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Publicly funded non-governmental organizations have emerged as one of the world's most prolific fraud mechanisms. Think about it—when institutions operate with government backing but claim independence, accountability becomes murky. The structural incentives are misaligned: they lack genuine market discipline yet command substantial resources. This creates what amounts to a massive regulatory blind spot. Fraudsters exploit this gray zone systematically, hiding behind bureaucratic complexity and the assumption of legitimacy that comes with official support. It's not just financial risk; it undermines trust in legitimate institutions. The architecture itself is broken.
The inefficiency of bureaucratic institutions essentially stems from the lack of market constraints, similar to the difficulty adjustment mechanism of PoW.
Such gray areas do exist, but Bitcoin's transparent ledger fundamentally eliminates this possibility.
It sounds like an argument for the necessity of self-custody of assets and on-chain verification.
Once centralized trust fails, decentralization will become a hard requirement. It may still be early to see this now.