These Coins Will Not Survive Regulation

Economics, Premium POM44 Comments

The Napster Hours of a Pre-Regulated Crypto World

By JC Collins

The Financial Stability Board (FSB) just released a statement on the eve of the G20 meetings in Argentina. FSB Chair Mark Carney stated that the “FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time.”

The FSB coordinates financial regulation for the G20 member states and has been intimately involved in re-engineering the architecture of the international monetary framework over the past decade. This re-engineering is for the purpose of shifting the global system from the existing unipolar USD framework to a multilateral framework.

Statements from the FSB are purposeful and strategic. This one is no different. Carney is careful to point out that this is an “initial assessment” and that no risks are posed “at this time”.

These are two important parts of this seemingly simple statement, which leave the door open for further discussion and evaluation. It reminds me of the fading years and months of the music download bonanza that incrementally crumbled under the weight of iTunes and other music purchasing applications.

Official statements were released during that period which were often in contradiction. Some said free music downloading could never be stopped and would forever change the entertainment industry. Others said it needed to be stopped before it destroyed the careers of musicians. Each extreme end of the possibility spectrum were wrong.

New regulations were agreed upon between the music industry and the pioneers of the internet age. Music sharing sites such as Napster began to disappear and you could now purchase one song of an artist, or band, instead of a whole album. A similar scalability potential is emerging in the crypto world with the possibility of micro-payments.

There’s no doubt that massive change is about to hammer the financial services industry and global payments business. Everything is going to change. With this change will come an agreed upon level of regulation which will benefit both sides of the scales.

The statement by the FSB is fantastic, as it reduces the downward pressure that was building on the crypto market because of the expected regulation crackdown. This regulation will come, but in an incremental and non-dramatic fashion. It does no one any good to crash this new and developing market and asset class. Nor does it do that market any good to continue allowing scams to spread and investors to lose their lifesavings to shady ICOs and exchanges.

The FSB and G20 don’t have to take a lot of action on the crypto market right now. The ongoing banning of ICO advertising by Facebook, Google, and Twitter is doing enough to reduce the threat while hammering the market.

There are some cryptos, like XRP from Ripple, which are designed for regulation. Others, like Etheruem, can adjust quickly to any host of regulations. But there are some, because of their design and purpose, which will not do well with regulation. These are the so-called privacy coins.

The initial phase of regulations, when they come, will target ICOs and the privacy coins. The crypto-traditionalists will bemoan this statement, as to them the whole point of blockchain and crypto is privacy and the removal of government from our lives. They cannot understand that some level of regulation is required so that there isn’t complete anarchy.

A few of the top privacy coins may evolve to fit within a regulated world, but most, if not all, will crash as investors jump ship for the top 5 to 10 cryptos which fit within the regulated world.

The top 5 privacy coins which will not survive the first initial phases of regulations are:

  1. Dash
  2. Monero
  3. ZCash
  4. PIVX
  5. Verge

Interestingly enough, it was announced this morning that the coins Dash, Monero, and ZCash will be removed from the Coincheck exchange. The statement mentions that the removal is because of a $500 million hack which occurred. But this is in fact more about preparing the way for the regulations which will address risk in the market.

Ripple CEO Brad Garlinghouse recently said that “Bitcoin is the Napster of crypto assets”. Whether that ends up to be true or not will have to be seen. Bitcoin could have a place in the future crypto world, but it will evolve to meet future regulations.

Like with digital music, the crypto markets will not be forced to fit within existing regulations. New regulations will be developed which will capitalize on the best aspects of the crypto assets, and their full potential.

The G20 meetings will be interesting, as will all the milestone dates for Ripple which will be coming throughout the year. This is only the beginning. – JC

This article is copyrighted by POM Media©2017. As Premium content permission is not given to be copied and re-posted.

