Colby Eggleston
Colby Eggleston 2 minutes reading from Bitcoin

I Don’t Want to Rule on Crypto: 7/8/2016

btc Crypto If I buy US treasuries or trade/invest in FX markets, I'm aware that the SEC has regulation (rightly or wrongly) that impacts me, such as no hedging rules for US brokers. The SEC has no regulation of the cash in my pocket.

1/n

The government has no record of me buying 20 in gas in cash, nor should they. They obviously (and inexcusably) have taken an interest in the gas station reporting the cash sale so they take their tax cut of the profit but they don't know that was me making the purchase.

2/n

Similarly, in this discussion after FTX collapse of regulating the crypto world, I think there is a very important delineation we need to be making. Regulate the exchanges so investors are not getting screwed like they are now, fine. BTC as investment is one thing.

3/n

BTC as a medium of exchange is something completely different. Like cash, the government has no business in the granular transactions between parties. When businesses take crypto as payment, they'll be subject to taxes on the profits. But they don't need to know it was me.

4/n

We DO NOT want a proxy CBDC. If individual transactions are trackable in an identifying way by ANY government, I don't want to transact in it. If BTC is tracked, I'll go to XMR. If XMR is tracked, I'll go to ARRR, etc.

5/n

Whatever regulation is in place, it needs to differentiate between the commodity and the currency. Otherwise, they will drive users away from the currency they try to regulate into some other unregulated coin that defeats the entire purpose of their efforts.

6/n

If you want stability and investor protection/confidence, there needs to be immutable protections for the user side or you will kill the coin effectively and we will go somewhere else. The black market nature of crypto is a feature, not a bug.

7/n

This post is based on this twitter thread.

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