Does Bitcoin have the potential to evade capital controls?

Spendulus

legendary

Activity: 2926

Merit: 1386

Quote from: Beliathon on July 20, 2015, 07:54:15 PM

Quote

Does Bitcoin have the potential to evade capital controls?

If the following link works, the answer is yes: http://www.thepiratebay.org/

Most, if not all, of the arguments presented against bitcoin "evading capital controls" really address the liquidity of bitcoin, not it's ability to evade capital controls.

Liquidity may be viewed as conversion to desired currency within an hour, a day, a month or a year.

Is bitcoin as liquid as precious metals, paintings, houses, currency?

What of these "evade capital controls?"

How about Internet based assets?

Bank accounts, stocks, etc? The capital controls on these are based on the physical location of the entity acting as custodian.

The third party intermediary.

Cut him out.

A bit more. Here's a real simple example of "capital controls."

Country X has an "official exchange rate" of 5 money-units for 1 USD. But the street price everywhere is 8 money units for 1 USD. And everyone uses the street price. But merchants doing business with MC/VISA are forced to exchange at the official rates.

What rate does BTC transfer at? You figure it.

Beliathon

hero member

Activity: 784

Merit: 1000

https://youtu.be/PZm8TTLR2NU

Quote

Does Bitcoin have the potential to evade capital controls?

If the following link works, the answer is yes: http://www.thepiratebay.org/

BlindMayorBitcorn

legendary

Activity: 1260

Merit: 1116

Bumped. In light of recent events. Totally legit bump!

http://unenumerated.blogspot.ca/2015/07/the-greek-financial-mess-and-some-ways.html

deepestfear

sr. member

Activity: 291

Merit: 250

In theory yes, in practice you need to protect yourself against government packet filtering digital signature of your btc transactions to protect yourself

BlindMayorBitcorn

legendary

Activity: 1260

Merit: 1116

Quote from: deluxeCITY on November 09, 2014, 01:20:10 AM

Quote from: ?? on ??

Quote from: Spendulus on November 04, 2014, 07:32:55 PM

Quote from: ?? on ??

Quote from: sublime5447 on October 31, 2014, 11:49:32 AM

This assume the person on the other end wants a fucking bitcoin.

Yeah, it does assume the person on the other end wants to be free. If they want to be a wage slave, they are obviously going to have to deal with capital controls.

Freedom isn't easy and it isn't going to get any easier. You seem to want the "final" solution now. Well... it doesn't exist. We can only hope to work towards it.

Except it doesn't quite work that way. What happens is that a substitute currency infiltrates a country at the person to person level. Historically IIRC these events are 10-70ish years in the making. The substitute comes gradually to be accepted and used because it was needed. It was needed because of the debasing of the country's fiat currency by those in power.

The substitute is always fought by those who ruined the primary currency, but eventually they need it too.

The substitute comes into play because it is necessary expedient in commercial transactions, often having a pricing advantage.

So....right now there are people on the other end who "wants a fucking bitcoin." This user base is expanding. It may be expected that being an Internet phenomenon it's expansion may be more like that of Facebook or Ebay than traditional substitute currency models. But the expansion is obviously limited by the (rising) number of people and companies that want to trade with the currency.

I'm less interested in Bitcoin's ability to protect me from inflation (I can use more traditional methods for that) and more interested in Bitcoin's ability to allow me to retain complete control of my asset. I could care less if Bitcoin ever becomes a "primary currency" or not.

Well if bitcoin cannot protect you from inflation (and you purchasing power of your bitcoin declines substantially) then the fact that you have control over your asset becomes a moot point.

That's a fair point, but it's a different point.

deluxeCITY

hero member

Activity: 532

Merit: 500

Quote from: ?? on ??

Quote from: Spendulus on November 04, 2014, 07:32:55 PM

Quote from: ?? on ??

Quote from: sublime5447 on October 31, 2014, 11:49:32 AM

This assume the person on the other end wants a fucking bitcoin.

Yeah, it does assume the person on the other end wants to be free. If they want to be a wage slave, they are obviously going to have to deal with capital controls.

Freedom isn't easy and it isn't going to get any easier. You seem to want the "final" solution now. Well... it doesn't exist. We can only hope to work towards it.

Except it doesn't quite work that way. What happens is that a substitute currency infiltrates a country at the person to person level. Historically IIRC these events are 10-70ish years in the making. The substitute comes gradually to be accepted and used because it was needed. It was needed because of the debasing of the country's fiat currency by those in power.

