Govt Stealing Bitcoin Concept & Crushing Bitcoin

[BittBurger]

Read the last few paragraphs of this article, at the bottom:

http://www.telegraph.co.uk/finance/comment/liamhalligan/10438565/Dont-laugh-Bitcoin-is-making-a-serious-point.html

“Should Bitcoin become widely accepted,” opined the world’s most powerful central bank, “it is unlikely it will remain free of government intervention … That said, it represents a remarkable conceptual and technical achievement, which may well be used by existing financial institutions (which could issue their own Bitcoins) or even by governments themselves”.

It will be extremely tough to control Bitcoin – unless governments close down the entire global internet, which is probably impossible. Yet what I find truly remarkable about the statement above is that the Fed can now envisage a time when nations themselves attempt to rely on cyber-currencies, which cannot be debased, in a kind of gold standard throwback – but without the geological and political vagaries of mining physical gold.

I have found it strange in government issued statements that they found Bitcoin to be an "interesting new technology". I didn't quite understand why they would be so nice about it. It almost seemed like they were protecting Bitcoin, against all common sense, as it would be the undoing of the central banking system.

For the first time (for me), this article has raised a new possibility. That they are viewing Bitcoin as a potentially valuable new technology - which they can copy. Yet still completely demolish the rogue, original version called Bitcoin itself.  I had never considered this until now.  Likewise, The more alt coins we have, the more proof the government has that they can just make one of their own as well.

So the government values Bitcoin, but not because they value Bitcoin.  It's because they see the power of its concept, may wish to steal it in the future, and simultaneously crush Bitcoin in the process. That was a novel, sobering thought for me today.

Thankfully the US Govt isn't the only Govt in the world.  Though they love to act like it.

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[Sage]

There is a precedent for this... it's called the internet.

They will try to co-opt and control it, just like they did the internet.  They will fail miserably

[Cryddit]

I suggest your idea of "failing miserably" is far far different from mine. 

Also, Bitcoin is drastically simpler than the Internet itself.  It's easier to control.  It might take them a dozen years or so, but if they decide to do it they will get it done.

[hayek]

I suggest your idea of "failing miserably" is far far different from mine. 

Also, Bitcoin is drastically simpler than the Internet itself.  It's easier to control.  It might take them a dozen years or so, but if they decide to do it they will get it done.

I think you grossly overestimate the government's ability. They haven't even figured out how to work a DMV.

As an aside, they don't really control things though do they? People still break traffic laws, commit crimes, etc. They just come up with punishments. Good luck enforcing a punishment on btc.

[sushi]

enforcing the Bitcoins are possible i think.  US GOV seized MTGox's US Bank Accounts this summer which was a huge blow to the Gox

little man are getting hit from the local banks and Paypal by getting bank accounts and paypal accounts terminated

US Federal Judge declaring Bitcoin as currency this year but because of it, government is going after big player's honeypots

Hopefully on 11/18, gov and btc will draw up some DMZ

[Mike Christ]

I refuse to cooperate.

[Sage]

enforcing the Bitcoins are possible i think.  US GOV seized MTGox's US Bank Accounts this summer which was a huge blow to the Gox

little man are getting hit from the local banks and Paypal by getting bank accounts and paypal accounts terminated

US Federal Judge declaring Bitcoin as currency this year but because of it, government is going after big player's honeypots

Hopefully on 11/18, gov and btc will draw up some DMZ

Checkout BTCchina.com

Where one door closes, another opens.

They won't be able to control this one.

Nations will embrace it to their benefit, or attack it to their detriment.

[gollum]

The gov should love the technology of bitcoin - if cryptocurrencies becomes the standard of money say good bye to privacy.
Whatever transactions you do are saved in some blockchain / database for ever and can easily be traced and matched by IP Adress, transaction patterns, social media, email content etc.

[Sage]

The gov should love the technology of bitcoin - if cryptocurrencies becomes the standard of money say good bye to privacy.
Whatever transactions you do are saved in some blockchain / database for ever and can easily be traced and matched by IP Adress, transaction patterns, social media, email content etc.

And plenty of solutions for those problems too:

Mixing services.

