I have a hard time understanding how anyone in crypto could be pro-outside regulation from the corrupt centralized bodies that made crypto necessary in the first place. I have an equally hard time understanding why even the folks who get smart contracts, decentralization and sovereignty start talking this "compromise" bullshit and justifying legacy regulation's presence in crypto. Even when I didn't understand bitcoin or smart contracts technically, my gut just told me this was right. That's why my first piece of bitcoin was at BTC=$400, when the entire mainstream was trashing it.
There's one comment I think was made in good faith, but still hopelessly out of touch. This kind of argument is built on so many wrongful assumptions and defeatist ideals that I grit my teeth to even take the time to explain why it's wrong. But I have to because maybe it'll clear up some things for folks.
The comment was made in response to my article My Conversation With an Idiotic Veritaseum Mod. Read it if you want to know the context. Here is the full statement, made to argue for legacy regulation in crypto, or at least one of those nebulous "compromises."
I think their point is that even a system based entirely on code comes with its vulnerabilities. I mean someone still has to write the code (which is just another language to twist around or weave in loopholes) and so you have unfairness through new means. Also remember that Ethereum forked due to exploitation. It wasn’t the code that said to roll back the state of the EVM, it was the people leading the project. Now look at ETC, frozen in time, its little more than a collectible trading card because it took a deterministic approach to blockchain governance. Code is strict and cannot adapt, while human interaction is dynamic and unpredictable. Code has its place but its not the ultimate mode of societal operation. Don’t get me wrong, I am all for a system where people need to think for themselves in order to survive and flourish; i.e. a place where individuals cannot lean on the helping hand of laws and litigation to be safe. The political/economical system we have going now is most definitely ridiculous, however, I do not think smart contracts are going to run the world, though they can have their place.
Piece by piece.
I think their point is that even a system based entirely on code comes with its vulnerabilities.
No. That wasn't their point. You're assuming because you don't know the sentiment of these Veritaseum people. Perhaps I didn't explain it well enough in the article previous, but the point is your entire argument starts on a premise that is 100% not true. These folks are just like you, wanting to run to legacy regulators to please-please-let-me-do-business-in-your-sacred-golden-palace. Every time they do this, they're going to get shut the fuck down.
...a system based entirely on code comes with its vulnerabilities.
Crypto is not "a system." It's a framework to build systems. Satoshi solved the core issue of value placement in a virtual space. Because of what he did, it is now possible to build an infinite number of systems.
Each crypto "project" is its own system. Its own Federal Reserve. It's not a company; it's not really a project. It may choose to refer to itself as this to suck up to regulators, which may confuse you. Because crypto has the potential for infinite systems, including systems that you can build, there is no vulnerability that cannot be escaped. With legacy regulators, you are under one system — one with all the doors and windows locked. If they become corrupt, there is no escape. And you want to put a framework of infinite possibilities underneath a corruptible single system. Ridiculous. I hope you see how ridiculous this is.
I mean someone still has to write the code (which is just another language to twist around or weave in loopholes) and so you have unfairness through new means.
Yes. There are systems that turned out to be rugpulls, soft rugpulls, and other types of scams. It's not unfair because you could have avoided them if you just read the code (or just didn't put your fucking money in a website that's an OBVIOUS Pancakeswap fuckin clone). It's also not unfair because there are countless other systems that are fair. Just choose the fair ones. If you don't know which ones are the fair ones, educate yourself on the code or find trusted auditors. There is no way to educate yourself on the Federal Reserve system, because the numbers are hidden. There are no trusted auditors, because the Fed refuses to submit to an audit.
[Trading protip: "Provably fair" for these crypto casino sites means "house edge." Which really means they're "provably fairly unfair" or "unfair in a provably consistent way." Don't fall for it.]
Also remember that Ethereum forked due to exploitation. It wasn’t the code that said to roll back the state of the EVM, it was the people leading the project.
I'm glad you at least have some time in the space enough to know about this. But this doesn't FUCKIN matter because Ethereum does not monopolize crypto. If you don't like that system, you now have viable alternatives that are growing daily — Polkadot, Cosmos, Wax, Fantom, Harmony (sucks), Avalanche, Near, Lightning, Cardano, et al. — and this is still assuming that you don't want to create your own system. What's more, you can voice your displeasure with a system in seconds. You don't like the Ethereum fork? You're 100% out of that system in 5 clicks. You're in another one in another 5 clicks. Try that with the Fed.
Any anecdotal argument you make about a single system fucking up DOESN'T MATTER and DOESN'T in any way justify outside regulation. How does that even make sense — you're arguing against the centralization that caused the Ethereum fork, then arguing for MORE centralization on top of that? That would somehow make the shit better?
Now look at ETC, frozen in time, its little more than a collectible trading card because it took a deterministic approach to blockchain governance.
But still ticking, still able to accept development, and honestly, still moving in fiat value terms with the rest of the market. So if you're in ETC, you still don't even lose money in fiat terms. If you believe in ETC and deterministic chains, then start developing on it so it continues to be a valuable chain. If not, fine. But your laziness doesn't mean you get to impose outsourced regulation on me. I'm training to be a developer. I'm constantly seeking out new systems I agree with philosophically. I'm taking this opportunity seriously.
Code is strict and cannot adapt, while human interaction is dynamic and unpredictable.
This is just patently false. I'm just starting my journey as a dev and I know this. But even if what you say is true — as long as there's no overlying, all-encompassing jail cell around "crypto code," the diversity between projects creates adaptation. You act like there's one person coding the entirety of crypto and that single person is creating this steel cage to imprison us all. No, that's what would happen if legacy regulators are allowed to rule the space. Then you will have a single entity creating a strict structure for us. But they'll have loopholes for themselves, you can be sure — so they aren't personally held accountable for their own "dynamic and unpredictable" human interactions.
