OP: "Do we have any legal ground to stand on here? Lots of people have had their lives torn apart by this.
I remember NASDAQ had to compensate people after the debacle that was the Facebook IPO. Why is this any different?
I would appreciate your thoughts. Thanks."
Top response: "Well, considering bitcoin isn't regulated by the SEC - no you have no legal ground to stand on."
Further down: "So you want your unregulated currency to be.... regulated?"
OP in response: "There is a difference between financial regulations and corporate liability/consumer protection laws.
It's not about financial regulations."
In Bitcoin, we are currently watching a microcosm of how the traditional financial system came to be the way it is. It's really a rare opportunity to see the evolution of complex social systems in real-time.
"In Bitcoin, we are currently watching a microcosm of how the traditional financial system came to be the way it is. It's really a rare opportunity to see the evolution of complex social systems in real-time."
I fear we are also watching the schooling of a naive minority in the difference between what is "right" and what is "legal." Way too many people I've talked to about Bitcoin are so in love with the concept that they haven't really considered the implications. Yes, someone could, conceptually, break into Mt. Gox and "steal" all of the Bitcoins there, which some would see as a multi-million dollar equivalent theft, and the "authorities" would see it as a 'zero' dollar equivalent theft. Unlike regulated currency Bitcoin doesn't have an enforcement agency. That limits your options when it goes away.
I've been looking, such that I can, at various 'events' (alledged or actual unapproved transfers of Bitcoin from one wallet to another) and have yet to find a single one where there was any legal repercussions at all. I'm interested in finding some so if anyone reading this comes across them I'd love to read them.
This is really a 'new' thing when it comes to case law as far as I can tell and somewhat wide open to interpretation.
I mean that's a really astute point and raises interesting questions. If someone takes your bitcoin, is that theft? What if a bitcoin denominated contract is breached--did you really suffer economic damages?
r/bitcoin is an interesting subreddit. There was a thread yesterday where someone asked, completely serious:
"Theoetically speaking, what would happen if someone bought all the bitcoin? My friend wants to invest and he's concerned that the currency could be completely bought."
That's a naive, but not entirely unfounded concern. It's been quite common in the last few days to see enormous trading walls at certain values. If a large percent of the volume is set at an obscene price (200-1000% of the current average) then after a certain point, you effectively can't buy Bitcoin any more. There have already been enormous spreads (50$ difference and beyond) on several exchanges. That is not a sign of a healthy market to invest in.
Sure, but a lot of our financial regulations are implemented as regulations on exchanges and banks (and as far as I can tell, Mt. Gox functions a bit like both...)
OP: "Do we have any legal ground to stand on here? Lots of people have had their lives torn apart by this.
I remember NASDAQ had to compensate people after the debacle that was the Facebook IPO. Why is this any different?
I would appreciate your thoughts. Thanks."
Top response: "Well, considering bitcoin isn't regulated by the SEC - no you have no legal ground to stand on."
Further down: "So you want your unregulated currency to be.... regulated?"
OP in response: "There is a difference between financial regulations and corporate liability/consumer protection laws.
It's not about financial regulations."
In Bitcoin, we are currently watching a microcosm of how the traditional financial system came to be the way it is. It's really a rare opportunity to see the evolution of complex social systems in real-time.