Bitcoin anarchy in need of some rules | NY Post

[Wilikon]

http://www.nypost.com/p/news/business/bitcoin_anarchy_in_need_of_some_zTFr06G6IWEWYp3OSvJ99L

Members of the bitcoin community are starting to wonder if anarchy is the best policy, as recent turmoil raises interest in possible new regulations.

The digital currency, which is minted using computers running algorithms, had been plummeting in value for two days after soaring to above $200 a bitcoin earlier this week.

The exchange that handles the most bitcoin transactions, Mt.Gox, halted trading yesterday because of troubles, and the CEO of Coinlab, Peter Vessenes, said the exchange would be open to some oversight.

“We’d be happy to be regulated,” said Vessenes, who also is with the Bitcoin Foundation, an organizing body. “There is no self-regulatory organization for these. It’s pre-regulated right now, but we’re not anti-regulation.”

Vessenes runs North American trading for Mt.Gox. Yesterday, the market shut because of volatility, driven by a flood of new users interested in the currency and other users looking to sell at a market high point.

There was a lag in processing orders, helping fuel the panic, Vessenes said. There are some bitcoin enthusiasts who are against rules, however.

The currency, based on free open-source computer code that anyone can access, was created to stand apart from the traditional money system, and it attracted libertarians and anti-government types.

Still, the volatility in the price of bitcoins — rising from about $45 just a month ago to more than $250 this week and back down to around $100 yesterday — has some people questioning if no rules are good rules.

One venture capitalist, who was investing in bitcoin-based startups, said there need to be some rules and order before the currency can take off.

“Right now you have a bunch of anarchistic market dilettantes who don’t understand how markets work and don’t understand the perils of markets,” he said. “People who understand markets need to get involved.”

[Chet]

oh sure, regulate it so we can go right back to bowing to the banksters!!!

And who/what would write/enforce regulations? The US? the EU? oh how about the UN?

[Melbustus]

“anarchistic market dilettantes”

Now there's an odd phrase...

[Mike Christ]

And once again, the gigantic boner of men with this disturbing fetish for absolute control springs into action.  Say no to government regulation, kiddos.  Regulation does nothing but rig the game in someone's else's favor--specifically, not yours.  The market is being regulated, and we're the ones doing it.  Don't give up your freedoms for the false promise of stability.

[Melbustus]

Don't give up your freedoms for the false promise of stability.

Indeed, much has been given up in the name of security, stability, and "piece of mind".

[#Darren]

Spoken as though Mt Gox was the authority on bitcoin, when they are nothing of the sort. They are just businessmen exploiting the market.

[Stunna]

Seems like a slippery slope to me :|

[btcmind]

I would suggest to have something better than regulation. Law 2.0, which opensources contracts. That "regulation" is skewed in favor of some elect few is the whole problem. Basel III is a joke. Everything market based is better than corporation based. But what if MtGox would theoretically reach 100% market share and corner the market? Anyway, government action could be possible, but then hopefully the system in place will be too robust to shutdown completely.

[IIOII]

http://www.nypost.com/p/news/business/bitcoin_anarchy_in_need_of_some_zTFr06G6IWEWYp3OSvJ99L

“We’d be happy to be regulated,” said Vessenes, who also is with the Bitcoin Foundation, an organizing body.

 

Some day there will be a rude awakening of the TBF fanboys.

[Lethn]

There was a lag in processing orders, helping fuel the panic, Vessenes said. There are some most bitcoin enthusiasts who are against rules, however.

fixed that for them

It's precisely because of people who understand the markets that Bitcoin was invented in the first place.

[jubalix]

I am not sure you could regulate BTC if you wanted to until you can crack SHA.....and thats the whole point.

the so called "Anarchy" is free market discipline and creation, The market will discipline failing exchanges and produce an exchange that is better or a better exchange solution that central regulation ever could so the Anarchy is inmho opinion very very good.

Where players in that market make false representation and can brought to book, it will happen. What I see here is a failed market player trying to excuse its failings by calling for regulation....and hoping to be that regulator.

It is Much better to see more stable and efficent exchanges be opened. I suspect some not insignificant bitcoin trade has as a result of the Gox debacle gone elsewhere and as I speak, many people are working out who to provide better exchanges

http://www.nypost.com/p/news/business/bitcoin_anarchy_in_need_of_some_zTFr06G6IWEWYp3OSvJ99L

Members of the bitcoin community are starting to wonder if anarchy is the best policy, as recent turmoil raises interest in possible new regulations.

