itself can't be inflated away, or obsoleted, or otherwise really controlled by government, except by attacking it; making it illegal to own or trade, to operate nodes, to write code, or use CIA shenanigans, etc. But if an exchange claims that they hold your crypto 'frozen' and completely separate from their trading activities, and especially if the exchange also deal in government currency, then I think it's quite right for government to regulate, and ensure the exchanges are compliant.
  - gitfan86 4y ago
    Vendors of goods and services have virtually no interest in self custody. They want deposits going to a bank/exchange. So you are not going to be able to buy many goods or services directly. How many businesses are CASH only today? That is best case scenario for buy/sell crypto directly.
- p0pcult 4y ago
  No, that was the whole point of Bitcoin. Crypto > Bitcoin.
- chasd00 4y ago
  > But the WHOLE point of crypto was to avoid governmental control I think from a purist perspective that is true. I said this upthread but what people really want is more USD in their checking account. These exchanges are a place where they can roll the dice and maybe make that happen. As I said before, i bet 95% of the people burned couldn't care less about the philosophical aims of crypto currencies and just want a chance to get rich (in USD).
- epgui 4y ago
  There's nothing you can invent which can be beyond government control. If government cares to control something, it will.
- netheril96 4y ago
  Not really. The purists care about independence from government but they also don’t like centralized exchanges so they don’t care if they are regulated. The other people are in for the gamble rather than the fundamentals of crypto. A certified casino is probably more trustworthy to them. As long as the government doesn’t try to regulate the chain, both groups are satisfied.
papito 4y ago
That may actually be counterproductive. If you start regulating crypto, then you are IN. You can't do it half way. Now you have yet another banking sector to regulate. Maybe what's better and cheaper is to let this wild west "enjoy being poor" nonsense flame out until everyone shoots themselves and it's curtains. It will sort of be like Usenet - it didn't go anywhere but you have to know how to find it.

But the WHOLE point of crypto was to avoid governmental control. If the government is regulating it that means they can control it. And it becomes completely worthless. If you want digital gold as an inflation hedge you can literally buy a GLD ETF. It gives you digital shares in actual GOLD.

jacknews 4y ago
There's nothing to stop people using crypto to buy/sell goods directly, or to trade directly between themselves, completely outside of government control. And crypto itself can't be inflated away, or obsoleted, or otherwise really controlled by government, except by attacking it; making it illegal to own or trade, to operate nodes, to write code, or use CIA shenanigans, etc. But if an exchange claims that they hold your crypto 'frozen' and completely separate from their trading activities, and especially if the exchange also deal in government currency, then I think it's quite right for government to regulate, and ensure the exchanges are compliant.
- gitfan86 4y ago
  Vendors of goods and services have virtually no interest in self custody. They want deposits going to a bank/exchange. So you are not going to be able to buy many goods or services directly. How many businesses are CASH only today? That is best case scenario for buy/sell crypto directly.
p0pcult 4y ago
No, that was the whole point of Bitcoin. Crypto > Bitcoin.
chasd00 4y ago
> But the WHOLE point of crypto was to avoid governmental control I think from a purist perspective that is true. I said this upthread but what people really want is more USD in their checking account. These exchanges are a place where they can roll the dice and maybe make that happen. As I said before, i bet 95% of the people burned couldn't care less about the philosophical aims of crypto currencies and just want a chance to get rich (in USD).
epgui 4y ago
There's nothing you can invent which can be beyond government control. If government cares to control something, it will.
netheril96 4y ago
Not really. The purists care about independence from government but they also don’t like centralized exchanges so they don’t care if they are regulated. The other people are in for the gamble rather than the fundamentals of crypto. A certified casino is probably more trustworthy to them. As long as the government doesn’t try to regulate the chain, both groups are satisfied.

papito 4y ago

That may actually be counterproductive. If you start regulating crypto, then you are IN. You can't do it half way. Now you have yet another banking sector to regulate. Maybe what's better and cheaper is to let this wild west "enjoy being poor" nonsense flame out until everyone shoots themselves and it's curtains. It will sort of be like Usenet - it didn't go anywhere but you have to know how to find it.