Is Bit-Coin headed for a swift downfall at the hands of .Government?

Bit-Coin and the dangerous game it's playing

Recently a thread popped where the participants were discussing how certain banks are "too big to fail", how certain banking personalities, although shown to have operated in widespread fraud, money laundering, or other illicit banking activities, would not be prosecuted simply because they are too well connected, too well established, or part of the massive banking empire that currently controls the world money supply today and have protection from prosecutors.

It is pretty common knowledge now that Eric Holder stated he will not go after criminals in the massive banking empire that controls the world money simply, simply because, "they are too big to be prosecuted."

A criminal case against these large banking personalities and establishments, would create disruption and destruction with the world money supply, possibly ruining entire industries, entire sectors destabilized because the criminals handling the money, are too inherently tied to the success or simply the well being of those they administer their services to.

In the thread many were discussing bit coin. I mentioned that the only way to go against the current money handlers would be to create a new currency, one that circumnavigated the current model, one that didn't need to be part of the current corruption. That to take away power from the banks and the people behind them, one would need their own form of currency to do daily or large scale transactions.

Enter: Bit Coin

Bitcoin official page.

Bitcoin (BTC) is a digital currency first described in a 2008 paper by pseudonymous developer Satoshi Nakamoto, who called it a peer-to-peer, electronic cash system.[1][6][7] Bitcoin creation and transfer is based on an open source cryptographic protocol and is not managed by any central authority. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places.[4] Bitcoins can be transferred through a computer or smartphone without an intermediate financial institution.[8]

Wiki

It didn't take long for the lifespan of Bitcoin to be debated on the mainstream stage. Bitcoin has received a ton of attention on this forum over the past six months or so, heck, since its inception it has received attention here off and on with many looking at it from all angles.

I find it a little ironic that some of us on the forum were discussing its lifespan, as well as the implications it could have as a means to subvert the current money model, and not a day later a number of media outlets started addressing the same topics and issues.

Without further blabbering by yours truly, here are some of the articles I am referring to:

What if all the bitcoin exchanges were shut down?

Here’s a thought exercise. What if all bitcoin exchanges were shut down by various governments? What would the current value of a bitcoin be?

This is an important question because of the implied outcome of the current trend by governments to shut down - or prevent the creation of - bitcoin exchanges.

The mining of bitcoin would continue but transferring them and spending them becomes a problem since there would be no quoted price. The bitcoin protocol is about mining bitcoin not pricing bitcoin. There is nothing in the protocol about establishing a market price for bitcoin; you need a market for that, but what if all the exchange markets are shut down?

Read more at RT News

And another:

OTTAWA - Canadians buying and selling an emerging digital currency are running afoul of established banks and operating in uncharted territory for financial regulators.

"The Canadian government doesn't know what a Bitcoin is, doesn't recognize the Bitcoin, and there's no regulatory agency that knows what a Bitcoin is," said Joseph David, the owner of VirtEx.

His Calgary-based website lets Canadians trade Bitcoins through an online market similar to a stock exchange. David said the two-year-old company facilitated $15 million in transactions this year.

But the company is one of several Bitcoin dealers struggling to navigate financial regulations that don't account for virtual currencies, and to cope with major banks shutting down their accounts without explanation.

Unlike traditional currencies such as the dollar, Bitcoins are not issued by a central bank, nor backed by a government. The virtual currency is governed by a computer program that allows users to exchange Bitcoins anonymously through a peer-to-peer network.



Read more: www.montrealgazette.com...

It is interesting to note that banks see the threat with bitcoin and probably have talked about the possibility of it taking off as soon as its existence was covered online.

They are proactively shutting down accounts that are handling transactions for bitcoin sellers and providers.:

But the campaign to persuade more Canadian retailers to accept Bitcoins is already facing its first hurdle — getting banks to accept that the currency has legitimate uses.

Earlier this month, the Royal Bank of Canada closed VirtEx's account, along with the bank account of an Ottawa-based Bitcoin dealer.

"Anti-money laundering policy is a big thing, and that's what banks are concerned about," said James Grant, the owner of Canadian Bitcoins in Ottawa.

"Our problem is that we're not laundering money."

Tens of thousands of dollars were flowing through Grant's RBC account, which the company was using to make direct deposits to customers who were buying and selling Bitcoins.

Grant said the bank refused to tell him why they were closing the account, but he suspects they shut it down when they realized it was a Bitcoin business.

"It definitely crippled us," Grant said.



Read more: www.montrealgazette.com...

The company in this article, I assume was taking cash deposits and switching them out for bitcoins online. They claim to have kept detailed records for their entire client base. Meaning the information was there if banks or authorities needed to see, or had the right to see it. Instead, the bank simply shut down the account citing current anti money laundering rules.

So I'm curious, what does the average user think about bitcoin, and will it survive. It did have a shot at thwarting the current system, but something that doesn't come off as shocking to me, is that the current system acted quick and has already began making it hard for bitcoin users to use them.

"We have invoices, and receipts, and customer documentation for every customer that we deal with," Grant said.

RBC refused to comment on the case for privacy reasons.

The Canada Revenue Agency does not recognize a Bitcoin as a unit of legal tender. Instead, the CRA says purchases with Bitcoins are considered barter transactions, and should be reported as income.

