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0 pointsdrcross12y ago0 comments

Bitcoin "Banks" (read exchanges) exist only through their reputation. They can die within a few days as shown from MtGox. This is the way traditional banks should operate instead of being propped by tax payers so that they are allowed privatize gains and socialize losses.

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7 comments · 1 top-level

Steko12y ago· 6 in thread

I think most people are happy with deposit insurance in case their banks fail or are run by crooks.

celticninja12y ago

But that goes hand In hand with allowing crooks to run banks, if regulation works so well there should not be any bad banks so no need for deposit insurance.

Steko12y ago

"if regulation works so well there should not be any bad banks"

Straw man alert; no one claims bank regulation is perfect or will stop all bank failures.

timdiggerm12y ago

Implies that insurance props up crooks, rather than just helping people after the inevitable crooks are discovered.

merloen12y ago

Banks fail for other reasons than being run by crooks.

bsder12y ago

Spoken like someone who has never been on the receiving end of someone dishonest. Lucky to be you.

The time between a bad actor starting to fleece people and the market or regulation wiping them out can still be fairly lucrative for the bad actor and fairly damaging for the public.

CamperBob212y ago

I'd be even happier if I didn't need a bank at all. Banks suck.

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