Topic: Why bitcoin can not become a global currency - page 12. (Read 1932 times)

Tracking every Bitcoin maybe impossible, for now. Tracking can even be invading the privacy of those who are doing Bitcoin-based transactions. There are effective ways that can minimize the incidence of money laundering like cryptocurrency exchanges requiring their users to do the KYC requirement. And even if all people will be doing the KYC there is no guarantee that Bitcoin can be a global currency so why waste time and effort? There are other factors why Bitcoin is not yet a global currency and we should not be in a hurry actually...there is no deadline set for Bitcoin, right?

privacy/transparency debate has nothing to do with the utility of bitcoin as a currency globally
bitcoin already has all it needs for privacy/transparency.
bitcoin does not link ID to btc address for privacy
if people want to link ID to transactions they can use exchanges that offer that transparent reporting system

also in the widest sense possible. bitcoin is on internet which is worldwide so bitcoin is already global
its not like canadian time tokens thats only distributed in a small town in canada.

but to get to the crux of the whole 'global' currency debate. the issue is after 10 years bitcoin has not exceeded 600,000 transactions a day. this is not due to not enough adoption. but due to development putting a crippling limit on the utility by limiting how many transactions can flow through.

i know i will probably hear the promoters try using this fact as a way to PR campaign their altnetwork that uses millisats(not real BTC) as their pegged token that is used by locking up real btc so that people can use their altnetwork to do things fast and without all the security and purposes that the btc real blockchain offers.. but thats just gimmicky drama to say btc cant do x or y. again not due to technical issues but due to developer decision to force limiting real btc growth/utility.

in short the 600k tx limit a day is the biggest holdback of actual global common utility

Why not?? Bitcoin can become a global cryptocurrency, this is prevented only by banking systems

The ability to be used for money laundering won't prevent its use as a global currency because only governments care if money can be used for money laundering, and Bitcoin exists outside of the control of any government.

yeah, I agree with you. But you know that the Bitcoin price isn't stable. I don't think so that the government will able to create any system that can track bitcoin transactions. This is the main feature of Bitcoin that no one can trace Bitcoin transactions. That's why the government has announced bitcoin as an illegal digital currency.

I agree that It is against for what it has been created - the freedom of the user against government and central entities' control. That is why basically goverments will ban it eventually but how is the real question. How can you ban bitcoin? You can declare that buying bitcoin is crime but can you prevent people to buy bitcoin?

I also agree with you NeuroticFish. Tracking the wallets will show how much money a person has. It is much more dangerous than money laundering. But consider this, We have bank accounts and they have adresses like bitcoin. Individual address and belongs to one person. They are not traceable. A bitcoin address provided by authorities and traced by authorities only. There should not be a blockchain explorer for it. I believe that this will be the implementation of the cryptocurrency. How could this be is a question for another decade maybe?

I think you are extremely wrong here.

We can make the same argument here with fiat currency. Look at cash, it's a tool that can avoid tax extremely easily, and it doesn't have tracking or anything.

We are moving to a society where being anonymous and safe is quickly become a top priority for people, and Bitcoin offers this tool to others and there proof of this with how big it's gotten these past years

Bitcoin is pseudo-anonymous. This means that anyone can look and see the content of a wallet and if you are not super careful people will also know it's your wallet.
I don't know of any other currency that allows unknown people know how much money you have in your wallet or in your house. It would be thieves' heaven! Not even US Dollar allows that.

And while everybody is already concerned about losing privacy in current society (websites tracking you, cameras tracking you, ...) you say that the only currency for the future will show everything to anybody?

I think that you are awfully wrong.
I think that the future has to help people regain their privacy.
I think that the agencies should start to do more effort and more thinking also and find better methods to fight money laundering and terrorism. The money flow cannot be monitored. The ones who want to avoid monitoring, will always avoid it. There's gold, art and a lot of other means to hide funds, all showing that the current approach is incorrect.

I mean every wallet must be personal and has identification like passport. This could be only way to track the bitcoins and prevent crimes.

I agree that it will be dominant as long as it is untraceable. Because, most people use bitcoin to send money without being tracked or pay things without tax. Paying bank for transaction commissions can not be the case that why bitcoin is valuable. I do think that bitcoin is a mind blowing development for the world but it is also very dangerous. It must be traceable or every country will ban it because of these reasons eventually.

Money laundering can be easily done with fiat currencies as well. For example you can make f2f transactions with cash with a vendor instead of recording the transaction in a ledger. Money laundering and tax evasion will probably exist forever. You can't put KYC or a restrict a bitcoin wallet. It is against for what it has been created - the freedom of the user against government and central entities' control.

Of course that for companies, it is imperative to create a framework for accounting purposes. Like designate a number of companies' public bitcoin addresses and the private ones will be kept simply confidential and perhaps changed from time to time. Bitcoin can certainly become a global currency, it just needs adoption which will surely come over time IMO.

What do you mean that every wallet must contain ids? I can have multiple addresses using Electrum and no one can track that it belongs to me.

Maybe want you are describing a a full KYC enforcement for most exchanges of today. Trackable or not, bitcoin will remain dominant. Can you name altcoins that can challenge bitcoin as a global if you think it's not going to be mass adopted?

Hi, Gents,

I think there has to be a way to create a tracking system for bitcoin. Every wallet must contain ids. Otherwise, bitcoin can be always used for money laundering. If you want to launder money, you can find a cash seller everywhere. After bitcoin is bought, noone can prove whose bitcoin it is. I think this is the only think that preventing bitcoin to become a global currency. Do you think it would worth this much if it is trackable. I dont think so. There will be altcoins that work with tracking system and ids. They will become a global currency. Bitcoin? I think never. What do you think?