My thoughts on government regulations and cryptocurrency
At first, I was totally against any interference of any government in regards to #cryptocurrency because of corrupt governments are and their close ties to wealthy bankers who only seek to control and manipulate the fiat market to their benefit. We have witnessed time and time again how many of the economical crisis that have occurred throughout history are attributed to the unequal distribution of wealth and greed of those in power.
However, after seeing all of the scam "lending" platforms such as Bitconnect and Davorcoin, it's goes without saying that many people are vulnerable in cryptocurrency. While some believe that one should have sense enough not to engage in such activities, the average person is looking for financial freedom. The above platforms and others that currently operate, prey on people who have economical disadvantages and greed. As a result, tenured and newbie crypto users fall victim to the promises that these platforms offer, causing many to lose their crypto.
I do agree to some extent that people should use caution when coming across scam lending platforms and ICOs, many are transitioning from a regulated fiat market with securities provided by banks and government into a market which put 100% responsibility into the user's control. Again, I am not shifting blame on anyone but lets be honest, there's a small minority who understands the purpose and function of crypto. For everyone else, they only see it as an opportunity for financial freedom and advancement.
This leads to my point of government regulation. I do believe that their should be some sort of regulation on ICOs and a complete shutdown of ALL lending platforms. Many ICOs mislead contributors with flashy websites and promises of new tech with a hidden agenda to get as much crypto as possible to cash out to fiat later, leaving contributors to wonder what they've gotten themselves into and how will they get their investment back.
For true adoption of cryptocurrency and to have the marketcap grow to its true potential, people need to feel somewhat safe. I do not believe the government should control crypto to extent in which fiat markets are currently regulated but I do believe that this "wild-wild west" from of the cryptocurrency market is unhealthy and will prevent its growth in the long run.
I definitely would love to see responses, whether opinionated or supported with facts as why you agree or disagree with the above.
You place a lot of faith in these "governments."
Do you really think they would EVER do anything to protect individual investors? That's not their function.
Regulation should probably come from the community and/or better algorithms.
I think people are wanting to have their cake and eat it too, meaning they want the government to stay out of their crypto business but at the same time have them involved to protect retail investors. I believe people should be responsible for their own money, do a lot of research before actually investing a single dollar, and then invest. I recently saw someone in a YT video say they lost their life savings in bitconnect. (This man had a child with autism to take care of allegedly). In what world do you gamble your money away like this? Especially when you have someone to take care of? 100% peoples' faults in my opinion. When you come into this space, you know the risks involved. Why would you complain or blame someone else when your plans fell through and you lost all your money?
I agree with you. I may add though, there are a lot of dangerous ICOs out there. There is no way to really do hardcore research on them because not many people understand the tech behind cryptocurrency. I believe that educating people on crypto currency is very import in order for people to have true responsibility.
Education is a great idea, but letting some agency decide what is a good investment or not, doesn't seem like "doing due diligence." If an investor cannot take the time to do some research, is a few regulations gonna actually help them?
While regulations of fiat, financial schemes is necessary, because their system rewards deceit and theft.
Crypto is based on faith and trust, ensured by math.
ICOs are inherently risky. It's no different than gambling. If someone bet their livelihood at roulette, would you blame the casino? People should be free to make stupid decisions, but not free from the consequences of their decisions.
I agree with you 100%
It's people's own responsibility to research before investing money. Always educate yourself! People should get out of that lazy, instant gratification mindset where everything is spoon fed to them. They should really start excising those little grey cells and start thinking for themselves again - take back your power.
I also don't understand how people can gamble with money they can't afford to lose. Take educated and calculated risks when you can afford them, otherwise just don't.
Lastly, getting the government involved to "manage" from a centralized position goes against the principle of what crypto stands for. It's paddling backwards - we need to figure this decentralized thing out and yeah, so what if it's the Wild West right now, the Wild West played it's part in where we are today. Things will work itself out over time.
But the big thing with crypto and everything else in life, is research, research and research and then make an informed and educated decisions.
Sorry for the ramble.
stupid people should pay the price
You can’t always blame people new to space. You get someone new to crypto, go to YouTube and watch some videos and half the people are telling you all this money they have been making on Bitconnect over past year and they have 100k followers, then u don’t think you’re making a gamble when you buy in because you are new to space.
Ignorantia juris non excusat. If you are gullible enough to bet the farm on a youtuber, you probably deserve to lose your money. Getting into any investment solely on the advice of others, especially when large amounts of money are concerned is dumb... Nobody, not even the all-powerful government can protect people from being that dumb.
I wasn’t making an argument supporting that, just stating what actually happens. At the same time there are very reputable youtubers that make solid crypto content teaching everything from chart reading to analysis of companies and interviews with their CEOs. It’s also not one youtuber, back in December it was like half the crypto youtubers shilling Bitconnect.
When the lending platforms go down and you got people saying it’s because the govt doesn’t want poor people to come up and they are jealous. Wtf? They are ponzi, and it’s just a matter of time till the people at the end lose out, so the faster they stop them the better. Davor Coin went down in like 2 months which is bad for the people that lost money, but it saved a whole lot more people that would have lost out. Also, these lending platforms are horrible for the whole cryptocurrency market. You have people new to crypto watching a bunch of videos to learn and half of them are pushing some affiliate link, they invest, company exit scams, the people lose their money and leave the space. We need some level of govt regulation to protect the newcomers. The sec meeting was a huge positive step forward and good to see we have some senators that are on board and actually know about the different currencies like Mark Warner did.
Every great opportunity to make money is always accompanied by scammers - the parasites on the whales backside. The gold rush has massive scams thrown in there and it's the same with crypto. Scams are EVERYWHERE you can think to make money. That is why you should research for yourself until you are sure what you are going to do - if you're not sure, research some more. Don't make hasty decisions. But if someone can't figure this out for themselves, then nothing I say will make any difference.
you are right I agree with you. I may add though, there are a lot of dangerous ICOs out there.
In my mind the market itself works this sort of thing out, like we've seen with what has happened so far. The scammers can exist even with regulation, but all regulation will do is give people the false sense of security thinking that ICOs are less risky than they really are. It's an extraordinary risk, that people should have some trepidation getting into. Pretending like risks aren't risky doesn't help anyone. the wildness of the market may see some things go wrong, but sickly and risky ventures need to fail so that strong ones can grow. Artificially "protecting" people from dumb decisions isn't helping them in the long run, as they rarely learn not to fall for scams if there's no(low) risk to falling victim to a scam.
yes! They should understand that no one is coming to save them. You are your own savior so take responsibility and stop handing your power over to other people. Unplug from the matrix!
But @spydrzero don`t forget that some countries allowed to use cryptocurrencies like president of Belarus.
Great article. Some people who never had access to riches got rich! A lot of people lost money. I'm one of those who's red so far. But overall I have hope, something that I can honestly say I didn't have before crypto. But I do agree people should be somehow tested and then given a license to crypto. lol Imagine people driving without a license.
I one of the many ppl who got drawn into these lending platforms with no knowledge of cryptocurrency. By the time i educated myself and realized what i was dealing with. It was already too late. I was 7k deep in loans and my money was locked in when i realized i was caught in a ponzi. At first i blamed the shit out of the promoters for making this scam shit look so appealing but i made the choice. I mean still fuck those famous promoters but ultimately it’s still my greed that fucked me over. I’ve began researching more of the coins I’ve investes in and reaLized recently that this is more than just an ability to make money...but it’s also an opportunity to push digital currency and technology forward
Good for you! At least you are learning from your mistakes! Scams are designed to be super attractive traps - if it looks to good to be true, it probably is..