Topic: 1,000,000 satoshi monthly jackpots MEGA-RICH(why BTC needs regulation) (Read 791 times)

again in my eyes, bitcoin (the code, currency, network) needs no regulation.

businesses holding customers funds, whether it be bitcoin, fiat, or fairy dust... doesnt need regulation. (because current regulation is a false security).

take the banks.. they are supposed to be regulated. supposed to be insured.. yet when they went belly up in 2007.. they stole the insurance funds and then begged governments for more money..
and even after receiving all this money.. they have the gumption to say that the people now owe trillions in debt..

so regulation is meaningless.. especially as it only gives a shield to the business to continue dirty practices.

what is needed is a customer protecting insurance(not regulation prescribed insurance).. so when things blow up.. the business is not handed a cheque.. but instead the customer is.

its customer protections we need, not regulations that mess around with business, to cause headaches for customers. not delays in customer service just so that businesses can do shoddy things and get away with it.

take MTGox. took both fiat and bitcoin..
but because there is no insurance policy.. governments and other financial companies dont care, and the government is taking its sweet time doing anything raid out whatever reserves are found paying the government court and lawyer fee's leaving customers till last.

but imagine MTGox had insurance. MTGox would worry about stealing or filing bankruptcy because, although the insurance company would pay out to customers the minute a large scale theft/bankruptcy claim came to light.. that insurance company would then push real hard real fast for justice. harassing mtgox for answers.. and so both the customer gets reimbursed and mtgox would have a bigger nightmare to worry about. which may have been a scary enough worry for Kerpeles to not have done it in the first place.

after all.. without insurance.. he didnt have to worry about rich lawyers or government face slapping(or so he thought). he just thought bankruptcy was his get out of free card. and it took soo long and so much spending of customers potential reserves for him finally to be face slapped by government.

things would have been better, faster and easier if insurance companies were involved.. he would be in fuchu prison back in 2014, customers would have been reimbursed already.. or he would have seen the potential aftermath before it happened and just continued to run an honest (well it was in 2010-2012) system

Who is regulating the regulators? We have seen how privacy have been infringed by different governments and we want them to audit companies for verification? We have seen

bribes and agents stealing Silkroad coins... Corruption is EVERYWHERE. This is not a Bitcoin problem, it's a human behavior problem. I contacted two exchanges and asked them,

how they protect the information supplied by it's users for verification... and not one of them, could give me a hack proof method to do that. You place your information into a

strangers hands, and hope for the best.   

I'm not too sure how verification significantly helps prevent poor coding resulting in theft. Unless one of the requirements of the verification is a full external audit with verifiable proof, you can't really be sure its safe. Not to mention from a business perspective - the cost would have to be undertaken by the company - which is another means of disincentivising any business that wish to incorporate Bitcoin. That being said I do agree that Bitcoin needs some way of preventing these things from happening - I'm just not sure this is the way to do it. 

I dont think Bitcoin it self needs any sort of regulation. Exchanges and services could use bit more regulation but if anyone ever regulate Bitcoin, that will be end of decentralization and freedom we have now.

Whoa! That's looking into it as an all dependant currency for an economical system without any others. Not there yet man.
And yeah I like dirt roads and farming, I am country after all
I like the simpler life without being on a caffeine rush everyhour of every waking moment of my days.

Who would regulate? Who would make those regulations and validations? What central authority would do that? Could it be done in a decentralized way because everyone here f*cking hates central authorities? Why should we trust that central authority? And importantly, who will enforce the regulations? What will happen to those that don't comply? These are the questions I want answered if such a group is created.

Overall, I am not opposed to having a group that creates regulations and inspects Bitcoin companies to see how secure they are and their likelihood of scamming. I think the group should be several trusted members of the Bitcoin community who check Bitcoin companies on their security and create rules that those companies should follow. Then they rate companies based on how well they follow the rules and how people like them. I'm thinking something like the BBB (Better Business Bureau). However, that group should not have the power to enforce. They should only give their suggestions and recommendations to the public, they cannot shut down a business, they can only tell everyone to avoid it.

So basically the ability to start a company, build it's rep, and leave with all the coins in cold storage over and over again instead of a group who validates vendor identities&credibility? Even better: Evade taxes with hundreds of millions of street crime and white-collar crime money by laundering through BTC exchanges using tumblers? Those sucker tax payers and stupid national economies..

EDIT: I'm actually not surprised by this.. Hope you like dirt roads and farming..

I am positively against it being regulated. That would be against what bitcoin stands for.
If it does that would misery for people wanting to trade it and will not be good for it in the future.

I guess it just takes time before the market gets saturated enough, so that trustworthy vendors arise. We need a lot more development hours before we get things perfect. Stuff like this takes a bit of time. Some huge companies can't even today secure their databases so that hackers are unable to brake them. I'm looking at you Sony

"government"

I must be a Hitler sympathizer to even suggest some form of central auditing authority.. Do I hate the poor that I don't want just anyone storing all my ID on just any server? I must be 'the man'..

Why do we need CAs for SSL or Windows executable signing? They're fascist?

i dont think businesses need to verify to some government, just to set up a business.. but...
.. but.. if they are going to request customers funds and store/lookafter/mange peoples funds (online wallets/exchanges/escrows) then they need to get some insurance, and publicize their financial liability (coverage). as a basic fallback for consumer protection should the company decide to try legging it.

anyone can make a business look legit by spending $£50 for a state registration/companies house listing... but when it comes to storing funds.. insurance and consumer protections means alot more then any crappy registration application..

as for government regulation.. HA!
the government sit on their hands and leave it for the company to do the reporting/crime solving.. the only time they get involved to slap a company is when they receive a certain amount of complaints, but by this time, its too late.. also regulation is limited to the law of the small city/state that the company decides to register to, meaning if you are european. and the company is american.. your european customer protection laws may differ to the laws of america. and the regulator will only deal with the american law.

so regulation is not really 'consumer protection' either.. only insurance is the sure fire way to get redress if a problem arises,
but yes nothing is perfect

• Exchanges and tumblers with low-bid development and horrendous data-security policies. [Please upload literally all your personal identification to our server for verification. Our known-by-assumed-name-pseudonym Pakistani security profession we hired for $250.00 assures us we have a unpenatrable encyption and isolation model]
• Faucets, Games, GPTs ripping off affiliate networks with sleazy promotions and automation
• Over-night copy&paste and low-bid development miners and wallets
• Just overall bad development and management quality all across the board

Aren't these all reasons we need a verification system for vendors and service providers? I cringe every time I see some kid or -let me build critical services using this computer programming book I just got- marketing puke promoting stuff.. Also, how many major exchanges have to be hacked or cheated by their owner before people with influence in the scene actually suggest some standards?