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0 pointscolesantiago3y ago0 comments

The main difference you're not getting is that there is accountability and regulations for when these issues happen, Crypto has none of these and it has been over 15 years in its existence.

Crypto is a lawless 'decentralised' wild west that has zero accountability for when anyone loses their money in smart contract hacks, scams, wallet draining and rugpulls, in all cases your money is gone with no refunds or consumer protection.

So yes, it is a system designed to fail.

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4 comments · 2 top-level

datadata3y ago· 2 in thread

Do you honestly think there is zero accountability or regulations for all of crypto? Would not a single fee levied towards a crypto company for violation of a law invalidate the point you are trying to make?

I would agree with you that more regulation is needed, but to keep saying there is zero regulation is either ignorant or disingenuous. Regulation can also coexist with something that is decentralized and is not obviously adversarial, e.g. we have regulations for gold markets to prevent scams, etc.

colesantiagoOP3y ago

It wouldn't invalidate anything because I can list countless examples of scams, hacks, rugpulls, wallet drainings, fraud, ransomware enablement that the crypto space is responsible for. Any example of the opposite doesn't change the fact that the negative aspects are significantly greater than whatever source you can provide.

The list of course is too large for this comment section so somebody has already done parts of the work. [0]

Any user would be very lucky to get their money back in these situations, but like I said, no refunds or consumer protection in the crypto space when you lose your money.

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EDIT: So? My point still stands about accountability, regulations or not, even Paypal knows the buying and selling of crypto assets is completely unregulated after 15 years.

The main point of this thread is that there is more evidence of broken smart contracts causing more damage to consumers and there is nobody to hold scammers accountable when a rugpull happens.

Because nobody is going to get their money back for them.

How is crypto, this brittle, 'decentralised' broken and unregulated system going to augment or replace the current financial system?

[0] https://web3isgoinggreat.com/

datadata3y ago

You have said several times, "there is no regulation in cryto". If you know that this statement is not true, then why do you say it? Just say that there are many instances where lack of regulation has lead to bad results. I agree with that.

elcamino443y ago

I think a better analogy is the internet. Or phones. By any measure, either of those technologies have unleashed a torrent of scams and fraud, especially in the areas where they are largely unregulated.

Of course, I’d say the benefits of cryptocurrencies are far smaller than the benefits of the internet (it’s pretty hard to compete with connecting almost the entire world into a single instant global network for the first time). But some benefits do exist, and I feel like you’re being wilfully blind if you disagree with that.

Of course, you might feel that the downsides (massively) outweigh the upsides. And that’s fine. Others will disagree.

One thing I think we can all agree on is that crypto is at least decentralized and permissionless enough to not go away any time soon, no matter who wants it gone.

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