,
8 tweets,
2 min read
Read on Twitter
This is very well written, but I think it's an obvious fallacy: if Eric can figure it out, regulators can as well. When it's relevant enough to threaten monetary policies & financial surveillance, they will just close the loophole. Remember: they took 13 YEARS to shut down Egold!
E-gold launched in 1996, leveraging smart loopholes. After 13 years of activity, in 2009, when it was actually relevant, they shut it down and put its creator in jail. The fallacy is thinking that regulators are bounded to their current rulings. Read this:
en.m.wikipedia.org/wiki/E-gold
en.m.wikipedia.org/wiki/E-gold
Sure, the time delay does offer an arbitrage window. But it's so risky & "short" (speaking in multinational reference) that your cousin's ICO can leverage it, or your Caribbean shitcoin exchange. Not Facebook. It's extremely unlikely the huge governance process of such a...
...giant Moloch would knowingly agree to leverage & few-years-sized, unpredictable arbitrage window that closes just when the business part becomes interesting, possibly w/ someone in jail.
More likely, they are just using this hypothesis as a marketing stunt to bring...
More likely, they are just using this hypothesis as a marketing stunt to bring...
...attention over a simpler truth: they will compete w/ PayPal, Alipay, ApplePay, GPay. W/ the same rules (KYC/AML, FED monetary policies, IRC automatic information stream, etc.) but w/ an additional asset: a giant social network service. G+ story tells us that leveraging...
...giant userbases in one field to challenge incumbents in some other fields doesn't always work. But it MAY work. It would be a big deal for analyst studying dynamics of that specific market. Irrelevant for the rest of us. So, they sell the original PayPal vision, mixed w/...
...some "blockchain" & "crypto" mumbo-jumbo, to get us somehow interested into a news that would otherwise read as (comparatively) boring for the average joe as "Facebook will try to compete w/ PayPal". Occam razor, as simple as that.
(When I write "comparatively", I mean to complete disruption of central banking & of capital control around the world, raise of a new digital global gold standard & of a new giant global black market online. Pretty much everything would be boring compared to that.)
