Topic: 2013-11-14 Politico: Bitcoin gets ready for the government (Read 3162 times)

Look,

The government can impose whatever regulation it wants so that it thinks that its stifling Bitcoin's power. The fact of the matter is, that regulation that solves 'legitimacy' concerns (i.e, so we don't have another bitconica) at the exchanger level will largely be beneficial. All the other regulation is pointless & unenforceable, since no fiat is involved.  Unless they big time troll and try to regulate normal users - just merchants, consumers, etc... that happen to be using bitcoin - Bitcoin really won't be hurt by regulation.

How convenient that Bitcoins continued success will eventually enable people the financial freedom to leave nation states with draconian cryptocurrency legislation, taking quantities of the worlds most powerful capital tool with them, to countries that need capital influx who will welcome them with open arms.

We don't need them to do anything. There are world-wide opportunities that will open up because of Bitcoin. If the USA wants to handicap themselves in this area, they'll pay the price - by becoming a third-world power. Somehow I don't think this is such a bad thing, they've needed some humility for a long time.

China will likely lead the charge, followed by other countries when they realize that Bitcoin is the means to end the US Dollar world reserve currency status. Mark my words, the next paranoid delusion from US Government won't be regulation, they'll smear Bitcoin for being a tool of "Those commies in China" next.

I somewhat agree. If the US government only "regulates" bitcoin, then it would mean they are not interested in killing the currency completely. That would actually be good news for mainstream merchants who are scared of bitcoins. It would give assurance that the "world's police" isn't looking to arrest bitcoin. I'm not worried that bitcoin would be killed by this US regulation. In fact, I think the price would soar and there would be acceptance with merchants and consumers. The US isn't the only one using bitcoins.

When the USA regulates it, I'm pretty sure that people would rather use other fiat currencies to buy bitcoins and so in the end, the US would be at a disadvantage and hopefully, the US regulators would realize that in the future. People would dump the dollar and probably use Yuan to buy btc instead.

At this point, I think that the bitcoin market cap is too small for governments to hesitate in banning it. There'll absolutely be no economic impact YET. Although I am very skeptical that governments could stop cryptocurrencies, that $5 bn dollar market cap of bitcoin is nothing to them. I'd rather have the regulation than have them outrightly fight against bitcoins. However, I believe the government realizes that cryptocurrencies would not go away even if they kill bitcoins so I do think that all they can do is to slightly "regulate" it.

I think this is an outright fallacy, or at best a conjecture without any evidential backing.

Bitcoin could go "mainstream" without any kind of oversight or regulation ... in fact it already is well on its way to becoming widespread with zero regulation.

The whole BS argument about bitcoin needing regulation or else it wont go mainstream is entirely unsupported as far as I can tell. It may even be that it WILL go mainstream because it is unregulated, now THAT is what they are really afraid of.

You're failing to understand the underlying point of Bitcoin. It's been designed to resist government interference, and to weaken government influence on our lives. It's done a great job so far, and the job's still not done. The reason for the current valuation has been in spite of the possibility of government taking control of Bitcoin, not because of it. Unhappy with the current appreciation of your BTC assets? I think that's why we're all here to begin with, because we like seeing what a currency that defies control mechanisms can do before the establishment can even propose a method to catch a hold of it. And all without any realistic attempt at controlling it, up until a few days ago.

What have they been able to come up with? The taint lists. They can't kill it, or regulate it directly. So indirect is their best possible route. But even that will fail eventually. Plans are already there to re-design the system again, and then it will be even more impervious to their interference.
 

Govt plz

This regulation could be positive.  The thing stopping btc from going mainstream and the hedgefunds and banks getting involved is the possibility of btc getting totally regulated/killed - a little regulation would do btc a world of good imo (for price speculators that is).

...by discussing more ways to neuter their influence 

Silly, silly government.

http://www.politico.com/story/2013/11/bitcoin-gets-ready-for-the-government-99893.html