Hacker News Reader

Comment by jqpabc123 | Hacker News Reader

Why? Why stop Bitcoin?

Bitcoin is no threat to government or fiat currency. All government has to do to stop Bitcoin is --- nothing.

Simply wait and allow reality to sink in. Under no circumstances should government move to regulate the Bitcoin "market". Nor should they allow government insurance programs (FDIC, NCUA) to be applied to Bitcoin in any way.

Regulation would do nothing but add respect and credibility --- things that are otherwise sorely lacking.

This is not to say that the fraud that is occurring with so called "stable coins" should not be prosecuted. Exposing this will directly impact the Bitcoin market but it is not regulating the market.

View on HN

Are you saying Dai and USDC are frauds or are you specifically referring to Tether?

All of the above should be prosecuted if it can be shown that they are not fully backed or cannot be fully redeemed as claimed.

https://breakermag.com/tether-now-admits-its-not-fully-backe...

My understanding is that it is publicly verifiable that Dai is over-collateralized , and positions can be closed or whatever it is called without requiring any organization to do anything.

I don’t know what smaller details there might be about the oracle information or other outside input things there are that people might complain about, but my impression is that it is a sound setup? The reason I say “impression” is because I’m not familiar with the details. I think all the details are publicly verifiable though.

The fact that you said that about DAI shows you don't know enough about the ecosystem and have just read articles about tether then drawn a conclusion about every single stablecoin

I drew no conclusion. I said, "if it can be shown ...".

It's true that I haven't studied DAI --- because I haven't felt any need to. I know how to buy currency that is every bit as stable as DAI and much more widely accepted and easily redeemable --- just buy USD.

Have you studied DAI? Are you sure that their algorithmic trading works the way they claim it does? How did you verify this?

Most "stablecoins" are built on trust of some sort at some level. Until someone audits them, you really have no idea if that trust is warranted.

Would an attack on stablecoins indirectly cause the value of Bitcoin to go down? The government could even turn itself into the good guy by letting people cash out at a favorable rate once they go bust.

https://www.fxstreet.com/cryptocurrencies/news/if-tether-fal...

> Simply wait and allow reality to sink in.

How many more decades will this take?

Who knows how long it will take for people to realize that fraud is being openly conducted in the Bitcoin market.

Example: Famous wealthy entrepreneur loudly and publicly announces a large purchase of bitcoin. The price of bitcoin jumps 20% as a result. Famous wealthy entrepreneur sells bitcoin and realizes a 20% gain.

This is called a "pump and dump" scam and if done in any "regulated" market, famous wealthy entrepreneur would be in legal trouble.

Regulating Bitcoin mining is definitively something that is doable, but Bitcoin itself? Completely fruitless unless you can pit Bitcoin users against each other.

Not at all. They might not be able to seize the Bitcoins, but they can still put the owner in prison.

The environmental cost for all the electricity used by mining is a major issue that fall under governmental responsibility.

True. But since most bitcoin mining is taking place in China, there isn't much other countries can do about it.

Reply on news.ycombinator.com