Stee6043
Well-Known Member
Crypto was and is ripe for fraud. Banking and securities regulation was put in place to protect the people from fraud. Its pretty well shown that crypto currencies and their markets need regulation.
Ignoring all the technology behind it, Crypto currencies that "IPO" fundamentally work like this:
You give them real US dollars, backed by the government of one of the wealthiest countries in the world.
They give you a digital promise you cannot see, backed by nothing at all except a "musical chairs" market of others that have given real money for electronic Monopoly money. There is absolutely nothing backing the "value" of any of them.
And to top it all of, that "currency" is held by an exchange that is unregulated and run by propeller heads with no capital requirements to back them up, and clearly no ability to be monitored. And it's being shown that some of those propeller heads are using the complexity to steal from "investors" on a massive scale.
I hear some people saying that it is no different than real currency that you cannot see except by signing into your bank. That's so naive.
I have no clue about crytpo markets and trading but isn't the idea of using blockchain to exchange value fundamentally no different than using US Dollars? Well, except the current lack of regulation as you pointed out? I suspect the purists would argue that if/when blockchain is widely adopted and perfected for this use there would be no need for regulation. Global free trade with a single currency. A wild idea to be sure.
If you separate the investing side from the "using it as a currency" side I don't think it's at all naive to compare crypto currency to the $'s you see on a screen sitting in your bank account. There's no gold out there backing our savings...only a Governments promise to pay backed by our hope that they (our GOVT) remains solvent.