Senators seek crackdown on "Bitcoin" currency

[alkor]

An article in the Chicago Tribune:
http://www.chicagotribune.com/news/politics/sns-rt-us-financial-bitcoitre7573t3-20110608,0,6328122.story

Some interesting bits:

Two senators are pressing federal authorities to crack down on an online black market and "untraceable" digital currency known as Bitcoins after reports that they are used to buy illegal drugs anonymously.

Silk Road buyers pay with Bitcoins and sellers mail the drugs, the Gawker blog reported. The transactions leave no traditional money trail for investigators to follow, and leave it hard to prove a package recipient knew in advance what was in a shipment.

The DEA is "absolutely" concerned about Bitcoins and other anonymous digital currencies, agency spokeswoman Dawn Dearden said when asked for a response to the senators' concerns.

A discussion thread this week on the primary Bitcoin forum was titled "Will Mt. Gox US Bank accounts eventually get frozen?" Some speculated that if the government bans transactions involving Bitcoin exchanges, a layer of shell companies might allow them to continue.

This article simply confirms my thesis that Silk Road was not really the original target here, but merely a pretext to shut down bitcoin. I will not be surprised if in the near future they create child pornography sites that are also using bitcoins to further shift public opinion against bitcoins.

[westkybitcoins]

This article simply confirms my thesis that Silk Road was not really the original target here, but merely a pretext to shut down bitcoin. I will not be surprised if in the near future they create child pornography sites that are also using bitcoins to further shift public opinion against bitcoins.

Likely true. But if they actually succeed in shoving bitcoin underground (they can't actually destroy it), they'll just be a step away from trying to outright ban cash too....

[niemivh]

Child porn and then a site that can sell assassinations or other criminal services.

All probably setups and all as a pretext.

Remember folks: Problem --> Reaction --> Solution

[Jack of Diamonds]

If their US bank accounts are closed they can just open new ones in other jurisdictions under other names.

Bitcoins are not illegal.

[NO_SLAVE]

mt.gox in the cross hairs. Theyll take out what they can, the BTC will just keep floating around I suspect.
Like I said, Fiat is their power, they will at all costs protect that power, by opposing any perceived or made up threat.

[westkybitcoins]

If their US bank accounts are closed they can just open new ones in other jurisdictions under other names.

Bitcoins are not illegal.

No, they're not, and this is just them viciously lashing out at a threat to the core of their system.

But that said, clearly, they still plan on attacking it. And in the U.S., what is or isn't legal hasn't mattered to the powers that be in the last few decades (more so in the last 10 years.)

I'm beginning to wonder how far this is going to go. Will the feds declare a War on Bitcoins? At this point they're just nuts enough to do something so stupid.

[NO_SLAVE]

BTC is a threat because it shifts power, takes uncle gorilla out of the picture in terms of commerce.  The most dangerous aspect is that the mobs or other deviants could corner the bit coin market and indeed pose a serious threat to the system.  Drugs, porn and crime are hard to control, more so if the commerce of those trades are cryto. Id like to see BTC buying lollipops, pizzas, airplanes,  tshirts, mini coopers, dinner with friends, not the above mentioned.

[westkybitcoins]

BTC is a threat because it shifts power, takes uncle gorilla out of the picture in terms of commerce.  The most dangerous aspect is that the mobs or other deviants could corner the bit coin market and indeed pose a serious threat to the system.  Drugs, porn and crime are hard to control, more so if the commerce of those trades are cryto. Id like to see BTC buying lollipops, pizzas, airplanes,  tshirts, mini coopers, dinner with friends, not the above mentioned.

I'd like it all to be nice and sanitary too, but seriously, the genie's already out of the bottle, and there's nothing we can do about it. I mean, how much CASH do criminals hold and use daily? Does anyone go around wringing their hands over that? (Actually, I suppose there are a number of people nowadays who do... control freaks who want every transaction of every person tracked. Prepare for your implant, sir....)

Not too worried about criminals cornering the market though. The more that get bought, the higher the price goes, and eventually they can't buy any more.

[Bazil]

Of course they go for bitcoins right away.  try to blame the whole thing on bitcoins.  I don't seem them crying to shut down other currency exchanges because people are using them to buy dollars which they then use to buy drugs.

This is the thing, they need an excuse to go after bitcoin because it international they can't fall back on the good old counterfeiting and "only the government can make currency laws."  They will probably try to make it look like the only way they can "fix" this drug problem is by banning bitcoins.  Then they will use the so called drug problem to try and seize over seas accounts and force other countries into taking action..  We'll see....

[alyssa85]

Two senators are pressing federal authorities to crack down on an online black market and "untraceable" digital currency known as Bitcoins after reports that they are used to buy illegal drugs anonymously.

That does not look good.

Bitcoin went up from $50 to $8,000 (super-HYIP). Now world eyes are on Bitcoin. FBI had shut down 12dailypro HYIP which had collected $300 million.

You are responding to an article from 2011.

[dothebeats]

For the longest time, these dudes are trying to get down on bitcoin yet no one happens so far. The Silk Road has already 'closed' its doors to its peers (lol) yet they still make a fuss about it. What about other illegal website out there that uses cash as a medium of exchange? I for one sees these 'illegal sites' utilizing cryptocurrencies as a way for the government to shift public opinion against bitcoin and cryptocurrencies since they know so well that they can't ultimately shut it down. This is not news anymore but rather the constant effort of the government in trying to win a war they won't.

[avikz]

Since the article link is broken, I tried to search for the similar news by google search and what I found is from 2011. The link is given below for everyone's reference,

https://www.reuters.com/article/us-financial-bitcoins/senators-seek-crackdown-on-bitcoin-currency-idUSTRE7573T320110608

2011 to 2018, a lot of things have changed in last 7 years and I believe we have already came a long way from such hostile mentality of few lawmakers. Now there are thousands of altcoins available in the market. If bitcoin is taken down for some reason, illegal businesses will move to another altcoin. These kind of silly reason against bitcoin was a trend by the lawmakers in 2011-14. However, every governments have started understanding the potential of bitcoin and more specifically the blockchain technology. So such silly reasons simply don't stand valid in 2018. 

[cryptokingdom]

I'm sometimes  surprise at the reactions of bitcoin holders when any rumor or speculation is heard. We don't need any one verdict to fully trust in bitcoin. We need to believe bitcoin to the extent that no rumor will affect the market.

[First77]

In 2014, China banned Bitcoin. In 2018, India (RBI) ordered all the banks not to support Bitcoin transactions.

USA could be next.....

[Margaretlove]

Since btc is not good for government, the government can not print or control it.