Why was USA Senate so friendly to Bitcoin?

[DieJohnny]

Along with china, the huge run up last fall was also driven by the then-coming Senate hearing and the almost love fest with Bitcoin at the hearing.

After seeing what then happened in China in December with their chilling-effect announcements, I cannot begin to understand why the USA spoke so favorably about Bitcoin and its potential.

What does the USA have to gain by allowing Bitcoin to thrive. And to be clear governments can kick Bitcoin to the niche baseball-card curb if it so desired. As much as Bitcoin advocates would love Bitcoin to rise above government's manipulative hand, Bitcoin can become nothing more than a way to trade between thieves with a single wave of a new law.

Here are some thoughts:

1. The dollar is toast and the USA wants to build some trust in the brand of "crypto-currency" not necessarily Bitcoin. Sets the table for a US based crypto currency. Heck Bitcoin is open source, why not let the code develop for a few more years, then steal it and make a USA pre-mined crypto overnight. They can just as easily at that time make Bitcoin illegal to own and provide a three month swap at current value to USA crypto.

2. The dollar is toast, and internally the government wizards see how Bitcoin and the like may be a future safe haven for value. So in their benevolence the good ol USA looks to provide options for us investors.

3. Those that consult the Senate are completely corrupt with their insider trading, financial instrument inventions, and back door dealings. So those consulting the Senate are poised to profit from Bitcoin success in some way. Coupled with Senate elect stupidity and they are easily lured into positive statements and a laissez-faire attitude. 

4. Bitcoin throughout the world is already a store of value. Speaking against it would only send our enemies running in faster. The USA needs some more time to infiltrate the Bitcoin Foundation and destroy it from the inside.  The USA will destroy Bitcoin and maybe a few other Alts all at the same time, while simultaneously providing a new coin of their own.

5. They are all stupid. Yes they could potentially all be stupid to not realize the potential for crypto currency and what it can do to the position of the dollar in the world.

I think being stupid is the least likely, what are your thoughts??

[1714095035]

1714095035

[Honeypot]

I need to know how everyone all of a sudden became experts in currency power and stability recently.

Really, if dollar is 'toast', then you need to look at some of the other currencies that are too vulnerable to even keep their inflation from going through 8% a month, with basic commodities soaring through 15% a month easy.

Everything has ups and downs. What really matters is who stands at the top at the end. Get the picture? I heard the same panic-ridden fearful and foolish talk after the vietnam war, the oil shock, the jap economic boom, etc. etc. Each and everyone of them was a challenge because they were unexpected and large. So is china. What's so difficult that we won't smash through? Or is that your personal wish?

Here's the thing: We got wishes too, and I don't think overestimating your own position for the sake of self-congratulations is going to get your too far without a spectacular defeat that unravels your 'success'. Already the developing economies are cooling while we see a different trend in developed nations, especially US. In the world of export and money, those with control over the currency holds the better hand. Realistically, who really is dreaming here about relative will and strength?

'They are all stupid'.

Is that the best you got?
 

[Ibian]

Re: #4: Explain how or delete that part, please. It gets old.

[Ibian]

I need to know how everyone all of a sudden became experts in currency power and stability recently.

It's not "recent". Things are just coming to a head in these recent years. Expect more of the same.

What's so difficult that we won't smash through?

Maff.

[Honeypot]

I need to know how everyone all of a sudden became experts in currency power and stability recently.

It's not "recent". Things are just coming to a head in these recent years. Expect more of the same.

What's so difficult that we won't smash through?

Maff.

Look to your own surroundings to see what's really vulnerable. If you think someone's scoffing, it ain't us

Dumbass kids these days are all mouth and nothing else. You brats realize things always 'come to a head' when there's conflict, no?

Your ignorance reeks of childish ideas about what constitutes 'worth' and 'strength', and most of all 'victory'. Enemies 40 years ago were far better, and they had to accept what you are running away from today

Different day, same bull shit from fools...

[Ibian]

So you are what, at least 60?

[DieJohnny]

Re: #4: Explain how or delete that part, please. It gets old.

#4 wouldn't be all that hard would it? How might the world's largest intelligence agency destroy bitcoin? 1. Use greed to entice a few mining pools into destroying confidence by being selfish miners 2. Use espionage to undermine the largest exchanges. What would six well timed thefts of millions of coins do to the market in 2014 or beyond. 3. Create malware or worse that simply destroys trust in the system (think about the Iran nuclear program virus)

[DieJohnny]

I need to know how everyone all of a sudden became experts in currency power and stability recently.

Really, if dollar is 'toast', then you need to look at some of the other currencies that are too vulnerable to even keep their inflation from going through 8% a month, with basic commodities soaring through 15% a month easy.

Everything has ups and downs. What really matters is who stands at the top at the end. Get the picture? I heard the same panic-ridden fearful and foolish talk after the vietnam war, the oil shock, the jap economic boom, etc. etc. Each and everyone of them was a challenge because they were unexpected and large. So is china. What's so difficult that we won't smash through? Or is that your personal wish?

