At a panel discussion, Nir Kaissar, founder of Unison Advisors, commented on whether it was appropriate to not regulate initial coin offerings [ICO]s, which is similar to initial public offerings. The discussion, organized by Bloomberg, mainly focused on the regulatory aspect of the digital assets space.
According to Nir Kaissar, it was a very “tricky” topic of discussion and it was inevitable that regulation would “chill” innovation. He further stated that there was only one harmful consequence for regulating ICOs, which was individuals getting “ripped off”. He said:
“We don’t want people to make bad decisions and/or get suckered in or lose money and so on.”
He then example of Bitcoin and how individuals had become less-gullible after experiencing the two apparent “bubbles”; the tech stocks crash, where many Internet-based companies peaked in value before crashing, and the financial crisis, which was a situation where some financial assets suddenly lost a large part of their nominal value.
The founder of Unison Advisors said that when it comes to tech stocks, a lot of individuals entered the space and almost everyone was affected by the crisis. A similar case could be witnessed during the financial crisis. He added:
“We can agree for a minute that it was exposed, you know from the benefit of hindsight, that Bitcoin turned out to be a bubble.”
He stated that Bitcoin’s price grew exponentially and then crashed by 65%. Thus, in many ways, it was a definition of a “bubble”. The market capitalization of Bitcoin showed that even when it was at its highest price, a lot of individuals refrained from participating or entering the Bitcoin market. Kaissar added:
“In general, if you look at the participation of the population in Bitcoin, it was not nearly as actively participated in as were in the prior two bubbles.”
Kaissar opined that one way of looking at this was that individuals were actually learning something from their previous experiences and a majority of them refrained from getting involved in Bitcoin.
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