The U.S. Government Tried To Shut Down Bitcoin

[alyssa85]

see

https://www.forbes.com/sites/billybambrough/2019/10/08/the-us-government-tried-to-shut-down-bitcoin/#58419a821966

Bitcoin conspiracy theorists have long suspected the U.S. government, among others, would like to shut down bitcoin.

Bitcoin's first decade has seen its price explode, making early adopters overnight millionaires, and prompting some of the world's biggest technology companies to create their own versions of bitcoin.

Now, it's been revealed federal prosecutor-turned bitcoin and cryptocurrency expert Katie Haun was asked to look into "shutting down" bitcoin by her boss at the U.S. attorney’s office in 2012.

"They said 'we have this perfect assignment for you'–there’s this thing called bitcoin and we need to investigate it," Haun told CNBC in a wide-ranging interview, adding a colleague asked her to take down bitcoin.

"That was the first time I’d ever heard of bitcoin."

Over the next few years Haun would go on to sit on the board of U.S. bitcoin and cryptocurrency exchange Coinbase and teach a class on cryptocurrency at Stanford Law School.

Any serious attempt made by the U.S. Department of Justice to shut down bitcoin inevitably came to naught, with Haun saying, "it would have been akin to saying ‘let’s go prosecute cash.'"

Haun, who is now the first female general partner at U.S. venture capital firm Andreessen Horowitz and co-heads its $350 million cryptocurrency fund, has worked closely with social media giant Facebook in development of its troubled libra cryptocurrency project.

U.S. government opposition to bitcoin and cryptocurrencies has become far more transparent since Donald Trump entered the White House.

Earlier this year, U.S. president Trump sent shockwaves throughout the bitcoin and cryptocurrency industry when he tweeted a vicious attack on Facebook's bitcoin rival plans, branding it and bitcoin "unregulated crypto assets."

Others in the U.S. government were quick to tow the line, with U.S. Treasury secretary Steven Mnuchin adding his voice to the assault on bitcoin, Facebook's planned Libra crypto project, and other cryptocurrencies, warning they pose a "national security" risk to the country.

Elsewhere, Apple chief executive Tim Cook has warned companies against creating their own cryptocurrencies.

"What we heard with libra were the same criticisms [I'd first heard about bitcoin]" Haun said.

"They were just heightened and they got more attention because of the high-profile nature of the project and the fact that Facebook was involved. I think it would be a really dangerous thing, and frankly a dangerous precedent to start shutting down technology before it’s built."

Facebook's libra has been under fire over the last week, with internet payments company PayPal, one of the Libra Association's founding members, suddenly pulling out of the group on Friday.

Mark Zuckerberg, Facebook founder and chief executive, had hoped to work with global regulators to clear libra's path to launch in June 2020 but appears to have underestimated the level of opposition to the scheme.

[NathanJB]

Well, if they failed in their earlier attempts, they will also fail in their subsequent attempts. If they are really determined to kill Bitcoin, they should have done it with much force when Bitcoin was a small infant in its crib. But because they failed on that and Bitcoin has grown into a strong young man after 10 years, they are admittedly helpless now. They are claiming Bitcoin to be unstoppable already.

And because of that they are now shifting their focus to unborn projects that might become as strong as Bitcoin in the future. Lest they will become as helpless as they are now over Bitcoin when they will allow the kinds of Libra to proceed. This is precisely the reason why unborn projects such as Libra, walmart's, Apple's, etc are nipped in the bud.

[1Referee]

It's super interesting how these negatively tinted articles always find their way to the net when the price has been trending down. 

One thing I like about Libra is how politicians of all levels used Bitcoin as benchmark to point out the difference between a decentralized crypto and Libra, a centralized shitcoin that's controlled by a corporation. It must feel great for any government to hammer down on these centralized tokens simply by subjecting them to regulations, something they can't force upon Bitcoin.

