Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

I think the best criticism against crypto currency is that it is essentially “regulatory arbitrage”.

Things are allowed inside crypto that is not allowed in the normal world of finance.

Ie stable coins: promising people 20% on their savings account by running an obscured ponzi.

Ie pump and dump.

Ie insider information. Insiders on exchanges buying up coins they know are going to be listed.

Etc etc.

(And proof of work of course is the key enabler as it allows those who are running things to hide their identity.)



> stable coins

Are not a real cryptocurrency.

> pump and dump

Is absolutely a regular circumstance. Last what I remember is sawn wood situation on the very early 2022, afaik it is worldwide. I do not recommend you to buy right now a sawn wood from big stores before researching a market in your location, because some of big stores have been dumped after buying some big amounts of sawn wood on huge prices, and their warehouses are still full of this trade offer.

> insider information. Insiders on exchanges buying up coins they know are going to be listed.

All of that coins usually does something opposite to skyrocketing very soon after early birds have received a way to short their tokens (I do not have any counter-example).

> proof of work of course is the key enabler as it allows those who are running things to hide their identity

Some entities just don't have an identity, like an artificial intelligence. What if I want my pet AI to buy or change hosting without absolutely any of my participation or even knowing? (it is not my funds, the pet has earned it without my participation as well).


what makes stablecoins not a real cryptocurrency? They are a currency stored on the blockchain


They're not trustless which makes them closer to a privately run fiat currency than a crypto currency.


What is "not trustless" about algorithmic stable coins?


It needs an oracle at least to announce the value or the collateral in USD.


trustless is a myth. if there is no trust, there is no value.


They are not sharing a "no trusted third-party" part of Nakamoto's Consensus.


The only thing crypto does is to make these things available to regular people who aren't rich already. They're happening either way.


You think poor people don't already have a buffet of scams, MLMs and ponzis to chose from?


No, I don't think that. I do think there is still a lot of room left to level the playing field between institutionalized financial schemes, and personal ones. Crypto is a small step in the direction to level the field.


So do you think the average crypto holder can print billions of $ out of thin air like bitfinex and tether?

The crypto ecosystem is as far away from level as possible. You need to have major connections with the powers that be to be remotely successful


"regulatory arbitrage" It is fancy way to call freedom. Yes it has been reduced to pump and dump scams but how is that different than the stock market?




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: