Topic: Would some Regulation in the Altcoin space be welcome? (Read 1959 times)

First remember rule number 1, It is Money.
One of the major arguments against Bitcoin etc. is that no one will ever commit significant funds to it because there are no rules. Throw in the wild west Altcoin world....
How big is the "average" trader of any coin on any exchange? We know there are 'whales' out there, and the manipulators....
In the real world of money, bitcoin ($8 Billion mkt cap) is tiny.

There are Good regulations. There are a lot of bad ones to.

Ultimately this thread is about trust, as in regulations that would increase levels of trust.  Anyone have an idea on how to increase the level of trust in the land of cryptos?
Let the community decide? (a sort of SRO type action)  also very slow
Let the Exchanges decide? (another SRO type option)  could move quickly if someone took a leading role
Do nothing? (All of crypto dies of a thousand cuts)

Ultimately coin value is based on Supply and Demand. But understand how important the concept of trust is on both sides.
If you trust you will be able to sell/exchange/trade it for something of relatively equal value in the future, a coin is sustainable. If not... RIP I believe is the current catch phrase. (Note: Trust in the blockchain IMHO has little value)

 

Just to be extra clear for spoetnik; "menace" means the scams and robbers. For the rest of us "menace" could be both.  Sorry if I came across as "fucking insane" .... lol.

Some of them, sadly in my humble relative-newbie opinion, are high on ignorance. I'm talking about the people who think that "self-regulation" is the answer to forestall government regulation.

Sadly, the history of the regulation of the stock exchanges all-but tells us the opposite. The doughty self-regulators back in the free-market days had no idea that they were just doing the spadework for the SEC et. al. The government simply nestled the new regulatory agency on top of those self-regulatory organizations.

Note the contrast between the history of the stock exchanges and the still-unregulated OTC derivative market. The governments haven't jumped in with regulation because - to be quite frank about this - they can't.

They can't because the entire OTC derivative market is such a patchwork quilt of custom-made "bespoke" deals, it would be durned difficult to take the first step towards regulation: namely, a clearing house for those derivatives. Consequently, any would-be peepul's champeen with real regulatory experience would look at the OTC-derivative patchwork and conclude that it's currently too much of a disorganized mess to merely organize let alone regulate.

Sorry to disappoint anyone here who loves a good conspiracy theory , but this crazy-quilt character was entirely accidental. Fact is, OTC derivatives are deals made between teams of fully professional finance professionals and are more-or-less designed to be held to maturity. Because of that intention, they get very complicated because there's no intuitive need to make them easy to sell. As a result, actually selling one of them - or buying one of them in the secondary market - is about as complicated as selling or buying a small business. With the difference that the hourly rates of the lawyers on each side of the negotiation is ~10 times higher than the ones in the small-business-transfer field.

Now, I know for a fact that self-regulation (contrary to intention, probably) just paved the way for government regulation in the asset markets. I'm not completely certain that this was the case for banks, but I'd be surprised if it wasn't. A thumbnail description of the Federal Reserve would be: an institution that was set up to take the responsibility of assuring an orderly market off the shoulders of J.P. Morgan the man.

http://en.wikipedia.org/wiki/Panic_of_1907#J.P._Morgan

[True Facts: #1. Rep. Carter Glass, the politician who introduced the Federal Reserve Act in the House, had been one of J.P. Morgan's examiners when J.P was straightening out the Panic of 1907. 2. At the time the Federal Reserve Act was passed, J.P was near death.]

Although I haven't studied the banking sector closely enough to give a certain answer, the thumbnail history of the birth of the Fed does show that self-regulation did indeed pave the way for government regulation in the banking sector.

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You show anger, sir, and I show sorrow. Admittedly, I'm fatalistic; I'm already inured to cryptos being regulated by the government - perhaps with an entirely new regulatory agency that the Washington Insiders will present to us as a you-now-hit-the-big-time special gift. 

