You are viewing a single comment's thread from:
RE: Who controls crypto currencies?
Great article and nicely articulated ideas.
Also, who is enforcing the new projects, especially ICOs, it is not difficult to create a splendid website and hire some marketing agents to boast in the market and run off with millions, IF and when that happens, who monitors/controls such anti-social beings? any thoughts?
Thanks for your thoughts on this Reddy. I 100% agree that anyone presenting an ICO should be held responsible to deliver. But, investing is investing and civil criminal activity is simply criminal activity. I'm not a fan of policing so on this one I have to offer that the investor be ware.
People IPO companies that go under all the time. Do those who invested into a bad IPO get reimbursed for their losses?
It's like that movie minority report. To prevent crime you have to be confident there is a crime. What could some regulatory agency "really" do to prevent bad people from presenting an ICO?
I believe we are better served by teaching people how to invest properly (which includes researching the opportunity) than we are at creating more soul crushing regulatory jobs.
Makes sense, agreed. At least on the public IPOs, there is paper trail of where the LOSSES went...under this ICO fever, there is risk that money could be diverted to 'wrong causes' without being traced! that is a concern from a general safety point of view and I agree, investment is an investment with inherent risk!
Hm... yeah... what you're saying here makes a lot of sense. You do make a very good point here. But, I don't think cryptos will necessarily be able to address this concern directly.
Here is my thinking (hopefully it makes sense):
With any asset class the financial benefits could be directed toward "wrong causes".
Some examples:
A criminal could buy a house (using an alias) and use it to create or sell drugs, then renovate it and flip it in order to keep moving and do it all over again. (They use the horrors of bureaucracy and clerical errors to avoid being incriminated.)
Criminals on Wall Street have been fleecing the nation but have often not been held accountable. And, all of this with sound paper trails in place. (They use the law itself to avoid being incriminated.)
IRS has paper trails all over the place. But that hasn't prevented criminals from forging identities to file fake tax returns in order to get the returns of other people. (They use the fact that centralized organizations like the IRS have limited resources to validate every person's identity prior to issuing a return. This knowledge helps them to avoid being incriminated.)
I think in any of these cases the asset class or industry can attempt to police but in the end there is a limit to the effectiveness of the policing (with diminishing returns as you add more of it).
Thanks again for your insights! Good stuff to get me chewing on before my I grab some lunch!
=)
Hope you picked on something tasty...
Your insights make sense and I love the decentralized cryptoworld. Just to give you a perspective, I have not invested a single $$ in stock market, however, to get into Cryptoworld, I have taken a personal loan - that's how much I back crypto world. I came to know Steemit about a month back - so you can call mine a late entry...hopefully not too late as I learned yesterday from Stephen that we are only 1/100th of ONE percent - so we are going to grow...
My point was about creating some kind of accountability, like an performance based release escrow, like some genuine ICOs have done. My point was not driving it to a guarantee corner rather a more transparent one!
Thank you for letting me bounce my thoughts and for serving them well!
I'm very new to steemit too.
You and I definitely share the love of the distributed nature of the cryptoworld.
I glad you did the investment with a personal loan (constructive debt is really good IMO) rather than using margin.
I think you're right on the money with the performance based escrow. That is a very good model for managing this kind of problem! It could be ideal actually!
I'll be looking out for more from you!