VPN

And this:

http://libertyblitzkrieg.com/2013/11/04/meet-dark-wallet-how-crypto-anarchists-will-store-their-bitcoins/

[stdset]

Government controlled Bitcoin isn't Bitcoin. One of main features: limited supply of coins, can we trust government that they won't add other 80 billions coins a month? Another feature: bitcoin is not controlled by a central authority, how government bitcoin could claim that?

[gollum]

The gov should love the technology of bitcoin - if cryptocurrencies becomes the standard of money say good bye to privacy.
Whatever transactions you do are saved in some blockchain / database for ever and can easily be traced and matched by IP Adress, transaction patterns, social media, email content etc.

And plenty of solutions for those problems too:

Mixing services.

VPN

And this:

http://libertyblitzkrieg.com/2013/11/04/meet-dark-wallet-how-crypto-anarchists-will-store-their-bitcoins/

Yes there are also plenty of ways to hide your ass on the internet, but most people dont have the knowledge, time or simply dont care.
So the end game is no anonymous transactions at all for most of the people (compared to cash fiat).

[Sage]

The gov should love the technology of bitcoin - if cryptocurrencies becomes the standard of money say good bye to privacy.
Whatever transactions you do are saved in some blockchain / database for ever and can easily be traced and matched by IP Adress, transaction patterns, social media, email content etc.

And plenty of solutions for those problems too:

Mixing services.

VPN

And this:

http://libertyblitzkrieg.com/2013/11/04/meet-dark-wallet-how-crypto-anarchists-will-store-their-bitcoins/

Yes there are also plenty of ways to hide your ass on the internet, but most people dont have the knowledge, time or simply dont care.
So the end game is no anonymous transactions at all for most of the people (compared to cash fiat).

It's easy to anonymous yourself with Bitcoin.  Anyone with even a little motivation can do so.

To fear non-anonymity with Bitcoin transactions is a baseless fear.

[BittBurger]

I think it's interesting that they're considering making their own Bitcoin.

Not that they plan to take over Bitcoin. I think they just want to copy it.

This is relevant to all of us, because if Bitcoin does not become the standard, its value will not reach astronomical heights, and it's ethical goals will not be attained.

[DAN444]

From Chicago Fed Letter:
" Conclusion
That said,
it represents a remarkable conceptual and
technical achievement, which may well
be used by existing financial institutions
(which could issue their own bitcoins)
or even by governments themselves."
http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2013/cfldecember2013_317.pdf

[p2pbucks]

I refuse to cooperate.

Agree

[DeeSome]

I always look to the comments on these articles.
Top Comment at present:

"Nick Taylor • a day ago −
I'm a micro-manufacturer, selling over the internet... have been for about 4 years now.

When I sell things for bitcoins, I can offer a 7% discount - because that's what they save me in paypal and currency-exchange fees.

To people competing tooth and nail, on price on the likes of Alibaba, that's going to be a margin that's impossible to compete with. Once a few people start doing it, everyone there will. The reason we're seeing this latest massive increase in value, is that Chinese people have discovered it - the biggest exchange is now Chinese.

I buy materials / parts etc from China - they all seem to want Western Union, which is expensive, and a massive hassle. Personally I think the biggest exchange being Chinese is a tipping point - the next one is one of the big online markets adopting it. Then it's war I think. The Powers That Be are going to start crapping themselves.

Debt based currency is a massive scam. Banks "make up" money, then lend it to people at interest. How is that different from forgery? It should be illegal.

I don't think bitcoin is the answer to "the currency problem", (because it's still just an artificial scarcity), but it's a step in the right direction for a number of very good reasons.

Personally I think we need a diversity of currencies - probably not state issued ones. At the moment, 'the state' doesn't have the honesty or competence to do anything other than "please try not to touch anything" until we can get some sort of direct-democracy alternative in place."

[Mitchell]

Yeah, good luck controlling something that is decentralized. Have fun with that.

[LiteCoinGuy]

BREAKING NEWS!

US GOV STARTS OWN COIN: "BERNAKE-COIN" !

Features:

PRE-MINED!
UNLIMITED!
Centralized!
TRACEABLE!


go out and mine now.....wait...you cant mine them, US Gov already holds all coins