Revolution Blog

trust in the establishment?

Published on 2015-02-22
Financial institutions, government regulators, and mainstream media mouthpieces are usually quick to decry the risks inherent in free market innovations such as cryptocurrencies and associated trading platforms. Such as dismissing Bitcoin as a Ponzi scheme, for example. But while MtGox episodes do occur in private systems, and it can be hard to know who to trust, at least unregulated private sector operations have the opportunity and potential to earn the trust of the communities they serve.

With state-facing, regulated trading platforms and institutions, there is a presumption of trust that does not have to be earned, but that trust is completely misplaced. Consider for example these recent incidents involving "mainstream," dollar-based actors:

Hedge fund manager fakes death to quell redemptions(external link)

Trading "guru" loses 99% of managed assets(external link)

Bitcoin hacks are always gleefully reported when they occur, but banks are vulnerable too:

Hackers steal $300 million from global banks(external link)

The difference is that banks are backed by taxpayers and money printing, ensuring that the public gets to suffer twice.

There are even blatant scams in plain sight:

Tesla cars fueled by money printing(external link)

As the saying goes, your mileage may vary.