Silk Road forums
Discussion => Security => Topic started by: foxen624 on August 09, 2013, 10:29 pm
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Sorry, I didn't seem to pick up the url that this article went with... but will look for it. In the meantime, any search on the subject ought to bring up plenty of similar articles....
[EDIT] Here's a link to where I found the below story: http://techcrunch.com/2013/08/07/bitcoin-clampdown-continues-as-federal-judge-says-its-a-currency/
- although there are several others from various sources that are similar. If this has already been posted, please accept my appology for this one...
"Wikipedia calls Bitcoin a cryptocurrency (a currency that relies on cryptography), but now it’s official. A federal judge in Texas has declared that Bitcoin is a currency and should therefore be regulated just like U.S. dollars or gold. The ruling represents yet another attempt to regulate Bitcoin transactions, threatening the original purpose of the currency.
While it looks like a recognition that Bitcoins are worth something, the decision threatens once again Bitcoin’s utopian concept. As a reminder, the Department of Homeland Security recently issued a seizure warrant on Bitcoin exchange service Mt. Gox because it didn’t comply to money transfer regulations.
Today’s decision goes in the same direction. BTCST, a Bitcoin-based hedge fund, claimed that “the BTCST investments are not securities because Bitcoin is not money, and is not part of anything regulated by the United States,” wrote Judge Amos Mazzant. She then stated the exact opposite of BTCST’s defense:
First, the Court must determine whether the BTCST investments constitute an investment of money. It is clear that Bitcoin can be used as money. It can be used to purchase goods or services, and as Shavers stated, used to pay for individual living expenses. The only limitation of Bitcoin is that it is limited to those places that accept it as currency. However, it can also be exchanged for conventional currencies, such as the U.S. dollar, Euro, Yen, and Yuan. Therefore, Bitcoin is a currency or form of money, and investors wishing to invest in BTCST provided an investment of money.
Bitcoin was born on the idea that nobody could regulate it. Instead of having a central bank, Bitcoins are just a chain of characters defined by algorithmic rules. Anybody can try to find new Bitcoins and anybody can verify if it is indeed a real Bitcoin or not. All of this is handled by opensource Bitcoin applications and a few proprietary variants.
The Bitcoin network is a peer-to-peer payment network, and nobody can intefere with it. The only real value of a Bitcoin comes from its users. Because Bitcoin owners are treating it as a currency, it becomes one. That’s what makes it beautiful and scary at the same time. Yet, Bitcoin creator Satoshi Nakamoto probably didn’t think that even the U.S. government would treat it as a currency and try to regulate it."
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Good luck trying to regulate a desentralized p2p system lol, Bitcoin is sort of like Bittorrent, The only way to stop it is to shutdown the entire internet.
These old farts in power are really hilarious sometimes.
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The worldwide market value of derivatives tops $1 *quadrillion*. That's 1000 trillion.
None of them are regulated. They aren't securities and aren't futures or options either.
Bitcoin is no different. Its value is DERIVED from other currencies, but in of itself is nothing but gigabytes of electronic entries stored on the blockchain assigned to various addresses. According to all law, theory and practice of derivatives, Bitcoin is the VERY DEFINITION of a derivative.
Of course don't hold your breath as to how the criminal government and central bank will handle it. The law means absolutely nothing to them. Well almost nothing. It's only used as a club to beat competitors to banks and Wall Street into submission.
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The worldwide market value of derivatives tops $1 *quadrillion*. That's 1000 trillion.
None of them are regulated. They aren't securities and aren't futures or options either.
Bitcoin is no different. Its value is DERIVED from other currencies, but in of itself is nothing but gigabytes of electronic entries stored on the blockchain assigned to various addresses. According to all law, theory and practice of derivatives, Bitcoin is the VERY DEFINITION of a derivative.
Of course don't hold your breath as to how the criminal government and central bank will handle it. The law means absolutely nothing to them. Well almost nothing. It's only used as a club to beat competitors to banks and Wall Street into submission.
The law is what they say it is basically.
They can do whatever they want to make it illegal but that still wont stop it, If anything it will just push the exchanges underground and make it even more anonymous lol.
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"Yet, Bitcoin creator Satoshi Nakamoto probably didn’t think that even the U.S. government would treat it as a currency and try to regulate it."
What the hell? what idiot wrote this article? of course the law applies to it. Whipty doo sellers have to register as a msb just like everybody else. Like the previous poster said, its just going to make it more annonymous as more underground exchanges emerge.
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For Central Banks to regulate Bitcoin, they have to be able to create it. And all of it.
This is virtually impossible, unless they dedicate a lot of money into creating massive mining pools, and make it illegal to privately mine the blockchain... which won't happen. Not saying it couldn't. I'm saying it won't.
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Glad to read what some others think about this. Sounding more and more like same-ole, same old fearmongering that's an age old practice regarding this or that or whatever.
For Central Banks to regulate Bitcoin, they have to be able to create it. And all of it.
This^ Hadn't thought of that , but when pointed out... is just SO true! [not be mention obvious ::) ] Yeah, the gov is a bit l8 to begin creating that which has already been created. Thanks for that ;)
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They can try but they won't succeed. It's like trying to pin down a shadow.
If creation and dissemination is out of their hands, they can't regulate it.
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Glad to read what some others think about this. Sounding more and more like same-ole, same old fearmongering that's an age old practice regarding this or that or whatever.
For Central Banks to regulate Bitcoin, they have to be able to create it. And all of it.
This^ Hadn't thought of that , but when pointed out... is just SO true! [not be mention obvious ::) ] Yeah, the gov is a bit l8 to begin creating that which has already been created. Thanks for that ;)
Tried to +1 you, but apparently I already did in the last 72 hours. You must have good things to say. lol
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Well if they do then we move to something different like Litecoin
I think we can always stay 1 step ahead of the people who want to shut us down if we just stay positive and think smart. And with such an amazing community we have here, there's NO WAY every single one of us will split up and be done forever. I'm in it for the long haul and so are many other members of this community which is what makes us so close.
Even if SR does get shut down, we will move on to something else. Probably move on to something better even.
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Glad to read what some others think about this. Sounding more and more like same-ole, same old fearmongering that's an age old practice regarding this or that or whatever.
For Central Banks to regulate Bitcoin, they have to be able to create it. And all of it.
This^ Hadn't thought of that , but when pointed out... is just SO true! [not be mention obvious ::) ] Yeah, the gov is a bit l8 to begin creating that which has already been created. Thanks for that ;)
Tried to +1 you, but apparently I already did in the last 72 hours. You must have good things to say. lol
Awwwww... thank you! That's O.K. though, I just +1'd you instead ;D
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Well if they do then we move to something different like Litecoin
I just noticed about a week or so ago someone on here selling litecoins... almost bought some just for the hell of it but didn't have much btc at the time, then forgot about it until I read that article... then I remembered and wondered if it just might not hurt to get a few while they're so cheap. If they never became worth anything.. wouldn't be a big deal, but if they did... well hell... could wind up being not so bad of an investment... ;)