Liberty Reserve is now dead (Good News For Bitcoin ?)

[forexmasterja]

Now that Liberty Reserve is dead is that good or bad for bitcoin?

I think its good because it should lead to more people adopting bitcoin.

Read Article -

http://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/

I hope people will now learn not to put any trust in digital centralized monetary institutions. They all have the potential to fail eventually .. Egold, Liberty Reserve etc...

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[CypressXM]

Ya but it's a bad sign overall IMO...

First they came for the communists,
and I didn't speak out because I wasn't a communist.

Then they came for the socialists,
and I didn't speak out because I wasn't a socialist.

Then they came for the trade unionists,
and I didn't speak out because I wasn't a trade unionist.

Then they came for the Jews,
and I didn't speak out because I wasn't a Jew.

Then they came for the Catholics,
and I didn't speak out because I wasn't a Catholic.

Then they came for me,
and there was no one left to speak for me.

[justusranvier]

First they came for the communists,
and I didn't speak out move to a safer country because I wasn't a communist...

[forexmasterja]

All I know is there is alot of people crying today for the funds that are now lost in Liberty Reserve. I wonder how much money was invested in Liberty Reserve .

[LiteCoinGuy]

"This is EXACTLY, EXACTLY, EXACTLY why Bitcoin is so important. It is a digital currency that is 100% completely decentralized. So even if one exchanger gets shut down or accused of negative press or [WHATEVER lame interventionist excuse here], the totality of the blockchain and the Bitcoin currency can continue to survive. I’m sure all of the bitcoin advocates will quickly quote this article, as this news clearly strengthens the argument.

Fiat currency is used for illegal activities also, right? But I guess the de-facto world reserve currency does not want any competition. There are thousands of legitimate people running businesses with libertyReserve and the like. Is it fair to those businesses to shut down an entire processor operation because of a few bad apples?

e-Gold and LibertyReserve are two good examples of digital currencies that had great potential as a practical alternative to wire transfers and fiat currency-based digital payment (i.e. credit cards). And look what happened to them (LibertyReserve I am unaware how long they have been offline)."

[QuestionAuthority]

Bitcoin exchanges could be next on the chopping block. MtGox could be closed tomorrow. This is why decentralized exchanges must be setup quickly. The evil empire of America will continue to march forward trampling everything in its path to keep its citizens enslaved.

[hashkey]

It's good for Bitcoin's image as that shows why one should choose Bitcoin for its decentralized feature.

Though I'm wondering what would happen to Bitcoin when the time comes when China privately manufactures fucktons of ASICs to do a 51% attack on the network to destabilize Bitcoin.

[flyingmonkeycrap]

Wow, yes this is a very very good sign for Bitcoin!!

[Melbustus]

...
Though I'm wondering what would happen to Bitcoin when the time comes when China privately manufactures fucktons of ASICs to do a 51% attack on the network to destabilize Bitcoin.

That's why I just bought a couple of ASICMiner's new 330mh USB sticks. We need A LOT more ASIC mining hardware running. Orders of magnitude more. Luckily there are more small, affordable units coming to market that will allow more people to run effective miners, but the network will still be vulnerable to malicious fab-plant operators for a whiole. The quicker more of this new mining hardware gets distributed, the better.

[virtualmaster]

They are good but also bad news.
- Good news because  Bitcoin will have less concurrence by digital currencies.
- Bad news because it is a warning also because governments will strike whenever they do it easy and profitable. Every currency, even centralized ones can be used by criminals and this can be used as good pretext to seize the founds. The seized founds can be used to pay and train new agents and so the system is self maintained.
Fortunately Bitcoin founds at this moment cannot be confiscated with profit only by exchanges so they are secure.
However by all currencies discussed in this forum Ripple is most likely to be seized in similar way than Liberty Reserve. Pretexts can be found any time there is a central unit which is vulnerable. The confiscated founds will cover the action and will bring even profit for the government so most likely it will happen.

[smoothie]

YES.

Centralized digital currencies (or forms of digital currencies in fiat or other forms) will be removed from the system via natural selection.

Good money drives out bad money.

Bitcoin Up. Liberty reserve taken DOWN. Just like Ripple will one day.

[EndTheFed321]

All I can say is

Nothing but Bad News for Bitcoin 

[countryfree]

Bad news. Not for the users of this forum of course, but there are people who don't know the difference between bitcoin and libertyreserve. They will just see that one way to keep your money online has been shut down down, and that many have lost their cash. All bitcoin supporters have to tell anyone they know that libertyreserve was a totally different system, and that what happened to it cannot happen to bicoin.

But I'm still waiting for explanations about what happened to libertyreserve.

