I just read through the bitcoin recap from yesterday. The article on premature bitcoin regulation had some intriguing points.
1. The current interest in regulating Bitcoin far outweighs its current impact on the market. Noting that the total amount of Bitcoins in existence has a value less than $4 billion at present, and that the coin has relatively little market penetration, Deloitte argues that the amount of value presently at risk is not significant enough to warrant this level of regulatory interest.
2. This technology has received strong regulatory attention far earlier than other transformative technologies. Citing technologies such as the telephone, airplanes, radio, the mobile phone, and the internet, Deloitte reminds readers that each had at least two decades of unregulated development before government took an interest. By contrast, Bitcoin has been developing for little more than half a decade.
3. The true transformative power of Bitcoin has not even been realized yet. It is thus premature to institute regulatory schemes that could prevent the truly innovative transformations that are sure to come.
While I agree with all of these points, it seems like good regulation would help foster the technology more than no regulation. What do you guys think? No regulation vs good regulation?
I tend to agree with you. While there are some areas of economic activity that I think could definitely benefit from little to no regulation, this seems to be one area that could benefit from at least a light touch of the regulatory hand. I included Deloitte's arguments because they are an important perspective, and one that I would hope regulators would consider before implementing the type of draconian regulatory regime some would no doubt like to see in place.
Good regulation that is well-balanced could help to inspire more confidence in the industry, while also helping with any perception problems that currently exist. There is a happy middle ground there that can allay any fears that crypto will facilitate crime in ways that dollar bills and euros cannot (silly fears, we know, but ones that exist nonetheless), and at the same time provide the industry with the type of peace of mind it needs to continue to innovate and grow.
So, yeah - I'm with you on that 100%.