6 ms·

It sounds like self-regulation. If exchanges would just prove solvency periodically (which is possible with the blockchain), the whole world could see it. Wou

It sounds like self-regulation. If exchanges would just prove solvency periodically (which is possible with the blockchain), the whole world could see it. Wouldn't it be nice if you could see the balance sheet of your bank, in a way that accountants couldn't lie about it?

rdtsc 13y ago
> It sounds like self-regulation. Because that has worked wonders for the other industries -- let's have pharma companies, oil, food producers, just self regulate.
- dmm 13y ago
  There are historical instances of self-regulation working. The movie and video game industries control their own content ratings and before the invention of dynamite, nitroglycerin was commonly used as an explosive in construction. Shipping NG is very dangerous because of its instability and many accidents occurred. They industry eventually developed extensive standards regarding shipping that vastly improved the safety of shipping NG.
  - eropple 13y ago
    > movie and video game industries control their own content ratings Not sure you're helping yourself here. The established movie industry uses its content rating system as a bludgeon against independent filmmakers. The video game industry's content controls are largely a joke, assigned arbitrarily by people who never actually play the game.
    - bduerst 13y ago
      How are movie ratings used as a bludgeon against independent filmmakers?
      - br78 13y ago
        I'm sorry it's not an easy source to access, but you should watch this film http://en.wikipedia.org/wiki/This_Film_Is_Not_Yet_Rated http://en.wikipedia.org/wiki/This_Film_Is_Not_Yet_Rated
      - dagw 13y ago
        Short version: Most cinemas and other outlets in the US won't carry your movie if it's unrated, so in effect those who control the ratings control which movies can get distributed. Also most cinemas in the US won't show NC17 rated movies so the ratings people can also use that as a way to prevent your movie being shown to a large cinema audience if they want to.
  - venomsnake 13y ago
    In the one case the life of the engineers and not the execs bonuses were on the line. In the other created one of the more potent systems of censorship (it is largely invisible and encourages self censoring the content) and preventing new/small guys from entering.
  - aestra 13y ago
    > movie and video game industries control their own content ratings which are pretty much a joke. PG is now a worthless rating http://www.forbes.com/sites/scottmendelson/2013/11/26/disneys-frozen-proves-worthlessness-of-pg-rating/ http://www.forbes.com/sites/scottmendelson/2013/11/26/disney... The difference between PG-13 and R in many cases is completely arbitrary. The ratings lump many kinds of movies together and says absolutely nothing about their content. No movie can be NC-17 or unrated because that is a kiss of death. No theaters will play it, no big box stores will sell it. I think what R can get away with has broadened considerably because of that.
- einhverfr 13y ago
  If you have appropriate regulations to support self-regulation it can work very well. For example, here in Indonesia, if I buy eggs at the supermarket I don't really have to worry about them carrying salmonella. Why? Because truth in labelling laws and demand for salmonella-free eggs means that the farms that sell to the big food distributors all get tested so they can label their eggs as salmonella-free. One really wonders why this hasn't taken off in the US. I can think however of a few reasons (it's not just too much or too little regulation but the wrong regulations).
  - eterm 13y ago
    That still involves regulation, you have to regulate and make sure that people aren't labeling their eggs salmonella free without getting them tested. At some level it comes back to regulation. It is part of why I feel bitcoin is misguided.
    - einhverfr 13y ago
      s/libertarianism/bitcoin/ and I agree with you as a Distributist. As a Distributist, my feeling is that successful regulation supports decentralization. The problem with the regulation vs deregulation dichotomy is that regulation is usually pushed as a centralizing power, while deregulation is usually also pushed as a centralizing power.
- VMG 13y ago
  Your comment has been approved by the ministry of internet content and contains no unlawful speech or cyberbullying material. Enjoy your stay.
rahimnathwani 13y ago
prove solvency periodically Solvency, the ability to pay what you owe people when it falls due, is easy to prove at any point in time. The state of insolvency occurs the first time you have an obligation to pay, which you cannot satisfy. The thing is, if you're a de facto bank (by virtue of holding customer demand deposits) then your future expectations of solvency could turn out to be wrong because everyone wants their money at the same time (i.e. there's a bank run).
- jasomill 13y ago
  MtGox isn't supposed to be a fractional-reserve Bitcoin bank, so, modulo server capacity problems and modest transaction delays due to offline Bitcoin storage, why, in principle, should everyone wanting their Bitcoins at the same time pose a problem?
  - rahimnathwani 13y ago
    You are right. My point about solvency was a general one (applying to all people and companies) but I overlooked an important point: the Bitcoins entrusted by customers to MtGox do not become MtGox assets. The Bitcoins are always owned by the customer (not owed to the customer). They are less like bank deposits than they are the contents of safety deposit boxes at a bank branch.
- icebraining 13y ago
  The idea is that they would prove their solvency for the hypothetical event of everyone wanting their money back at the same time.
dfc 13y ago
> Wouldn't it be nice if you could see the balance sheet of your bank, in a way that accountants couldn't lie about it? I don't think it would be a big "feature" for me. As far as confidence in my bank goes the big thing is the FDIC sticker on the door/website.
- judk 13y ago
  Ah, you should look for the bank's sticker on the FDIC website, not vice versa, if your goal is to not get scammed.

