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US Begins Regulating BitCoin, Will Apply "Money Laundering" Rules To Virtual Transactions

Tyler Durden's picture




 

Last November, in an act of sheer monetary desperation, the ECB issued an exhaustive, and quite ridiculous, pamphlet titled "Virtual Currency Schemes" in which it mocked and warned about the "ponziness" of such electronic currencies as BitCoin. Why a central bank would stoop so "low" to even acknowledge what no "self-respecting" (sic) PhD-clad economist would even discuss, drunk and slurring, at cocktail parties, remains a mystery to this day. However, that it did so over fears the official artificial currency of the insolvent continent, the EUR, may be becoming even more "ponzi" than the BitCoins the ECB was warning about, was clear to everyone involved who saw right through the cheap propaganda attempt. Feel free to ask any Cypriot if they would now rather have their money in locked up Euros, or in "ponzi" yet freely transferable, unregulated BitCoins.

For the answer, we present the chart showing the price of BitCoin in EUR terms since the issuance of the ECB's paper:

Therein, sadly, lies the rub.

As central banks have been able to manipulate the price of precious metals for decades, using a countless plethora of blatant and not so blatant trading techniques, whether involving "banging the close", abusing the London AM fix, rehypothecating and leasing out claims on gold to short and re-short the underlying, creating paper gold exposure out of thin air with which to suppress deliverable prices, or simply engaging in any other heretofore unknown illegal activity, the parabolic surge in gold and silver has, at least for the time being - and especially since the infamous, and demoralizing May 1, 2011 silver smackdown - lost its mojo.

But while precious metals have been subject to price manipulation by the legacy establishment, even if ultimately the actual physical currency equivalent asset, its "value" naively expressed in some paper currency, may be in the possession of the beholder, to date no price suppression or regulation schemes of virtual currencies existed.

It was thus only a matter of time before the same establishment was forced to make sure that money leaving the traditional M0/M1/M2/M3 would not go into alternative electronic currency venues, but would instead be used to accelerate the velocity of the money used by the legacy, and quite terminal, monetary system.

After all, what if not pushing savers to spend, spend, spend and thus boost the money in circulation, was the fundamental purpose of the recent collapse in faith in savings held with European banks?

So, as we had long expected, the time when the global Keynesian status quo refocused its attention from paper gold and silver prices, to such "virtual" currencies as BitCoin has finally arrived.

The WSJ reports that, "the U.S. is applying money-laundering rules to "virtual currencies," amid growing concern that new forms of cash bought on the Internet are being used to fund illicit activities. The move means that firms that issue or exchange the increasingly popular online cash will now be regulated in a similar manner as traditional money-order providers such as Western Union Co. They would have new bookkeeping requirements and mandatory reporting for transactions of more than $10,000. Moreover, firms that receive legal tender in exchange for online currencies or anyone conducting a transaction on someone else's behalf would be subject to new scrutiny, said proponents of Internet currencies.

And just like that, there goes a major part of the allure of all those virtual currencies such as BitCoin that consumers had turned to, and away from such rapidly devaluing units of exchange as the dollar and euro. Because if there was one medium of exchange that was untouched, unregulated, and unmediated by the US government and other authoritarian, despotic regimes around the insolvent "developed world", it was precisely transactions involving BitCoin.

That is no longer the case, as the bloodhound of the Federal Reserve has now turned its attention toward BitCoin, and will not stop until it crashes both its value to end-users, and its utility, in yet another attempt to force the USD, and other fiat, upon global consumers as the only forms of allowed legal tender.

More from the WSJ:

The rising popularity of virtual currencies, while no more than a drop in the bucket of global liquidity, is being fueled by Internet merchants, as well as users' concerns about privacy, jitters about traditional currencies in Europe and the age-old need to move money for illicit purposes.

 

The arm of the Treasury Department that fights money laundering said Monday that the standard federal banking rules aimed at suspicious dollar transfers also apply to firms that issue or exchange money that isn't linked to any government and exists only online.

Naturally, the actual object of US monetary persecution, is BitCoin:

"We are beyond the stage where this was just funny money and a fun online thing. This is used as a currency," said Nicolas Christin, associate director of Carnegie Mellon University's Information Networking Institute.

 

Bitcoins can be used in a host of legitimate transactions—for example, website Reddit allows users to upgrade services using bitcoins and blog service Wordpress.com's store accepts them as a form of payment. Pizzaforcoins.com also lets bitcoin savers pay for deliveries through Domino's and other pizzerias.

The problem with virtual currencies is that defining what is permitted in a narrow regulatory sense, is impossible, which is why any definition will be as broad as possible: after all what better way to spook users than to make virtually any transaction borderline illegal:

Creating clear-cut rules for virtual currencies is difficult. A FinCen official said that anti-money-laundering rules would apply depending on the "factors and circumstances" of each business. The rules don't apply to individuals who simply use virtual currencies to purchase real or virtual goods.

 

The new guidance "clarifies definitions and expectations to ensure that businesses…are aware of their regulatory responsibilities," said Jennifer Shasky Calvery, FinCen director.

 

The FBI report last year said Bitcoin attracts cybercriminals who want to move or steal funds. "Bitcoin might also logically attract money launderers and other criminals who avoid traditional financial systems by using the Internet to conduct global monetary transfers," the report said. An FBI spokeswoman declined to comment when asked about the agency's concerns regarding virtual currencies.

We were not the only ones to expect imminent intervention from Big Brother:

Some firms say they anticipated the rules. Charlie Sherm, chief executive of bitcoin payment processor BitInstant, said his company is already compliant.

 

Mr. Christin of Carnegie Mellon said that he believes Bitcoin's dominant use right now is speculation.

 

"When you have a commodity or currency whose value has grown as rapidly as Bitcoin it makes sense to hold on to it as a speculative instrument," he said. It also is commonly used for online black markets or gambling sites. "Whether used for money laundering…there is no smoking gun."

As to the question of timing - why now - the answer is simple. Europe. After all, it was only yesterday that we wrote that "In Spain, The Bitcoin Run Has Started." It is self-explanatory that if such an exodus away from legacy currencies and into BitCoin was left unchecked, more and more people would follow suit, which is why it had to be intercepted as early as possible.

The jump in the bitcoin exchange rate this week also coincides with concerns euros could be taken from retail bank accounts in Cyprus to fund a bailout. Internet blogs say speculators are looking toward currency alternatives.

Well, if internet blogs say... Of course, internet blogs also say that if and when the fascination with virtual currencies fizzles, all those who are disgusted with the abuse of fiat will not cease from seeking USD, EUR, JPY, GBP and CHF alternatives, but will merely go back to the safety of having hard assets as a currency, namely silver and gold, instead of electronic ones and zeroes, which the US government, in all its Orwellian benevolence may one day, for lack of a better word, hack right out of existence.

On the other hand, the regime's desperation is reaching such a level that a Executive Order 6102-type confiscation of all hard asset currencies may not be far behind.

