Topic: Fox News Tells Viewers to Look up Bitcoin (Read 2593 times)

Good points.

Fox not being subtle about "you can buy drugs and alcohol" haha.

+1

Tell THAT to BUSH, OBAMA, IRAQ, AFGANISTAN, etc etc etc....  I am sure they have a different opinion on that

There are a few reasons trying to make Bitcoin illegal would backfire.

First is the technical problem. The name "Bitcoin" is arbitrary, so you can't ban that. Rather you have to ban people using computers in a certain way. The problem is Bitcoin is used very similar to using the Internet normally, so outlawing it could make many other "lawful" Internet actions illegal.

Second would be the enormous news coverage the attempted ban would bring. It would probably elevate the level of discussion on Bitcoin bringing in a lot more voices that otherwise wouldn't have heard of it. People would start debating if they should be allowed to freely choose to use it or not, because it would still operate globally. Also, making something widely illegal, like gambling, isn't always enforced at the state level. Nevada obviously is one example of a state enacting common sense regulation and exercising its own right to governance. Similar challenges are happening in states with marijuana laws now running counter to federal laws. Choice of Bitcoin use would probably be just as contentious, and might go to the Supreme Court.

Third the resulting attention from making bitcoin illegal would increase the now officially illegal use of it. Many people trying to build constructive law abiding businesses would likely rebel and refocus their efforts elsewhere.

Last, of course, is Bitcoin operates globally, so making it illegal in one place only makes that illegality seem quite totalitarian when its use is legal elsewhere, like Finland for example which seems very much in favor of it.

Oh, I was under the assumption that we were talking about Bitcoin as a whole being declared illegal.

He was probably doing his BTC "research" on his cell-phone during the show, when the camera was turned to the airhead for her vacuous input.

I think it would do a lot of harm to the online illegal drug trade (at least in the U.S.) if it were made illegal here. Think about it, the dealers on Silk Road are selling there because 1) they can be paid somewhat anonymously (like cash) and 2) they can cash it out to USD. If it were made illegal here, that makes 2 a lot harder than it already is right now. Without question, the banks (as they're required by law to do, since it's a suspicious or illegal activity) would report you to the feds immediately if they saw money coming into your account from a known Bitcoin exchange. Sure there's still LocalBitcoins but in a lot of cases that also eliminates the only real advantage to selling online vs. selling on the streets, no face-to-face meetings so you don't have to worry as much about selling something illegal to a cop (unless you're stupid enough to put a correct return address on a shipment of illegal drugs).

It would also hurt legitimate U.S. businesses, but in the long run as long as it's legal in (most of) the rest of the world it still has value as a unit of trade. For example, as long as I don't reveal the fact that I own the addresses I actually use regularly, nothing stops me as a U.S. citizen and resident from buying things like offshore web hosting, domain names, Steam codes or any other "virtual" goods.. or even physical goods that can be legally shipped to the U.S.

(edit: typo)

+1
He can't spell "MtGox", he doesn't know that block reward is not 50 BTC anymore. Probably he is an economist on-call that did some BTC "research" on his way to the show 

If you're talking about the 0.5% of Bitcoin transactions that make up drug trades, then sure, it wouldn't do much harm.  BUT...

Where is the largest Bitcoin userbase?  The US.  Where is most VC money for Bitcoin ventures coming from?  The US.  Where are many Bitcoin businesses based?  The US.

It wouldn't kill Bitcoin, but it would do a whole heck of a lot of harm to it.  There are many legitimate businesses who are indeed playing by the rules (AKA, scared of the law) who would immediately withdraw from accepting Bitcoin at all.  The price would drop, a LOT, subsequently discouraging many would-be investors in Bitcoin itself.  VC money would slow to a dribble, if anything at all.  Even VC's in other countries would probably stop investing, simply because they fear their country might follow the same rulings as the US.

Bitcoin would be regarded by the public as a failed niche experiment.  It would still be used among the underground, and it would still have value, but it would be a fraction of its former self.

+1

Anyway it's not because USA makes it illigal that it will crush something international. US is not the center of the world.

Even if it becomes illegal i dont think it would really do much harm. Everyone involved in bitcoin i dont think are scared of the law and will continue with how things are at present.

I think a lot of us that live and breath Bitcoin daily often lose sight of just how early in the game we are for mind share. As percentages go there aren't that many experts available from the point of view of someone who just heard of it like the newscaster. Still all publicity as they say is good publicity  

I get the feeling that the guy with the glasses is playing dumb.

Definitely is some decent publicity, however the guy being interviewed from mashable wasn't very well versed in bitcoin at all. Not sure why they wouldn't bring someone far more involved in bitcoin.

Hopefully people will go ahead and google bitcoin themselves and start learning for themselves.

Get ready for another price spike? Fox newscaster just told his audience to Google Bitcoin:

https://www.youtube.com/watch?v=XSKgVcMC2yc

[Bitcoin Investigation: Is this the end of virtual currency?]