The Mystery of Bitcoin

Discussion in 'Off-Topic Discussions' started by nosborne48, Aug 27, 2022.

Loading...
  1. Rich Douglas

    Rich Douglas Well-Known Member

    You're right; it's not. If I found out tomorrow that my TSP was a loan to the government and I couldn't withdraw the funds when I wanted, I'd be ticked.
     
    Johann likes this.
  2. nosborne48

    nosborne48 Well-Known Member

    Basic to the discussion is the alleged "point" for creating bitcoin, that there is no government regulatory interference. Well, now we see what that means in practice.

    Libertarians rejoice! Your crypto is unregulated and you can be shorn as surely as any sheep.
     
  3. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    This is gratuitously false, and I think you know that. There are entire law firms that exist to assist crypto startups with regulatory compliance.
     
  4. Johann

    Johann Well-Known Member

    If this "loan" thingy was in any way representative of the type of "compliance" that one of these law firms provided, then I'd be for de-licensing such a firm and maybe some individual disbarments.

    Somehow, I think this is outside the realm of any compliance lawyers. Or maybe any lawyers.
     
    Last edited: Jan 7, 2023
  5. Rich Douglas

    Rich Douglas Well-Known Member

    I think "no government regulatory interference" is pretty accurate. Yeah, EEO and OSHA apply, naturally. But the crypto industry cannot in any way be considered "regulated" when compared to other financial industries and institutions in America. It's not even close. This latest instance shows that.
     
  6. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    If you said this incident shows that the regulation in place is ineffective, then I wouldn't argue. But what you're saying is just factually incorrect.

    https://sumsub.com/blog/crypto-regulations-in-the-us-a-complete-guide-2023/
     
  7. Rich Douglas

    Rich Douglas Well-Known Member

    This stance is pedantry relying on a distinction without a difference. There is nothing of substance upon which to disagree.
     
  8. Dustin

    Dustin Well-Known Member

    I'm pretty anti-Bitcoin in general and don't have a deep finance background but taking the document Steve linked at face value, crypto companies need to comply with the Bank Secrecy Act (BSA), the Anti-Money Laundering Act (AMLA), the Commodity Exchange Act (CEA) and the Securities Exchange Act. I don't know how this compares to the scope of regulations to traditional investment firms but what would you need to see to consider bitcoin regulated?
     
    SteveFoerster likes this.
  9. Rich Douglas

    Rich Douglas Well-Known Member

    I'll just stand by my statement, thanks.
     
  10. nosborne48

    nosborne48 Well-Known Member

    Well, who sets reserve requirements for bitcoin banks? Who performs audits? Who is the comptroller of the crypto currency? Who is the lender of last resort? Who provides deposit insurance and therefore audits bitcoin banks to verify good lending practices?

    No one. That's the problem.
     
  11. Johann

    Johann Well-Known Member

    What's going on? Bitcoin is at $23,088.20 today. That's up over $6K, 36.4% in the last month. I wonder why, and how long this trend will last.... or if, indeed, there is any reason at all, behind the rise. I'm just as baffled as ever. Maybe Elon Musk is buying, or something... :rolleyes:
     
  12. Rich Douglas

    Rich Douglas Well-Known Member

    No one knows.
    No one knows.
    No one knows.
    No one knows.
    So is everyone else. Because....
    No one knows.
     
    nosborne48 and Johann like this.
  13. nosborne48

    nosborne48 Well-Known Member

    $23,600 today. Amazing. Inexplicable. But there it is.
     
  14. JBjunior

    JBjunior Active Member

    If you ever wonder, check out discussion groups like Reddit’s r/wallstreetbets. Investments are currently “broken” compared to traditional processes and the appetite for risk is extremely high. “Buy the dip,” “stonks only go up,” and “loss porn” when you get caught are all a large part of the current investment culture. The point being that you “win” regardless of the outcome; you either make money to buy a new car or make a good story to share online as you figure out how to fund your next high risk “investment.”
     
  15. Rich Douglas

    Rich Douglas Well-Known Member

    It's not an "investment." It creates nothing.
     
  16. JBjunior

    JBjunior Active Member

    My post is about the stock market and equally applies to crypto based on how it is currently traded. It “creates” wealth for the person that buys low and sells high, just like every other thing people can put their money in. Similar to how stocks such as Game Stop and Tesla broke free of their value based on what they “create” and ran up because of the people that only bought in because they believed it would go higher.
     
  17. Johann

    Johann Well-Known Member

    That is a classic description of .... addiction. Particularly akin to ... gambling addiction. None for me. thanks. That's not my def. of "investment." I need my sleep at nights. And my money to still "be there" in the morning. There are still good companies that are not "broken." Doing the fundamentals pays off. Ask Warren Buffett.
     
    Last edited: Jan 30, 2023
  18. JBjunior

    JBjunior Active Member

    That is why it is called Wall Street Bets, they recognize it is gambling. It isn’t about individual companies being broken, it is about the system being easily manipulated with coordinated, though largely individual, actions. Regardless of the company, if enough gamblers get involved it disconnects the true value of the company from the stock price because of the gambling, and potential big payout, aspect. Game Stop is a perfect example of how the coordination led to some hedge funds losing massive amounts of money and shifted power, temporarily, to the retail investor. Regardless of your definition of investment, this is what is happening in the stock market today based on the internet allowing robust cooperation of independent/retail investors.
     
  19. Johann

    Johann Well-Known Member

    Not new. Reminds me of the "blind pools" of the pre-Crash 1920s. (I wasn't there - I read. :) ) I'll stick to my way. A while back, I took a couple of courses in Islamic Banking and Finance - and got real, tangible benefit from what I learned. One does not have to be a Muslim to adopt Islamic teachings on money, finance and methods of business. One forbidden activity is Gharar - speculation / gambling. I'll confess to buying the occasional lottery ticket - but that's it. Not for serious money - not for investment. Gotta get back to my numbers now... get out my slide rule and pencil-spreadsheet. Maybe I'll read what ol' Ben Graham had to say... See ya.... :)
     
    JBjunior likes this.
  20. Johann

    Johann Well-Known Member

    Or maybe I'll talk to the Imam, down at the Mosque. See what he thinks about the Sukuk (Islamic securities) market... :) Lots of choice there. There are some US-based International Sukuk funds. Some of the usual Big Players in Mutual funds have found themselves new market territory.
     
    Last edited: Jan 30, 2023

Share This Page