Because forewarned, is forearmed.

 

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Fri, 03/22/2013 - 14:25 | 3363075 Idisq
Idisq's picture

Fyi the correct total count of coins will be 21 million not billion. 

Thu, 03/21/2013 - 22:18 | 3360388 TraderTimm
TraderTimm's picture

This is the true impact... not much at all.

http://marginalrevolution.com/marginalrevolution/2013/03/bitcoinmagazine...

The major boon from the document for Bitcoin is this: users get off lightly. In fact, FINCEN does not intend to touch mere users of virtual currency at all; the document states, “a user who obtains convertible virtual currency and uses it to purchase real or virtual goods or services is not an MSB under FinCEN’s regulations. Such activity, in and of itself, does not fit within the definition of “money transmission services” and therefore is not subject to FinCEN’s registration, reporting, and recordkeeping regulations for MSBs.” The document also offers protection from “prepaid access” laws that regulate gift cards and the like, saying that “a person’s acceptance and/or transmission of convertible virtual currency cannot be characterized as providing or selling prepaid access because prepaid access is limited to real currencies.” Finally, even exchanges are safe from “foreign exchange” regulation, the set of rules governing businesses that offer exchange between two or more national currencies.

Sorry bitcoin haters, there aren't going to be any strapped SWAT teams taking down bitcoin exchangers.

We now return you to your thread already in progress...

Fri, 03/22/2013 - 04:39 | 3361085 Tall Tom
Tall Tom's picture

There are many here who are Anti Freedom. There are many here who are heavily invested into a losing asset, the US Dollar. They have invested themselves into an asset guaranteed to LOSE ONE HALF OF ITS VALUE over the next 35 Years. They are the Suckers. A PLANNED 2% Inflation Rate does this to a Currency, suckers. Wake up.

 

BitCoin is a threat to what they are so heavily invested in. That is why they hate it.

 

I am not here to tell them of the end. I am here to tell them of a new beginning where their US Dollar is no longer necessary, needed, or useful.

 

They are afraid as they perceive this as a threat. And it is a threat to what they are used to. They fear the change that awaits them, regardless if they are ready for it, or not.

 

So I am telling them what they will need in order to see it through to the other side. If they listen and obtain alternate Currencies then they will see it through. If they refuse to harken to my words then they will be consumed by a Hyperinflationary Inferno as there is NOT ONE THING, at this point, that can be done to stop it.

 

That is why they hate BitCoin. That is why they hate Silver and Gold.

 

The Currency Bubble is a Bubble Market and there is not much time left before it, too, pops.

 

Wake up!!!

Fri, 03/22/2013 - 12:20 | 3362473 Thisson
Thisson's picture

I hate bitcoins, love gold, and like silver.  Guess there goes your theory.  Gold is money.  Silver is a money substitute.  Bitcoins are a form of scrip (but scrip sometimes does have its uses).

Fri, 03/22/2013 - 00:53 | 3360777 resurger
resurger's picture

Am happy to know it's coming to an end, very very soon

Fri, 03/22/2013 - 02:35 | 3360942 Tall Tom
Tall Tom's picture

Any currency, whether it is BitCoin, Gold, Silver, the Euro, the Yen, the Yuan, et al., that threatenes to remove the US Dollar as the World's Reverve Currency is a Grave and Mortal Threat to the Powers That Be.

 

By dictate of the World's most powerful Government the Dollar shall reign supreme. Good luck to anyone who stands in the way.

 

We went to War in Iraq and killed Hundreds of Thousands of People for that reason, and, that reason alone.

 

We went to Libya, supplied Al Qaeda with NATO Weaons, and overthrew Qadaffhi for that reason, and that reason alone.

 

We are planniing to engage Iran for that reason, and that reason alone.

 

We prosecuted and convicted the head of Liberty Coin for that reason, and that reason alone.

 

We squash both the Gold Markets and Silver Markets for that reason, and that reason alone.

 

Just why would anyone think that BitCoin would remain immune?

Fri, 03/22/2013 - 04:58 | 3361102 crowd
crowd's picture

Listen, and understand. That BitCoin is out there. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until you are dead (in reference to fiat of course). 

- Kyle Reese

Thu, 03/21/2013 - 21:26 | 3360116 uno
uno's picture

armstrong's end of the American Era  224 year cycle hits tomorrow 3-2-2, also tomorrow is the 33rd anniversary of the Georgia Guidestones 

http://armstrongeconomics.com/2013/03/21/the-224-year-cycle-turns-tomorrow/

bool-ya bitchez

Thu, 03/21/2013 - 21:44 | 3360212 prains
prains's picture

I think armstrong's bicycle is newer that 224 years old but I could be wrong

Thu, 03/21/2013 - 21:27 | 3360119 knicks3005
knicks3005's picture

Money Laundring? And what exactly has the FED been doing for the past 100 years?

Thu, 03/21/2013 - 21:29 | 3360137 Pseudo Anonym
Pseudo Anonym's picture

the fed hates competition, didnt you know?

Thu, 03/21/2013 - 21:34 | 3360158 palmereldritch
palmereldritch's picture

I'd like to think Bitcoin has a restraint of trade argument against the FED but Bitcoin isn't in the counterfeiting business...

Thu, 03/21/2013 - 23:46 | 3360674 Matt
Matt's picture

Something tells me a lot of people here do not know what money laundering is.

Money laundering is the process of masking the source of income.

The Federal Reserve does not mask anything; they bluntly tell you that they create money to buy stuff when they want it. Maybe people are thinking of counterfeiting?

Thu, 03/21/2013 - 21:46 | 3360221 The Shootist
The Shootist's picture

Didn't Ron Paul have that sign on his desk? Stealing.

Thu, 03/21/2013 - 21:58 | 3360283 wintermute
wintermute's picture

More $100 FRNs are used for illegal transactions than legal ones. Has been the case for years.

 

Thu, 03/21/2013 - 22:05 | 3360324 Crash Overide
Crash Overide's picture

"Money Laundring? And what exactly has the FED been doing for the past 100 years?"

 

But it's "them" doing it, so it's okay... got it?

Thu, 03/21/2013 - 22:20 | 3360397 Squiddly Diddly
Squiddly Diddly's picture

"The FBI report last year said Bitcoin attracts cybercriminals who want to move or steal funds."

I thought Holder informed us that was what the to big to jail banks were for.

Thu, 03/21/2013 - 21:32 | 3360122 Pseudo Anonym
Pseudo Anonym's picture

fibonacci correction - 89% down in no time

Thu, 03/21/2013 - 23:10 | 3360567 francis_sawyer
francis_sawyer's picture

You 'edited' from your first post of 90% [clearly seeing the error in your ways]...

Thu, 03/21/2013 - 21:27 | 3360123 Fix It Again Timmy
Fix It Again Timmy's picture

Wx.,D.C. is the ultimate money launderer....