Here's the thing: We got wishes too, and I don't think overestimating your own position for the sake of self-congratulations is going to get your too far without a spectacular defeat that unravels your 'success'. Already the developing economies are cooling while we see a different trend in developed nations, especially US. In the world of export and money, those with control over the currency holds the better hand. Realistically, who really is dreaming here about relative will and strength?

'They are all stupid'.

Is that the best you got?
 

I have not a single clue what the hell you are talking about.  It seems you are pissed that I seem to believe the dollar is toast. Beyond that are mad that i think politicians are possibly all stupid.

1. EVERY government and for that matter currency ever invented by man has failed. Mankind certainly has not figured it all out.
2. I suppose you actually believe that simply because the USA has apparently done so well through 200+ years of turmoil that there is no problem too big, no adversary too powerful, no circumstances to complex that positive thinking and the Senate, Congress, and the President cannot solve.

But again, you are pissed about something but frankly I have no idea what.

If you have another suggestion than the five I mentioned, then what is it? Bitcoin is a blip and a fad and politicians know it, so lets not get to excited?

[Ibian]

Re: #4: Explain how or delete that part, please. It gets old.

#4 wouldn't be all that hard would it? How might the world's largest intelligence agency destroy bitcoin? 1. Use greed to entice a few mining pools into destroying confidence by being selfish miners 2. Use espionage to undermine the largest exchanges. What would six well timed thefts of millions of coins do to the market in 2014 or beyond. 3. Create malware or worse that simply destroys trust in the system (think about the Iran nuclear program virus)

Mining pools are not big centrally led corporations. They are composed of individual people - that's you and me - who sign up because they can make a bigger buck that way. Many of them would simply leave unreputable pools. Someone would have to run the numbers but I expect the cost for something like that, even if it was realistically possible, would already be in the billions. The longer things go on the more it would cost. And there is no way they could keep it a secret given the number of ordinary people involved. If they tried and it became known it could be cause for war. Real ones, not against mud nations.

Exchanges come and go, new ones will replace the old. More secure ones. Maybe even decentralized unhackable ones.

We are already dealing with malware and virus every single day. Just another bug to watch out for. If the virus that locks your computer until you pay bitcoin to have it unlocked doesn't cause a stir, nothing of that nature will.

[DieJohnny]

Re: #4: Explain how or delete that part, please. It gets old.

#4 wouldn't be all that hard would it? How might the world's largest intelligence agency destroy bitcoin? 1. Use greed to entice a few mining pools into destroying confidence by being selfish miners 2. Use espionage to undermine the largest exchanges. What would six well timed thefts of millions of coins do to the market in 2014 or beyond. 3. Create malware or worse that simply destroys trust in the system (think about the Iran nuclear program virus)

Mining pools are not big centrally led corporations. They are composed of individual people - that's you and me - who sign up because they can make a bigger buck that way. Many of them would simply leave unreputable pools. Someone would have to run the numbers but I expect the cost for something like that, even if it was realistically possible, would already be in the billions. The longer things go on the more it would cost. And there is no way they could keep it a secret given the number of ordinary people involved. If they tried and it became known it could be cause for war. Real ones, not against mud nations.

Exchanges come and go, new ones will replace the old. More secure ones. Maybe even decentralized unhackable ones.

We are already dealing with malware and virus every single day. Just another bug to watch out for. If the virus that locks your computer until you pay bitcoin to have it unlocked doesn't cause a stir, nothing of that nature will.

If the government wanted to destroy bitcoin, they would. Stuxnet is the best example of nefarious government intervention (USA or otherwise). The mayhem they could unleash would be underestimated by anyone in this community by an order of 100.

[Ibian]

Re: #4: Explain how or delete that part, please. It gets old.

#4 wouldn't be all that hard would it? How might the world's largest intelligence agency destroy bitcoin? 1. Use greed to entice a few mining pools into destroying confidence by being selfish miners 2. Use espionage to undermine the largest exchanges. What would six well timed thefts of millions of coins do to the market in 2014 or beyond. 3. Create malware or worse that simply destroys trust in the system (think about the Iran nuclear program virus)

Mining pools are not big centrally led corporations. They are composed of individual people - that's you and me - who sign up because they can make a bigger buck that way. Many of them would simply leave unreputable pools. Someone would have to run the numbers but I expect the cost for something like that, even if it was realistically possible, would already be in the billions. The longer things go on the more it would cost. And there is no way they could keep it a secret given the number of ordinary people involved. If they tried and it became known it could be cause for war. Real ones, not against mud nations.

Exchanges come and go, new ones will replace the old. More secure ones. Maybe even decentralized unhackable ones.

We are already dealing with malware and virus every single day. Just another bug to watch out for. If the virus that locks your computer until you pay bitcoin to have it unlocked doesn't cause a stir, nothing of that nature will.