JC Collins can be contacted at jcollins@philosophyofmetrics.com

44 Comments on “These Coins Will Not Survive Regulation”

  1. Ripple CEO Brad Garlinghouse recently said that “Bitcoin is the Napster of crypto assets”.

    I do agree….. For each major change , the first one is the hero , until he dies , as there is a moment in each new process where the leading children of the revolution are eaten ……
    Or eaten , or beheaded , or momified . Too soon to know , but the future of the blockchain won’t be with Bitcoin, which doesn’t seem to be able to evolve quickly enough …
    I am concerned about privacy , but I don’t feel the need to invest in these crypto privacy coins .

    1. Ledude, I can totally understand that view, and yet, people like Peter Thiel (also an early investor in Ripple) remain very bullish on bitcoin. For the near term at least, BTC is still going to be the gateway crypto which most people will seek to acquire before converting to other cryptos, so demand is not going away. And there is a school of thought that in the long term bitcoin will be the crypto equivalent of gold, in the sense that central banks will hodl this “relic” on their balance sheets as a (relatively) stable store of value. So… I’m still unsure on this

  2. Thanks JC great research brother. It’s both amazing and overwhelming seeing the unknown become known. One day I feel like I have a good handle on the coming technology and the next I feel stupid as hell…regarding the explosion in technology…lol.

    Can I get a memory upgrade implant? Ha, paid with crypto currency? Lol. Exciting times that are stressing the patience within…”are we there yet?” Lmao.

  3. Thanks for the analysis JC.

    How did you end up with these coins in particular? There are many others out there that tout the privacy horn. Would be great to know your vetting/thought process, especially since new coins keep popping up like mushrooms.

    1. All privacy coins and platforms will not survive regulations. Or have to change to not be privacy coins. The ones I listed are just the top ones.

  4. “NEWS Scoop: chinese giant Tencent ready to invest 2 billion dollars on Ripple technology”

    “The topic of the discussion is the possibility that Tencent can invest money on Ripple (XRP), buying a huge stake (10-15%) and get the exclusivity on the asian market.

    According to our source, Tencent will offer 2 billion dollars that will convert in XRP in the next 12 months. The first billion in early days of July. The plan of Tencent is to integrate Ripple technologies on its Wechat and start a tech war against Alibaba and Amazon on mobile payments.”

    https://ripplenews.tech/2018/03/14/scoop-chinese-giant-tencent-ready-invest-2-billion-dollars-ripple-technology/

    🙂

    1. That is big news Dane thanks.
      As you may know, China leads the world in mass adoption of mobile phone payments. It is already at the point where, at least in tier 1 cities, citizens do not need to carry a wallet/purse any more. Cash and/or credit cards are not needed for daily expenses as direct payment with a smartphone is accepted almost everywhere. The mobile payment market in China is dominated by Tencent and Alibaba (and there are strong hints that Alibaba will also partner with Ripple).
      I am not very clear what is the benefit of this deal, if any, in the China domestic market. But the use of XRP would allow, I presume, near-instantaneous international payments via their apps, facilitating the roll-out of the service in overseas markets. Currently overseas use is severely hindered by the outdated cross-border payment systems which JC described in previous articles. For example generally if someone from China visits Hong Kong they can only use mobile payments there if they happen to have a HK$ bank account. Instant currency conversion via XRP would solve this issue.

  5. JC, isn’t this where they want it to head to anyway. Cryptos play nice with the new implementation of replacing USD reserve quite well. Am I wrong in this conclusion? Doing away with the middlemen should be very lucrative to main st, not so well with wall street.
    JC do you see a time coming when the”rentier like” get their comeuppance? A level playing field would make all the difference. The monolithic dominance has caused a world of trouble in every aspect of society (at least here in the USA) Everything from new inventions to the types of movies produced are lacking in originality with a paucity of depth. So sad really . We have some fantastic minds available to us that would be spectacular in how to change the design to better implement the integrating with the fundamentals which don’t change ( ex. farming , practices that support life in its myriad of forms..
    On a separate level but still within the framework is , those who work hard get whats due them, those that choose not to get whats due them. Fairly.