Thu, 03/21/2013 - 21:28 | 3360129 pleseus
pleseus's picture

Goldman's call on buying BitCoin any minute now.

Thu, 03/21/2013 - 21:34 | 3360156 francis_sawyer
francis_sawyer's picture

Try not to get 'Stolper-ed' out...

Thu, 03/21/2013 - 21:28 | 3360130 Shizzmoney
Shizzmoney's picture

Was it money laundering when the Federal Reserve and Ben Bernanke and Tim Geithner put money into Jamie Dimon's bank account?

Thu, 03/21/2013 - 21:36 | 3360163 ziggy59
ziggy59's picture

Money transfering

Thu, 03/21/2013 - 23:07 | 3360553 willwork4food
willwork4food's picture

Just friends paying some poker debts.

Thu, 03/21/2013 - 22:27 | 3360416 samwell
samwell's picture

That doesn't count as these vile Zionazi Jews are above the law.  Didn't you know.  Laws only apply to the little goy.  want proof.

 Look at Israhell.  It is run by a bunch of fundamental, Talmudic Zionazi jews hell bent on anihilating the rest of humanity.  It is the world's 4 largest nuclear power(300-400 warheads) but refuses to be a signatory to the NNPT(nuclear non-proliferation treaty) because then they would have to allow IAEA inspectors into its Dimona plant where they manufacture the bombs.  But yet all the hyprocritical jews can wine about is Iran enriching Uranium for power plants.  Muslim Persians can't have a bomb, then they might actually be able to stand up to us.  Hell, they can't even enrich uranium to 20% (U-235) for power generation and medical isotopes.  It just goes to show you what a bunch of pussies the jews are.  They are afraid of even the possibility of a counter force in the middle east which would put a stop to their nuclear monopoly.  even if Iran did have a nuke, they are not going to use it on Israhell.  The ashkenazi zionist jews really would wipe them off the map.  bunch of traitors to humanity.  people won't realize what the jews have done to them in this country until they wake up homeless in the land their forebearers conquered!!

Fri, 03/22/2013 - 00:35 | 3360747 Monedas
Monedas's picture

What terrorist state would sit on 300 to 400 warheads .... and not use them ?    The Zionazi's have shown admirable restraint !  Walk softly and carry a big stick .... where'd I hear that before ? My Jews should have an Armegeddon Plan .... it would be fun to develop one .... directional gamma rays for Gaza .... is a starter .... can a neutron bomb be directed by some kind of parabolic reflector ?      Monedas    1929      Spokeshole For Jews At Risk

Thu, 03/21/2013 - 21:29 | 3360135 Meat Hammer
Meat Hammer's picture

Long $9,999.99 transactions

Thu, 03/21/2013 - 22:00 | 3360218 AlaricBalth
AlaricBalth's picture

That would be construed as structuring.
http://www.irs.gov/irm/part4/irm_04-026-013.html

If any financial institution suspects you of trying to avoid filing a Currency Transaction Report they will submit a Suspicious Activity Report to the IRS. The SIA is automatically forwarded to the FBI for a preliminary investigation. Financial institutions actually must meet a monthly quota of SAR's, so even if your transactions are legitimate, you may have an SAR filed on you regardless of your intention.

Trust me on this. I know...

Thu, 03/21/2013 - 22:24 | 3360407 Meat Hammer
Meat Hammer's picture

They can lick my balls.  Sooner or later we'll have to decide if we're just keyboard Paul Reveres or if we actually have the guts to challenge these criminals.  They piss on the Constitution every day and enslave us.  

 

It's Give Me Liberty or Give Me Death, not Give Me Liberty unless you threaten my comfortable lifestyle, then go ahead and enslave me.  

Thu, 03/21/2013 - 23:12 | 3360576 Tom Servo
Tom Servo's picture

Admire your courage and moxy, but they WILL SWAT team your ass, take all of your cash, and if you're lucky send someone out to repair your front door that was bashed in.  All because you "could do something illegal". 

Fri, 03/22/2013 - 00:03 | 3360705 Muppet Pimp
Muppet Pimp's picture

Thanks for that post, it is important for folks to consider.

"He who stands for nothing will fall for anything"  - Alexander Hamilton

 

Fri, 03/22/2013 - 00:36 | 3360758 AlaricBalth
AlaricBalth's picture

Oscar Wilde once said, “To expect the unexpected shows a thoroughly modern intellect.”

Be the unexpected.

Thu, 03/21/2013 - 21:35 | 3360136 dick cheneys ghost
dick cheneys ghost's picture

the Rothschild Ponzi is near its end.............This is an act of desperation on Uncle Sams part

 

 

Thu, 03/21/2013 - 21:43 | 3360207 HulkHogan
HulkHogan's picture

Wanna bet?

Thu, 03/21/2013 - 22:09 | 3360337 dick cheneys ghost
dick cheneys ghost's picture

The heavy hand of Govt/banksters bothers me more than bitcoin ever did.........

Thu, 03/21/2013 - 23:09 | 3360564 willwork4food
willwork4food's picture

Since it was all planned, you should be bothered.

 

Thu, 03/21/2013 - 21:30 | 3360141 thecoloredsky
thecoloredsky's picture

Thanks fed, now my farmville citizens might make a bank run on my zynga account.

Thu, 03/21/2013 - 21:46 | 3360225 palmereldritch
palmereldritch's picture

It may be time to introduce alQ to their world...I think the FED has an App for that...

Thu, 03/21/2013 - 23:12 | 3360577 willwork4food
willwork4food's picture

Wait, I'll water your plants for a couple bitcoins.

Damn, I just invented the new working model for FACEBOOK!

Thu, 03/21/2013 - 23:49 | 3360680 Matt
Matt's picture

$150 to water some plants seems a bit steep. Will you take a satoshi for an hour's wage instead?

Thu, 03/21/2013 - 23:32 | 3360639 Piranhanoia
Piranhanoia's picture

If you own zynga, you must be laundering money for something.  Like food. Or laundry.  You're next. 

Thu, 03/21/2013 - 21:31 | 3360143 fonzannoon
fonzannoon's picture

no one could have seen this coming.

the good news is if they are applying the same money laundering rules any mexican and iranian drug cartels using bitcoin can just convert over to their HSBC accounts and continue to launder without an issue.

 

Thu, 03/21/2013 - 21:33 | 3360149 lolmao500
lolmao500's picture

Put bitcoin on TOR...

Fuck the FED, fuck the ECB, fuck the EU and fuck the US. Fuck the Rothschild. Fuck Bernanke. Fuck fiat currency.

Thu, 03/21/2013 - 21:58 | 3360278 Tijuana Donkey Show
Tijuana Donkey Show's picture

TOR has been backdoored by the GOVT. 

Thu, 03/21/2013 - 22:17 | 3360380 labestiol
labestiol's picture

Please stop saying crap...

TOR is open source, as is bitcoin.