The substitute is always fought by those who ruined the primary currency, but eventually they need it too.

The substitute comes into play because it is necessary expedient in commercial transactions, often having a pricing advantage.

So....right now there are people on the other end who "wants a fucking bitcoin." This user base is expanding. It may be expected that being an Internet phenomenon it's expansion may be more like that of Facebook or Ebay than traditional substitute currency models. But the expansion is obviously limited by the (rising) number of people and companies that want to trade with the currency.

I'm less interested in Bitcoin's ability to protect me from inflation (I can use more traditional methods for that) and more interested in Bitcoin's ability to allow me to retain complete control of my asset. I could care less if Bitcoin ever becomes a "primary currency" or not.

Well if bitcoin cannot protect you from inflation (and you purchasing power of your bitcoin declines substantially) then the fact that you have control over your asset becomes a moot point.

BlindMayorBitcorn

legendary

Activity: 1260

Merit: 1116

Quote from: ?? on ??

Quote from: Spendulus on November 04, 2014, 07:32:55 PM

Quote from: ?? on ??

Quote from: sublime5447 on October 31, 2014, 11:49:32 AM

This assume the person on the other end wants a fucking bitcoin.

Yeah, it does assume the person on the other end wants to be free. If they want to be a wage slave, they are obviously going to have to deal with capital controls.

Freedom isn't easy and it isn't going to get any easier. You seem to want the "final" solution now. Well... it doesn't exist. We can only hope to work towards it.

Except it doesn't quite work that way. What happens is that a substitute currency infiltrates a country at the person to person level. Historically IIRC these events are 10-70ish years in the making. The substitute comes gradually to be accepted and used because it was needed. It was needed because of the debasing of the country's fiat currency by those in power.

The substitute is always fought by those who ruined the primary currency, but eventually they need it too.

The substitute comes into play because it is necessary expedient in commercial transactions, often having a pricing advantage.

So....right now there are people on the other end who "wants a fucking bitcoin." This user base is expanding. It may be expected that being an Internet phenomenon it's expansion may be more like that of Facebook or Ebay than traditional substitute currency models. But the expansion is obviously limited by the (rising) number of people and companies that want to trade with the currency.

I'm less interested in Bitcoin's ability to protect me from inflation (I can use more traditional methods for that) and more interested in Bitcoin's ability to allow me to retain complete control of my asset. I could care less if Bitcoin ever becomes a "primary currency" or not.

+1

Spendulus

legendary

Activity: 2926

Merit: 1386

Quote from: ?? on ??

Quote from: Spendulus on November 04, 2014, 07:32:55 PM

Quote from: ?? on ??

Quote from: sublime5447 on October 31, 2014, 11:49:32 AM

This assume the person on the other end wants a fucking bitcoin.

Yeah, it does assume the person on the other end wants to be free. If they want to be a wage slave, they are obviously going to have to deal with capital controls.

Freedom isn't easy and it isn't going to get any easier. You seem to want the "final" solution now. Well... it doesn't exist. We can only hope to work towards it.

Except it doesn't quite work that way. What happens is that a substitute currency infiltrates a country at the person to person level. Historically IIRC these events are 10-70ish years in the making. The substitute comes gradually to be accepted and used because it was needed. It was needed because of the debasing of the country's fiat currency by those in power.

The substitute is always fought by those who ruined the primary currency, but eventually they need it too.

The substitute comes into play because it is necessary expedient in commercial transactions, often having a pricing advantage.

So....right now there are people on the other end who "wants a fucking bitcoin." This user base is expanding. It may be expected that being an Internet phenomenon it's expansion may be more like that of Facebook or Ebay than traditional substitute currency models. But the expansion is obviously limited by the (rising) number of people and companies that want to trade with the currency.

I'm less interested in Bitcoin's ability to protect me from inflation (I can use more traditional methods for that) and more interested in Bitcoin's ability to allow me to retain complete control of my asset. I could care less if Bitcoin ever becomes a "primary currency" or not.

Yeah, I agree with that. Facebook, an online social media, did not take the place of bars, clubs, church meetings and other traditional real world social meetups. Similarly, an on line currency should not destroy fiat currencies. It may impact fiat currency INSTITUTIONS, but not the currency itself.

However, "capital controls" means more than inflation. It may mean that you, say in the US, are not allowed to own South African Rands or Euros, or perhaps you are not allowed more than a certain amount. It may mean that you cannot move more than $500 per day from a checking account, or that your accounts having more than $100,000 have the unnecessary excess above that amount removed for the public good....

