Inflection point: Bitcoin Comes Under Senate Scrutiny (USA)

[User705]

@Qoheleth You are overthinking it.  Government doesn't need any of those complex steps.  They control their own currency printing press and taxation powers.  That's enough.  Take a look at Argentina and their currency issues and pretend foreign currency is bitcoin to them.  Or India and gold imports.  There's plenty of laws and I'm sure they'll invent some new ones to attempt to control bitcoin but those rules will fail.  The question is what will be their reaction to that failure.  How will they try to control something that's uncontrollable by design.  Sort of like how hard can you try to control illegal music downloads.

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[Qoheleth]

@Qoheleth You are overthinking it.  Government doesn't need any of those complex steps.  They control their own currency printing press and taxation powers.  That's enough.

What's your arguement that widespread Bitcoin adoption would have any significant affect on the ability to collect taxes, or prosecute tax evasion?

[User705]

@Qoheleth You are overthinking it.  Government doesn't need any of those complex steps.  They control their own currency printing press and taxation powers.  That's enough.

What's your arguement that widespread Bitcoin adoption would have any significant affect on the ability to collect taxes, or prosecute tax evasion?

No effect at all.  Small time tax evasion isn't worth the trouble to enforce but large tax evasion is worth the effort to seek out and prosecute.  Now there are shell companies and off shore heavens but bitcoin has none of those since it's public.  Your ISP or a wallet site like blockchain.info or an exchange site with proper application of pressure like was applied to the Swiss bankers would quickly turn in all large holders for tax compliance.  Coin join or coin mixing helps but again if true pressure is applied you'd always be wondering who's trustworthy and who will just turn you in when you go to convert your coins.  People pay taxes because either they think its worth it or they are afraid to get caught.  That's why government doesn't need to make bitcoin official currency of anything.

[RenegadeMind]

Bitcoin is about to get some time in the Capitol Hill spotlight.

A pair of Senate committees will hold hearings on the policy issues raised by virtual currencies in the coming weeks, according to Senate aides, a development that comes amid growing attention from government regulators to digital forms of money.

http://blogs.wsj.com/washwire/2013/11/05/bitcoin-comes-under-senate-scrutiny/

What do you think? are we going to survive?

Bitcoin will survive.

But what I'd really like to see is Zhou Tonged do a parody of "America, Fuck Yeah!"

http://www.youtube.com/watch?v=7R5A0pg4oN8

Something like:

America, FUCK YOU!
Bitcoin's gonna save the mother-fucking world, yeah!

America, FUCK YOU!
Bitcoin is our currency now, yeah!

etc. etc.

Quite honestly, Washington D.C. can take it's regulations, authority, and opinions and shove them up its collectivist ass.

[phlogistonq]

They are just discussing bitcoin. They aren't offering up legislation. And if you read their comments about it, they don't hate bitcoin, they just want to make sure that they understand it. I'm not too worried about this. In fact, I think its bullish.

For Bitcoin to really take off as a currency and as a asset class in the US, we need guidance by the government. Guidance gives everyone the rules and makes everyone feel safe. You can bet that all the big $$ investors in Bitcion businesses are looking forward to what the committee is going to say.

Exactly.
I believe they realise it poses no real risk at this point yet. They can't really destroy bitcoin itself, but they can easily make it annoyingly difficult to exchange them for fiat in the US to the point that only the hardcore believers will continue to use it. Sluggish as politicians are, they are still in the process of trying to figure out how to respond as things develop. They will remain one step behind for some time to come.

turbobull fever dream range

LOL.

[darkmule]

Exactly.
I believe they realise it poses no real risk at this point yet. They can't really destroy bitcoin itself, but they can easily make it annoyingly difficult to exchange them for fiat in the US to the point that only the hardcore believers will continue to use it.

Or they may just encourage the development of applications that cause people to avoid bothering with the "exchanging it for fiat" step at all.

[User705]

Why would they do that?

[BitchicksHusband]

Exactly.
I believe they realise it poses no real risk at this point yet. They can't really destroy bitcoin itself, but they can easily make it annoyingly difficult to exchange them for fiat in the US to the point that only the hardcore believers will continue to use it.

Or they may just encourage the development of applications that cause people to avoid bothering with the "exchanging it for fiat" step at all.

You mean like gift cards from gyft and egifter that you can use at Wal-Mart, Home Depot, Target, Amazon.com, etc., etc., etc.  I could live pretty well converting VERY few coins into USD.

[Gufeng]

lmao
everything will be ok