I am of believe that even Facebook should be allowed to create its own currency, but they have no option but to abide by the regulations within the countries they plan to operate in. Anyone supporting a free money market should be open to that, no matter how shitty it might look to you.

[nelson4lov]

The government has always been against anything that opposes them or they don't have control over. That have been their number one problem with Bitcoin as BTC seeks to put power back in the hands of the people thanks to its decentralized nature. What's more? In a decade alone, Bitcoin has made significant progress in terms of adoption with hundreds if not thousands of people joining every month. Not to mention lotta retail stores currently accept bitcoin as a means of payment. We even have bitcoin ATMs across several countries.

No matter what they do, They can't stop the decentralization movement!

[hamdi]

see it from this side:

maybe bitcoin IS government created and the 1 million "lost" satoshi-coins are their backdoor, in case the experiment gets out of hand?

[febriyana]

I don't know why they always scared with cryptocurrency.
Is it will killing fiat in the future?
Fiat is we know don't have any transparency. They make it without notice want make it.

If top company want make cryptocurrency.
That will centralized and so easy government broke it.
I don't believe government can shut down Bitcoin. Because that is decentralized. If your ip get blocked, there is bunch VPN ready give a seat to other country. There we can still use Bitcoin.

[CryptoBry]

Bitcoin can be an alternative financial and banking system and being not under the direct control of the government this will naturally attract a lot of opposition however Bitcoin has now grown to the point when it is already impossible to stop it technically and technologically. Yes, the government can instead institute regulations on its trading and the businesses that can sprout out of it but not directly on Bitcoin (and this is a welcomed move, by the way).

The way I am seeing it now, this is the reason why the government has to strongly opposed Libra because this is their opportunity now as Libra still has to publicly open its doors. Of course, we know that within the Bitcoin community a strong and critical number of us are also expressing strong dislike with Libra all because this is centralized and not really a real cryptocurrency (meaning on the same level as that of Bitcoin). Good for Bitcoin bad for Libra.

[zee11224]

The U.S. Government would keep the running Bitcoin nodes as TOR. but it wont have mainstream acceptance. 3rd party service will take over. most people would care about performance & convenience over privacy and secuity. there will be small part of internet would use it but mostly for bypass govt.

[Pab]

I don"t think it may happen.USA is very much unfriendly for blockchain and cryptocurrencies. It is enough to say that Circle move from from USA to offshore location.But ban bitcoin i think it is kind of talk.
I think we can expect hard regulation.Generally USA is nervous about dollar dominance so it is also affecting crypto

[TGD]

It may not happen urgently, there are many registered business already in USA that are crypto or blockchain related. They will need to consider the damage it can be done once they shut it down. They can give rules, laws relating to crypto in their government but not to the point of not using or implementing it to those who are already into it. USA Investors and traders will sure can find a way to still use it even they will put restrictions.

[Zanzibet]

It ought to be known that the market react to convenience and one other thing also acceptability. Bitcoin has been widely accepted over the 10 years of existence. the convenience it gives as compared to most brick and mortar financial products is yet another of its cutting edges.

[AniviaBtc]

see

https://www.forbes.com/sites/billybambrough/2019/10/08/the-us-government-tried-to-shut-down-bitcoin/#58419a821966

Bitcoin conspiracy theorists have long suspected the U.S. government, among others, would like to shut down bitcoin.

Bitcoin's first decade has seen its price explode, making early adopters overnight millionaires, and prompting some of the world's biggest technology companies to create their own versions of bitcoin.

Now, it's been revealed federal prosecutor-turned bitcoin and cryptocurrency expert Katie Haun was asked to look into "shutting down" bitcoin by her boss at the U.S. attorney’s office in 2012.

"They said 'we have this perfect assignment for you'–there’s this thing called bitcoin and we need to investigate it," Haun told CNBC in a wide-ranging interview, adding a colleague asked her to take down bitcoin.

"That was the first time I’d ever heard of bitcoin."

Over the next few years Haun would go on to sit on the board of U.S. bitcoin and cryptocurrency exchange Coinbase and teach a class on cryptocurrency at Stanford Law School.