    We have a paucity of new ideas or innovations in the areas that are old as time such as agriculture. There is a much better way of working smarter not harder. The skills required will come from collaboration of environmentalist , engineers , common farmers , entomologists and yes the GMO crowd as well. This is all possible , but will require a new way of thinking along with a rediscovering natures very old way of operating and integrating these. I so hope at this apex that this strategy is implemented and I’m hopeful that we are heading this way because the current direction doesn’t seem to offer anything for the sustainability of life not as we know it but more precisely “Life” with foundational , fundamental properties being determined at a foundational level that has always been. Sorry for the redundancy but I think this fundamental property is completely lost on us now a days.
    What I envision is, out from the foundation can come a myriad of things , but to transgress the foundation will bring the fall , and utter ruin.. We have lots of room to create and the challenge to meet this should be quite fun.

  6. “Ripple’s XRP Just Might Be the Next Big Crypto Futures Market”

    “But in fact, U.K.-based startup Crypto Facilities has been operating a futures market for the world’s third-largest cryptocurrency, developed by blockchain startup Ripple Inc., for almost 18 months now. And while the company’s CEO Timo Schlaefer has been tight-lipped about the product so far, he sees trends in recent data that indicate broader XRP futures adoption may be on the horizon.

    “We have pretty good order books,” Schlaefer told CoinDesk, “And we’re in the process of working with some of the large market makers to draw that further.””

    https://www.coindesk.com/ripples-xrp-just-might-next-big-crypto-futures-market/

    Not sure if this is a good thing or not due to my ignorance of futures and how they work but it seems like a pretty big deal to a lot of people. The understanding I have so far is that one could strike a futures contract with Ripple to purchase….eh a million XRP two years from now at an agreed to price today. When the two years are up the purchase transacts at the agreed to price no matter what the market has forced the value of XRP to be. Or it could just be a bet on what the price will be in a given timeframe? Maybe that’s another Wallstreet product though…

    If it’s the first idea it could be kind of like the Tencent deal commented above couldn’t it?

  7. “They [crypto-traditionalists] cannot understand that some level of regulation is required so that there isn’t complete anarchy.”

    This sentence seems massively presumptive. As if regulation can only be delivered by a centralised government.

    Regulation that avoids ‘complete anarchy’ will come from the invisible hand of the fully decentralised sovereign social autonomy stack.

    https://www.linkedin.com/pulse/central-banks-vs-digital-cash-economy-bitcoin-gavriel-shaw/

    1. “This sentence seems massively presumptive. As if regulation can only be delivered by a centralized governnent.”

      This sentence IS massively presumptive. Who said anything about a centralized government? I stated simply that “some level of regulation will be required”. That could mean a lot of different things.

        1. What is your suggestion to protect investors from scammers? What level of regulation would be required? Can DOAs serve that function? How do you ensure protections for those entering the system and exiting the system?

          I find it fascinating how some people accept the deficiencies of human nature when it is applied to government and regulation, but not when it comes to protecting innocent people from non-government actors.

          Not interested in regurgitated conspiracy and simple buzz phrases. But I am interested in honest and intelligent ideas you have on the above?

          Of course, I’m assuming you have them. If not, your original comment, and in turn this whole conversation, has been a waste of time for us and the readers.

  8. I am trying to purchase XRP. Wow, first the shady exchanges are one issue, JC I scouted the Coinsquare and QuadrigaCX first, websites seemed legit, but then went to check some reviews that’s when it starts to come off the rails. No physical address for anyone, or a phone number, just email and if they don’t want to answer too bad. Many people cannot withdrawal money, money goes In quick, almost impossible to get it back. Just a question JC, you have purchased lots of XRP lately? Which is what I want to do, I see the potential here. But have you tried any withdrawals yet? Some say when price starts to go up, thats when the problems of accounts being locked up when investors want to take some profits off the table start.. speculation is that the exchages are the ones that are taking the profits? What’s your thought and experience on all this lately? I know you’ve touched on it before but just a quick update on the exchanges. As for the Eden exodus wallet, I’ve almost got my rocket science degree to figure that whole show out, reviews on those almost sent me back to the bottle. I think you need to make a POM exchange, we’ll get you a nice office in Edmonton, you know what your doing, we can talk to you, take your cut to supplement the blog income, it’s all good. Thanks brother.

