Regulating cryptocurrencies needs to be controlled, but leave a little room

It is hard to imagine that new cryptocurrency species are being pursued by national regulatory agencies, and the market size is still growing exponentially. The development of cryptocurrency and blockchain is beyond the imagination of national regulators. After IC0 swept the world in 2017, it was rigorously regulated in 2018. Whether it was China’s 94 ban or the US SEC’s delay in the adoption of bitcoin ETFs, the side showed The regulator is determined.

However, it must be said that the development of the industry is sometimes not dominated by the government. It is the evolution of the inherent logic of technology, and the length of time.

The big news in recent days is that the global social giant Facebook has released the Libra white paper on cryptocurrency, and it has been a circle of friends.

On the one hand, is the traditional Internet concern, how does Facebook break through the leak scandal? On the one hand, the cryptocurrency industry finally ushered in the joining of the real Internet giant, and suddenly cheered.

Regulators can't sit still, and the biggest reason they worry is that Libra's financial attributes far exceed the “payment function” and currently face challenges in both law and concept. The industry is concerned that Facebook has insufficient privacy protection for users and is concerned that it may become a “shadow bank”.

It is reported that Facebook has been communicating with US regulators on the cryptocurrency program, but it is not clear whether it will be directly bound by the existing US regulatory system. Some analysts pointed out that at present, the US Securities and Exchange Commission (SEC) regulates cryptocurrency items, but the scope of supervision only covers assets that are considered securities. If Libra is seen by the US government as a new currency, it may be immune to SEC regulation.

We can't help but ask whether regulation is to promote industry development or prevent industry progress?

The development process of technology is evolution and evolution. It does not matter whether it is good or bad. It can be regarded as an innovative mechanism.

Kevin Kelly said that the advancement of human technology is in line with the laws of biological evolution. We can probably say that the so-called financial market is an evolutionary mechanism that allows good things to spontaneously emerge, develop and grow, and adapt to new environmental changes. .

The innovation mechanism is so powerful that it is almost unstoppable, and of course regulation cannot.

Let us first talk about a biological example:

The peasants scribble in the fields, leaving the crops and pulling the weeds away – and some weeds will evolve and grow like crops, making them unrecognizable. You can say that this is also a drug resistance.

For example, farmers planting genetically modified crops are largely to fight pests. Some genetically modified crops will bring a kind of toxin. When the pests are eaten, they will be poisoned, but they are harmless to people. Farmers plant this GM crop to spray less pesticides, which is good, right? However, it only takes a few years for the pests to develop resistance to this genetically modified crop.

Later, a new method was developed: farmers who want to grow genetically modified crops are usually required to plant some “non-GM-based” traditional crops in genetically modified fields. Because genetically modified crops are toxic, pests are still killed in large numbers. But because of the presence of non-GM-based crops, many pests have not been killed. Pests that produce genetic mutations that are not afraid of genetically modified toxins are, after all, a few, and because many traditional pests are alive, the result of their mating will not make the pests that are not afraid of toxins bigger and stronger.

In practice this method is indeed effective. The evolution of resistance will be stopped and even reversed. The key to this idea is that you must make individuals who are sensitive to drugs, fear the drug, more than those who are resistant. And that means you can kill individuals who are afraid of this drug, but you choose to leave some to kill.

To put it bluntly, this requires you to restrain all desires. However, the average person can't do this. Pig farmers always use antibiotics to the fullest. Farmers are not willing to keep non-GM versions of crops. Teacher Zhuo has a column called "Days to Get Together with Microorganisms", which mentions that antibiotic abuse has now reached the scale of microbial resistance, so that in the future we may face the situation that all antibiotics are not good. . The root of abuse is not for doctors to use for patients, it is precisely in agriculture and animal husbandry.

For pests, the total killing workload is too large, and humans have to use up their means. The result may be that pests may evolve rapidly. So you choose to leave a little room to allow some of the pests to live and give them a way out. As long as the total number of pests is within your control, you are still successful.

Regulators are also arrogant in the face of cryptocurrencies. Once they are banned, they cannot ban demand, but they are even more intense. Just like the 94 ban, it did not really kill the IC0, and the subsequent fundraising became a private fundraiser. From the ground to the underground, from the platform to the individual, the difficulty of pursuit suddenly increased. The difficulty of law enforcement has risen more than one grade, and it is more difficult to defend rights and increase social costs.

Some time ago, according to Bloomberg News, the Indian government is discussing a digital currency regulation bill. Once the bill is passed, holding, buying and selling bitcoin and other digital currencies in India will be classified as criminal acts, and may face 1-10. Severe punishment for imprisonment for the year, and a fine of 3 times the cryptocurrency gain.

From no supervision, to loose regulation, to strict supervision, it was finally banned. It is equal to saying that cryptocurrency has become a product of a type of regulation with drugs. It is regarded as a flood of beasts by Indian regulators. Obviously it’s all the grass.

The TV drama "Da Ming Dynasty", during the Jiajing period, was in full swing in the era of great voyages. The Da Ming Dynasty smashed the big country and moved against the historical trend. Except for the tribute, all legitimate maritime trade is banned, and the people want to do the business of serious sea trade. The result is that the pirates and crickets of the Ming dynasty are particularly developed, and the so-called shackles are actually disguised as Chinese people. The looting is no evil, the prohibition cannot prohibit the demand, and the demand is instinctive.

You make Haimao illegal, and the result is that only illegal people go to sea trade.

The prohibition of alcohol in the United States in the 1930s is equally ridiculous. The result of a comprehensive ban on alcohol is that the sale of wine has become a mafia. A total ban on IC0 allows all scammers to come out.

The fear of cryptocurrencies is even more than gambling.

It is very interesting to see the attitude of governments around the world to gambling today. Gambling is not good. Gambling is more harmful than sea trade and alcohol. Countries have various restrictions on gambling behaviors – but people like it, so countries have left behind. There are only certain regions in the United States, and Indians with franchises can open casinos.

Allowing some legitimate gambling, gambling behavior does not mutate into underground casinos on a large scale. Gambling is basically not a serious social problem.

Of course, we are not saying that all illegal acts should be legalized. The idea of ​​dealing with resistance is to use the idea of ​​taking turns to fight or to use the idea of ​​opening the net. To a large extent, it should depend on the comparison of the reaction speed between the enemy and the enemy. There are different choices in different fields.

A comprehensive ban is not the best policy. Control can ensure the development of the industry and social stability. With certain guidance and education, investors will not blindly carry out high-risk investments, and protect the development of investors and industries in a true sense.