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In the sense that you're talking about the math involved with the coins themselves, it's hard to disagree with you. It does seem difficult to have a crypto eco

In the sense that you're talking about the math involved with the coins themselves, it's hard to disagree with you. It does seem difficult to have a crypto ecosystem (based on those protocols/coins) that doesn't include the pitfalls of regulatory darkness and non-discoverability of capital assets. Investors seem to like having a cop on the beat. Even though the SEC doesn't really do anything, it carries a big stick and keeps market actors in line, more or less. Furthermore, it's a lot easier to verify that a factory actually has tools in it, than to verify that a crypto exchange is functioning properly. Money inherently has a cop on the beat. When the cop is Venezuela or Argentina or Zimbabwe, its value gets dinged. And it's a lot easier to monitor things like GDP and taxation than to know how one of these acronymic crypto heroes is running his exchange.

raydiatian 4y ago
> pitfalls of regulatory darkness and non-discoverability of capital assets Would you be willing to expand on what you mean here? I am genuinely interested in hearing your thoughts, hoping to help inform and strengthen my own. > one of these acronymic crypto heroes is running his exchange Totally agree on this. > math involved with the coins themselves, it's hard to disagree with you I’m really talking more about the consensus protocol ideas, but of course the cryptography is important to any modern financial system
- totalZero 4y ago
  > regulatory darkness Regulators barely understand equities let alone crypto, and they haven't taken the mantle of regulating crypto quite yet. People in regulated markets do a lot of malicious and illegal things. Imagine an unregulated one. > capital assets It's a lot easier to see what an aircraft manufacturer owns than to see what a crypto exchange owns. You might be able to run FTX from an armload of Raspberry Pis, but you can't run Boeing that way. Binance doesn't have inventory and real estate like a retailer. To compare a crypto exchange to a commodities exchange: it's easier to characterize the future value of aluminum or gold than the future value of a cryptocurrency -- not only because metals are more liquid, but also because they have been around far longer. Nobody knows the real value of crypto, so it's hard to know what assets a crypto-business is actually holding at any given time. Why invest in a space where there are no rules and you can't see what everyone owns or how they use their resources?

raydiatian 4y ago

> pitfalls of regulatory darkness and non-discoverability of capital assets Would you be willing to expand on what you mean here? I am genuinely interested in hearing your thoughts, hoping to help inform and strengthen my own. > one of these acronymic crypto heroes is running his exchange Totally agree on this. > math involved with the coins themselves, it's hard to disagree with you I’m really talking more about the consensus protocol ideas, but of course the cryptography is important to any modern financial system

totalZero 4y ago
> regulatory darkness Regulators barely understand equities let alone crypto, and they haven't taken the mantle of regulating crypto quite yet. People in regulated markets do a lot of malicious and illegal things. Imagine an unregulated one. > capital assets It's a lot easier to see what an aircraft manufacturer owns than to see what a crypto exchange owns. You might be able to run FTX from an armload of Raspberry Pis, but you can't run Boeing that way. Binance doesn't have inventory and real estate like a retailer. To compare a crypto exchange to a commodities exchange: it's easier to characterize the future value of aluminum or gold than the future value of a cryptocurrency -- not only because metals are more liquid, but also because they have been around far longer. Nobody knows the real value of crypto, so it's hard to know what assets a crypto-business is actually holding at any given time. Why invest in a space where there are no rules and you can't see what everyone owns or how they use their resources?