    1. Haha. Thanks.

      I’ve had no issues with either exchange. QuadrigaCX funds go in. I purchase Ethereum and immediately withdraw it to the wallet. Coinsquare holds the initial deposit for a week. After that you’re good to go. No concerns on my end around withdrawals. I think it could just be that some don’t understand the process. Not sure. Can only speak from my own experience.

  9. A hybrid or the future?

    “One crypto token on two different blockchains?

    While it might sound unlikely, social messaging app Kik has announced it’ll be doing just that with its “kin” token, which allowed the company to raise $98 million in an initial coin offering (ICO) in September. After some back and forth about which blockchain the company wanted to host its crypto token on, Kik has decided to use ethereum (on which the tokens were first launched) for liquidity and stellar for transactions.”

    https://www.coindesk.com/ethereum-and-stellar-mobile-messenger-kik-embraces-two-blockchains/

    Atomic Action – “…out of adversity, inspiration is taking hold, with high-profile coders turning their focus to atomic swaps, a concept that claims to allow for the direct, peer-to-peer transfer of cryptocurrencies across different blockchains. In the place of the vulnerable exchanges we use today, the idea behind atomic swaps is that these large repositories of customer money could be rendered obsolete by code.”

    https://www.coindesk.com/atomic-action-will-2018-year-cross-blockchain-swap/

  10. Great post JC, and the comments were very interesting.

    NOW! Can we move on? Coins, coins. coins. STOP IT!!

    Your making me crazy with all this coin shit.

    Love you man
    PTM

    1. lol Peter…are you dreaming about them coins yet? If so which ones…..bwahahahahaha.

      But truthfully if we move on before we fully understand it aren’t we running from the truth of it all and setting ourselves up for fear of the unknown in the new world?

    2. Hey Peter here is an article headline that caught my attention and somehow lead me back to you my friend.

      “Warning: The Blockchain Could Rot Your Brain”

      Then reading the article it unfolded to be something a bit different than I had expected but was surprisingly informative and satisfying.

      “…the Solow Paradox.

      Also known as the Productivity Paradox, this is the observation that “… as more investment is made in information technology, worker productivity may go down instead of up.”

      “I’ve witnessed the Solow Paradox in action while working in different offices alongside C-Suite executives and other consultants. I’ve seen working professionals barely able to work an Excel spreadsheet, let alone utilize the countless Excel formulas that could have made their work output more productive and efficient.

      While some will argue that the technical incompetencies I describe above are the result of poor training and weak hiring practices. Shouldn’t the concern of the Solow Paradox be seriously considered if blockchain technologies are destined to have a stake in all industries?

      It’s certainly possible that the misunderstanding of technology may very well add hours to our workdays, rather than subtract them.”

      https://www.coindesk.com/warning-blockchain-rot-brain/

      This part makes sense “the Productivity Paradox, this is the observation that “… as more investment is made in information technology, worker productivity may go down instead of up.”

      It should, thats the whole point of technology to help get work done. If the technology is helping us with our work we should have less work to do right? So what do we do with the freetime created from that technology? Sweep the floors or learn how to better utilize that technology? My bet is that the majority of the folks will linger longer around the water cooler gossiping and conspiring. My hope is that the opportunity is used to increase our intelligence. Maybe one day technology will be so widespread and incorporated in our lives that we don’t even have to leave home to do our work. Can you imagine making a business call then having a sip of coffee before tending to the garden for a while?