If the government wanted to destroy bitcoin, they would. Stuxnet is the best example of nefarious government intervention (USA or otherwise). The mayhem they could unleash would be underestimated by anyone in this community by an order of 100.

This isn't a new topic. Bitcoin is worldwide. There is so far no plausible way to get rid of it short of politicians worldwide agreeing to make it illegal, and even that would only drive it underground.

[Carlton Banks]

#6. They realise it's dangerous not to take tentative steps to just accept cryptocurrency (slightly similar to #4, I know). If another nation gets a larger piece of the action than the US, and everyone starts following that nation's lead, then it won't just be the dollar that's toast.

The truth is that all 20th century, post Bretton Woods fiat currencies are toast on some timescale, and the US national debt was bound to catch up with faith in the USD at some point. But until something totally jammed the mechanisms of the virtuous circle jerk that is our international trade and finance system, the make-believe game where everyone could honour their unpayable debts just carried on. The 2008 systemic failures were the first signs that the model was running out of road, that the only option was to print money like crazy to cover short term debt, so that the mechanism could keep moving until a definitive plan could be arrived at.

Now there's a get out available, one that will be conceivably impossible to bend toward the same malfeasant incentives of the old system. I think the problem is, that the programmers haven't finished writing the software for the whole system yet, and that the other ancillary support aspects that will replace the financial system itself are currently internet based versions of the old model. We're in for a bit of a squeeze between the dying old system and the incomplete new system right now.

[DieJohnny]

If the government wanted to destroy bitcoin, they would. Stuxnet is the best example of nefarious government intervention (USA or otherwise). The mayhem they could unleash would be underestimated by anyone in this community by an order of 100.

This isn't a new topic. Bitcoin is worldwide. There is so far no plausible way to get rid of it short of politicians worldwide agreeing to make it illegal, and even that would only drive it underground.

Being an underground currency would reduce the upside of Bitcoin by 100 fold.

[Ibian]

If the government wanted to destroy bitcoin, they would. Stuxnet is the best example of nefarious government intervention (USA or otherwise). The mayhem they could unleash would be underestimated by anyone in this community by an order of 100.

This isn't a new topic. Bitcoin is worldwide. There is so far no plausible way to get rid of it short of politicians worldwide agreeing to make it illegal, and even that would only drive it underground.

Being an underground currency would reduce the upside of Bitcoin by 100 fold.

Or increase it. Black markets can be very lucrative. Nobody really knows what would happen. What we do know is that it is very unlikely to happen.

[DieJohnny]

If the government wanted to destroy bitcoin, they would. Stuxnet is the best example of nefarious government intervention (USA or otherwise). The mayhem they could unleash would be underestimated by anyone in this community by an order of 100.

This isn't a new topic. Bitcoin is worldwide. There is so far no plausible way to get rid of it short of politicians worldwide agreeing to make it illegal, and even that would only drive it underground.

Being an underground currency would reduce the upside of Bitcoin by 100 fold.

Or increase it. Black markets can be very lucrative. Nobody really knows what would happen. What we do know is that it is very unlikely to happen.

If being a black market currency is the Bitcoin end game then I would jump out now as we are in for slower growth and in my opinion limited up side.

I am not sure how everyone seems to be so comfortable that Bitcoin is now past some magical point where it is now and will forever be a legitimate asset in the eyes of government. China should have had a bigger impact on the market than it has in my opinion, unless I am missing something. How would any world power simply step aside and let Bitcoin become the base currency of the world?

[nhytfdsa]

Maybe they know that NSA spying is coming to an end and those supercomputers will have to be re-purposed. SUPERMINERS!

[marcus_of_augustus]

.... the senate was quiet and smiley because they know that their regulators are out there stabbing it in the back to death on a daily basis ....

watch what they do, not what they say.

[DieJohnny]

.... the senate was quiet and smiley because they know that their regulators are out there stabbing it in the back to death on a daily basis ....

watch what they do, not what they say.

ok what are regulators doing in the usa regarding bitcoin?

[BCB]

Wanna know why the DC reception was so "receptive"?

read this:
http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/21/heres-how-bitcoin-charmed-washington/

It chronicles Patrick Murck and the Bitcoin Foundations maneuvering in Washington leading up to the hearings. 

And know that "BITCOIN A Primer for Policymakers" by BY JERRY BRITO AND ANDREA CASTILLO of the Mercatus Center was distributed to every legislator and government regulator prior to the hearings.

http://mercatus.org/sites/default/files/Brito_BitcoinPrimer_embargoed.pdf

[BitPappa]

Am I naive to think that the Senate believes that expanded jobs and business based around cryptocurrency technology could be good for the U.S. (lower unemployment, more tax revenue)? And that politicians don't want to see all the business, talent, and capital associated with Bitcoin go to countries with more favorable attitudes? And perhaps they are able to recognize the parallels to the early days of the internet, and the see how well that worked out (for commerce and spying)?