[injeolmi_love]

Public markets are equity markets that any member of the public can participate in. They cannot exist without regulation due to the owner/agent problem. It’s not just a theoretical problem; daos that have tried to have public markets only regulated by code have run into the same issues. Private markets can exist without regulation since private assets are held by individuals or small groups that are able to coordinate effectively.

It is reasonable to be upset at the use of force by the state to protect big tech companies that are using this protection to violate human rights. We might like the idea that the system functions differently, and perhaps some powerful individuals could institute temporary reforms, but as long as a monopoly of force exists it will be abused due to incentives.

There’s a huge difference between a 25 person “democracy” and a 25m person democracy. Firstly in common modern parlance democracy means a set of institutions with a distributed power base. That’s why Germany is democratic and China is not, even though both appeal to the “will of the people” and both have elections. Obviously a 25 person group will not have these institutions and cannot be democratic. Second the small group is based on fundamental human social relationships, while the second one is necessarily parasocial. You can personally know everyone in a 25 person group; you cannot for a 25m one.

[ericmay]

> Public markets are equity markets that any member of the public can participate in.

Yes!

> They cannot exist without regulation

No! In fact, early crypto exchanges are examples of unregulated public markets. But we also know that this is incorrect because you can just imagine a world where the government doesn’t regulate these markets. The owner/agent problem you are describing can be solved without the use of government - you just find a different third party.

> It is reasonable to be upset at the use of force by the state to protect big tech companies

Sure but the criticism wasn’t “the State should stop big tech companies from doing bad things” it was:

* The big tech companies are not private; they are public companies that rely on state force to maintain their monopolies. Just as an example, intellectual property laws rely on the state for enforcement.*

Which is nonsense because being “public” and “licensed” isn’t relevant to the protection of the State here.

> China is not, even though both appeal to the “will of the people” and both have elections.

I lost track of what we were really discussing here but China does not hold elections in a way that resembles what we mean by an election. Chinese citizens don’t go to the voting booth, the appointment of the CCP ruler isn’t up to the public.

[injeolmi_love]

Crypto exchanges are trading digital assets, not equities.

Public markets need state intervention because the application of force is required.

The point regarding democracy is that you cannot call a 25 person tribe a democracy just because they vote. “What we mean by an election” is about diverse institutions of power such as multiple parties, independent media, freedom of political speech, etc.

[ericmay]

> Crypto exchanges are trading digital assets, not equities.

Debatable[1] but you can buy commodities and currencies (and even Bitcoin) on public markets in addition to your S&P 500 or shares of Nvidia.

> Public markets need state intervention because the application of force is required.

So does your home and all private business.

> The point regarding democracy is that you cannot call a 25 person tribe a democracy just because they vote.

Why?

[1] It seems as a society we're still trying to categorize and regulation crypto currencies/assets/etc. so I don't think this is settled.

[injeolmi_love]

Just because an object can possess a property does not mean it necessarily has the property. Regarding Bitcoin, it does not necessarily require a regulated market (proof: existence of Bisq). Same holds for private households; instead of relying on force for enforcement, you can rely on trade via the non aggression principle- “I won’t steal your property if you don’t steal mine” prevents us from requiring force to settle disputes. This does not hold true for equities because of the owner/manager problem among other issues; there’s a lot of research on equities markets and why they require regulations you can read if it’s interesting to you.

It doesn’t matter whether the state says Bitcoin is an equity or not; it isn’t one. States frequently make all sorts of false claims.

Regarding democracy, in modern parlance it’s a set of institutions; a 25 person tribe is too small to support those institutions; accordingly a 25 person tribe cannot be democracy in the modern sense.