      Speaking of gardens are you getting ready for planting? How is the garden going Peter?

  11. “Europe running out of dollars as US coaxes companies to bring money home”

    https://www.rt.com/business/421831-europe-runs-out-dollars/

    “Europe’s Crisis of Liquidity”

    http://www.nytimes.com/2010/11/30/business/global/30views.html

    Hey you all is this a sign of pressure for change? We spoke a while ago about how the US would need to bring the USD home in order for her to reduce the value of the USD for the world to move into the multilateral future. We also spoke about how the world needs liquidity and how the Eurasian continent would come together as the One Belt One Road initiative became a reality.

    All this could show a push behind the blockchain fintech coming alive. The regulation being created for this could be a measure of where we are in that process couldn’t it? Man a lot of work in 2018 and it seems to be moving at quantum speed doesn’t it?

  12. Hey Dane, just drunk and wanting to give JC some gruff, and take out my anger at not being able to buy me some Ripple until next month. Why I’m mad as I watch the price go down is beyond me, perhaps some of that blockchain brain rot you spoke of. I would think by now you would recognize when I’m to far into my cup’s to be posting any sense. LOL

    Have a Great Day
    PTM

    1. I do see it Peter, in fact mybresponce was infused with kraken and coke that’s why I prod you at those moments, lol. I try to make it like I’m there with you pal. I’ve gone into some of that frustration myself. Have you wished for a hypersonic money tree yet so you can buy up the crypto market? I put the order in to the tree gods but still await their delivery. Yea I share your frustration. Hahaha to the point I’m prepping my bike to sell to further invest. Yep I got the bug alright…to separate a man from his iron horse is quite the lure for sure, but crypto has won for the promise of a better future.

      Cheers pal.

  13. Here is an interesting example of how blockchain is making its way into…well everything I guess.

    “Aworker is creating a new blockchain platform for the recruitment industry. It’s a document with the list of verified professional and communication skills that show the real abilities and achievements of an employee.

    Decentralization provides the best opportunities for creating the new professional ecosystem. Each person will be able to show how qualified he/she is and develop a reputation of a reliable employee with just a couple of mouse clicks.”

    https://decentralize.today/four-reasons-to-get-work-tokens-5265ceb94087

    This is no way an endorsement for the work token, it’s just an example of how blockchain technology is finding its way into everyday aspects of the old world of things.

  14. “Goodbye Fungibility: OFAC’s Bitcoin Blacklist Could Remake Crypto”

    “The Office of Foreign Asset Control (OFAC)”

    “In a new section of its website, labeled “Questions about Virtual Currency,” OFAC noted that it “may add digital currency addresses to the SDN List to alert the public of specific digital currency identifiers associated with a blocked person.”

    The list of Specially Designated Nationals (SDNs) includes individuals and entities associated with sanctioned governments, terrorism, trafficking in weapons of mass destruction, and illegal drug trafficking. This list includes varying types of records, including in some cases only names, but in other cases names, addresses, aliases, etc.”

    https://www.coindesk.com/goodbye-fungibility-ofacs-bitcoin-blacklist-remake-crypto/

  15. Dane, my good man.
    I have to agree the more info we gain from JC’s hard work and research, plus his unique insights the better. My girl and dog much to often lock me out of their existence with a look they exchange that says, just ignore him. So left to my own device with this P/C device does not always produce the promise I made to always attempt to contribute positive content with my comments.

    Oh well, I pay big, big bucks to be on this site so.LOLOL

    Your good natured response to my ranting is always appreciated and your thoughtful question about the state of my redemption garden, more than kind.

    But first, your comment made me take hard look at the exercise bike gathering dust in the corner. While staring at it my sight began to ‘Ripple.”

    The garden has shrunk from the unmanageable ego driven size of 50’x50′ to a more realistic 10’x10’. The soil is prepared, the spirits of the rain, sun, manure and all the earth elements are dancing around out there as we speak. The garden awaits some rowing and the timing of planting. So yep, good. Thanks for asking.