The digital currency, which is minted using computers running algorithms, had been plummeting in value for two days after soaring to above $200 a bitcoin earlier this week.

The exchange that handles the most bitcoin transactions, Mt.Gox, halted trading yesterday because of troubles, and the CEO of Coinlab, Peter Vessenes, said the exchange would be open to some oversight.

“We’d be happy to be regulated,” said Vessenes, who also is with the Bitcoin Foundation, an organizing body. “There is no self-regulatory organization for these. It’s pre-regulated right now, but we’re not anti-regulation.”

Vessenes runs North American trading for Mt.Gox. Yesterday, the market shut because of volatility, driven by a flood of new users interested in the currency and other users looking to sell at a market high point.

There was a lag in processing orders, helping fuel the panic, Vessenes said. There are some bitcoin enthusiasts who are against rules, however.

The currency, based on free open-source computer code that anyone can access, was created to stand apart from the traditional money system, and it attracted libertarians and anti-government types.

Still, the volatility in the price of bitcoins — rising from about $45 just a month ago to more than $250 this week and back down to around $100 yesterday — has some people questioning if no rules are good rules.

One venture capitalist, who was investing in bitcoin-based startups, said there need to be some rules and order before the currency can take off.

“Right now you have a bunch of anarchistic market dilettantes who don’t understand how markets work and don’t understand the perils of markets,” he said. “People who understand markets need to get involved.”

[Chief Satangkai]

“We’d be happy to be regulated,” said Vessenes”

WTF!?  I mean WTF...

[nuggets4all]

Well, scratch Coinlab from the list of Bitcoin services I‘ll patronize...

[nwbitcoin]

This is just the beginning - I remember the exact same stories appearing about copyright on the internet in the 90s

Someone is going to step in as the guardians of bitcoin, the self appointed have always known that - and looks like MTGox or and the Bitcoin Foundation are taking the role.

The sooner we have a decentralised exchange up and running, the better - otherwise, bitcoin is just going to become another toy of the banks and governments!

[Carlton Banks]

http://www.nypost.com/p/news/business/bitcoin_anarchy_in_need_of_some_zTFr06G6IWEWYp3OSvJ99L

...the volatility in the price of bitcoins...has some people questioning if no rules are good rules.

*adopts "patience with a child" tone*

Nooooo, we're aware of rules, we have chosen the rules we like and adopted them. If you don't like those rules, adopt your own private currency

“People who understand markets need to get involved.”

What, the same people that "understand the markets" so well that we have the current mainstream financial system?

Once again, journalism seems to want to defeat itself, and truthfully, it sounds like the status quo is scared to death of Bitcoin (as it exists now, anyway)

[cdog]

It just needs to grow more, the volatility is a result of the market still being comparatively small.

When BTC gets to $10B or $100B market cap (we cant predict what # it takes) it will begin to stabilize and swings will be increasingly smaller.

[QuestionAuthority]

I agree with Vessenes, Bitcoin needs to be and will be regulated by all countries eventually. Financial regulation and oversight has been one of the premier tools of crime fighters since the days of Al Capone. The best way to fight crime is to remove the profit from criminal activity. Tracking the flow of currency increases the risk and helps remove the ability to profit.

[kerogre256]

Let them think they can regulate the bitcoin, and when they wake up it will be too late, people hates banks, big government and too big to fail and fork with less regulation will be always most sucessful

[marcus_of_augustus]

Let them think they can regulate the bitcoin, and when they wake up it will be too late, people hates banks, big government and too big to fail and fork with less regulation will be always most sucessful

This one.

Bring on the contrived rules and edicts from the privileged few to aid the privileged few ... the sooner the new rules are known the sooner the true bitcoin will learn how to route around them and fork as/when needed.

NB: We can play this game ad infinitum ... and we have home field advantage.

[rebuilder]

Regulating Bitcoin and regulating, say, exchange operators are not one and the same. Currently we take it entirely on faith that the exchanges actually hold 100% of the funds people put into them. Sooner or later, some of them are sure to experience a bank run, revealing not all funds are there to be had in some cases.

When Vessenes says "they" would be happy to be regulated, ask yourself who he speaks for.