rdtsc 13y ago

> It sounds like self-regulation. Because that has worked wonders for the other industries -- let's have pharma companies, oil, food producers, just self regulate.

dmm 13y ago
There are historical instances of self-regulation working. The movie and video game industries control their own content ratings and before the invention of dynamite, nitroglycerin was commonly used as an explosive in construction. Shipping NG is very dangerous because of its instability and many accidents occurred. They industry eventually developed extensive standards regarding shipping that vastly improved the safety of shipping NG.
- eropple 13y ago
  > movie and video game industries control their own content ratings Not sure you're helping yourself here. The established movie industry uses its content rating system as a bludgeon against independent filmmakers. The video game industry's content controls are largely a joke, assigned arbitrarily by people who never actually play the game.
  - bduerst 13y ago
    How are movie ratings used as a bludgeon against independent filmmakers?
    - br78 13y ago
      I'm sorry it's not an easy source to access, but you should watch this film http://en.wikipedia.org/wiki/This_Film_Is_Not_Yet_Rated http://en.wikipedia.org/wiki/This_Film_Is_Not_Yet_Rated
    - dagw 13y ago
      Short version: Most cinemas and other outlets in the US won't carry your movie if it's unrated, so in effect those who control the ratings control which movies can get distributed. Also most cinemas in the US won't show NC17 rated movies so the ratings people can also use that as a way to prevent your movie being shown to a large cinema audience if they want to.
- venomsnake 13y ago
  In the one case the life of the engineers and not the execs bonuses were on the line. In the other created one of the more potent systems of censorship (it is largely invisible and encourages self censoring the content) and preventing new/small guys from entering.
- aestra 13y ago
  > movie and video game industries control their own content ratings which are pretty much a joke. PG is now a worthless rating http://www.forbes.com/sites/scottmendelson/2013/11/26/disneys-frozen-proves-worthlessness-of-pg-rating/ http://www.forbes.com/sites/scottmendelson/2013/11/26/disney... The difference between PG-13 and R in many cases is completely arbitrary. The ratings lump many kinds of movies together and says absolutely nothing about their content. No movie can be NC-17 or unrated because that is a kiss of death. No theaters will play it, no big box stores will sell it. I think what R can get away with has broadened considerably because of that.
einhverfr 13y ago
If you have appropriate regulations to support self-regulation it can work very well. For example, here in Indonesia, if I buy eggs at the supermarket I don't really have to worry about them carrying salmonella. Why? Because truth in labelling laws and demand for salmonella-free eggs means that the farms that sell to the big food distributors all get tested so they can label their eggs as salmonella-free. One really wonders why this hasn't taken off in the US. I can think however of a few reasons (it's not just too much or too little regulation but the wrong regulations).
- eterm 13y ago
  That still involves regulation, you have to regulate and make sure that people aren't labeling their eggs salmonella free without getting them tested. At some level it comes back to regulation. It is part of why I feel bitcoin is misguided.
  - einhverfr 13y ago
    s/libertarianism/bitcoin/ and I agree with you as a Distributist. As a Distributist, my feeling is that successful regulation supports decentralization. The problem with the regulation vs deregulation dichotomy is that regulation is usually pushed as a centralizing power, while deregulation is usually also pushed as a centralizing power.
VMG 13y ago
Your comment has been approved by the ministry of internet content and contains no unlawful speech or cyberbullying material. Enjoy your stay.

rahimnathwani 13y ago

prove solvency periodically Solvency, the ability to pay what you owe people when it falls due, is easy to prove at any point in time. The state of insolvency occurs the first time you have an obligation to pay, which you cannot satisfy. The thing is, if you're a de facto bank (by virtue of holding customer demand deposits) then your future expectations of solvency could turn out to be wrong because everyone wants their money at the same time (i.e. there's a bank run).

jasomill 13y ago
MtGox isn't supposed to be a fractional-reserve Bitcoin bank, so, modulo server capacity problems and modest transaction delays due to offline Bitcoin storage, why, in principle, should everyone wanting their Bitcoins at the same time pose a problem?
- rahimnathwani 13y ago
  You are right. My point about solvency was a general one (applying to all people and companies) but I overlooked an important point: the Bitcoins entrusted by customers to MtGox do not become MtGox assets. The Bitcoins are always owned by the customer (not owed to the customer). They are less like bank deposits than they are the contents of safety deposit boxes at a bank branch.
icebraining 13y ago
The idea is that they would prove their solvency for the hypothetical event of everyone wanting their money back at the same time.

dfc 13y ago

> Wouldn't it be nice if you could see the balance sheet of your bank, in a way that accountants couldn't lie about it? I don't think it would be a big "feature" for me. As far as confidence in my bank goes the big thing is the FDIC sticker on the door/website.

judk 13y ago
Ah, you should look for the bank's sticker on the FDIC website, not vice versa, if your goal is to not get scammed.