If self-regulation in Bittopia works, how come all the evidence suggests it has failed miserably thus far?
Not that I agree with the premise, but what makes you think it couldn't succeed given time to adapt and build? Or does success have a time frame?
Gox put the project back significantly, indeed we are still picking through the rubble. How many more such 'adaption events' do you think we would need? Would you prefer the 'patient' dead?
For me, regulation has always been on the agenda for the Bitcoin and there was an opportunity (early days) to take control and self-regulate but it was squandered due to misplaced idealism. In the history of human evolution we have shown our need for rules and structure to survive and thrive; the idea that something as fundamental as 'money' could be left to an anarchic 'structure' was pretty naive.
The BTC 'community' provided its own rope to hang itself with by allowing Shrem, Karpeles, Brewster etc etc to get any away with their schemes/incompetence; by the communities inaction/naivete they showed their inability to self-regulate and thus opened the door for external agencies to regulate instead.
You are probably familiar with the phrase:
"Charity begins at home"
but probably less so with the second line...
"justice begins next door"