Fri, 03/22/2013 - 07:59 | 3361346 Overflow-admin
Overflow-admin's picture

Open-source isn't a guarantee of quality.

 

TOR has various flaws that can be exploited to trace information, provided you have control of enough nodes of the Onion network (i.e. Govts that have hands on telecomunication infrastructure. Any guess whom I'm speaking about?).

Sun, 03/31/2013 - 01:26 | 3392973 samwell
samwell's picture

our gubmint can't even balance its books, what makes you think it can figure out how to capture a significant number of nodes in Tor network without people learning this.  its like saying the gubmint is reading your emails.  they don't have the time, but to a significant number of idiots out there will self censor as a result.

Thu, 03/21/2013 - 22:14 | 3360364 samwell
samwell's picture

notice any similarities?  All Zionist jews or controlled by Talmudic Zionist Jews.  Fuck em@!

Thu, 03/21/2013 - 23:04 | 3360538 RebelDevil
RebelDevil's picture

Hell Yeah!

There is a problem though. The developers said that the bitcoin network cannot opperate if everyone hid their IP address. Luckly, it would still work if most of them hid, but not all. I wish the developers can change that if they can though.

Thu, 03/21/2013 - 21:32 | 3360150 GrinandBearit
GrinandBearit's picture

Shicoin morons hopes and dreams dashed to smithereens - LOL!

Thu, 03/21/2013 - 21:47 | 3360229 CH1
CH1's picture

Yes, laughing at someone's destruction... nice character trait.

And if you think this will stop BTC, you're nuts. 90% won't give a shit.

Thu, 03/21/2013 - 21:52 | 3360254 francis_sawyer
francis_sawyer's picture

Cue the indignant 'boo-hoo' birds...

Thu, 03/21/2013 - 22:04 | 3360313 GrinandBearit
GrinandBearit's picture

Sorry, but you're delusional.  I wonder how much bitcons will lose tomorrow?  30 points?... 50 points?

 

Thu, 03/21/2013 - 22:19 | 3360390 labestiol
labestiol's picture

You're the one delusional here... Report is 3 days old. Look at the price since

Thu, 03/21/2013 - 22:55 | 3360513 jomama
jomama's picture

just where did you come up with the 90% number?

Fri, 03/22/2013 - 05:08 | 3361105 Tall Tom
Tall Tom's picture

Yeah...You are right. It is probably closer to 100%.

 

Anybody who is using it for nefarious means are not going to stop. Criminals do not care about the law.

 

And anyone using it for legitamite means really don't care as they are not violating the law.

 

So it is probably closer to 100%

 

When are you going to learn? Laws do not stop Human Behavior. Laws only provide penalties for those getting caught violating them.

 

With anonymous encrypted platforms as Tor the chances of getting caught are Slim to None. As for Slim...He just left the scene.

 

It probably has the effect of driving more people into BitCoin. I own none presently. But I am am now researching it.

 

If this aroused my curiousity then just how many others curiousty has been aroused?

 

The psychology is simple. People become attracted to what they cannot have, what is forbidden. That is as Human as can ever be.

 

I wonder how heavily invested into BitCoin the Government Agents are that proclaimed this edict? They stand to make a mint.

 

Shhhhhh...It is all manipulation. That is what Government is about.

Thu, 03/21/2013 - 21:33 | 3360152 Pairadimes
Pairadimes's picture

Hard to believe it took those crooks and thieves this long to put bitcoin in the crosshairs. Maybe they have been too busy standing on GLD's neck to notice.

Thu, 03/21/2013 - 22:55 | 3360512 CH1
CH1's picture

Hard to believe it took those crooks and thieves this long to put bitcoin in the crosshairs.

Kinda nice that the bad guys aren't too smart, isn't it? :)

Fri, 03/22/2013 - 02:10 | 3360915 toys for tits
toys for tits's picture

That regulation has been months in the making.  Or do you think those assholes are that efficient?

Fri, 03/22/2013 - 08:39 | 3361427 CH1
CH1's picture

Lots of people knew that BTC was the enemy of the state a few years ago.

Thu, 03/21/2013 - 21:34 | 3360154 fonzannoon
fonzannoon's picture

at some point this has to move gold up a few bucks before the next smackdown

Thu, 03/21/2013 - 21:34 | 3360159 earleflorida
earleflorida's picture

so they sent in J. ShakytheCalvery... to stop the rustling, WoW!!!

Thu, 03/21/2013 - 21:35 | 3360161 Kastorsky
Kastorsky's picture

smooth move.

bitcoin is already heavily Tor-ed and onion-ed.

now all transaction will move to .onion network.

good luck tracking it, idiots.

Thu, 03/21/2013 - 23:05 | 3360535 Pseudo Anonym
Pseudo Anonym's picture

the installation of tor adds another layer of complexity for average users; thus, hinders btc adoption rates

Thu, 03/21/2013 - 23:08 | 3360562 labestiol
labestiol's picture

Just need some good coders and a good incentive. A computer was too complex for average users not long ago.

Fri, 03/22/2013 - 08:01 | 3361347 Overflow-admin
Overflow-admin's picture

You might want to research a little about the onion technology. It is FLAWED. And EXPLOITED. PERIOD.

Thu, 03/21/2013 - 21:37 | 3360171 nonclaim
nonclaim's picture

"anyone conducting a transaction on someone else's behalf"

Like taxing savings in 10%?

Thu, 03/21/2013 - 21:38 | 3360175 howenlink
howenlink's picture

I'm not a big BitCoin fan, but I believe in liberty and individual responsibility.  This is truly a very sad day.

Thu, 03/21/2013 - 21:38 | 3360179 fonzannoon
fonzannoon's picture

where is the CH1 dude that's been ripping everyone? I am curious to see what his thoughts are. 

Thu, 03/21/2013 - 21:51 | 3360249 CH1
CH1's picture

See above, friend. Bitcoin users give not a shit about this.

And I barely have any, FWIW - I'm just amazed that a cool new tool comes along and the people here are WORSE than the haters of gold and silver.

Tongues dripping hate and ridicule - lusting to destroy what they don't even understand.

Y'all might want to look at yourselves in the mirror a bit.

Thu, 03/21/2013 - 21:59 | 3360285 fonzannoon
fonzannoon's picture

don't paint everyone with the same brush please. lots of people on here are rooting for you.

i'm curious, do you think it is possible that bitcoin becomes so successful that one day the powers that be all get together, come out and applaud bitcoins success at proving that the idea of a "global currency" can be successful, and bitcoin inadvertently becomes the trojan horse to the SDR or a one world currency?

Thu, 03/21/2013 - 22:15 | 3360370 SpykerSpeed
SpykerSpeed's picture

Even if governments applaud Bitcoin, it would still destroy them.  For a few reasons:

1.  Bitcoin accounts can't be traced back to an individual.  You can actually make hundreds of accounts in a few hours, using open source software - just go to www.bitaddress.org and hit refresh as many times as you like - a new account each time.  You can download the webpage and make addresses offline, too.  So there is infinite plausible deniability that you own any Bitcoins.

