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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 exis
by 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 agoIn 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.