Quote from: drawingthesun on October 23, 2013, 11:02:50 AM

Quote from: crumbs on October 23, 2013, 10:57:16 AM

The average time before bitcoin-denominated stock fails or is ~~shown~~ proven to be a scam is ~ 1/2 a year.
This lends itself to, as you say, "playing games," but becomes a headache with government regulations in place.

If the new law allows companies to advertise stock to the public whilst being risky then I see no issue. I imagine the system will be in a similar vein to Kickstarter, where instead of just backing the company with donations you can invest instead.

Because this is open to the consumer it is up to the consumer to do due diligence.

Kickstarters fail all the time, everyone knows the risk they take when they lay down cash.

If the new law allows companies to be formed in that fashion, I see no issues with failed stock. Companies do fail all the time, in fact that vast majority of businesses will not survive past a year, its not just unique to Bitcoin.

The exchange will have to tell the user the vast majority of companies fail, and thats just plain nature, no other way about it.

The problem with your reasoning is no, everyone doesn't know how risky their "investments" are. Pirateat40 investors didn't, "insured pass-through" investors didn't, and, judging by the wailing & gnashing of teeth everywhere from ActM to Cloudhashing to Labcoin to choose-your-stock, those "investors" didn't either.

Regulations didn't come about because granny was happily investing in HYIPs & everyone was making monyz. The government, and the moneyed elite, having cultivated a sustainable source of profit (you), and harvested in a responsible, sustainable fashion, were weary of the poachers who decimated the heard. These poachers were not your friends, they weren't revolutionaries championing the rights of the cattle -- they were poachers. They had to be curbed, for both your & your master's sakes.
The enemy of your enemy is not always your friend -- he could be your enemy, too.