2.  Bitcoin accounts can't be taxed or frozen or confiscated.

3.  Bitcoins aren't physical, so governments can't find them if they search your home or property.  Your online wallet file can be entirely encrypted and you can easily delete your browser history each time you access it.  You can easily use Tor or a VPN to hide your own IP.  Servers for offline Bitcoin wallets can be anywhere in the world, outside US jurisdiction.

 

So yeah, governments can try to stop Bitcoin.  Or they can applaud it.  Either way, it's too late for them.  The cat is out of the bag.  Bitcoin ushers in a new era of money.  The post-commodity era.  Prices are truly signals now.  Nothing more, nothing less.  Austrian economics is fully realized with Bitcoin.

Thu, 03/21/2013 - 22:22 | 3360404 fonzannoon
fonzannoon's picture

I hear you, but they will pull the plug on the internet if it comes to it. 

Or they will threaten doing it and give bitcoin users one opportunity to convert to the new SDR that was quasi built on the bitcoin model. Except the SDR's can be tracked and taxed etc.

Think red money except for digital currency. they will flush bitcoin users out or pull the plug however they have to do it. 

Thu, 03/21/2013 - 22:34 | 3360440 fuu
fuu's picture

"I hear you, but they will pull the plug on the internet if it comes to it."

And their world will fall down.

Thu, 03/21/2013 - 22:47 | 3360488 fonzannoon
fonzannoon's picture

I admit that would be extreme, but the truth is they won't end up having to do that. If the government wants to do away with bitcoin it will be a lot easier than needing to go to such extremes to do so.

Thu, 03/21/2013 - 23:12 | 3360580 fuu
fuu's picture

Well they are going to try I guess. Hasn't worked so well with drugs, poverty, and file-sharing. Maybe this time is different.

Thu, 03/21/2013 - 23:21 | 3360605 fonzannoon
fonzannoon's picture

I would make an alternate case but at my core I want to see something smack these people up top in the face and I pretty much don't give a shit what does it at this point.

Thu, 03/21/2013 - 23:22 | 3360609 Money Squid
Money Squid's picture

I think Kim Dotcom might disagree....his operation was slammed shut by the US.

I applaud his efforts to restart with his new business.

Fri, 03/22/2013 - 02:16 | 3360924 toys for tits
toys for tits's picture

The government will pursue this through self-reporting.  Then if they catch you with something you didn't report, your screwed.

Kind of like when you attempt to leave the country with more than $10000.  It's legal, and they'll let you do it, but only if you tell them first. Otherwise they'll confiscate the cash and make you fight for it back.

Thu, 03/21/2013 - 22:37 | 3360455 SpykerSpeed
SpykerSpeed's picture

If they pull the plug on the Internet, not only will the economy collapse but the amount of violence and hatred directed against government will be unparalleled in human history.  No, governments cannot stop Bitcoin.  Period.

Thu, 03/21/2013 - 22:45 | 3360483 fonzannoon
fonzannoon's picture

are you guys freaking kidding me? Governments cannot stop bitcoin? 

Listen i wish you guys luck. but your insanity is showing. Be careful.

Thu, 03/21/2013 - 22:51 | 3360503 wintermute
wintermute's picture

Yeah, governments have stopped opium production, prohibited alcohol, smashed megaupload and wikileaks. Amazing what these super-duper-governments can do....

Thu, 03/21/2013 - 23:10 | 3360565 fonzannoon
fonzannoon's picture

It ain't my area of expertise, but Woody Harrelson tells me the US is in Afghanastan because of opium production, and not because they want to stop it.

Fri, 03/22/2013 - 00:23 | 3360738 oddball
oddball's picture

Exactly, when will the .gov become the biggest user Of BTC?  Guess what for?    

Thu, 03/21/2013 - 23:12 | 3360575 ghengis86
ghengis86's picture

I'm all for anything that's not fiat, but careful with the arrogance.  Pride cometh before the fall and all that shit.  Sounds like something from 100 years ago:

"If they pull the plug on the telegraph, not only will the economy collapse but the amount of violence and hatred directed against government ill be unparalleled in human history. No, the people cannot stop the dollar.  Period."

But at the same time, give those fuckers hell!  Fuck them over every way possible.  I've got PMs, cash, no stocks/bonds/funds, plenty of lead, copper and brass, food, water, water filters, tools, guns, etc. etc.  I might do like some others and just throw a few thousand fiat into BitCoin for shits and giggles, b/c a) speculation that it takes off and hold b) it pisses in Bernanke and his master cup and c) well, why the fuck not?  seems pretty solid an idea.  I don't give a flying fuck about what other people think and everybody is free to do as they please, including ignoring some douche bag on the internet.  But I know for a fact that paper is only good for starting fires, and Bernanke has built himself quite the kindling pile.  We're all on the same team, giving Benny and the Injets the finger.

Fri, 03/22/2013 - 00:35 | 3360757 dtwn
dtwn's picture

Ummm....at this point the world is essentially dependent on the internet. Never gonna happen.  Plus you're forgetting that Gen Xers and Yers are starting to get to be old enough to wield political power.  This generation, my generation, grew up with the internet which has evolved along with hardware to give anyone access to any information anywhere any time.  We're the ones that created facebook, google, andoid etc. Open source is becoming even more powerful.  Essentially the wisdom and knowledge of the entire world can be applied to developing open source projects.  That is stronger than any government can or will be.  We're beginning to see a generational shift where the generations that grew up with the internet are tired of their governments lying to them (Syria) and tired of the oppression (Aaron Swartz) and tired of suffering the consequenses (Iraq and Afghanistan).  As an example of open source power, just look at 3D printing, weapons can be made with it.  The CAD files are out there to make pretty much anything.

Thu, 03/21/2013 - 22:25 | 3360412 Midas
Midas's picture

Did you just ask if the central banks of the world are going to willingly give up their power to counterfeit money?

Thu, 03/21/2013 - 22:28 | 3360418 fonzannoon
fonzannoon's picture

Me? Are you kidding? Digital is their wet dream. forget counterfitting. when they go totally digital it's game over for all of us. 

 

Thu, 03/21/2013 - 23:02 | 3360533 CH1
CH1's picture

don't paint everyone with the same brush please. lots of people on here are rooting for you.

Didn't mean "all," sorry if it seemed so.

do you think it is possible that bitcoin becomes so successful that one day the powers that be all get together, come out and applaud bitcoins success at proving that the idea of a "global currency" can be successful...

Well, it's hard to guess at the actions of desperate sociopaths, but I don't think BTC has anything to offer them - honest money would be a near-fatal blow. I suppose they could create a new "Bitcoin-backed" fractional reserve currency, but they couldn't force people to stop using BTC... at least not without going full-blown Stalin mode, and that would break their precious legitimacy.

