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> 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
by 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?