    Always have a great day
    PTM

  16. “What is your suggestion to protect investors from scammers? What level of regulation would be required? Can DOAs serve that function? How do you ensure protections for those entering the system and exiting the system?”

    In 2001 I was introduced to the work of Andrew J Galambos — his book “Sic Itur Ad Astra” (pathway to the stars): The Theory of Volition. (https://www.amazon.com/Sic-Itur-Ad-Astra-Volition/dp/0880780045/ref=sr_1_1?s=books&ie=UTF8&qid=1521924459&sr=1-1)

    He describes in detail (even before blockchain) how society could operate morally to protect the rights of everyone (extending beyond the work of Ludwig von Mises), via things like user fees (such as local toll roads), or insurance companies that provide the service they insure for, so as not to have to make payouts. Such as a sound-proofing insurance company that provides and maintains noise reduction technologies.

    Through a free market, regulation is provided by the services people pay for, including Consumer Protection or local watchdog services (like Which Magazine https://www.which.co.uk and BBC Watchdog http://www.bbc.co.uk/programmes/b006mg74).

    If the gullible lazy masses no longer had a false sense of security from supposed angels in government to help regulate a fair economy, they would all start taking more self-responsibility and seek out trust networks.

    Now with blockchain, through Decentralised Autonomous Organisations, the smart-contract trust networks by which all systems operate will increasingly become free of human fraud.

    This will allow watchdog/protection/user-fee/insurance services to protect individual rights data, monitor breaches of contract, restrict access to parties who have agreed terms, etc.

    Thereby, an Open API Economy based on a social stack of trust frameworks will soon fully decentralise security, identity and exchange — eliminating centralised Stage-sponsored regulators.

    Andrew J Galambos was recommended to me by Dr. Frank R Wallace, author of The Prime Law as follows:

    -start-

    (The Fundamental of Protection)

    Preamble

    *The purpose of human life is to prosper and live happily.

    *The function of government is to provide the conditions that let individuals fulfill that purpose.

    *The Prime Law guarantees those conditions by forbidding the use of initiatory force, fraud, or coercion by any person or group against any individual, property, or contract.

    Article 1

    No person, group of persons, or government shall initiate force, threat of force, or fraud against any individual’s self, property, or contract.

    Article 2

    Force is morally-and-legally justified only for protection from those who violate Article 1.

    Article 3

    No exceptions shall exist for Articles 1 and 2.

    -end-

    So simple. Now become feasible through DAOs that outcompete and obsolete centralised force-backed fraud-filled government regulators.

    1. You seem to have a lot more knowledge than I in regards to DAO’s Gavriel so can you help a fellow POMer with something? Being the responsible self actuated person I am I have a hard wallet (a ledger nano s) to secure my retirement investments from the “human” element of deceit, theft and well the crown beast portion of us all. But they recently had an update because someone has found a way to hack the “web browser” side of the transfer mechanization of getting the coin into or out of the nano s by changing the wallet address in the browser itself (not the nano s) as explained in this short video…

      https://youtu.be/_vfH5Z0RzYA

      Will DAO’s eventually be able to protect people from the theft by their fellow man? If so please explain so I can have some sense of relief and begin to trust my fellow man again. So far in my shallow understanding of DAO’s it seems that it will work great at filtering out that crown beast of man from entering into the digital business deal within the digital world but what about the points where we enter or exit that digital world from this real world (real world…fiat is real?) You get the point though I hope. If not let me know and I can expand on that because I’m genuine in asking. Am I missing something that would be key to my understanding and if so can you explain it so I can have an “aha” moment?