Any serious attempt made by the U.S. Department of Justice to shut down bitcoin inevitably came to naught, with Haun saying, "it would have been akin to saying ‘let’s go prosecute cash.'"

Haun, who is now the first female general partner at U.S. venture capital firm Andreessen Horowitz and co-heads its $350 million cryptocurrency fund, has worked closely with social media giant Facebook in development of its troubled libra cryptocurrency project.

U.S. government opposition to bitcoin and cryptocurrencies has become far more transparent since Donald Trump entered the White House.

Earlier this year, U.S. president Trump sent shockwaves throughout the bitcoin and cryptocurrency industry when he tweeted a vicious attack on Facebook's bitcoin rival plans, branding it and bitcoin "unregulated crypto assets."

Others in the U.S. government were quick to tow the line, with U.S. Treasury secretary Steven Mnuchin adding his voice to the assault on bitcoin, Facebook's planned Libra crypto project, and other cryptocurrencies, warning they pose a "national security" risk to the country.

Elsewhere, Apple chief executive Tim Cook has warned companies against creating their own cryptocurrencies.

"What we heard with libra were the same criticisms [I'd first heard about bitcoin]" Haun said.

"They were just heightened and they got more attention because of the high-profile nature of the project and the fact that Facebook was involved. I think it would be a really dangerous thing, and frankly a dangerous precedent to start shutting down technology before it’s built."

Facebook's libra has been under fire over the last week, with internet payments company PayPal, one of the Libra Association's founding members, suddenly pulling out of the group on Friday.

Mark Zuckerberg, Facebook founder and chief executive, had hoped to work with global regulators to clear libra's path to launch in June 2020 but appears to have underestimated the level of opposition to the scheme.

I believe that they can't defeat bitcoin easily. Bitcoin dominates the market nowadays, it revolves around the globe and nothing can stop it. The government is not that powerful enough to shut down bitcoin. We all know that the government always go out of the business of everyone and they notice everything that's growing. Many people adapts it and in the future, bitcoin will become the money used in every transactions.

[serjent05]

Can't see anywhere that US tried to shutdown Bitcoin on the article, I see it as plain interpretation or something like exaggerated writings to catch peoples attention.  

It is obvious that every government is hesitant of this trending digital currency called Bitcoin.  It is also normal for every country to have a hostile initial reaction to something that they thought threaten their curriency's economic power.  So this is actually no news.  Resistance is expected but will soon be overcome by Bitcoin.  Government will choose to coexist with it because of the possibility of benefits they can get if they adopt, adapt and utilize Bitcoin and the other cryptocurrency.

[Baby Dragon]

Well, if they failed in their earlier attempts, they will also fail in their subsequent attempts. If they are really determined to kill Bitcoin, they should have done it with much force when Bitcoin was a small infant in its crib. But because they failed on that and Bitcoin has grown into a strong young man after 10 years, they are admittedly helpless now. They are claiming Bitcoin to be unstoppable already.

And because of that they are now shifting their focus to unborn projects that might become as strong as Bitcoin in the future. Lest they will become as helpless as they are now over Bitcoin when they will allow the kinds of Libra to proceed. This is precisely the reason why unborn projects such as Libra, walmart's, Apple's, etc are nipped in the bud.

Well said, its because they don't have enough power to destroy bitcoin. Many of them had tried many times before and until now they keep on fighting for it despite of losing it. We can't read their minds and thoughts but I think there is a specific reason why they keep on doing it. Bitcoin had faced many challenges and issues before, I don't think that government officials can get rid of it easily. They are just putting themselves into a difficult situation, but we need to stay positive that it won't happen.

[Pearls Before Swine]

Can't see anywhere that US tried to shutdown Bitcoin on the article, I see it as plain interpretation or something like exaggerated writings to catch peoples attention.  