TaunSew

hero member

Activity: 756

Merit: 506

I don't think so. Some of the ATMs don't ask for ID but most of them seem to. Somebody who would want to engage in capital flight would have to sell it privately per individual and I suspect this is a highly illegal activity in most areas and you also risk being mugged.

Spendulus

legendary

Activity: 2926

Merit: 1386

Quote from: ?? on ??

Quote from: sublime5447 on October 31, 2014, 11:49:32 AM

This assume the person on the other end wants a fucking bitcoin.

Yeah, it does assume the person on the other end wants to be free. If they want to be a wage slave, they are obviously going to have to deal with capital controls.

Freedom isn't easy and it isn't going to get any easier. You seem to want the "final" solution now. Well... it doesn't exist. We can only hope to work towards it.

Except it doesn't quite work that way. What happens is that a substitute currency infiltrates a country at the person to person level. Historically IIRC these events are 10-70ish years in the making. The substitute comes gradually to be accepted and used because it was needed. It was needed because of the debasing of the country's fiat currency by those in power.

The substitute is always fought by those who ruined the primary currency, but eventually they need it too.

The substitute comes into play because it is necessary expedient in commercial transactions, often having a pricing advantage.

So....right now there are people on the other end who "wants a fucking bitcoin." This user base is expanding. It may be expected that being an Internet phenomenon it's expansion may be more like that of Facebook or Ebay than traditional substitute currency models. But the expansion is obviously limited by the (rising) number of people and companies that want to trade with the currency.

username18333

sr. member

Activity: 378

Merit: 250

Knowledge could but approximate existence.

Quote from: ?? on ??

Quote from: username18333 on October 29, 2014, 10:05:49 PM

Quote from: Undermood on October 29, 2014, 08:42:26 AM

The gov isn't able to directly control bitcoin network but only able to regulate the individuals or startups who are dealing with bitcoin. You can easily evade the capital control by the gov and just do on-chain transaction.

Governments can, however, dissolve mining pools and other critical, meatspace elements of Bitcoin.

Mining pools aren't critical elements of Bitcoin. They could all disappear today and Bitcoin would continue to function. (Of course, hash rate providers are going to have to learn to solo mine or use P2Pool, but any of them worth their salt should be defaulting to solo mining on pool failure anyway.)

Everything that makes duplicating the Bitcoin space non-trivial is fundamental to its market dominance.

sublime5447

legendary

Activity: 966

Merit: 1000

Quote from: ?? on ??

Quote from: sublime5447 on October 31, 2014, 11:49:32 AM

This assume the person on the other end wants a fucking bitcoin.

Yeah, it does assume the person on the other end wants to be free. If they want to be a wage slave, they are obviously going to have to deal with capital controls.

Freedom isn't easy and it isn't going to get any easier. You seem to want the "final" solution now. Well... it doesn't exist. We can only hope to work towards it.

The scarcity model always enslaves the masses.

Two Kinds of Money

1.The Scarcity Model: A single uniform quantity in limited supply made valuable by its own scarcity.
In other words, the value of this type of money depends on the supply of, and demand for, the money commodity itself. Conventional definitions of money define money only in terms of this model, a "medium of exchange". Examples are: cowries, gold and silver, fiat cash and coins, bank credit, and now, in the model's purest and most spectacularly speculative form, Bitcoin.

2. The Abundance Model. A promise of something specific from someone specific made valuable by its redemption in real production. The value of this type of money is defined by the promised redemption in goods and/or services. As such, this type of money is promises of an indefinite number of non-uniform commodities in indefinite supply and, unlike the limited quantity "coin" concept of money, the total quantity of these credits in circulation does not affect their value, because the value of a credit is defined by what its issuer will redeem it for in real goods and/or services. Examples are: business-to-business barter credits, customer rewards, travel points, discount coupons, mutual credit systems.

sublime5447

legendary

Activity: 966

Merit: 1000

Quote from: ?? on ??

Quote from: Mccoy818 on October 30, 2014, 02:54:05 AM

Quote from: ?? on ??

It doesn't have the potential to evade capital controls, it renders them obsolete right now.

How can you back up what you said?

I can send bitcoins to anyone with a public Bitcoin address, right now, without asking for help from a middleman or permission from an authority. Anyone who can connect to the internet can download a client and obtain a Bitcoin address to receive bitcoins without asking for help from a middleman or permission from an authority.

Stupid shit thats how, nonsense. This assume the person on the other end wants a fucking bitcoin. Retards think people are gonna eat a bitcoin, live under a bitcoin, heat themselves with a bitcoin, pay taxes with a bitcoin.

