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But the clear end point here is lure in consumer investors which end up losing by getting in at the top? Shouldn't the SEC step in at this point? They have ways

But the clear end point here is lure in consumer investors which end up losing by getting in at the top? Shouldn't the SEC step in at this point? They have ways to track and do forensics on crypto, they could use undercover agents ect. Seems like someone should be looking out for the little guy and not Michael Saylor.

logicalmonster 3y ago
As an investor in crypto, I feel very confident that I am getting what I'm paying for. The basic facts about a coin or token, like how many are supposed to exist, are completely verifiable on some sort of public blockchain. That is the safest possible system. In contrast, the stock market is a total mystery box as to even how many shares are even being traded with all of the tomfoolery with shares being borrowed and sold short, dark pools, and lots of crazy things that you'd need a decade in finance to even begin to understand.
- smoldesu 3y ago
  In fairness, nothing stops cryptocurrencies from cooking the books either. A public blockchain is only as trustworthy as the code it runs, and with L2 chains and inter-chain bridges it's a goddamn mess. You're correct that due diligence can be easier with cryptocurrency, but you'd be remiss not to mention the lack of standardization, legislation or regulation. If you get played, you have no safety net. The stock market is comparatively stable because the dialectics of "scammer" and "businessperson" are more clearly defined. By filing with the SEC you are using your credibility as collateral with a central authority; even if we both agree that government mediation is a bad idea, it's been the standard since the ancient times and will probably continue to be valuable for as long as we have sovereign states and people that live in them.
smoldesu 3y ago
Iunno. I'm not sympathetic to either side really, but after a certain point regulating digital currency is outside the US's purview of control. They can regulate the exchanges for fraud pretty easily, but fully regulating P2P crypto transactions is an unattainable nightmare scenario on most blockchains. My best guess is that custodial wallet (eg. "we'll handle your finances, trust us...") services will be regulated into submission a-la banks, and P2P transfers will be an ongoing issue a-la cash. If war is declared on cryptocurrency, it will probably be for national security or economic superiority reasons. My $0.02, I haven't held crypto in years.

logicalmonster 3y ago

As an investor in crypto, I feel very confident that I am getting what I'm paying for. The basic facts about a coin or token, like how many are supposed to exist, are completely verifiable on some sort of public blockchain. That is the safest possible system. In contrast, the stock market is a total mystery box as to even how many shares are even being traded with all of the tomfoolery with shares being borrowed and sold short, dark pools, and lots of crazy things that you'd need a decade in finance to even begin to understand.

smoldesu 3y ago
In fairness, nothing stops cryptocurrencies from cooking the books either. A public blockchain is only as trustworthy as the code it runs, and with L2 chains and inter-chain bridges it's a goddamn mess. You're correct that due diligence can be easier with cryptocurrency, but you'd be remiss not to mention the lack of standardization, legislation or regulation. If you get played, you have no safety net. The stock market is comparatively stable because the dialectics of "scammer" and "businessperson" are more clearly defined. By filing with the SEC you are using your credibility as collateral with a central authority; even if we both agree that government mediation is a bad idea, it's been the standard since the ancient times and will probably continue to be valuable for as long as we have sovereign states and people that live in them.

smoldesu 3y ago

Iunno. I'm not sympathetic to either side really, but after a certain point regulating digital currency is outside the US's purview of control. They can regulate the exchanges for fraud pretty easily, but fully regulating P2P crypto transactions is an unattainable nightmare scenario on most blockchains. My best guess is that custodial wallet (eg. "we'll handle your finances, trust us...") services will be regulated into submission a-la banks, and P2P transfers will be an ongoing issue a-la cash. If war is declared on cryptocurrency, it will probably be for national security or economic superiority reasons. My $0.02, I haven't held crypto in years.