That is most likely the case here.  It appears that some federal prosecutor was asked to investigate bitcoin, but its the article writers who drew the conclusion that this was an attempt to shut it down.  It is not clear to me exactly why this prosecutor was chosen to do the investigating, but I suppose it doesn't matter.  That would be an extreme example of a fool's errand, and I think they realized this early on.

As regards 'shutting down bitcoin', how can anyone really expect a single country to eliminate a global currency?  That is ludicrous to my mind, and this is nothing more than an inflammatory article written by simpletons with unknown motivations.

Well said, its because they don't have enough power to destroy bitcoin.

No gov't truly does.  Any country could pass laws restricting it's use, but there is no way to actually keep people from owning and using it.  Maybe if the mining industry was severely cracked down on in multiple countries, there would be an effect, but then the miners would probably just move their operations to countries where it was still legal.  There's no way to stop bitcoin.

[adroitful_one]

Bitcoin in itself is designed to where it can't be shut down by any entities. The United States government has not tried to shut it down. If they can make money from something, you can bet they're going to. They don't like it simply because it's hard to keep track of who owns what to collect taxes on. That's why they've got Coinbase and others turning over user information to keep track of who has what. I honestly believe if they could track it easily and tax it just as easily, it wouldn't even be brought up within the government.

[Oilacris]

Well, if they failed in their earlier attempts, they will also fail in their subsequent attempts. If they are really determined to kill Bitcoin, they should have done it with much force when Bitcoin was a small infant in its crib. But because they failed on that and Bitcoin has grown into a strong young man after 10 years, they are admittedly helpless now. They are claiming Bitcoin to be unstoppable already.

And because of that they are now shifting their focus to unborn projects that might become as strong as Bitcoin in the future. Lest they will become as helpless as they are now over Bitcoin when they will allow the kinds of Libra to proceed. This is precisely the reason why unborn projects such as Libra, walmart's, Apple's, etc are nipped in the bud.

Well said, its because they don't have enough power to destroy bitcoin. Many of them had tried many times before and until now they keep on fighting for it despite of losing it. We can't read their minds and thoughts but I think there is a specific reason why they keep on doing it. Bitcoin had faced many challenges and issues before, I don't think that government officials can get rid of it easily. They are just putting themselves into a difficult situation, but we need to stay positive that it won't happen.

Even if they do strived to they wont really able to do such thing yet we know on how vast or big the community is when it comes to crypto market specially with Bitcoin.

I'm sure that they didn't expect for BTC to be this big into those earlier years when it was just starting.They do underestimate on how a decentralized currency can really be a exception piece of discovery and now it did become big and unstoppable. After all the years we have seen and government trying to suppress it down plus having those banning on other countries but still we do able to stand strong.

[alyssa85]

Can't see anywhere that US tried to shutdown Bitcoin on the article, I see it as plain interpretation or something like exaggerated writings to catch peoples attention.  

The key word is "tried".

They investigated the possibility of legally shutting down bitcoin in 2012 (before it became mainstream) but probably realised that there was no legal mechanism to do it properly. But they "tried" in that they actually spent time checking whether they could do it.

[Searing]

https://www.forbes.com/sites/billybambrough/2019/10/08/the-us-government-tried-to-shut-down-bitcoin/#50c193671966

Considering this is just coming out from 7 years ago, what makes you think they have still not continuously been trying to kill Bitcoin/Crypto

since then and up to the present time anyway?

I suppose we will find out in another 7 years that this is an on-going attempt, year by year, anyway.

Brad

[hatshepsut93]

If the US government seriously wanted to take action against Bitcoin, they would have done it. It wouldn't shut down Bitcoin, but it would hurt - we'd have less market liquidity, less services, less adoption.
But from what I see in this article, it was simply a wish of a few officials, and this idea never had any wide support. People often have simplistic view that a government is a monolith organization, but in fact it's just a group of people with often times different views when the government is more or less democratic. Most of the time when we get news about some government and Bitcoin, it's actually just a statement or opinion of some government official and not a government as a whole.