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    Author Topic: Centralization in a decentralized Bitcoin world makes it unstaneble - idea  (Read 2878 times)
    fastandfurious (OP)
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    September 23, 2011, 06:31:08 PM
    Last edit: September 23, 2011, 06:50:10 PM by fastandfurious
     #1

    Because Bitcoin in its nature is decentralized, you would think that people investing time, effort and financial means around Bitcoin would try to make for example the exchanges as decentralized as possible. But the world doesn't look like that, it is much easier to for example centralize a exchange and have as we have it today with Mt.Gox one exchanges that everyone finds liquidity at. Because we could suppose that Mt.Gox doesn't want to create a "exchange pool" with other exchanges and by that lose potential fees through their own platform. We as a community needs to put effort on the exchanges that get in the position that Mt.Gox is in right now, being number one.

    My suggestions are these, feel free to make comment on them and add suggestions as well.

    1. Insider trading from all exchanges should be strictly illegal (including own bots that does the trading on algorithms), specially on their on exchange but maybe even on other exchanges (when it comes to active trading). This could be looked at from a committee  (that we as a community in a democratic way will vote for) that will get the right to act accordingly, if there are suspicion to look in to the matter in different ways.

    Reason: Easy to understand, you can see all other peoples orders, amount of BTC/fiat money, trading habits of each account, money flows, BTC flows etc.

    2. Some kind of audit on the financial health of the company, like do they have the Bitcoins they should have that their customers have deposited, same thing with fiat currency's, at which accounts are they, how much etc.

    Reason: If Mt.Gox loses all their financial assets, then I would say Bitcoin will have it very hard to rise after that (for ever). Also it is a trust issue, it is much easier to get into Bitcoin as a merchant etc. if you know that your money is audited.





    Many things has evolved over thousands of years, thinking that markets will take care of that, market will take care of this is a naive standing point. I am the first to acknowledge that Bitcoin is a very interesting and necessitous financial tool (because of the way our world looks like today) that have the potential to, to some part revolutionize the world. But having said that some part of the world today looks as it does because it works.

    I hate it when people look at everything in black and white. Like if we have two pools, (Love) Bitcoin and (Hate) the financial industry, the world doesn't look like that, the financial industry of today believe it or not have some part of their business that are working pretty good. Let us adapt the good parts of the present world order we now live in and in-weave it with Bitcoin (for the new world order). It will make Bitcoin much more prosperous and will attract people with different backgrounds and not as it is today a very specific individual (background).

     
     
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