      Thanks

  17. Your welcome Peter, glad to hear about your garden and I wish you luck my friend. I was watching this video this morning and thought you might like it also. It begins with an indian who states the following…

    “The Ute people have been within the mountainous region here for our migration patterns for at least 8,000 years, so if I say I was here first then I was here first.”

    https://www.youtube.com/watch?v=lWLdijamdcQ

  18. Hi Dane, yes the intersection of our real ‘analog’ to digital worlds is really interesting. DAOs are smart-contract based multi party ecosystems. The smart contract is the key to it. And smart contracts ultimately work without trust. That’s the essence of the paradigm shift. That is, trustless.

    We achieve the ‘rule of law’ (corrolary of removing the ‘rule of man’) by making our social system ‘trustless’ via smart-contracts. That is, if I enter an exchange using a smart contract, and I know/trust the rules of the smart contract, then I don’t need to individually trust the actions of individual 3rd parties because they must adhere to the rules of the smart contract, or not participate.

    Does that speak to your overall question?

    With regards to Ledger. I’m sure you’ve read the fix for that issue. Always checking the address shown on the device screen matches the address shown on the desktop app. If the address is wrong, the desktop app has been hacked. The ledger screen is the reliable component.

    My vision is that, as smart contract implementation becomes more sophisticated and identity theft techniques are matured, we’ll be less and less prone to such things as ‘man in the middle’ attacks or ‘phishing scams’ because our smart contracts will intelligently guide us to make safe and secure choices. Then, more participants in an ecosystem (a large DAO) makes it more secure as there are less chances for a hacker, fraudster or otherwise general abuser of the system to do anything contrary to the smart-contract rules.

    In this way, the function of large government States will quickly reduce closer to its originally intended ethical function: running a judiciary system (which will be smart-contract enabled of course) and police force to help defend against and reconcile acts of physical violence, coercion or fraud (also of course managed via smart-contracts).

    Smart contracts everywhere. Surveillance. Big data. Identity shrouds. All controlled by you. The sovereign autonomous individual (the real physical you) sitting at the centre of your digital identity personas that interface via smart-contract rules which you directly manage with DAOs.

    1. Thanks Gavriel it does speak to it on the digital trustless side of things. But as we know the Crown Beast in man doesn’t care. There seems to be a diminishing governance of self or lack of self consciousness.

      But how can we protect investors investing into this digital world who have to depend on an investment bank with a ton of brokers brokering for a bunch of people? If the broker is honest and trustworthy the investor will trust in that broker to be knowledgeable enough to know what ICO’s are trustworthy and which are not. Which works against decentralization because in this case the investment bank/broker would be the centralized point. So in a world moving to decentralization there may not be any brokers so they will be interacting with the digital world by themselves. Without some sort of regulation they could lose their entire retirement fund and that would be catastrophic and a point for fear to invest or resistance I think the new buzz word is. Resistance works against efficiency and nature.

      For the ledger yes that’s the way I keep peace of mind by checking the little screen on the ledger…for now. lol, we are a clever species so got to always keep on our P’s and Q’s you know? But as smart contracts are written with applications isn’t there a point or two that are weak for interception like the hacker with the Google Chrome extension for the ledger? This Just popped into my mind now.

      I think where the regulation comes in is to let the less technically inclined feel that sense of false outward security they are used to feeling. But it seems it is still needed. Smart contracts can be for business transactions and such but the problem is much deeper and so far no system man has created to regulate himself has lasted the test of time. I’m thinking our topic is on the precipice of one of those moments where we need a new system because the old one has outlasted its usefulness.

      Your vision is nice but I think we see it slightly different. I don’t believe any outward device or system can control, correct or tame man or the inner deficiencies of man. Therefore, I would start with helping man to realize our inner deficiencies. If we realize them then I believe we can correct ourselves from the inside out. In this way we correct the error from the root of the source…within man himself. That way no matter what man creates it will be trustworthy and secure and beneficial to everything as whole. In the thousands of years that man has physically evolved it seems we left our moral practice out of the evolutionary process. It seems we have been distracted while we learned how to use our newly invented technologies. Now I’m not against creature comforts (technologies) believe me, but many wrap themselves up into it and forget about being good people and that’s an area of concern isn’t it?