Thu, 03/21/2013 - 23:08 | 3360561 fonzannoon
fonzannoon's picture

Since we both agree they are sociopaths and maybe we agree that most people don't have a clue what's really going on in the world...I guess what I mean is, could you envision the sociopaths stripping all the good from bitcoin and leaving the one aspect they seem to long for (one universal currency) and pitching it as their own?

Fri, 03/22/2013 - 08:43 | 3361442 CH1
CH1's picture

could you envision the sociopaths stripping all the good from bitcoin and leaving the one aspect they seem to long for (one universal currency) and pitching it as their own?

I can see them trying something like that, but it wouldn't be Bitcoin any more. BTC is a very specific algorithm. Either it is or it isn't, and the difference can be easily determined.

Everyone would know.

Thu, 03/21/2013 - 22:04 | 3360316 francis_sawyer
francis_sawyer's picture

Fuck you & your pseudo self righteous bullshit...

~~~

I walk into a restaurant & see 'stewed gorilla balls with a chimpanzee piss dipping sauce' [& chilled monkey brains for dessert]...

Sorry if it doesn't sound too appetizing [but I'm sure it's a fucking delicacy where you come from]...

Thu, 03/21/2013 - 23:07 | 3360551 Money Squid
Money Squid's picture

CH1 not too recently you were expousing your knowledge of cryptography and how safe bitcoin is for anonymous transactions. How the code can not be cracked or the transactions tracked. Am I wrong in thinking you have really toned done your support for the bitcoin and it total security from government's prying eyes?

Thu, 03/21/2013 - 23:15 | 3360583 francis_sawyer
francis_sawyer's picture

When people start talking out of their ass instead of their mouth, it sounds a little 'toned down'...

Fri, 03/22/2013 - 03:04 | 3360980 Bay of Pigs
Bay of Pigs's picture

Fucking joke what some of these clowns spew out...

Fri, 03/22/2013 - 08:47 | 3361455 CH1
CH1's picture

ou were expousing your knowledge of cryptography and how safe bitcoin is for anonymous transactions. How the code can not be cracked or the transactions tracked. Am I wrong in thinking you have really toned done your support for the bitcoin and it total security from government's prying eyes?

Well, either I mis-spoke or you misunderstood, but I am not an expert on cryptography. I know a bit.

BTC is not perfectly anonymous, but it isn't bad. With a few other precautions, it approaches full anonymity. Used intelligently and run through Tor, I2P or a real anonymity network (not cheapo proxies), prying eyes have a SUPER hard time tracking it. ("Total" safety doesn't exist, unfortunately.)

Thu, 03/21/2013 - 21:38 | 3360182 arm50
arm50's picture

Is HSBC accepting bitcoins?

Thu, 03/21/2013 - 21:39 | 3360184 ziggy59
ziggy59's picture

If they cant tax it, make money or enslave people on it, they dont want it around

Fri, 03/22/2013 - 02:20 | 3360927 toys for tits
toys for tits's picture

Many times they let drug mules through so they can track them.  Why would bit coin be any different?

Thu, 03/21/2013 - 21:42 | 3360186 tony bonn
tony bonn's picture

"..."the U.S. is applying money-laundering rules to "virtual currencies," amid growing concern that new forms of cash bought on the Internet are being used to fund illicit activities. ..."

and the ponzi money of the fed isn't being used to fund illicit activities? give me a fucking break....

what kind of money financed the rockefeller nazi / bush crime syndicate administered 9/11????? it sure as fuck wasn't bitcoin....

no, people, the rockefelller nazi control of money is so important that it must invoke national security goat shit to protect its monopoly on money....

oh and let's not forget bush, sr's boat load of drug money he loaned to bank of america in 2010 to save them from default....

Thu, 03/21/2013 - 21:45 | 3360220 Supernova Born
Supernova Born's picture

Only terrorists save money.

They hate our spending.

Thu, 03/21/2013 - 21:58 | 3360280 palmereldritch
palmereldritch's picture

 "They hate us for our fiefdoms" - The Bush Crime Family et al

Fri, 03/22/2013 - 01:20 | 3360291 Number 156
Number 156's picture

"it mocked and warned about the "ponziness" of such electronic currencies"

Good God! If this isn't ever the most sickening hypocrisy! Soon coming from the government that brings you TARP, ZIRP, TBTF, TBTJ and endless stock market pumping by way of printing more Fiat toiletry. 'Ponziness' indeed.

This is why Bitcoin will eventually fail. By nature of being virtual, Its dependent on the internet, all of which can end just one kill-switch away and this country will be way too keen to impose capital controls at some point. 

I don't think they have the legal grounds to impose any such rules anyway. If you want to purchase something, anything, what makes Bitcoin any different from purchasing 1000 poker chips on an online casino, or buying virtual property on Second Life? Of course, the law never mattered to them in the first place.


Thu, 03/21/2013 - 21:49 | 3360188 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The article is nice and all but it doesn't really affect the European market in any way, that is going to be the big short term driver as a way around capital controls and grease to keep the economic engine moving while the banks collapse and things restructure. This also assumes all money changers will be on the books and people making transactions above $10,000. Fact of the matter is if it didn't have legitimate uses they wouldn't try to regulate it. There are rules then there is reality and ways around them. This is just to discourage the low information matrix people and gold bug types. Though not much discouraging is needed for the one trick pony types until their trick stops working.

Thu, 03/21/2013 - 22:07 | 3360328 palmereldritch
palmereldritch's picture

A tell that they are really beginning to freak is when they suddenly drop that universal $10K threshold (you know standard money laundering tripwires, people...there be criminals lurking!) to something much, much less...I wonder what the propaganda is going to be when that happens...

Thu, 03/21/2013 - 21:40 | 3360190 BandGap
BandGap's picture

I don't own bitcoins, have bought a shitload of PMs in the last 1/2 year.

But the point of this post is that government is moving in on regulating anything that affects their agenda. Understand this - if having PMs fucked up what they want to do they will come up with an excuse to confiscate.

Over and out.

Thu, 03/21/2013 - 21:52 | 3360256 CH1
CH1's picture

Thank you, BandGap - that was a sane, pertinent comment.

Thu, 03/21/2013 - 21:57 | 3360272 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

If you do it right you can mine coins turn them to cash then buy physical for cheaper than spot price. Example you use $10 in electricity to generate $30 in bitcoin. Take the $30 and buy silver at $30 an ounce. You just cut $20 dollars off the spot price or you hold them let them appreciate then turn it into cash and do the same. YMMV of course but the basic plan is that mining or turning some cash into coins. The coin values will appreciate in the short term. World events like what is going on in Cyprus and Argentina will guarantee that much. Long term is another story.

Thu, 03/21/2013 - 22:18 | 3360387 francis_sawyer
francis_sawyer's picture

Some tried that with pet rocks, beanie babies, cabbage patch kids, & Pokemon cards... You don't hear from any of them anymore because they all bought private islands & yachts with the 'winnings' and are now sipping rum drinks while hot Polynesian chicks in hula skirts massage their love poles with coconut oil...

Thu, 03/21/2013 - 22:32 | 3360435 jomama
jomama's picture

spouting your bullshit again?  10$ in electricity generates $30 in bitcoin?!

if you ever tried to break this down in real terms including inital capital investment, you'd get very different numbers.

Thu, 03/21/2013 - 22:39 | 3360442 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

What part of YMMV doesn't register with you. That is up to the reader to do their own due dilligence before investing one way or the other. The example was to illustrate how it could be done.


Thu, 03/21/2013 - 23:59 | 3360701 Matt
Matt's picture

Here, I'll get you started. Calculator:

http://tpbitcalc.appspot.com/

Hashrate by hardware:

https://en.bitcoin.it/wiki/Mining_hardware_comparison

Right now, my existing video cards could generate $14 per week at current exchange and electricity rates, if I left ym computer running full out 24/7.

Fri, 03/22/2013 - 04:30 | 3361077 e-recep
e-recep's picture

Yeah, every scenario is bad when the powers are desperate and violent.  That's the nature of "not being in power". But holding PMs is the best of those bad scenarios. History is full of examples of it.

Thu, 03/21/2013 - 21:40 | 3360191 YHC-FTSE
YHC-FTSE's picture

Here comes the msm repetitive brain washing to associate BTC with terrorism, paedophiles, mafia, and whatever else happens to be the bogeyman of the day. If they can't control it, they will destroy it. Legislation is obviously the cheapest option. 

Not a fan of BTC, but I thought it deserved a chance to mature into a real challenger to the frn. 

Thu, 03/21/2013 - 21:59 | 3360287 Bunga Bunga
Bunga Bunga's picture

Look,  they were right, Bitcoin buys only illegal stuff: https://www.bitcoinstore.com/consumer-electronics/video-electronics/tele... (not really)

 

Thu, 03/21/2013 - 21:41 | 3360195 cherry picker
cherry picker's picture

I have had it with that fucking US government.  Droning 16 year old kids because he happens to be a son of a suspect, making the lives of liberty minded folks misreable, racking up debts so they can overpay everyone who works for them and so on.

The American people should go on a peaceful, national one or two day general strike to show the war criminals and traitors to the Constitution and their lackeys, Obama, George W and more, who is the boss.

It ain't going to happen as long as there are EBT cards, MSM and television shows.

Thu, 03/21/2013 - 23:06 | 3360547 CH1
CH1's picture

Join the Gone Galt folks.

No more obedience to liars, thieves and droners.

Stop feeding the beast.

Thu, 03/21/2013 - 21:41 | 3360196 franzpick
franzpick's picture

Well its just a short period of time then before they come for the virtually hidden citizen pms, and I'll bet they are shocked and awed by suddenly finding the per centage of one of the three metals of protection that is not lead-free.

Thu, 03/21/2013 - 21:42 | 3360198 ziggy59
ziggy59's picture

Make Mine Shiney!

Thu, 03/21/2013 - 21:42 | 3360201 Silver Garbage Man
Silver Garbage Man's picture

Looks like we are getting closer to a herd running for some precious metals.

Thu, 03/21/2013 - 21:43 | 3360208 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

"We are beyond the stage where this was just funny money and a fun online thing. This is used as a currency," said Nicolas Christin, associate director of Carnegie Mellon University's Information Networking Institute.

How was this guy able to spew this nonsense with a straight face?

Thu, 03/21/2013 - 21:45 | 3360219 Ned Zeppelin
Ned Zeppelin's picture

I have long said: the primacy of the USD will be enforced at gunpoint. No other currencies, and that includes PMs, will be allowed.

Thu, 03/21/2013 - 22:16 | 3360376 nmewn
nmewn's picture

In that case, I know jewelers who will pay me top "fiat" dollar for maples...gold converts to any other real asset in demand.

When they start banning earrings, wedding bands, necklaces, watches, titty rings...lol...I'll be more concerned. The great thing about it?

I just hand it to them...a completely private, two-party transaction.

No USB, no commercial power, no internet, no encryption, no passwords, no government...its like they think of it as valuable or money or sumpin.

Weird huh? ;-)

Thu, 03/21/2013 - 23:29 | 3360633 francis_sawyer
francis_sawyer's picture

I plan on gifting all my gold to the Rothschild's on my death bed...

