There’s a joke going around that the worst is over because 70% of the value has been lost, and since there’s only another 30% left, it can’t be worse than it has been in this red winter.
A winter when cryptos were very much under scrutiny, led by the elite bankers’ former lawyer, Jay Clayton, current chairman of the Securities and Exchanges Commission.
He is keen to enforce the discriminatory securities act which forces you to invest only in global corporations trading in the stock market, leaving profitable medium companies and promising start-ups in the cold.
We should welcome regulations, he reportedly said, and to some extent we do. Outright frauds and outright scams are fraud and scams. But we can never support a law that so blatantly discriminates based on wealth. A law that might well be at the foundations of growing inequality.
Bright young men and women therefore will go to where they are welcomed. London, Switzerland, Estonia. Because while all know that laws are necessary and even in many cases very valuable, all know too that unreasonable laws are unenforceable.
And there is no law more unreasonable or more unjust than the Securities Act 1933, which makes it illegal to invest in any company, but global corporations that happen to control the media, the economy, and probably congress too.
Which is why we might soon see the development of Decentralized Autonomous Organizations (DAOs). Smart coders have found it easier so far to just ask for money directly, but at least in some jurisdictions that might no longer be the case.
But DAOs are just a piece of code. A protocol with rules of if and then that runs by itself. Its coders do not even have to be known. They can just release it on github, and there. You now have no management.
Because the token holders are the management. The executives. The board of directors. The DAO rules say if 51% of the voting tokeners say this then do that. The code duly performs.
As such, a meme we’ll become and say: this is all good news. Like many others we were not happy with the lack of accountability in many ICOs, a problem that extends to open source development itself.
But necessity breeds innovation, and after bitcoin, after ethereum, there is little more innovative than DAOs.
No brave man has dared so far to pioneer that field after the Slockit disaster, but good ideas have a tendency of anti-fragility.
Something one can’t say of these old grandpas that sit in congress. Who can’t even email. Who probably have no clue what code is. Who probably have spent all their life as career politicians.
Then they think it their right to tell engineers how electricity works, or how money works, or how value creation works.
But then, who cares. They’ll retire soon enough and take with them millions in “donations” or favors or whatever makes these “public servants” filthy rich.
Now and then, one of them gets caught in the act. What usually happens after is… pretty much nothing. But they are not self-interested, greedy, and corrupt. No, no, no, they care about “consumers.”
They are the consumers. Bought and sold in their lobbying revolving doors where laws are based not on principles but on how to erect barriers to market entry.
That’s why they utter not one word when one man, who happens to own some big media paper, becomes richer than some countries due to limitations on investing that forces people to buy only global corporate stocks.
While the millions of workers that created his wealth see no wage rise in a decade, and worse, see their neighborhoods decimated as these corporations go set up their chain shops in desperate places.
Yet they want to preach about terrists, as if they don’t know exactly who funds these terrists, how it benefits their corporate paymasters, and how it just keeps everyone distracted from asking questions regarding these discriminatory laws based on wealth they enforce.
Well, this generation no longer needs to ask questions. We can code and provide options as well as potential solutions.
You see, old men, code is not an abstract thing. Code is an extension of the intellect. You can take a part of your thinking, and instead of freezing it in a book like pen does, you can actually animate it and allow it to act.
Thus you have an entire living and breathing network that doesn’t care of your views or opinions, but just is. That so happens to do more efficiently what towers of offices try to do.
Yet does so without getting involved the subjective opinion of some old men who care only of their own pockets that they keep filling with our money.