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Bitcoin "Banks" (read exchanges) exist only through their reputation. They can die within a few days as shown from MtGox. This is the way traditional banks shou
by drcross 13y ago
Bitcoin "Banks" (read exchanges) exist only through their reputation. They can die within a few days as shown from MtGox. This is the way traditional banks should operate instead of being propped by tax payers so that they are allowed privatize gains and socialize losses.
- Steko 13y agoI think most people are happy with deposit insurance in case their banks fail or are run by crooks.
- CamperBob2 13y agoI'd be even happier if I didn't need a bank at all. Banks suck.
- celticninja 13y agoBut that goes hand In hand with allowing crooks to run banks, if regulation works so well there should not be any bad banks so no need for deposit insurance.
- merloen 13y agoBanks fail for other reasons than being run by crooks.
- timdiggerm 13y agoImplies that insurance props up crooks, rather than just helping people after the inevitable crooks are discovered.
- Steko 13y ago"if regulation works so well there should not be any bad banks" Straw man alert; no one claims bank regulation is perfect or will stop all bank failures.
- celticninja 13y agoIt was more to point out that with or without regulation there is still risk. Regulation is not the panacea that some people think it is and regulating bitcoin will not make it better, it will just make it more difficult for people to work with it in those areas it is regulated. Plus regulation would barely be worth the paper it was written on as avoiding it would be a simple case of not operating directly within its jurisdiction. If people from that jurisdiction use your service that is their option but the regulations will not protect them so they should make their own plans. Regulation can work, however it should not absolve users of responsibility for vetting their investments or financial service providers.
- bsder 13y agoSpoken like someone who has never been on the receiving end of someone dishonest. Lucky to be you. The time between a bad actor starting to fleece people and the market or regulation wiping them out can still be fairly lucrative for the bad actor and fairly damaging for the public.