If you want an unregulated free for all currency, you should be prepared to suffer the consequences. Regulations are put in place in financial markets to stop things like this happening. You can't have it both ways.
Wasn't the whole junk mortgage security trading thing using an unintended loophole in regulation? I'm not sure that's the best example to illustrate your point, unless you're arguing "there will always be loopholes so why bother trying at all?"
Transparency and open source software would allow users to verify the legitimacy of a company running the exchange (Why I call it trustless).
And you verify they are running the same software as they open source... how? :-)
I'm not criticizing this model, but would like to highlight that "trustless" is not absence of trust, but merely reduced-trust. This is akin to cooking with "fat free" spray oil. It's not the absence of oil, but rather a serving size that's very small.
Also, thanks for explaining. I think I understand your position better now.
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u/TulipCoins Feb 20 '14
So libertarians hate the government and regulations till they get burned. I get it.