Yep, I'm inured to it. But I remember very well what Robert A. Heinlein wrote so long ago: there's a world of difference between rolling with the punch and stooling for the screws.

wow you are too much LOL

"the menace" ?

uhhhhh buddy.. "the menace" is the fucking scammers.. NOT the guys who want rules !

jeezuz you people fucking insane !

that is pretty fucking dumb !

when some of the scams are convincing enough and many are masked ponzi schemes which break existing laws then WTF ?
that is some piss poor fucked up broken logic you got going there..
that is like telling some chick who got raped.. well don't dress slutty and watch out for rapists.

and the wall street rules are evil ?
no actually they put Martha Stewart in an orange jump suit for a reason !
and they put Berni Madoff in jail for a reason too also
..funny enough his associates tried to play dumb but the court threw the book at them hardcore !
see parallels ?

When Mark closed his doors with 500,000 Bitcoins that belonged to his customers worth close to $1,000 usd each
that was time to wake up and realize we need *some regulation.
having none and having that incident play out showed the whole world that Bitcoin is too risky and a LOT of people pulled out..

your whole Free (for all) Market gibberish is stupid nonsense to the highest degree.

edit:
oh and by the way i called out many of you hypocrite idiots when GOX closed it's doors
because most of you out there that had coins on GOX were Free Market Mantra chanters..
but guess who was first in line to "call the cops" etc when GOX closed their doors ?
HYPOCRITES LOL
STFU .
You have no right to whine about losing coins on Gox if your gonna chant the free market mantra..
I'm glad he did it because i warned people for a year straight and they mouthed me off.. dumb cheerleaders
then they got burned like morons even though they were warned AND if there was regulation it wouldn't have happened in the first place !

as long as you guys chant Free Market.. i will laugh and appluad exchanges ripping people off !

that's ridiculous!

Sadly, regulation will rule in the end for two reasons.

1. Its money. Government will have control so they can get their piece of the pie.
2. Too many people screaming "I got scammed or robbed; government and law enforcement has to do something".

Forums like this and exchanges have the power to curb some of the menace and put off the inevitable.

First rule of crypto's is NO FUCKING REGULATION!

Seriously, are you people high? Why are you even here then? Go play by the white devil's rules of Wall st if you want fucking rules.

Look, I know people get ripped off and scammers scam, but instead of defeating the whole purpose of crypto's, why not get off your fucking asses and educate the n00bs. Call the cunts out for their bullshit. Scream it so loud that every member of the cryptocoin scene will never again doubt. If those of us 'in the know' did our fair share, the shit tornado of coins would come to a halt.

Only you can prevent scamcoins

SelfRegulation is in the bottom line of the price defence of the massive coins selfdestruction.

0

Nothing.

Zero.

Null.

Regulation is a fine line.  We are people know what we WANT as regulation but the reality is ALWAYS far from what we intended.  we have an opportunity here to control the regulation rather than just toss it to a government body and hope that the pull of the handle will return 3 sevens.   Come on internet, use a brain cell or 2 and implement GOOD regulation.

The trouble is, people like that have some sort of helicopter-parent image of an "ideal regulator" in their imagination.

Garbage thread.

First you want crypto regulation, then you'll want to do some regulation on free speech, guns, religion, wealth redistribution, then affirmative action, and the circle is complete.

Both good points.

If we don'tself-regulate, the state will have the perfect excuse to go ahead and make nonsense regulamentations, like they do with the financial world, but worse because we will have the informatic ignorance added to scenario.

So it must be done.

decentralized exchanges are the answer.

this. Bitcoin is freedom through regulatory consensus algorithm, but this doesn't mean it shouldn't be externally regulated to protect consumers.

It would still be lot easyer to bring the known regulatory branch or organ into justice when their scam would be noticed.
There is no way around this thing, internal or external regulation must be applied, since it benefits the whole community.

Yea we need the regulators as they are doing such a great job at not being brought and paid for and facilitating scams themselves.
 

the fact is that the whole scene needs regulation and transparency.
Those who try to argue, that regulation is against the "religion of cryptos" are just trying to protect their intrest (so they can continue scamming and play in the inner circle).

If someone at these times (after gox and many other horrible things) tries to sell "freedom" in the form of cryptos, hes bullshiting hard.

no.. i AM regulation