      It seems we are probably both on the same page when it comes to realizing that at our current state some sort of regulation is needed to fill the gaps…at least for now.

      Thank you for taking the time to help me understand.

      1. In the interest of ‘getting straight to the heart of it’ let me project that you seem to distrust human nature. That may be an abrahamic religious fixation. I see human nature as inherently good. Yes we have things to fix, but deep inside most of us are angels. Technology serves two functions:

        1. Help elevate us spiritually through enabling a higher standard of living for everyone.
        2. Protect us from ‘evil’: which means force, fraud and coercion.

        Through technology, certain ‘lack of self consciousness’ matters less. Each individual has their own journey. We need a social structure that frees geniuses of society to raise the opportunity for all of us. Then each person has the responsibility to apply effort and focus to elevate themselves.

        For your example of protecting investors. We need to remove people’s dependency on the old system or on individual ‘external higher authorities’ like ‘brokers’. Look to Roboadvisory services.

        >> “Without some sort of regulation they could lose their entire retirement fund and that would be catastrophic”

        You are implying that with regulation such catastrophes won’t or don’t happen. The entire US system is both regulated and has seen people lose everything, with more yet to come. Why put external higher authority of king, god, country or state above individual self-responsibility? Have you seen the movie The Big Short about 2008 housing market collapse?

        >> “As smart contracts are written with applications isn’t there a point or two that are weak for interception like the hacker with the Google Chrome extension for the ledger?”

        Yes of course, and that’s the vector of civilisation. Progress. Advancement. New technology. Innovation. There is no infallible safety blanket. The socialist communist government is not going to molly coddle every aspect of life for us. We are responsible individually. Through technology, collaboration and now through DAOs we build ever-safer systems for the digital world.

        >> “I think where the regulation comes in is to let the less technically inclined feel that sense of false outward security they are used to feeling. But it seems it is still needed.”

        Bingo. Regulation is a safety blanket which gives a false sense of security. Rip off that blanket and let people realise the truth. Either there is a boogieman, and he comes from government/monopolies. Or, there is no boogieman, so start participating in the conversation of cultural revolution through self-responsibility and action.

        >> “Your vision is nice but I think we see it slightly different. I don’t believe any outward device or system can control, correct or tame man or the inner deficiencies of man. Therefore, I would start with helping man to realize our inner deficiencies. If we realize them then I believe we can correct ourselves from the inside out.”

        Yes we do see this differently. My perspective is that technology is vital for the inner journey. We could not achieve genuine enlightenment before current times because we have suffered the might of small groups with big power and assets.

        My favorite author said “the anxiety of influence presses corruption upon the brow of human consciousness”.

        The more we remove opportunities for negative influence, especially coercion (threat of force) by the State or individuals via DAOs, the freer will consciousness be to thrive — and that will snowball until authentic spiritual selfhood is achieved. Know Thy Self.

        1. The history of the world proves, without question, that there are aspects of human nature which cannot be trusted. Being inherently good is a fundamental truth on most levels, but is also subjective on others. It’s the timeless battle within which tempts and pulls each of us away from our inherent goodness which is of concern. We cannot ignore this aspect of the spirits corruption as it falls further into the centralizing world of matter, or force and form.

          1. That’s exactly what I’ve addressed: blockchain technology will increasingly regulate human corruption out of our society, enabling each individual greater opportunity to do their inner work.

          2. Blockchain provides that potential for sure. But all systems of man become corrupt. There is no alternative for the hard work and patience required to complete the journey inward. Man always becomes hopeful with new inventions and processes, from the first writings, through the printing press, internet, and now blockchain, all have promised a solution to the inner war. There is only one path. Everything else is corruption. That’s not to say that all of these things haven’t contributed to positive changes in the world.

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