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    Gibson’s “modern consensual hallucination” isn’t cyberspace, it’s modern finance.

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      Ah yes, in federal prison on wall street they call these wash trades.

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        A lot of young traders are going to get in a lot of trouble, eventually.

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          It’s kinda amazing watching the cryptocurrency folks reinvent every scam in finance and then rediscover why regulation exists.

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            I’ve been thinking this so much lately, and not just w.r.t. cryptocurrency (though it definitely comes up a BUNCH there). It seems to me like at least some of the “disruptive” companies of the past decade or so are trying to “disrupt” regulation. Uber/taxis, AirBnB/hotels, anything in the gig economy/labor laws, are just a few examples. Turns out that regulations actually come about because of ordinary people getting screwed by companies, and we have them for good reasons.

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              There will be scams and cryptocurrencies are also genuinely useful for things like fixing DNS and digital identity, creating decentralized organizations, dead-man switches, etc.

              It’s not clear to me this example qualifies as a scam, as it seems to be closer to a bug of some sort. However, you could call it a scam too, and I wouldn’t judge you harshly for doing so. A lot of these things seem scammy to me, and remind me of TheDAO. Broken promises. Foolish investors. etc.

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                It’s sounds a lot like a database transaction.

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                  There’s a rather big difference between a MySQL transaction and a transaction that happens on a public blockchain.

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                    Care to explain?

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                      For a start, MySQL has decent performance, and doesn’t incentivize wasting huge amounts of electricity.

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                        You’re right, it incentivizes data breaches, fake claims of privacy, censorship, on top of the same stuff that cryptocurrencies incentivize.

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                        Are you trolling or do you really not understand the difference?

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                          There is an obvious difference, but you seem to have stuff in mind. Are you thinking technically, culturally, economically, politically? I don’t know so I’d rather ask an open ended question. If I ask an open ended question I’ll get your opinion. (Which appears to be that I’m an asshole.)

                          Edit apologies for the tone. I’m not in a good mood and it’s not related to you.

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                            Everything you mentioned stems from the technical differences. And this is supposedly a website where we discuss the tech. Since you’re now saying the difference is obvious (as I feel), I will take that as you retracting your question.

                            Edit: saw your apology. Thanks. Hope you feel better.

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              Wash trades are something other than what is being described here. Your statement is incorrect.

              In particular, a wash sale is when the same person buys and sells something to/from themselves to create fake volume.

              Using a short-term loan to take other actions is a different thing entirely. If you aren’t your own counterparty, it isn’t a wash sale.

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                That’s true, this is a stretch of the term for dramatic effect, and to highlight the notion that cryptocurrencies seem to slowly reinvent classic financial market scams one by one.

                It can have the effect of boosting apparent traded volume (because some of these trades bounce currency out of and back into ETH), but the main purpose seems to usually be something in addition to that.

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                  to slowly reinvent classic financial market scams one by one.

                  One would hope these systems can reproduce the behaviors of the existing system. The point is to be able to do things that weren’t possible before, like decentralized exchanges, social key recovery, ownership over digital goods, etc.

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                What are some legitimate uses for flash loans? The article has only a single use case and it appears to be an undesirable outcome for bZx.

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                  Never heard of flashloans, thanks for this. Maybe it’s time I get out my old solidity code and see what’s up…