2013-05-27 Examiner: The biggest problem with bitcoin is dollar

[Arvicco]

http://www.examiner.com/article/bitcon-2013-the-biggest-problem-with-bitcoin-is-dollars

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[aigeezer]

I love this piece. Great attitude!

"In essence the DHS prevented people from getting out of Bitcoin. For people happy to continue using Bitcoin it’s business as usual. No frozen accounts. No lost funds. No attack whatsoever. The Fed didn’t attack Bitcoin. It attacked dollars in Dwolla."

"Every time there’s a potential hurdle on the road to Bitcoin adoption, it’s not Bitcoin that’s the problem. It’s the arbitrary and cumbersome regulations of the legacy banking system, and the stranglehold that State has on the dollar. Really the problem is that Bitcoin is so dramatically superior to the dollar that the two systems have trouble communicating."

[marcus_of_augustus]

"Every time there’s a potential hurdle on the road to Bitcoin adoption, it’s not Bitcoin that’s the problem. It’s the arbitrary and cumbersome regulations of the legacy banking system, and the stranglehold that State has on the dollar.

The more they try to strangle bitcoin-dollar transactions they will only succeed in strangling ALL dollar transactions ... they are making their own currency worth less by restricting its ability to be transacted and therefore useful. It is the same with the cash threshold restrictions, they are restricting the flow of their own currency and thus it market value.  

The dollar is in competition with bitcoin (and other currencies) so placing capital controls on dollars inside the dollar system to restrict bitcoin usage is pointless and actually counter-productive for the dollar itself. With every capital control, cash restriction, AML/KYC regulation or other restriction on dollar transfers implemented inside the dollar payments system the bitcoin becomes more valuable because it has none of these impediments to transaction within the bitcoin system.

If the dollar (or any other currency) wants to compete they need to actually remove restrictions, free-up and modernise trade in dollars to an equivalent standard as bitcoin ... or ultimately they will be obsoleted. It is the most simple of free market economics applied to currencies.


Edit: I think the appropriate phrase goes something like " ... the bitcoin is our currency, but it is your problem ..."

[FreddyFender]

"Every time there’s a potential hurdle on the road to Bitcoin adoption, it’s not Bitcoin that’s the problem. It’s the arbitrary and cumbersome regulations of the legacy banking system, and the stranglehold that State has on the dollar.

The more they try to strangle bitcoin-dollar transactions they will only succeed in strangling ALL dollar transactions ... they are making their own currency worth less by restricting its ability to be transacted and therefore useful. It is the same with the cash threshold restrictions, they are restricting the flow of their own currency and thus it market value.  

The dollar is in competition with bitcoin (and other currencies) so placing capital controls on dollars inside the dollar system to restrict bitcoin usage is pointless and actually counter-productive for the dollar itself. With every capital control, cash restriction, AML/KYC regulation or other restriction on dollar transfers implemented inside the dollar payments system the bitcoin becomes more valuable because it has none of these impediments to transaction within the bitcoin system.

If the dollar (or any other currency) wants to compete they need to actually remove restrictions, free-up and modernise trade in dollars to an equivalent standard as bitcoin ... or ultimately they will be obsoleted. It is the most simple of free market economics applied to currencies.


Edit: I think the appropriate phrase goes something like " ... the bitcoin is our currency, but it is your problem ..."

I remember reading something back in 2010 that was about freedom of information and its ties to negative pressures and transformative technologies. I believe it was the early documents of Julian Assange about trying to suppress information. I fully believe that while they may have placed a temporary lid on ties to secret government information dissemination, the private sectors of banking and financial institutes are engulfed in a maelstrom of self-doubt and cannibalism. We may have Bitcoin as a bulwark and standard, but it is not through defiance as much as reflection that terrifies opponents.
Nice find M'o'A.
FF

[abbyd]

"Every time there’s a potential hurdle on the road to Bitcoin adoption, it’s not Bitcoin that’s the problem. It’s the arbitrary and cumbersome regulations of the legacy banking system, and the stranglehold that State has on the dollar.

The more they try to strangle bitcoin-dollar transactions they will only succeed in strangling ALL dollar transactions ... they are making their own currency worth less by restricting its ability to be transacted and therefore useful. It is the same with the cash threshold restrictions, they are restricting the flow of their own currency and thus it market value.  

The dollar is in competition with bitcoin (and other currencies) so placing capital controls on dollars inside the dollar system to restrict bitcoin usage is pointless and actually counter-productive for the dollar itself. With every capital control, cash restriction, AML/KYC regulation or other restriction on dollar transfers implemented inside the dollar payments system the bitcoin becomes more valuable because it has none of these impediments to transaction within the bitcoin system.