"When Bitcoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer," said Philippe Brideau, a spokesperson for the CRA.

It's pretty obvious the chances of it thwarting the system are slim, given that it has to play by the system's rules to begin with. Actions were pretty swift to tackle the bitcoin issue as soon as it manifested. Mainstream or even (alternative) Mainstream media is picking up on it. Talking about its demise before it even made a major impact on the way money exchange happens. That isn't a good sign. When the media starts talking about something being torn down by the feds, often that's just a glimpse into the crystal ball about events soon to take place.

It will not be an overnight game changer. It may, under certain circumstances change the way some things are done. It may give some power back to people when it comes to how they handle their financial instruments.

The Canadian tax agency has stated that they see bit coin not as a monetary instrument, so therefore all barter laws, restrictions and regulations are applicable to bit coin. Whether or not this makes it beneficial to someone using bit coin, I'm not sure as you would have to discuss that with a certified accountant to get the actual numbers broken down for comparison.

ie. Is it better paying capital gains arising our of bit coin transactions, vs. standard tax payments out of money transactions.

The question is, are bitcoins useful at all, and, does anyone actually think they will last now that they are being addressed by the banking and money authorities around the world?

Doesn't seem like any revolution is going to arise out of their use?

Will it change something? Maybe.. Will they be shut down completely before given that chance... what do you think?

reply to post by boncho
It is my guess that the governments of the world will do everything in their power to de-value the bitcoin, eventually causing it to become worthless. Never underestimate the greed of big bank owned governments!

Originally posted by littled16
reply to post by boncho

 

It is my guess that the governments of the world will do everything in their power to de-value the bitcoin, eventually causing it to become worthless. Never underestimate the greed of big bank owned governments!

Seems to me a devaluation scheme would be pretty easy for two powerful capital backed entities, if both bought up a large number of bit coins, and traded amongst themselves for pennies on the dollar, eventually everyone else would be trading lower and lower, where they could buy up any new bitcoins entering the reduced evaluation numbers.

ie.

You and I both buy a 100 million worth of bitcoins, let's say the market is $1 = 1 bitcoin when we start. We trade back and forth with each other at 1 bitcoin = $0.01

Eventually people holding on to their bitcoins either get scared of the lower trading numbers or they simply have to trade out for something, whatever reason, we buy up money that was not originally entered into the scheme (or bitcoins rather) until we have bought up all the bit coins for $0.01

I'm not sure what the current value for bitcoins is, but with two people, a lot of capital, and a deep hate of bitcoins, this would be a pretty easy scheme to run...

reply to post by boncho


Both the banking cartels and the bought-and-paid-for governments dislike competition in their criminal enterprises. Until we can wrangle some degree of control back from the Fascist controllers, we're bound to get what we bargained for: Organized crime at the very top who tell us what to do, how to do, and when to do it. As long as you don't stand out or bring attention to yourself in any way, you're golden....

Probably not anytime too soon seeing as how various individuals in government also delve in the use of bitcoin, "off the records."
Remember, it's only not okay for civilians to partake in use bitcoin or anything on the deep web.

reply to post by boncho

If all the exchanges shut down, Bitcoin would only be useful for buying and selling goods and services priced in Bitcoin. And that's the last thing Bitcoin users want. In the real world, the overwhelmingly prevalent use cases for Bitcoin are speculation and proxying for real money in illicit transactions. Without the promise of selling those BTC at the crest of the next bubble, or easily converting them back into dollars after putting a package of drugs in the mail, Bitcoin is worthless. It goes back to being a cryptographic toy, and all those ASICs and burnt-out video cards end up in landfills, slowly seeping heavy metals into the groundwater. And then BFL might finally ship something.

canada taxing bitcoin transactions..

this is new as of today!!!

Bitcoin is a joke and doesnt need the darn gubberment to make it collapse. It has no value!
It is headed for a downfall after people get bored with it or people cant make any more money ff gambling with it.

One of the various crypto currencies will win out. I have no faith in governments to be intelligent enough to swiftly deal with this problem.

I'm sure some might try but they will fail. Crypto currency markets will continue to be volatile.

P2P exchanges will begin to emerge which somewhat removes the exchanges being DDosed and attacked by governments issue. And other issues will be dealt with by the Crypto Currency community.

Each time something drops the trolls and haters will scream as they are now.

Haters gonna hate
Ballers gonna ball

The ride continues. p.s Litecoin is way better than Bitcoin lol

See my thread ("ALERT: Bitcoin Crashes..."); www.abovetopsecret.com... for unique technical market analysis with timely and uncanny market calls in the price action of Bitcoin.

Here the problem with your scheme to trash Bitcoin.

If you take $100 million of YOUR dollars to buy 100 million Bitcoins YOU will also suffer the loss in value when you trade with your buddy bank.
The institution you gave YOUR $100 million to makes 9999% profit and closes its books legally and doors. Then reopen under another name.
Pyramid Scheme at its most basic.

Secondly:

Any institution taking cash from illicit sources such as drug money is guilty of money laundering. It is a crime that you cannot plead ignorance to. That is why banks force you to identify the source of high dollar transfers.