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I'm interested to see if the communities around various other exchanges will jump up to demand more accountability from those in charge or if the chaos of the c
by Phlarp 13y ago
I'm interested to see if the communities around various other exchanges will jump up to demand more accountability from those in charge or if the chaos of the crowd will continue to prove how valuable governmental regulation can actually be to the system as a whole.
- sixQuarks 13y agojokesters like Coinbase? the CEO of coinbase wrote the article you just agreed with.
- jonesetc 13y agoI think you replied to the wrong comment.
- sixQuarks 13y agoyeah, I don't know what happened. Weird
- Phlarp 13y agoCoinbase certainly appears to be a more reputable player, but I would still like to see them embrace transparency by helping to create and use the inherent properties of the blockchain to prove (preferably continuously) that they have not been the victim of a large heist nor engaged in fractional reserve bitcoining.
- crazy1van 13y ago"... to prove how valuable governmental regulation can actually be to the system as a whole." Conversely, if Mt Gox had been regulated more like a major bank, right now we'd all be getting out our checkbooks to bail them out. Then, a similar organization like Coinbase would have even less incentive to keep their house in order. In the worst case scenario, they'll just be bailed out too. And then there is the consumer, who will have no incentive to only bank with solvent institutions. Who cares? We've got FDIC. The amount of ignorance and moral hazard created by this style of system adds up pretty quickly. The current bitcoin system is definitely messy. But when something goes wrong, the damage is largely contained. Mt Gox died. People who had value stored there lost it. But people with bitcoins are Coinbase were fine. And the average tax payer didn't have to spend a dime. All in all, I find the whole thing to be a fascinating test case for unregulated finances. I could be totally wrong and bitcoins exchange rate with dollars could drop to zero because of this. However, the biggest "bank" just failed and the system itself seems remarkably stable.
- Phlarp 13y agoJust because the specific regulations imposed by a mostly corrupt government led to failure and a subsequent bailout does not mean all regulations are inherently flawed.
- crazy1van 13y agoOf course not, but governments view this as a finance / banking system and will tend to regulate it the same way. They will fit that square peg through the round hole.
- rayiner 13y agoIts less telling an experiment than you think. The Bitcoin economy isn't that sophisticated. There aren't complex Bitcoin denominated contracts that could cause ripple effects from one bank failing. But those things are useful and will arise in the Bitcoin ecosystem as it grows. And when that happens, a bank failure won't be an isolated thing like it is now.
- danielweber 13y agoThe minimum -- THE BARE MINIMUM -- that any regulator would have demanded of MtGox was an outside auditor coming in occasionally to make sure their books balanced. If you believe the "slow leak" story, even that threshold was not met.
- harryh 13y agoThis wasn't a test case for unregulated finances. It was a test case for immature and unconnected finances.
- doctoboggan 13y agoI hope to see exchanges transparently demonstrating their solvency on the blockchain regularly