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June 18, 2011, 05:16:03 PM |
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Hi All,
I might be repeating this argument since it did not hit any search results, but please listen it over. I support exchanges working with governments because of the following arguments.
One idea which was floated earlier was that no one could stop druglords from starting their own drugcoin using the bitcoin code. But this does not seem to make sense to me.
Imagine a future where most main bitcoin exchanges are Know Your Customer compliant. Moving large amounts into and out of bitcoin are being tracked by various government spy machines.
Then bitcoin actually becomes a much more difficult currency to suppress legally.
Drug lords are already the cutting edge users of encrypted messaging of all kinds. Using cryptography is not an issue for them. They do not need bitcoin the protocol, they need to be able to transfer actual resources. They need an actual currency with a community supplying real resources. When the exit through cash is monitored, they need the baker, the grocer, the landlords and the gas stations to accept bitcoin for it to be useful to them or their couriers or soldiers.
The key is that when the baker, grocer, landlords or gas stations start accepting bitcoin, the popular support would be too much for suppressing bitcoin. So, cooperative exchanges imply that bitcoin will become a much stronger community due to merchants providing more services because the exit through cash will become a bigger problem for gainers from illegal activities.
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