SEC Com. Remarks Before the Cato Institute’s FinTech Unbound Conference

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2 pointsmorpheos1372 comments

In my opinion people should not be regulating things they don't understand. Hester Pierce does not understand crypto if she thinks it is financially innovative. Maybe technically innovative. But as Warren Buffet observed a high tech check book is still just a check book. Nobody considers a check book a valuable asset on its own rather the underlying asset (account balances) is what has value. What is the asset underlying the bitcoin checkbook? Sunk costs? Greater fools? Rent seeking?

I thought this way for a long time too but maybe even more pessimist. Because it’s negatively useful not just neutral as soon as you take taxes into consideration.

What’s brought me around is this recent thing with NFTs and the question about how we price art. I’m not talking about the Mona Lisa, that’s obviously striking. I mean more like, these two pictures of an apple at a local art show. One artist wants 50 for theirs and another wants 400 for theirs.

With crypto, you’re buying a number. Some pretty fantastic numbers! I don’t know why one is worth 8x more than the other but I don’t really need a picture of an apple either.

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