~~~

Oops ~ Forgot to tell you that I accidentally spilled some anthrax on it...

Fri, 03/22/2013 - 00:05 | 3360656 essence
essence's picture

All it takes is a simple law and your PM buyers are intimidated into reporting the transaction.
All it takes is the elimination of paper money and there is no escapable means of avoiding Saurans gaze. At that point ... what's to stop uncle gorilla from charging a 98% tax? We know how desperate for money he is. Expect it to get worse.

Unless government gets ramped down in a big way soon, privacy is a thing of the past.

Did you'all catch reports of Jim Sinclair NY meeting to his faithful CIGAs?
Noteworthy was, aside from his steadfast support of the Euro (and complete blind spot toward the evil fucktards behind the Euro forcing it down peoples throats regardless of human cost) .... when asked about the prospect of gov heavily taxing GOLD after its expected wild appreciation comes to past ...Sinclair had NO COMMENT.

Heck, I respect and commend the guy for the way he has conducted himself in the past ....but that silence concerning future heavy taxation gives me pause.

Bitcoin/PMs are natural Gov targets cause they can't stand the thought of sheeple escaping the box canyon they are intentionally being herded into.

As always, the REAL issue is CONTROL. Those at the very top feel in peril by the current unraveling of their previous Central Bank inspired debt paradigm, Nevertheless, they also recognize that this crisis gives them an opportunity to increase their level of Control by an order of magnitude (hence the current full court press to all out spying on everyone's financial actives/drone implementation/war on paper currencies-- or any digital alternative ---that offers anonymity.

For those of you out there who refuse to believe that there is an elite, a conspriracy .... just open your mind, and as a experiment --- briefly view things thru the litmus test of whether a development increases the centralization of control or not. Just do a quick filter through that prism on developing world events and see if they now make far more sense than before.

 

Fri, 03/22/2013 - 06:27 | 3361157 nmewn
nmewn's picture

This...+1

"As always, the REAL issue is CONTROL. Those at the very top feel in peril by the current unraveling of their previous Central Bank inspired debt paradigm, Nevertheless, they also recognize that this crisis gives them an opportunity to increase their level of Control by an order of magnitude (hence the current full court press to all out spying on everyone's financial actives/drone implementation/war on paper currencies-- or any digital alternative ---that offers anonymity."

Whats so insidious in all this is, Once Upon a Time, the people were free to do whatever they wanted with their after tax saved money...aka labor.

That is not a fairy tale kiddies.

So the next time the state comes forward and says people or corporations are "hiding their money offshore" in Swiss bank accounts or the Caymans or wherever...understand what they are really saying.

