Bitcoin

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Betruger
Posts: 2310
Joined: Tue May 06, 2008 11:54 am

Re: Bitcoin

Post by Betruger »

But there’s also at least one important difference between Bitcoin and Liberty Reserve: If the authorities concluded that Bitcoin were a money laundering scheme, it’s not clear whom they’d prosecute. There’s no Budovsky for Bitcoin. Rather, the online currency was created by “Satoshi Nakamoto,” widely regarded as a pseudonym. Bitcoin transactions are processed in a distributed fashion by thousands of “miners” around the world. It would be difficult for the United States to indict all of them, and doing so would likely drive Bitcoin mining underground — which could make it even more attractive to criminals.

That sprawling, decentralized network would create a dilemma for federal regulators if former Liberty Reserve users switched to Bitcoin. The crypto currency doesn’t fit well into existing money-laundering laws, and there’s no one who can be required to reform the network to bring it into compliance. Trying to shut down Bitcoin could prove futile — the feds can make life hard for individual Bitcoin users but likely could not destroy the network altogether.
Civil libertarians have long lauded the Internet’s ability to resist government’s efforts to control the flow of information. The emergence of Bitcoin could threaten the United States’ ability to control the flow of electronic funds, too.
You can do anything you want with laws except make Americans obey them. | What I want to do is to look up S. . . . I call him the Schadenfreudean Man.

hanelyp
Posts: 2255
Joined: Fri Oct 26, 2007 8:50 pm

Re: Bitcoin

Post by hanelyp »

The way bitcoin is distributed it would be near impossible to shut down. Exchanges between bitcoin and other currencies, on the other hand, are an easier target.
The daylight is uncomfortably bright for eyes so long in the dark.

necoras
Posts: 59
Joined: Wed Sep 08, 2010 9:28 pm

Re: Bitcoin

Post by necoras »

What hanleyp said. Mt Gox (the largest USD exchange) has had numerous legal problems. Most recently they didn't setup some international monetary transfer account correctly and had some of its USD accounts frozen.

Bitcoins are in many ways an ideal currency, so long as you can find someone willing to accept bitcoins as payment. They have the same problems that any other currency does when you try to exchange them for a currency controlled by a central bank.

painlord2k
Posts: 24
Joined: Tue Mar 23, 2010 7:35 pm
Location: Italy
Contact:

Re: Bitcoin

Post by painlord2k »

hanelyp wrote:The way bitcoin is distributed it would be near impossible to shut down. Exchanges between bitcoin and other currencies, on the other hand, are an easier target.
Only large exchanges can be shut down easily.
But try to shut down localbitcoins.com and local street exchangers.
No more difficult than shutting down local drug exchangers.

Their best chance is to delay the process, not to stop it.
Delay and have the exchanges monitored, so they know who exchange, how much BTC they have and where they send them.

My opinion is, with China apparently in a supporting position, Bitcoin is little less than unstoppable.
The public ledger allow to follow the flow of BTC everywhere, if the users are not tech savy.
On the other hand, many are and know how use mixers and other features of the network to keep their privacy.

Bitcoin is an internet protocol and like TCP, a lot of other protocols could be built atop of it and many are already working on this to allow other services like allow anonymous spending and smart contracts.

choff
Posts: 2434
Joined: Thu Nov 08, 2007 5:02 am
Location: Vancouver, Canada

Re: Bitcoin

Post by choff »

I very seriously considered buying bitcoin, going so far as to setup an ewallet. I decided not to based on two things, first is that there are now 40 competing cyber currencies out there, one of them is eventually going to knock bitcoin off. The other is the deflationary nature of bitcoin. It's okay for transactions that involve quick payments, the problem comes with long term investments. An example would be the drug dealer who would have been better off holding onto his bitcoins than using them to buy drugs for resale once the cyber currencies value shot up. It's great to recieve payment in bitcoin, not so great to buy with them.
CHoff

paperburn1
Posts: 2457
Joined: Fri Jun 19, 2009 5:53 am
Location: Third rock from the sun.

Re: Bitcoin

Post by paperburn1 »

I am not a nuclear physicist, but play one on the internet.

Stubby
Posts: 877
Joined: Sun Aug 05, 2012 4:05 pm

Re: Bitcoin

Post by Stubby »

Everything is bullshit unless proven otherwise. -A.C. Beddoe

Stubby
Posts: 877
Joined: Sun Aug 05, 2012 4:05 pm

Re: Bitcoin

Post by Stubby »

Everything is bullshit unless proven otherwise. -A.C. Beddoe

choff
Posts: 2434
Joined: Thu Nov 08, 2007 5:02 am
Location: Vancouver, Canada

Re: Bitcoin

Post by choff »

Interesting article about who might be behind the creation of Bitcoin.

http://spitfirelist.com/for-the-record/ ... ut-a-clue/

Sort of wish I could have bought when it was cheap, got a little silver instead.
CHoff

JLawson
Posts: 423
Joined: Tue Jul 08, 2008 6:31 pm
Location: Georgia
Contact:

Re: Bitcoin

Post by JLawson »

I remember when Bitcoin came out and thought "Hey, that'd be neat..." But I figured it'd go the way of Beenz and other 'digital currencies'.

Now I wish I'd bought some. (Shrug.)
When opinion and reality conflict - guess which one is going to win in the long run.

hanelyp
Posts: 2255
Joined: Fri Oct 26, 2007 8:50 pm

Re: Bitcoin

Post by hanelyp »

http://www.businessinsider.com/bitcoin- ... es-2013-11
Research ... found that 18 of the 40 Bitcoin trading platforms set up in the past three years had closed, including TradeHill, which was once the second largest in terms of transaction volume.

Moreover, 13 of the discontinued services closed without any prior notice, while the remaining five were forced to shut down following hacker attacks. Only six of them were known to have offered refunds to users.
Not a sign of a stable currency.
The daylight is uncomfortably bright for eyes so long in the dark.

choff
Posts: 2434
Joined: Thu Nov 08, 2007 5:02 am
Location: Vancouver, Canada

Re: Bitcoin

Post by choff »

They're not anonymous and the Fed loves them.

https://www.youtube.com/watch?v=ipGIOip ... AxFmee1oSA
CHoff

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