Bitcoin can't stop capital controls because it requires national fiat to operate. The government will simply go to the point of centralization and demand its cut and maybe accountability.

Elwar

legendary

Activity: 3598

Merit: 2386

Viva Ut Vivas

Quote from: Lethn on October 31, 2014, 04:10:44 AM

Quote from: Elwar on October 31, 2014, 04:07:58 AM

Quote from: oprahwindfury on October 29, 2014, 05:13:36 AM

But the thing is Bitcoin still CAN be controlled by governments. Remember the Chinese government backlash against BTC late last year? All it takes is for a government to ban it outright. Sure, there will still be users on the black market but the mainstream will see it as something illegal and something that is not worth their time. That is how governments can control Bitcoin.

I agree, what with all of the China exchanges going away and no more Bitcoin in China anymore. The proof is in the pudding.

That's not proof in the slightest, all they've done is shut down some exchanges, I have yet to see them attempt to stop people from making direct transactions in Bitcoin, for all this talk about getting away from government on this forum you guys sure don't think that way sometimes and are quick to despair when they take the ability to trade for fiat currency.

Just so you know, even if they took down all the trading exchanges in the UK that deal in pound I would still be able to trade Bitcoin for gold and sell that off.

Ya, I was being sarcastic considering China has the highest volume of all exchanges...China should ban some more to increase the volume even more.

okcoin
btcchina
huobi
lakebtc

Lethn

legendary

Activity: 1540

Merit: 1000

Quote from: Elwar on October 31, 2014, 04:07:58 AM

Quote from: oprahwindfury on October 29, 2014, 05:13:36 AM

But the thing is Bitcoin still CAN be controlled by governments. Remember the Chinese government backlash against BTC late last year? All it takes is for a government to ban it outright. Sure, there will still be users on the black market but the mainstream will see it as something illegal and something that is not worth their time. That is how governments can control Bitcoin.

I agree, what with all of the China exchanges going away and no more Bitcoin in China anymore. The proof is in the pudding.

That's not proof in the slightest, all they've done is shut down some exchanges, I have yet to see them attempt to stop people from making direct transactions in Bitcoin, for all this talk about getting away from government on this forum you guys sure don't think that way sometimes and are quick to despair when they take the ability to trade for fiat currency.

Just so you know, even if they took down all the trading exchanges in the UK that deal in pound I would still be able to trade Bitcoin for gold and sell that off.

Elwar

legendary

Activity: 3598

Merit: 2386

Viva Ut Vivas

Quote from: oprahwindfury on October 29, 2014, 05:13:36 AM

But the thing is Bitcoin still CAN be controlled by governments. Remember the Chinese government backlash against BTC late last year? All it takes is for a government to ban it outright. Sure, there will still be users on the black market but the mainstream will see it as something illegal and something that is not worth their time. That is how governments can control Bitcoin.

I agree, what with all of the China exchanges going away and no more Bitcoin in China anymore. The proof is in the pudding.

BIT-Sharon

sr. member

Activity: 266

Merit: 250

The essential reason of controlling the price of Bitcoin is the two attitudes for it. One is its subversive significance for financing and currency and collection value of scarce quantity, in the long run, its value is sure to rise. However, the expected political risk of bitcoin which was covered in dark dealing for a long time is corresponding attitude. Certainly, everyone knows this. It is not practical that Bitcoin can circulate widely as a currency; however, it is fantastic to collect and circulate in small scope. However, the passion of speculator for Bitcoin will not decease in short period, so Bitcoin will keep going to be in a rollercoaster.

zetaray

hero member

Activity: 658

Merit: 500

Of course it does, that is the main reason of banning bitcoin in countries with exchange controls. They are currently focusing on the exchanges because they can't prevent users from owning bitcoins, only users conventing to local currencies.

Mccoy818

newbie

Activity: 42

Merit: 0

Quote from: ?? on ??

It doesn't have the potential to evade capital controls, it renders them obsolete right now.

How can you back up what you said?

username18333

sr. member

Activity: 378

Merit: 250

Knowledge could but approximate existence.

Quote from: Undermood on October 29, 2014, 08:42:26 AM

The gov isn't able to directly control bitcoin network but only able to regulate the individuals or startups who are dealing with bitcoin. You can easily evade the capital control by the gov and just do on-chain transaction.

Governments can, however, dissolve mining pools and other critical, meatspace elements of Bitcoin.

Topic: Does Bitcoin have the potential to evade capital controls? (Read 2640 times)