Comment on Opinion | Don’t Get Fooled Again by Crypto
locuester@lemmy.zip 4 months agoI never said a majority of stocks are financial. I’m crypto they are tho but that’s kinda obvious given that we are bootstrapping a new financial system.
The internet changed a ton of things!!! Individual investors have so many tools to research now compared to 30 years ago! It’s much easier to get due diligence on investments and confer with others.
Accounting figures are obviously FAR superior with crypto native companies since everything is verifiable.
cryptocurrencies haven’t changed the process for gaining the investment necessary to start a new bakery or other small business and never will provide a pathway to do so
I adamantly disagree with that last part. This is precisely where crypto shines when done right it allows everyone an equal footing on raising and investing in capital projects. Note I’m not saying that it removes risk - it removes friction - admittedly at the cost of risk.
The reason you don’t see this taking off is 100% because of regulations, hoops, lawyers, and capital required to register a security. If I want to tokenize a business plan in the USA, I cannot easily do that without getting wrecked by the SEC.
The elitists can and will continue to do private equity and insider trading to maintain a lead because they have the capital to do so. I can’t speak to how they all feel about crypto. I would assume they would love it too. Free markets are far cheaper than the crap they go through now to do fund raising and such.
It’ll be interesting to see how this goes in the coming 30 years. It definitely benefits countries without a strong financial system already in place way more. Will it outperform the legacy, cumbersome financial system? Time will tell!
sonori@beehaw.org 4 months ago
I don’t think it’s obvious that a tool for loaning money to businesses would be primarily used for loaning money to businesses trying to solve problems with the tool itself.
I don’t think the internet has really changed all that much when it comes to due diligence. Maybe it’s a little easier to do background checks or find a person’s previous projects, but you still need an trusted third party to audit a company, you still need to be sure who is legally liable for if things go wrong, etc…
Neglecting that a lot of companies don’t actually want every person’s pay, every dime they spend for a luncheon, and every thing R&D buys to be publicly available to their competitors, it’s still not actually much help for verifying and auditing their financials because nearly all fraud already relies on people entering false information to the computer about what the transaction was for or why it was made, not anything that could be verified by the chain.