3 ms·
Yeah.. as long as a judge can say that a security belongs to party X and not to the owner of tokens... tokenized securities are useless, they could just be a da
by toenail 1y ago
Yeah.. as long as a judge can say that a security belongs to party X and not to the owner of tokens... tokenized securities are useless, they could just be a database record.
- conception 1y ago“They could just be a database record” is the response for pretty much all legal crypto uses.
- ToucanLoucan 1y agoIt's almost like it was never designed at all to solve any of the actual problems with the finance system and just create a new one next to it with a different set of assholes at the top of it.
- cindyllm 1y ago[dead]
- toenail 1y agoSaving in bitcoin to escape inflation works fine for me and is perfectly legal.
- johnecheck 1y agoThat sounds like a strategy that's going to work really well until it doesn't. Perhaps I'm wrong. Good luck!
- toenail 1y agoWhat do you think could make this "not work"?
- johnecheck 1y agoAs with all assets, you risk its value dropping precipitously due to events outside of your control. Specifically, I worry that decreasing supply and the corresponding upward pressure on prices will cause transaction fees to increase and therefore volume to decrease. Decreased volume might lower liquidity and allow an event like an old wallet coming online to trigger a price shock and maybe even a broader crisis of confidence in bitcoin's ability to serve as a store of value.
- Ekaros 1y agoBitcoin not actually being inflation hedge, but an other correlated asset.
- toenail 1y agoSo "it doesn't work if it doesn't work". Thanks, but I already knew that.
- lxgr 1y agoRegulations prohibiting possession or trade, for example. If you think this is very unlikely to happen, it's worth remembering that this has happened with gold in the past, in the US.
- toenail 1y agoWe've already seen what happens when there are legal hurdles, activities move to other countries, or people find legal loopholes. This has already happened a few times, and bitcoin is doing just fine.
- lxgr 1y agoSure, but does that matter if you have to sell to the government, possibly at a rate lower than what you bought it for?
- 1y ago
- rtkwe 1y agoNormal stocks exist in a similar way for 99% of people. You don't own them directly you're the 'beneficial owner' and your ownership is just a database entry in your broker's database backed up contractually. It's the legal hack that lets you just press buy or sell and have it happen almost instantly instead of taking days to move around the paper stock certificates from one vault to another. Even if you go through the trouble of direct registration it's still basically a database entry.
- toomuchtodo 1y agoI can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? The value is not in the technical implementation, the value is in the trust and legal framework around ownership and counterparty transactions. (paper stock certificates are no longer a thing except in rare circumstances, digitization took place long ago ["dematerialization"] at the clearinghouse)
- toenail 1y ago> I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? You can go to FINRA and the SEC.
- toomuchtodo 1y agoAhh, I was unaware FINRA and the SEC had the ability to reverse and override digital asset transactions on public cryptoasset networks. My apologies.
- toenail 1y agoThe article is not about blockchain tokens that are securities themselves, hence "tokenization".
- toomuchtodo 1y ago