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It's important that the corner bank be under scrutiny because everybody knows you're supposed to put your money in a bank, and you get a lot of very unsophistic
by Symmetry 13y ago
It's important that the corner bank be under scrutiny because everybody knows you're supposed to put your money in a bank, and you get a lot of very unsophisticated people wandering in. There's nothing wrong with financially risky things existing so long as there isn't a substantial problem with random people thinking that they're less secure than they are. And besides, penny stocks are just as risky as bitcoins but it's still legal for normal people to invest in them.
This may all change if crypto-currencies take off the way their supporters dream, but as long as most people's experience with them is hearing about MtGox's implosion on the news more regulation probably isn't needed.
I'm happy that the US is insuring my savings account and regulating the bank that holds it, but I'm glad I could risk my money on bitcoin if I chose.
- AndrewBissell 13y ago> It's important that the corner bank be under scrutiny because everybody knows you're supposed to put your money in a bank There's actually a certain chicken-and-egg aspect to this, where "everybody knows to put your money in a bank," and is unsophisticated (i.e. uneducated) about banking, because the government promises to bail you out if the bank loses your money. It's really not hard to get a sense of a bank's safety from a combination of the interest rates it pays (high rates are a danger signal) and third-party services like Weiss Ratings. No one bothers though, because why even care whether your bank is safe or not?