Not exactly - the banksters are currently waging a "war on cash". The purpose is to get all transactions "on the grid", so that they can be logged and controlled if necessary.  Any transaction of more than about one thousand USD needs to be electronic - via credit, ATM card, etc. Once enough transactions are done "on the grid", they'll have full control over monetary movement. Implementing capital controls, ordering bank holidays, and gatekeeping transactions will all be trivial tasks. The Fed can pump and dump the money supply to infinity with impunity. Markets of all types can be manipulated and managed by multinationals as they please. As one might imagine, Bitcoin doesn't fit into their pretty picture, and must be neutralized.

Prepare yourself for protocol encryption/encapsulation, blockchain hiding/segmenting, and bulletproof exchanges...

[aigeezer]

"Every time there’s a potential hurdle on the road to Bitcoin adoption, it’s not Bitcoin that’s the problem. It’s the arbitrary and cumbersome regulations of the legacy banking system, and the stranglehold that State has on the dollar.

The more they try to strangle bitcoin-dollar transactions they will only succeed in strangling ALL dollar transactions ... they are making their own currency worth less by restricting its ability to be transacted and therefore useful. It is the same with the cash threshold restrictions, they are restricting the flow of their own currency and thus it market value.  

The dollar is in competition with bitcoin (and other currencies) so placing capital controls on dollars inside the dollar system to restrict bitcoin usage is pointless and actually counter-productive for the dollar itself. With every capital control, cash restriction, AML/KYC regulation or other restriction on dollar transfers implemented inside the dollar payments system the bitcoin becomes more valuable because it has none of these impediments to transaction within the bitcoin system.

Not exactly - the banksters are currently waging a "war on cash". The purpose is to get all transactions "on the grid", so that they can be logged and controlled if necessary.  Any transaction of more than about one thousand USD needs to be electronic - via credit, ATM card, etc. Once enough transactions are done "on the grid", they'll have full control over monetary movement. Implementing capital controls, ordering bank holidays, and gatekeeping transactions will all be trivial tasks. The Fed can pump and dump the money supply to infinity with impunity. Markets of all types can be manipulated and managed by multinationals as they please. As one might imagine, Bitcoin doesn't fit into their pretty picture, and must be neutralized.

Prepare yourself for protocol encryption/encapsulation, blockchain hiding/segmenting, and bulletproof exchanges...

I agree with that "war on cash" theme, although motives are anyone's guess. As far as I can make out, the "war on cash" is playing out even at the micro-transaction level: Starbucks, card swipes at gas stations or convenience stores, and so forth. "The System" is trying to get the convenience and immediacy of electronic cash-substitutes, which seems like a laudable development but a side-effect main effect is that it enables them to create a faux cash substitute at will, in mind-boggling quantity, and track its every movement. Interesting times - the BTC ecology seems the perfect response, so far.

[abbyd]

"Every time there’s a potential hurdle on the road to Bitcoin adoption, it’s not Bitcoin that’s the problem. It’s the arbitrary and cumbersome regulations of the legacy banking system, and the stranglehold that State has on the dollar.

The more they try to strangle bitcoin-dollar transactions they will only succeed in strangling ALL dollar transactions ... they are making their own currency worth less by restricting its ability to be transacted and therefore useful. It is the same with the cash threshold restrictions, they are restricting the flow of their own currency and thus it market value.  

The dollar is in competition with bitcoin (and other currencies) so placing capital controls on dollars inside the dollar system to restrict bitcoin usage is pointless and actually counter-productive for the dollar itself. With every capital control, cash restriction, AML/KYC regulation or other restriction on dollar transfers implemented inside the dollar payments system the bitcoin becomes more valuable because it has none of these impediments to transaction within the bitcoin system.

Not exactly - the banksters are currently waging a "war on cash". The purpose is to get all transactions "on the grid", so that they can be logged and controlled if necessary.  Any transaction of more than about one thousand USD needs to be electronic - via credit, ATM card, etc. Once enough transactions are done "on the grid", they'll have full control over monetary movement. Implementing capital controls, ordering bank holidays, and gatekeeping transactions will all be trivial tasks. The Fed can pump and dump the money supply to infinity with impunity. Markets of all types can be manipulated and managed by multinationals as they please. As one might imagine, Bitcoin doesn't fit into their pretty picture, and must be neutralized.

Prepare yourself for protocol encryption/encapsulation, blockchain hiding/segmenting, and bulletproof exchanges...

I agree with that "war on cash" theme, although motives are anyone's guess. As far as I can make out, the "war on cash" is playing out even at the micro-transaction level: Starbucks, card swipes at gas stations or convenience stores, and so forth. "The System" is trying to get the convenience and immediacy of electronic cash-substitutes, which seems like a laudable development but a side-effect main effect is that it enables them to create a faux cash substitute at will, in mind-boggling quantity, and track its every movement. Interesting times - the BTC ecology seems the perfect response, so far.

There are a few articles trickling out about the war on cash - Max Keiser talks about it, Jon Matonis mentioned it on his blog. The big offender so far is Sweden:

http://www.economicpolicyjournal.com/2013/03/the-international-war-on-cash.html

From what I can tell, citizens in places like Sweden tend to be very trusting of government authority...  a perfect testing ground for the propaganda, etc.