Silk Road forums
Discussion => Off topic => Topic started by: Davey Jones on August 24, 2013, 07:40 pm
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Typical fed bullshit going on. They're going after bitinstant and mt gox. One report I read that they seized several million from mt gox. When they can't get to things at transaction level, they go after the assets. That is textbook fed shit. They couldn't get a buddy of mine, so they eventually went after his property saying he had unreported income to own so much and the IRS got him and seized his property. Granted, he was known for doing what he did and it probably ticked off local le that they couldn't get him.
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Had me worried, =o) but that was back in May...
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Had me worried, =o) but that was back in May...
hi hi
actually, there were 2 seizures. the second of which happened in june just one day before gox suspended withdrawals. this brings the total of seized gox assets to around 5mil USD.
CLEARNET link: http://techcrunch.com/2013/08/23/feds-seize-another-2-1-million-from-mt-gox-adding-up-to-5-million/
for what it's worth, gox was indeed operating without the proper license. that's technically a crime and the US govt is well within its right to seize those assets. it sucks, but you gotta play by the rules or get burnt....
i'm not a lawyer, but since money transmitting license costs many millions of dollars and much time to acquire, it may be a "quick fix" if you run an exchange to register for a forex license. that covers all states, and since "bitcoin is a currency" according to that judge's ruling on the ponzi case, a forex license may suffice. the exchange will still have to enforce AML/KYC most likely however...
xoxo
-mb
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And as the feds seize more BTC, How are those Bitcoins going to get back into circulation? The more they remove from the pool, the more valuable BTC gets right? Because they're removing from a limited supply?
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And as the feds seize more BTC, How are those Bitcoins going to get back into circulation? The more they remove from the pool, the more valuable BTC gets right? Because they're removing from a limited supply?
They are seizing cash assets, not bitcoins themselves.
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And as the feds seize more BTC, How are those Bitcoins going to get back into circulation? The more they remove from the pool, the more valuable BTC gets right? Because they're removing from a limited supply?
They are seizing cash assets, not bitcoins themselves.
hi hi
this is correct, the only seized BTC that the world knows about is around the paltry sum of 11 coins that belonged to a careless vendor who was busted months ago. what has/will become of those coins is still anyone's guess.
the gox accounts were US bank accounts containing USD fiat currency. since the US govt is the issuer of said fiat, and since they make the laws governing its use, they can seize it when they find suspicion of wrongdoing or misuse. it is important to make that distinction, as they would have no jurisdiction over another country's bank accounts (usually)
also "the feds" cant just type in a wallet address and "seize the coins" that's kind of the whole point of encryption and cryptography.... anything fiat related will most likely be tied to a real life identity, and that is where the govt has a vector for attack.
but to your intended point "what happens when BTC is taken out of circulation?" then yes, you are correct the price will go up as it is indeed a finite supply. think of it like an old spanish galleon full of gold bullion being sailed across the ocean hundreds of years ago.. if that ship sinks, the gold is gone forever since there is no ability to dive and retrieve them. it's pretty similar to that.
now, before anyone gets any bright ideas to try and horde the currency and artificially increase the price like that, there have been a little over 11.6 million coins mined to date. at the current prices, that puts it at a market cap of around 1.3 billion USD, give or take 100m depending on what exchange rate you use. even if someone stockpiled a few hundred thousand BTC (around 11m USD) it would not significantly affect the long term price as that is a mere drop in the total BTC value bucket. they'd need to stockpile millions of BTC to individually be able to significantly dictate the long term price, as at that point they would become the majority of liquid supply (if they so chose to liquidate).
xoxo
-mb
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smart drug dealers live within their means.
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These crazy kids and their BTCs.....