Is Silk Road 2.0 bad news for Bitcoin?

[LouReed]

Just curious what your thoughts are on this subject. It seems that the Senate Homeland Security and Governmental Affairs Committee is having a hearing later this month to discuss virtual currency, and the goal is to "develop thoughtful, nimble and sensible federal policies that protect the public without stifling innovation and economic growth".

Is this "new" Silk Road going to bring tougher regulations, or even an out right ban (which I doubt is even possible, but they may try) on Bitcoin in the USA?

http://www.hsgac.senate.gov/media/majority-media/chairman-carper-statement-on-the-unveiling-of-the-so-called-silk-road-20-website


"Wednesday, November 6, 2013

Today, Senator Tom Carper (D-Del.), Chairman of the Senate Homeland Security and Governmental Affairs Committee, released the following statement on the launch of the Silk Road 2.0:

“This new website – launched barely a month after Federal agents shut down the original Silk Road -- underscores the inescapable reality that technology is dynamic and ever-evolving and that government policy needs to adapt accordingly. Rather than play ‘whack-a-mole’ with the latest website,  currency, or other method criminals are using in an effort to evade the law, we need to develop thoughtful, nimble and sensible federal policies that protect the public without stifling innovation and economic growth. Our committee intends to have that conversation – among others - at our hearing this month on virtual currency.”

Chairman Carper and Dr. Coburn’s committee on Homeland Security and Governmental Affairs began a formal inquiry into virtual currencies in April 2013. In August 2013 Chairman Carper and Dr. Coburn wrote to the Departments of Treasury, Homeland Security, and Justice, as well as the Securities and Exchange Commission, Commodities Futures Trading Commission, and the Federal Reserve."

[BadAss.Sx]

A ban on virtual currencies? How the hell are they gonna do that?

No, they feel insulted by the SR2.0 and the actions against SR2.0 will be much harder and complicated then the first one. And this time they gonna hang all sellers and buyers instead of a few.

[BadAss.Sx]

A ban on virtual currencies? How the hell are they gonna do that?

No, they feel insulted by the SR2.0 and the actions against SR2.0 will be much harder and complicated then the first one. And this time they gonna hang all sellers and buyers instead of a few.

They can't do that.
Small note: this isn't a virtual currency, rather an digital one.

Explain...so WoW gold is also not virtual? Btc are just zero's and ones, nothing more, nothing less.

[safeminer]

Silk Road 2.0 is no news, there was black market reloaded and tons of other onion sites, the name silk road is just what the public knew.
Would not surprise me if this new silk road was some kind of FBI trap to steal bitcoins and arrest honest business men !

[balanghai]

Are they that desperate to setup traps and scoop every single bitcoin left?

[BadAss.Sx]

It could be a trap to damage the btc value in the future. Not just only for the stuff.

[RodeoX]

So how many of you have written your representative about bitcoin? I would suggest that your efforts writing them will yield more fruit than posting here. The regulations that evolve around bitcoin will reflect your inaction, not the tyranny of government.

[proudhon]

Is this "new" Silk Road going to bring tougher regulations, or even an out right ban (which I doubt is even possible, but they may try) on Bitcoin in the USA?

The statement by the Chairman is surprisingly positive, in my view.  I think it shows an appreciation for the technology they're up against here.

[rayfloyd]

[...]

[...]
Small note: this isn't a virtual currency, rather an digital one.

Explain...so WoW gold is also not virtual? Btc are just zero's and ones, nothing more, nothing less.

virtual
adjective
2. not physically existing as such but made by software to appear to do so.
"virtual images"

VS

digital
adjective
1. (of signals or data) expressed as series of the digits 0 and 1, typically represented by values of a physical quantity such as voltage or magnetic polarization.

tl;dr: if you say that bitcoin is "virtual" you believe it is "fake" money, or has a "fake" value.

[TheQuin]

Trying to ban Bitcoin because of SR 2.0 makes as much sense as trying to ban cash because drug dealers use that...... doesn't mean some politicians wont try.

[murraypaul]

[...]

[...]
Small note: this isn't a virtual currency, rather an digital one.

Explain...so WoW gold is also not virtual? Btc are just zero's and ones, nothing more, nothing less.

virtual
adjective
2. not physically existing as such but made by software to appear to do so.
"virtual images"

VS

digital
adjective
1. (of signals or data) expressed as series of the digits 0 and 1, typically represented by values of a physical quantity such as voltage or magnetic polarization.

tl;dr: if you say that bitcoin is "virtual" you believe it is "fake" money, or has a "fake" value.

Bitcoin does not physically exist.
It is a virtual currency. It is also a digital currency. The two do not contradict each other.

[CurbsideProphet]

Well he said playing "whack a mole" isn't the solution so I don't see them directly targeting Bitcoin.  It's just political posturing so they can make it seem like they're doing something in an area that they simply cannot control.

[Paladin69]

A ban on virtual currencies? How the hell are they gonna do that?

If I was a BFL customer, I would be paranoid.  Benjamin Lawsky subpoenaed BFL and probably has the order book.

The shittiest thing the Government could do is go down the list and seize assets one by one to make an example.  The majority of the American sheeple won't care.  "It's good for 'murica to get dat drug money off teh series of tubez!!1...duurrrrr"

'murica.  foam finger #1.

[Ecurb123]

I don't know if this is bad or not for BTC but I'm glad to see the site come back up, these politicians need to know they can't control the information like they want to.

[spacecaptain]

I find it funny that people think that BTC is not real currency. "Ohhh, it is 1s and 0s, so it is not real".
But yeah, your little dollar bill is real, right? It is not only ink on a piece of paper that the government can issue and destroy at their will, right?

Can BTC crash and become nothing? Sure! It can happen if people stop using it.
But the same applies to any currency in the world. If people choose to stop using Dollar, Euro, Yen, etc, then the same thing will happen.

[Anon136]

rofl thankyou for my lol of the day. the government is going to be thoughtful, nimble and sensible and non stifling. Maybe while they are at it they can train some elegant, graceful, fleet-footed, nimble, dainty, dancing hippopotami.

[indianplayers]

I wouldn't touch that site with a 10 foot pole. It will bring back the "bitcoins are for drugs" people again.

[btcforall777]

i just love it when these talking heads in the media make these blankett statements.

1. bitcoin begins togo mainstream

2. in an unrelated event, the US economy begins to descend into the abyss taking the US dollar with it

3. bitcoin explodes

4. government tries to intervene in digital currency

5. mass riots, protest,  violence and revolt


If they dont stop it before #2, they will never stop it. and i say they cant!

[Anon136]

i just love it when these talking heads in the media make these blankett statements.

1. bitcoin begins togo mainstream

2. in an unrelated event, the US economy begins to descend into the abyss taking the US dollar with it

3. bitcoin explodes

4. government tries to intervene in digital currency

5. mass riots, protest,  violence and revolt


If they dont stop it before #2, they will never stop it. and i say they cant!

oh they could stop if they wanted. it would just mean that they would have to go get jobs.

[Alty]

It will give all the doubters and haters in the press something to complain about, so in that sense it is bad news.