What’s up, party people? Chris DeRose here,
Community Director of the Counterparty Foundation, and in this video, I’m gonna talk to you a
little bit about: Do we need Bitcoin regulation? So I’m doing this video here at the southernmost
tip of the United States, at least we’re told. It’s 90 miles to Cuba, and I think that that
backdrop is really a nice way to frame this larger context of regulations. There’s a lot of talk lately about what kind
of regulations we need to impose and how, and I personally think that Bitcoin could
use some regulation, though I think that it’s a little bit hairier from there. You get into
sort of what needs to be regulated, what protections do we need? And I’m of the belief that there’s
only so much that the government can actually do here. I think that there’s a lot of regulations
we already have that would apply directly to Bitcoin anyways, and I don’t know that
we need additional ones. But the reason why I believe Bitcoin regulations
are needed is so that we can say that we have Bitcoin regulations. There’s a lot of people
for whom regulation is either a yes or it’s a no, and you are one or the other. So regardless
of what the details of the regulations might even be, it’s important that we say, “Yes,
we are sanctioned by the government, or we have their blessing or the approval of whatever
agencies we want.” Now, in terms of what could be regulated in
Bitcoin, it’s a little hard for me to really envision how that works. Yes, the entry points
into the network could probably be regulated in some capacity, but we already have a lot
of that with existing banking regulations. So do people mean that perhaps we want it
regulated at block times or every ten minutes? Sure! Let’s regulate that. Does it matter?
Probably not. Do we want to regulate whether or not somebody can 51% attack the network?
Well, probably we don’t want that because if we had a regulation in place, that would
reduce the security of the network. What would happen at that point is that, perhaps,
people wouldn’t try as hard to attack the network or wouldn’t try in the United States
as hard. And then what? We wouldn’t know if Bitcoin is secure. At that time at which,
perhaps, the government couldn’t enforce the law or some such thing. There wasn’t any natural
consequence to to trying. So I don’t know that there’s a lot that makes sense in the
Bitcoin world, in terms of needing to be regulated, Bitcoin transactions specifically. And you
also get into this issue of if Bitcoin is regulated, then what about the alt coins.
Or more importantly, what about counterparty? Are these different than Bitcoin? What is
Bitcoin? Where do we draw the lines? It’s very new in this space, and I think that
we think about the regulations on the internet and how little and few there have been. And
that probably was a good thing for the internet. I think in Bitcoin, it’s a little bit less
relevant because the blockchain works by circumventing a lot of the traditional currency controllers
or a lot of the conditional nuances to our existing system. I think that blockchains
offer us a lot in many ways, and I just don’t think that it matters what the details of
the regulations are. But I think that it’d be nice to have them, so I can point to them
and say, “Yeah, this is great! The government likes Bitcoin. We know because they’ve issued
regulations.” That’s my point. It’s a little different than
a lot of people in the community, so maybe your views are a little different. If they
are, why don’t you express them in the comments below? If you have questions for me, ask those
too. You can leave those in the comments, or you can ask me on Twitter. My handle is
@derosetech. And if you like the channel, subscribe. Later, party people!

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3 thoughts on “Do we need Bitcoin regulation?”

  1. No. Why do people need approval from some imagined authority figure on earth to exchange with one another? "Regulate" it and it just drives business activity outside of that particular geographic zone. If people want their hands tied and dislike the freedom to exchange in whatever way they want with one another, then they should press for more regulation. Are people really that frightened of having freedom? I can see how a select few want to protect legacy systems since they're heavily invested there, but really?

  2. States and governments will regulate Bitcoin with or without our blessings. We should focus of technical implementations of regulations and empowering and securing the individual rather than being dependent upon the ineptitude of state sanctioned regulations.

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