Quote:
Originally Posted by SkinnyPupp
Yes, this is much better
Bank nearly goes bankrupt, is deemed "too big to fail" Government bails them out with £46 billion from the taxpayer who has no choice in the matter. Bank then loses that £46 BILLION. Of course this doesn't include the £576 million that was set aside for executive bonuses.. they still got those of course.
When something bad happens at an poorly run exchange, people stay the hell away and find someone else to deal with. When this happens with a bank, regulations kick in and take people from the money for the bank to lose all over again.
And let's not even get started with how fucked wall street is.
I understand that change is a scary thing. However the paradigm needs to shift, IMO. |
You have a point. Poorly run exchanges/banks/whatever can make catastrophic damages no matter what kind of asset we hold.
Nevertheless, it still doesn't change the fact that BTC is fundamentally unable to do what regular currency can because of its nature.
BTC is unregulated and untraceable; making nerds and hippies to go nuts because now it's "free" of control. However, without a governing body, very little (if any) can be done when shit happens.
For this reason, it's very hard to believe that BTC would be able to sustain any long term stability because the more stable BTC becomes, the more valuable it is. And the more valuable it is, the more incentive it gives people to go bad. It's simply human nature. And the best part? There is really no serious law in any country that penalize such.
There are people suing MtGox in US... and from my understanding in some commercial law in US, the most they would get from MtGox or its founder would be a few years of prison (up to 5years from what I read) and minimal financial penalty because the status of BTC is null in a court of law. Even if convicted and the judge feels like setting a precedent, there is no law they can use as BTC is not part of the financial system and therefore the laws applied on financial market don't mean jack here.
And even if he gets the full setence, 5 years in a low security jail for 400M? Heck, I wouldn't think twice.