Imagine a stock market where companies regularly leaked financial information right before the announcement of quarterly results. Imagine individuals who sell questionable, unconfirmed rumors to investors in attempts to manipulate stock prices, while simultaneously offering to buy that same stock from them. Imagine investors who are told their stocks are just for entertainment purposes while investing in a market that knowingly manipulates stocks to increase or decrease value.
Imagine a market where conflict of interest is the ideal business model. Imagine an industry of brokers who know all this is happening, but also know it's vitally important to maintain the fiction of this model. Pointing out the inconsistencies and what would be obvious fraud in a regulated market, is inherent to the profit margin of this unregulated market. It's also a system where pointing out the fraud to investors only results in rebukes from investors. The Kool-Aid is strong with this crowd.
I'm not talking about Bitcoin, I'm talking about Magic: The Gathering, a game considered an investment by many of its players and the cornerstone of the billion dollar hobby game industry. Most everyone in the industry relies on this game to keep the system afloat. Even Martin Shkreli. convicted of securities fraud once considered investing in the Magic market.
What eventually got Bitcoin and other crypto currencies on regulators radar was the sheer amount of money involved. It wasn't the rampant embezzlement, corruption, and money laundering, it was that there was beginning to be an awful lot of money being made without government oversight. Before regulation, Bitcoin buyers were called "enthusiasts," rather than investors. Sound familiar?
With venture capital money flowing into Magic related companies, you might think enthusiasts might be on the brink of becoming investors. I doubt tens of millions of dollars is enough to get on the radar, with Bitcoin currently valued at 41 billion dollars. What's more likely, I think, is questioning this whole model as the Magic "market" declines. Nobody wants to kill the golden goose, but when it starts looking like a ragged chicken that poops on your front steps (I may have personal experience here), it might be time for some introspection.