Code has its place but its not the ultimate mode of societal operation.
Huh? So the machines take over and rule humanity if we get a choice in our financial system? Of course code can't make you say hello to your neighbor. You do have to do something for yourself in real life no matter what, friend. I don't even see how this makes any sense. Of course not. No one's talking about code being the "ultimate mode of societal operation" other than the international bankers and thugs who want to create global taxes and travel laws. Using code, I might add. What do you think is running those computers that are checking to see if you have your digital COVID vaccine pass or not? Bill Gates isn't personally checking to see if you have it. He's throwing money around to create laws that require CODE to impose upon your stupid ass. For those in the cheap seats: Code WILL become the ultimate mode of societal operation if left to the hooligans in charge now. You need to be learning fuckin code as fast as you can to make sure this doesn't happen.
Don’t get me wrong, I am all for a system where people need to think for themselves in order to survive and flourish; i.e. a place where individuals cannot lean on the helping hand of laws and litigation to be safe.
See, this is what you're not getting. You're talking to me as if I'm an anarchist with no perspective on how laws help people. When I put my money in a Sushiswap yield farm smart contract that vests my rewards for 30 days to help maintain token price, I am submitting to a law. Moreover, I'm sacrificing my short-term well-being to comply with the law for the good of the whole. So I don't know what you're getting at here, but I believe it's based on some truly faulty assumptions. Humans absolutely should lean on litigation and respect it. But that litigation needs to apply to us all with no wiggle room for rich and connected people.
I've been in a couple of crypto projects with absolutely garbage laws. Deus.Finance — this cocksucker Lafayette locks up your assets for months, promises a reward for your efforts, doesn't deliver, then makes you vest your exit over another 3 months. Worst financial policy I've ever seen, and right now some of my money is stuck in there with that piece of shit. I assume it's the same experience as businessperson in a third world country whose bank or oligarch imposes some bullshit and locks up his entire life savings or inflates it out of existence. Here's the difference — Deus.Finance is only one of many solutions within its niche and within crypto. Some of my money's locked up there. But I still have the freedom to make more money in other systems and trash the fuck out of Deus without fear of getting arrested or disappeared.
Crypto without legacy regulation gives you the ability to immediately bounce back from bullshit financial policy. The alternative the Fed provides is having to uproot your entire family and face death immigrating to a new place where the people hate your guts for taking their jobs, or staying in that system and slowly becoming a mindless zombie because you're working for the same system that fucked you up the fucking ass, with that work yielding net negative economic profit because of multiple forms of predatory, ridiculous taxation.
We also have plenty of examples when crypto systems regulated themselves. The Trustswap debacle. Sushiswap switching ownership. The Pickle hack. Countless others where the system fixed itself without outside regulation. You can argue these fixes came from centralized structures, and you'd be right for most of them. Here's the difference. If a system is centralized and works in my favor, I don't fuckin mind that at all. If at any point it loses my trust and works against me, I can immediately leave. I can just up and fucking leave without asking permission or crying to some outside regulator to fix it for me and them ignoring me because I don't have a billion dollars. I can only do this in a system that allows for an infinite number of centralized systems (and decentralized systems and in-between systems) to move to. Outside regulation will remove this choice.
The political/economical system we have going now is most definitely ridiculous,
Thank God you're not totally gone.
however, I do not think smart contracts are going to run the world, though they can have their place.
So you don't think smart contracts will run the world. I can tell you they absolutely will. Legacy regulators aren't coming down to destroy smart contracts, because they see smart contracts as a more efficient way of doing business. Why do you think the Fed is creating a stablecoin, and what do you think that is? It's a fucking smart contract! But if the Fed CBDC is not the only one available or legal, they still have a problem — because no one with half a brain will wilfully choose slavery (maybe you will)! Hopefully you see. Regulators don't hate smart contracts. The entire focus of their regulation is to make sure YOU can't program your OWN smart contracts.
In a world where JPMorgan can make a blockchain but I can't, smart contracts run the world (read: run me and you). In today's world, I can still make my own. So I don't give a flying fuck what they do. Fuck them. But you can bet regulators are hard at work to make the first scenario real. That's not "having a place." That's a future where technology is used to limit your ass and expand the powers of today's ruling class — just like it is today.
Holy fuck in a truck. Finally got through it.
I've said it before; I'll say it again. If those fatcat bankers, corrupt politicians and legalized gangsters take crypto from you, it'll be your goddamn fuckin fault. Right now, they don't have the ability to do so unless you let them. Look, if their shit is so good, let them made a CBDC and regulate that, and all of you scared ass sissies can opt into that system. But to deny everyone else the ability to opt into their own systems is pure deviltry, and you morons letting them in is at best naive stupidity.
Stop filling my comment section with these good-intention-compromise bullshit comments. They are so stuck in old ways of thinking that I can't even tolerate them. Use the new power you have. And join my Telegram group if you believe in what I'm saying. Let's talk DAO by 2023 and investments to make people rich without becoming slaves to nation-states or bankers.
AlucardCrypto Telegram JoinUp Link ---> https://t.me/alucard0x
Once we hit 10K followers on Publish0x, we're doing exclusive AMAs. I believe that's a first here, so let's do it!
YOUR GUIDE TO MAKING MONEY IN CRYPTO STARTS HERE ---> Making Money in Crypto Part 1
Why you should buy your Tesla (and everything else) in BTC ---> Why You Should Buy Tesla With Bitcoin
Find out why Chainlink 2.0 is a problem for your freedom ---> Why Chainlink Will Kill Crypto
Why Hexicans/Pulsechain Fags are Pieces of Fucking Shit ---> The Problem with the Hex and Pulsechain Community