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And Bitcoin falls into the hands of the banking cartels.
Well done Bitcoin, you're now irelevant.
We're announcing today that Bitcoin-Central.net is getting, through a partnership with Aqoba, allowed to operate like a bank, (or more precisely like a PSP which is basically the same as a bank, just without the debt-money issuing part).
bitcointalk.org...
A suspected Ponzi scheme involving the online currency Bitcoin has unravelled, and I can reveal that it has drawn the attention of the American Securities Exchange Commission (SEC).
Bitcoin is a libertarian's dream – and a government's nightmare. An online, virtual currency created in 2008, it is unpoliced by any central authority, almost immune to money-laundering rules, and incredibly hard to track. It's a huge boon to those suspicious of governments or big banks, and has a legion of vocal advocates online, who love both the idea of an Austrian-economics inspired currency immune to meddling politicians, and the open-source spirit of the cryptography software required to "mine" the currency.
Originally posted by mee30
reply to post by frazzle
Yes there are similar systems here called time bank and they are all fine and dandy but no good for the wider world! Great locally though and I support them a hundred percent...
I was stating you can use those sites to exchange bit coins for actual cash. You were stating that wasn't possible. Hence why I posted the link. Perhaps I misunderstood what you were saying.
It will alienate the vast majority of the Bitcoin userbase. Regardless of the reality if this is good or not, the community will see this as falling in line with the banking cartels and will further drive the market down, not up.
Governments, including mine are developping crypto currency in order to combat the rising popularity of bit coin. it will not be able to compete with other government crypto currencies. They will manipulate the market and inflate or devalue the currency in order to shut down competition.
Wasn't Bitcoin recently busted for being a scam?
Unfortunately, I don't see how any currency, be it metal or paper, that won acceptance on a wide scale wouldn't become as manipulated and debauched as the US dollar over time. As you say, government has already gotten its mitts on bitcoin simply by granting a right.
Originally posted by mee30
reply to post by frazzle
Unfortunately, I don't see how any currency, be it metal or paper, that won acceptance on a wide scale wouldn't become as manipulated and debauched as the US dollar over time. As you say, government has already gotten its mitts on bitcoin simply by granting a right.
See I don't quite see it like that... I have no doubt that in time it could get corrupted, and probably will... But at least we will have a time where it will be wonderful rather than the bottomless pit we are in now... Then when bitcoin gets too corrupted we switch again!
What both of you don't seem to realize is that bitcoin is designed as a decentralized network exactly because of the corruption and monopolizing you speak of. There isn't a Government on Earth with enough resources to gain control of the bitcoin network. The entire decentralized P2P network follows built-in rules which ensures that it's virtually impossible to create fake bitcoins and to dictate exactly how often new bitcoins are created (aka "mined") by adjusting the difficulty of the mining process (the harder it is the more computing power required).
Eventually we will reach a point where all the bitcoins have been created and the money supply will stop growing. So it doesn't matter if a Government or a bank has the desire to manipulate the currency, the fact is they can't. They can only work within the framework and rules set by the existing P2P network, because no one can break those rules. This new "bitcoin bank" has absolutely no new magical powers to alter the bitcoin currency in any way.
Sure, it is possible for a bank to hold bitcoins and practice a simple form of fractional reserve banking in the same way they could practice fractional reserve banking with reserves of gold. However, that would require the use of bank notes and/or credit accounts etc. What they cannot do with bitcoin is create new coins out of thin air when ever they like and they cannot be created and destroyed in exchange for debt.
I understand this very well, what makes you think I do not? I'm very well versed on bitcoin, I've been following it a couple years now... But I am not so silly to say that it could NEVER be manipulated, even if it is not by the same means as today?
There isn't a Government on Earth with enough resources to gain control of the bitcoin network.
There's a lot I don't understand about Bitcoins. What I'm sayin' is that if government has the authority to GRANT permission for something, they also have the authority to revoke that permission. For instance, gold was defined as legal tender in the states by the founders, yet FDR confiscated the gold.
... policing it would be near on impossible anyway... How would they know you have a bitcoin wallet on your PC or on paper?
Not trying to be argumentative but unless they're being traded ONLY outside normal venues, corporations would do the policing, just like they do with job applicants and employee payroll. Of course that's mostly true with alternative local currencies, as well.
I'll take a look at your link tomorrow when (read IF) my brain fires up because we can't just sit still and let the bankers walk all over us anymore.
At Paymium we spent lots of time and energy talking about Bitcoin to our regulating bodies, the Banque de France, the ACP (French equivalent of the American SEC), TRACFIN (AML French supervising body) etc. We engaged all these resources with one goal in mind : get these people to know Bitcoin, advocate our beloved crypto-currency and listen to them, help them think until they finally reach the same conclusion as we did : there's nothing wrong with people being free. There's nothing wrong with people freely exchanging value, we don't hurt anybody, we're not forcing anyone to use Bitcoin, we simply want to see our dream and the future of money become a reality.
It makes no sense.. bitcoins can be made from nothing, stolen easily, used mostly for illegal purchases with stolen credit cards or accounts to aquire the bitcoins in the first place.
The beautiful thing about crypto currencies is that they are anonymous and CANNOT be manipulated by people in suits. Well it can be now. ~Tenth