If Bitcoin is made illegal... - page 2.

MoonShadow

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Quote from: alexanderanon on June 07, 2011, 01:41:53 PM

I know that the USA=/=the world, but Europe and the rest of the world is even more statist than the US and prone to banning threats to government financial power, so if fear of bitcoin prompts the US to ban it, I don't see why this fear wouldn't also be present in the other governments of the world.

As for the cyclical growth, I can see a lull for a day or two as people try to cash in a bit on the big spike, but more than a few days suggests to me that the threat of gov't action is more of an issue than you suggest, especially when the numbers of people learning about Bitcoin is surely following an exponential curve. The more veteran Bitcoin users can dismiss this threat more readily, I think, but the newer bitcoin users are those that are less and less knowledgeable on cyptocurrency economics, and would thus be more fearful of gov't action. If it is merely a technical lull, it would have to jump by 10 dollars or more in the next few days.

And to the last two posters: The government can't do anything to Bitcoin itself, but by making it illegal, it prevents the growth of bitcoin into the mainstream. Forget buying anything on Amazon while this government ban lasts.

We've had lulls that lasted for months. A couple days is meaningless.

alexanderanon

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I know that the USA=/=the world, but Europe and the rest of the world is even more statist than the US and prone to banning threats to government financial power, so if fear of bitcoin prompts the US to ban it, I don't see why this fear wouldn't also be present in the other governments of the world.

As for the cyclical growth, I can see a lull for a day or two as people try to cash in a bit on the big spike, but more than a few days suggests to me that the threat of gov't action is more of an issue than you suggest, especially when the numbers of people learning about Bitcoin is surely following an exponential curve. The more veteran Bitcoin users can dismiss this threat more readily, I think, but the newer bitcoin users are those that are less and less knowledgeable on cyptocurrency economics, and would thus be more fearful of gov't action. If it is merely a technical lull, it would have to jump by 10 dollars or more in the next few days.

And to the last two posters: The government can't do anything to Bitcoin itself, but by making it illegal, it prevents the growth of bitcoin into the mainstream. Forget buying anything on Amazon while this government ban lasts.

MoonShadow

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There are a lot of things that they could do, the question is, would these methods be effictive. Probably not, in the long run, if the successes of the "War on (some) Drugs" and the persecution of p2p filesharing are any indicator. That doesn't mean that the thugs can't hurt some people in the near term, though.

lonestranger

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I like long walks on the beach, shaving my head...

Hmmm...in all the recent articles and discussions I've read about bitcoin, I haven't heard much about what The Establishment really CAN do about bitcoin. It doesn't make sense to me that the Lords of the Universe will go down with a whimper. I heard on Hiro White's poscast just a few ways that governments could attack bitcoin. They could dominate the mining of bitcoin greater than 50%. They could make illegal the video cards used to optimally mine bitcoin. They could DDOS bitcoin sites. They could force ISPs to block bitcoin activity. They could imprison and even assassinate bitcoin leaders.

adrian33

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The world is not just the USA. Bitcoin is global. It will only hurt the US if they make it illegal, I think. Some other country will pick up the slack in reduced bitcoin activity.

MoonShadow

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Quote from: alexanderanon on June 07, 2011, 01:02:52 PM

I think we all know why Bitcoin has been hung up around $18-19 for as long as it has. It's the fear of governments making it illegal. Am I the only one who thinks that this is irrelevant?

The lull in price movements is a cyclic event that occurs naturally, and likely has nothing at all to do with the threat of government action. If the bitcoin market cared what Schumer thought about bitcoins, then the trade volume would have spiked and the price dropped as the fearful tried to exit. The stable price between $18-$19 started before Schumer's threats, and indicates that the bitcoin market just doesn't really care.

digdugg67

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Then I am a criminal? Sweet !

as for why it's hung up. My guess is new money trying to get in to the market via paypal is now on hold. Plus lag time from bank to dwollar in to Mt.Gox. It'll bump.

Hell if they declare it illegal, I think people would buy it because it was declared illegal.

and who is 'They' anyway. Bilderburg?

alexanderanon

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...it will thrive regardless. Think about it. If it is made illegal, then sure, you won't be able to use Bitcoins to buy products from Amazon anytime soon, but the black market is HUGE. Think of all the drug lords who would benefit from anonymous (via Tor), instantaneous transactions, let alone the benefits of Silk Road. Many of you may not be interested in drug purchases, but we are all interested in the value of our bitcoins. The price of bitcoins will skyrocket once these major players get involved, and then it will only be a matter of time before non-black market products can be bought as well.

Once the lollerdollar collapses (and potentially other world currencies), I can see confidence in governments dropping significantly, opening the door for businesses dealing in consumer products, food, everyday items, etc., to start accepting bitcoins regardless of government laws.

I think we all know why Bitcoin has been hung up around $18-19 for as long as it has. It's the fear of governments making it illegal. Am I the only one who thinks that this is irrelevant?

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