[Rampion]

Insignificant news: we already knew Bitcoin is resilient to the kind of attack that brought down LR

[franky1]

All I can say is

Nothing but Bad News for Bitcoin 

why bad?

its the governments shutting down places that exchange FIAt without FIAT licences.

so now there are less online stores accepting dollar because
1. paypal is scam country
2. paypal has blocked 60 countries from doing online shopping
3. many other places people use to store their fiat to us on fiat accepting webshops, cant buy stuff.

so what needs to be done is go to all of these webstores that accepted liberty reserve and paypal before they got dropped. and tell them to accept bitcoin direct and they will never lose funds/ have funds frozen.

then we might someday have proper legit and regulated fiat/bitcoin exchanges to ensure these websites can cash out.

european's seem to be safer due to cheap licences. so how do americans get cheap licences.

create a main exchange and franchise out 50 parts of their business to each state, where each state has a customer service point and even a cash in the mail address/physical office in that state and each of those franchises get a cut of profits from the exchange.

that way its 50 investors as oppose to just 1 investor trying to get regulated. and it will work because as a franchise/subsidiary/agent of the main company. the main company is covered.

the worse part. is finding 50 people willing to put in enough for one licence.. but then again it shouldn't be hard with the amount of people on these forums saying they all want to set up a US exchange to replace the ones that have disappeared. imagine it instead of 50 people independently buying 50 licences just for them, they share the licence fee's between them and get to open state based exchanges

[Biomech]

All I can say is

Nothing but Bad News for Bitcoin 

why bad?

its the governments shutting down places that exchange FIAt without FIAT licences.

so now there are less online stores accepting dollar because
1. paypal is scam country
2. paypal has blocked 60 countries from doing online shopping
3. many other places people use to store their fiat to us on fiat accepting webshops, cant buy stuff.

so what needs to be done is go to all of these webstores that accepted liberty reserve and paypal before they got dropped. and tell them to accept bitcoin direct and they will never lose funds/ have funds frozen.

then we might someday have proper legit and regulated fiat/bitcoin exchanges to ensure these websites can cash out.

european's seem to be safer due to cheap licences. so how do americans get cheap licences.

create a main exchange and franchise out 50 parts of their business to each state, where each state has a customer service point and even a cash in the mail address/physical office in that state and each of those franchises get a cut of profits from the exchange.

that way its 50 investors as oppose to just 1 investor trying to get regulated. and it will work because as a franchise/subsidiary/agent of the main company. the main company is covered.

the worse part. is finding 50 people willing to put in enough for one licence.. but then again it shouldn't be hard with the amount of people on these forums saying they all want to set up a US exchange to replace the ones that have disappeared. imagine it instead of 50 people independently buying 50 licences just for them, they share the licence fee's between them and get to open state based exchanges

Any idea how much money you are talking about? (that looks snarky, but isn't. I honestly don't know.) I like this idea, in principle.

[Luckybit]

Now that Liberty Reserve is dead is that good or bad for bitcoin?

I think its good because it should lead to more people adopting bitcoin.

Read Article -

http://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/

I hope people will now learn not to put any trust in digital centralized monetary institutions. They all have the potential to fail eventually .. Egold, Liberty Reserve etc...

It's bad for Bitcoin. Remember what E-Gold did? Kept people from Bitcoin.

[Littleshop]

Now that Liberty Reserve is dead is that good or bad for bitcoin?

I think its good because it should lead to more people adopting bitcoin.

Read Article -

http://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/

I hope people will now learn not to put any trust in digital centralized monetary institutions. They all have the potential to fail eventually .. Egold, Liberty Reserve etc...

It's bad for Bitcoin. Remember what E-Gold did? Kept people from Bitcoin.

I disagree.  I think it will actually force a bunch of people to use Bitcoin. Some of these people will have honest businesses and others won't.  There simply are not many alternatives. 

[franky1]

Any idea how much money you are talking about? (that looks snarky, but isn't. I honestly don't know.) I like this idea, in principle.

how much money am i talking about.. well obviously 2%of the cost of just 1 exchange trying to cover every state of USA.. im not american, but lets say it cost Xmiillion for all of the licences to cover USA then a 50th (2%) is the average franchise price to get the licence for your state and be part of the same fiat network, where by you can then legally set up for instance
Texas bitcoin exchange if you live in texas
or
new york bitcoin exchange if you live in new york.
and then anyone from any state can interchange their bitcoins or fiat from one exchange to the other depending on what is the best price.

its just something a company like bitstamp or coinlab should/could think about.. to spread out its costs and increase its number of customer service support team, advertising campaigns locally, setting up more local other services.

they can even use each of the state offices as depots. much like amazon have transport depots where people can instead of using US postal services for legitimate products (non-silk road produce preferably) it can be used as a parcel depot for bitcoin businesses.

thus reducing the requirements of merchants needing to convert bitcoin into dollars purely to pay for postage.

there are many opportunities attached to it.
employees in each state office get paid in bitcoins. truck drivers moving between offices as part of the bitcoin postal service are paid in btcoin.
then the local state offices can each concentrate on getting brick and mortar fiat suppliers, manufacturers and retailers to take on bitcoin..

EG finding a local grocery store to accept bitcoin. and bam!! instandly offer food delivery fr bitcoin of all your baked beans bed meat and veg you want.
or the bitcoinstore able to have its own distribution network (using the franchises depots) around the US and not have to rely on amazons delivery network

the idea may seem like a stretch of the imagination. but i was just showing you a few stepping stones how one small idea can move onto more idea's and truely and legally kickstart bitcoins main-steaming

[matt4054]

OMG no this is bad news for alternate e-currencies in general, I would say.

I was implementing the LR API for my future BTC business, now I think I wasted my time... Is OKPAY next? Is this why BTC exchanges have problem with OKPAY now (thinking BTC-e)?

No, this is definitely not good news, even if BTC is unaffected, they are going to put the pressure on exchanges and money intermediaries now.