Government & Bitcoin

[Dotakels]

Bitcoins will be hard for them to stop without shutting down the entire internet. Should a government act against bitcoin, it would drive the price through the roof.

The government of first world countries would never want their beloved currency to go to waste. They are already acting against it. They can't fully go through with it, however. It's a decentralized currency. The only possible outlet they have is putting place laws and regulation that make it harder to obtain or trade. NYC bitcoin LBC exchanges have pretty much been banned because you need a license (which is hard to obtain) in order to purchase/trade bitcoin. I wouldn't be surprised if more came.

I think there is a lot more difficulty in trading bitcoin with a fiat currency, as the fiat part can be tracked without too much trouble, and as long as financial institutions/banks carry out the government's will, it can make it a chore to trade.  What is very difficult to control however, would be bitcoin being used to buy and sell actual goods and services.  It is very effective at doing that, whether the government chooses to act against it or not.  In fact if they choose to be against it, then they will force bitcoin users to operate outside of the law, and that means that they won't be able to capture any tax revenue from sales.

The IRS already wants people to put bitcoin apart of their income if they have any. So it's not like people aren't already escaping the laws of the US tax system. Regardless, I would have to disagree about trading with Bitcoin and fiat currencies. In my opinion trading with BTC is much more easier than fiat currencies because of the fraud associated with sellers and fiat currencies. I'd only accept bitcoin when possible if I were to sell anything, especially online. I wouldn't have to worry about any type of bullshit going on with my money in terms of fees, chargebacks, ect. PayPal specifically coming to mind in terms of ecommerce and online dealings, they do nothing but rob you of your money.

I think you misinterpreted what I was trying to say.  I am talking about trading/exchanging funds between bitcoin and fiat (x bitcoin for y USD or vise versa).  Without fiat transactions, how is the government going to keep track of your bitcoin transactions?  It wouldn't be within their line of sight to know how much bitcoin you have.

I know what is your point, you only want to say is, bitcoin is only depending on fiat money and if theres no fiat money bitcoin will be useless, you only change your money into digital so that you can  have an easy transaction.

I'm probably not explaining myself well enough.  I'm talking from the perspective of (the government) tracking people with bitcoin and bitcoin transactions.  That tracking can only be done if you are exchanging your bitcoin with fiat (not cash), so that there will be a record with your bank.  Other bitcoin purchases that are not taxed, wouldn't be traceable.

So in the even that the government outlawed bitcoin, I think you'd still be able to use it as long as you don't have transactions between your bitcoin account and your fiat bank account.

How you can exchange your bitcoin into fiat but not in cash? through exchanging your coins into fiat and put it into your bank account? how? because all i know that you can only exchange your bitcoin if you exchange it into a cash and if you exchange it through load it can also track you.

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[coinplus]

Definitely many counties has understood than bitcoin is the new modern innovation beyond government regulations. And may country already recognized bitcoin as investment. So bitcoin has no problem to evolve itself as future financial system.

[americanpegasus]

There is one tried and true way governments can integrate bitcoin and still keep their power, at least for a while: ....

...There are a lot of possibilities, but the basic idea would be the same.

One of the most important posts on Bitcointalk.  Pay attention, imho.

[randy8777]

Definitely many counties has understood than bitcoin is the new modern innovation beyond government regulations. And may country already recognized bitcoin as investment. So bitcoin has no problem to evolve itself as future financial system.

the governments and financial companies aren't that interest in bitcoin as being a coin. they are heavily investigating the blockchain technology possibly for future use. that alone gives me a great feeling.

[RealBitcoin]

There is one tried and true way governments can integrate bitcoin and still keep their power, at least for a while: ....

...There are a lot of possibilities, but the basic idea would be the same.

One of the most important posts on Bitcointalk.  Pay attention, imho.

I`m afraid of that scenario really.

They could do the same thing as they did with gold.

They create a paper currency 100% backed by bitcoin & redeemable in bitcoin. Then they decrease the backing to 90%, then 50%, then 10%, then 0%, and create a fake bitcoin paper fiat currency, that would end up just like the current ones.

But in the meantime it would surpress bitcoin's growth and price. Just like the gold price is surpressed now with all the certificates and paper derivatives.

However, given that we live in a more and more digital age, this would not work as efficiently as previous fiat schemes. Most people would use the real bitcoin (not me)

[neonshium]

One day or other government and people together working for bitcoin. I mean bitcoin would be official alternate currency in every country. I dream....

[futurebit640]

One day or other government and people together working for bitcoin. I mean bitcoin would be official alternate currency in every country. I dream....

If all governments accept bitcoin can be an alternative currency then surely price will go sky rocket but it looks like that is quite difficult to happen in near to long term range. Mostly all big institutions will not allow that to happen.

[Dotakels]

One day or other government and people together working for bitcoin. I mean bitcoin would be official alternate currency in every country. I dream....

If all governments accept bitcoin can be an alternative currency then surely price will go sky rocket but it looks like that is quite difficult to happen in near to long term range. Mostly all big institutions will not allow that to happen.

Yeah the price will increase as its users increase, and if all countries accept bitcoin , many bitcoin users now will be rich and i think satoshi will now show himself.

[wafersticks09]

Hope government will accept bitcoin soon. But its hard for some government because they are thinking bitcoin can be use in illegal transaction like what others did in deepweb.

[n2004al]

One day or other government and people together working for bitcoin. I mean bitcoin would be official alternate currency in every country. I dream....

Agree and "dream" me to. Most countries will turn increasingly attention versus bitcoin and most of them already  have held particular attention about it doing writing rules of aceptance. Unfortunately some of those have banned it but I think that will rethink one day.

[Dotakels]

One day or other government and people together working for bitcoin. I mean bitcoin would be official alternate currency in every country. I dream....

