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No, wrong. The reason people have to put up with Coinbase's shenanigans^, is because of the super intense regulations in this sector. Those of us who would ta

by jnbiche 13y ago

No, wrong. The reason people have to put up with Coinbase's shenanigans^, is because of the super intense regulations in this sector. Those of us who would take customer money more seriously (and who would have refused additional customers much earlier) also take legal liabilities more seriously, particularly the legal liabilities of running an unlicensed money transmission business. If these regulations weren't so onerous, a dozen more of us would have jumped into the arena, and the one of us who gave the best customer service would be the market leader. Instead, buyers are stuck with Coinbase. ^ Not suggesting anything purposely illegal -- just incompetence combined with too much business. Yet another reason regulation is hurting everyone here: less regulation would have left Coinbase left overwhelmed with so much business (since there would be more competing businesses).

PeterisP 13y ago
Lowering standards and allowing a larger number of competitors could bring in a better alternative to Coinbase, thus benefitting users and allowing them to get better service. However, it would also bring in a bunch of far worse companies, including purposely illegal ones. I'm fairly sure that the average 'quality' would go down even more. There could be a benefit to the more careful users, but consumers in general would simply get defrauded on scale. If the current quality level is unacceptable, then IMHO it is appropriate to say "guarantee X or get out of the business". Even if it results in 100% everyone getting out of the business - then it simply means that the potentially profitable niche will be waiting until someone is ready to do it properly.
- jnbiche 13y ago
  There already are a bunch of far worse companies, including illegal ones. You see, the illegal ones operate anonymously and completely disregard the laws. The only ones the laws are keeping out are honest businesses who do pay attention to the laws, and who would provide strong competition to Coinbase.

by jnbiche 13y ago

PeterisP 13y ago

Lowering standards and allowing a larger number of competitors could bring in a better alternative to Coinbase, thus benefitting users and allowing them to get better service. However, it would also bring in a bunch of far worse companies, including purposely illegal ones. I'm fairly sure that the average 'quality' would go down even more. There could be a benefit to the more careful users, but consumers in general would simply get defrauded on scale. If the current quality level is unacceptable, then IMHO it is appropriate to say "guarantee X or get out of the business". Even if it results in 100% everyone getting out of the business - then it simply means that the potentially profitable niche will be waiting until someone is ready to do it properly.

jnbiche 13y ago
There already are a bunch of far worse companies, including illegal ones. You see, the illegal ones operate anonymously and completely disregard the laws. The only ones the laws are keeping out are honest businesses who do pay attention to the laws, and who would provide strong competition to Coinbase.