They have lost or have no control over it...and they don't like that...even if it has already been taxed once.

Thu, 03/21/2013 - 21:47 | 3360226 ziggy59
ziggy59's picture

The whole Friggin Fiat System is now based on Digital currency!!

Thu, 03/21/2013 - 21:47 | 3360231 SDRII
Thu, 03/21/2013 - 21:47 | 3360232 chump666
chump666's picture

America is a post empire mess.

It swings like a drunken sailor...embarrassing.

Thu, 03/21/2013 - 21:47 | 3360233 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

The risk points for Bitcoin have always been where it interacts with the fiat money world. That's through the exchanges where you buy and sell Bitcoins using fiat. These exchanges will now have to register as "money transmitters" of which there are >32,000 in the US, every QuikMart etc, costs about $1000 for the license. Bitcoin payment processors will not be regulated, nor will Bitcoin users. But there are ways to find and transact with private Bitcoin holders that are not covered by this. If you understand how Bitcoins work you're not overly worried about these developments, given the decentralized nature. The core system is unaffected.

Thu, 03/21/2013 - 21:58 | 3360284 mijev
mijev's picture

I may ask the IRS if it will accept me sending them bitcoins to pay for my taxes. The implication being that first they will have to accept BTC as a legitimate currency. 

Thu, 03/21/2013 - 22:01 | 3360296 pirea
pirea's picture

wrong. who stops you to use an exchnge outise us control

Thu, 03/21/2013 - 22:04 | 3360306 mijev
mijev's picture

Notice how the government has never raised the $10,000 threshold for which transactions have to be reported, in line with inflation. Another surreptitious implementation of capital controls. 

Thu, 03/21/2013 - 22:08 | 3360331 wintermute
wintermute's picture

OpenThePodBayDoorHAL, you are right. 

Bitcoin merchants are growing in number just like the investors. Steady progress to the day when fiat not involved in many transactions. Think cellular phones. The first people to have them always had to call landlines. Now, everyone has a cell-phone, so cell-cell calls are common. Landlines not involved in many calls.


Thu, 03/21/2013 - 21:48 | 3360236 jeebus
jeebus's picture

This is bullish for bitcoin.

Thu, 03/21/2013 - 21:57 | 3360271 slightlyskeptical
slightlyskeptical's picture

Yeah. Sure. I think you should load up tomorrow.

Thu, 03/21/2013 - 22:11 | 3360345 wintermute
wintermute's picture

watch for a retrace. It has spiked hugely this month. If I was looking to get in today I would place buy orders about 20% below last traded fx rate. Support at $38 and $47.

Thu, 03/21/2013 - 22:14 | 3360238 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The real future would be something along the lines of dropping the fed out right. Using virtual currency like bitcoin with no centralization, people can store their own savings and keep it safe from banks and such. What you do is the Treasury backs each virtual coin in the system with hard assets. A commodity basket backing the currency with gold, silver in that basket. Debt/free asset backed currency here just not paper no central bank and no periphery banks holding your money hostage. The treasury can set up decentral banks where one can go at any time and exchange their coins for hard assets in that basket and the banks can also recycle those coins back into the system. The currency grows at a stable rate and revalues accordingly based on assets backing it. If you have a wide enough hard asset basket you can grow the value of the currency based on real tangible items instead of using money velocity to grow virtual fiat. It is always propped up by a fundamentally sound physical base that rewards productivity in the economy. The banks can still exist in this game but they are back to a more traditional role and never can stranglehold the actual money supply or manipulate the value of it.

When you do it this way you can have a one world currency and local value for the currency at the same time without central control. Bitcoin is borderless, central bank less, anyone can create it but the value of the coins will vary by country because the value of the coins will depend on the assets each country puts behind them. You have USD, JPY etc it is just an exchange rate designation when you turn into hard assets or for purchasing purposes within a specific border.

Thu, 03/21/2013 - 22:32 | 3360436 palmereldritch
palmereldritch's picture

Not a fan of one world currency by any stretch but the maturation of its penetration as a dominant global currency in a purely digital form would make people so dependent on and vulnerable to the Internet that it could necessarily dictate the future healthy production of energy/IT/distribution/communication nodes at the grass roots levels to ensure Internet redundancy and localized vibrance.

The downside to decentralization is the vulnerability of the medium to which the message is distributed.

Thu, 03/21/2013 - 22:48 | 3360469 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You could have multiple crypto-currencies also either way the principles stay the same and it is no different than like having a paper copy for ever digital record in a system like for purchase orders in a business this case the paper is stuff like gold, silver, platinum etc.

When they mature you can either phase them out by issuing new ones or the value of each coin will keep adjusting accordingly to the physical assets being used to back them. If the economy grows more assets are put in the basket if it contracts. There are a bunch of ways to approach this but the key is no central banks or governments issuing or controlling currency. How it spreads out among the population and businesses will be market driven not centrally controlled also money creation is not in the hands of any one individual or group and growth of the virtual currency can be controlled by math in the alogrithm which is human bias neutral and mitigates currency debasement.

Thu, 03/21/2013 - 22:51 | 3360504 palmereldritch
palmereldritch's picture

It would be nice to see it de-centralized to the point that local banks hold physical silver and gold as a back stop/failsafe reservoirs of PMs for such a digital currency evolution.

Let Nature's potential for fractal preservation, hybridization, growth and liberty take root...imagine if they had a war and it couldn't be funded....

 

Thu, 03/21/2013 - 21:55 | 3360242 krispkritter
krispkritter's picture

OT, but for those of you who dislike 'control', and Carry, see this: http://www.gunfreezoneapp.com/ 

Thu, 03/21/2013 - 21:50 | 3360247 ziggy59
ziggy59's picture

This has morphed into Currency WWI

Thu, 03/21/2013 - 22:00 | 3360289 nmewn
nmewn's picture

We have always been at war with central planning.

Thu, 03/21/2013 - 21:51 | 3360252 SheepDog-One
SheepDog-One's picture

OH my FUCKK!!

Thu, 03/21/2013 - 21:56 | 3360267 ziggy59
ziggy59's picture

I guess the NWO( yes its a conspiracy) or One World Govt doesnt want any interference in the plans...

Thu, 03/21/2013 - 22:04 | 3360269 Atomizer
Atomizer's picture

If Bitcoin wants to have little fun, zip off an email to FinCEN. Convey that you have been invited to attend the Fifth BRICS Summit next week.

http://www.brics5.co.za/

 

/sarc

Thu, 03/21/2013 - 21:58 | 3360279 nmewn
nmewn's picture

I-Fucking-Told-You.

Never rub a bankers "digital rhubarb". Its theirs, let them have it...all of it. Let them own it. They created it (digitized money). Why fight on their ground?

Thu, 03/21/2013 - 21:58 | 3360282 Critical Path
Critical Path's picture

well.... what do you know.  Not that I'm surprised... lets start taking money laundering seriously now, hey?  What a joke. 

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