Agree and "dream" me to. Most countries will turn increasingly attention versus bitcoin and most of them already  have held particular attention about it doing writing rules of aceptance. Unfortunately some of those have banned it but I think that will rethink one day.

Like in some country in southeast asia, because they will help their own people than the other, like some business like banks that are related to bitcoin, we are talking about money and we all know that some country are so very tight in money.

[btccashacc]

Hope government will accept bitcoin soon. But its hard for some government because they are thinking bitcoin can be use in illegal transaction like what others did in deepweb.

also goverment must think again about money laundry, Bitcoin is high risk to be legal payment,
because state officials can send and receive money without being detected

[wxa7115]

Hope government will accept bitcoin soon. But its hard for some government because they are thinking bitcoin can be use in illegal transaction like what others did in deepweb.

also goverment must think again about money laundry, Bitcoin is high risk to be legal payment,
because state officials can send and receive money without being detected

Money laundry is an endemic problem in my country along with corruption, so the worst that it will happen is that state officials will have an easier time stealing. So sadly, not much will change in my country.

[n2004al]

Hope government will accept bitcoin soon. But its hard for some government because they are thinking bitcoin can be use in illegal transaction like what others did in deepweb.

also goverment must think again about money laundry, Bitcoin is high risk to be legal payment,
because state officials can send and receive money without being detected

Money laundry is an endemic problem in my country along with corruption, so the worst that it will happen is that state officials will have an easier time stealing. So sadly, not much will change in my country.

In my country too. Money laundry and corruption have to do only with bitcoin but even with legal money of every country. So it is not logic connect those two characteristics only with bitcoin.

[Franciem]

Bitcoin is only "online payment method" , also bitcoin is a comodity
but im sure in future bitcoin can be use at all country of the world

[andolini82]

Are we talking about our dream for bitcoin in the future or bitcoin condition again our goverment??

But personally im not to sure about my goverment policy for bitcoin for this day, because i think they dont care about it anymore  

My wish and my dream for bitcoin absolutely same like most of members that already post on this thread before...

[Dotakels]

Are we talking about our dream for bitcoin in the future or bitcoin condition again our goverment??

But personally im not to sure about my goverment policy for bitcoin for this day, because i think they dont care about it anymore  

My wish and my dream for bitcoin absolutely same like most of members that already post on this thread before...

Dreams like theres no hassle when you are buying food or stuffs. And also the things that you only need a device like cellphone or tablet to pay your payments and don't need a wallet or ATM card.

[Rumichbit]

People will always be afraid of new stuff:
 - First guys saying earth was not the center of Universe.
 - First guys saying earth is round.
 - Wright brothers and their airplanes ideas.
All of them were considered crazy or foul because of fear, and now in economy we have a revolutionary money called "Bitcoin" that is causing fear again.

[fkvidar]

I do agree with you that government do not want this currency around, but what can they do about it? Ban it? That just show how much of a threat it is.

[bitcoin revo]

Bitcoins will be hard for them to stop without shutting down the entire internet. Should a government act against bitcoin, it would drive the price through the roof.

The government of first world countries would never want their beloved currency to go to waste. They are already acting against it. They can't fully go through with it, however. It's a decentralized currency. The only possible outlet they have is putting place laws and regulation that make it harder to obtain or trade. NYC bitcoin LBC exchanges have pretty much been banned because you need a license (which is hard to obtain) in order to purchase/trade bitcoin. I wouldn't be surprised if more came.

I think there is a lot more difficulty in trading bitcoin with a fiat currency, as the fiat part can be tracked without too much trouble, and as long as financial institutions/banks carry out the government's will, it can make it a chore to trade.  What is very difficult to control however, would be bitcoin being used to buy and sell actual goods and services.  It is very effective at doing that, whether the government chooses to act against it or not.  In fact if they choose to be against it, then they will force bitcoin users to operate outside of the law, and that means that they won't be able to capture any tax revenue from sales.

The IRS already wants people to put bitcoin apart of their income if they have any. So it's not like people aren't already escaping the laws of the US tax system. Regardless, I would have to disagree about trading with Bitcoin and fiat currencies. In my opinion trading with BTC is much more easier than fiat currencies because of the fraud associated with sellers and fiat currencies. I'd only accept bitcoin when possible if I were to sell anything, especially online. I wouldn't have to worry about any type of bullshit going on with my money in terms of fees, chargebacks, ect. PayPal specifically coming to mind in terms of ecommerce and online dealings, they do nothing but rob you of your money.

I think you misinterpreted what I was trying to say.  I am talking about trading/exchanging funds between bitcoin and fiat (x bitcoin for y USD or vise versa).  Without fiat transactions, how is the government going to keep track of your bitcoin transactions?  It wouldn't be within their line of sight to know how much bitcoin you have.

I know what is your point, you only want to say is, bitcoin is only depending on fiat money and if theres no fiat money bitcoin will be useless, you only change your money into digital so that you can  have an easy transaction.

I'm probably not explaining myself well enough.  I'm talking from the perspective of (the government) tracking people with bitcoin and bitcoin transactions.  That tracking can only be done if you are exchanging your bitcoin with fiat (not cash), so that there will be a record with your bank.  Other bitcoin purchases that are not taxed, wouldn't be traceable.

So in the even that the government outlawed bitcoin, I think you'd still be able to use it as long as you don't have transactions between your bitcoin account and your fiat bank account.

How you can exchange your bitcoin into fiat but not in cash? through exchanging your coins into fiat and put it into your bank account? how? because all i know that you can only exchange your bitcoin if you exchange it into a cash and if you exchange it through load it can also track you.

the government can use various justifications or pass new laws if necessary that bars businesses from accepting bitcoin as payment. Laws against tax evasion, money laundering, etc.