- Published: Friday, 28 February 2014 07:38
- Written by Editor
Bitcoin is following an almost identical evolutionary curve as the Internet itself did 20 years ago, in its early stages being ridiculed and dismissed as a toy for geeks and nerds until the Internet exponentially became what it is today - an integral part of society globally. As the Internet took off, calls for regulation came thick and fast but could never be implemented - and so it is with Bitcoin.
Today, often erroneously quoting Mt. Gox, the calls for regulation and even outright banning of Bitcoin are becoming a crescendo.
As with the early days of the Internet, the calls to regulate and ban Bitcoin are not founded on the basis of any real threat or need to protect people or country, but rather the product of a totally corrupt government, the representatives of which do the bidding of their masters - those who bribe them with "campaign contributions".
A recent example is a call by Senator Manchin, who in a letter to the Federal Reserve said:
I write today to express my concerns about Bitcoin. This virtual currency is currently unregulated and has allowed users to participate in illicit activity, while also being highly unstable and disruptive to our economy. For the reasons outlined below, I urge regulators to take appropriate action to limit the abilities of this highly unstable currency.
Bitcoin has also become a haven for individuals to buy black market items. Individuals are able to anonymously purchase items such as drugs and weapons illegally. I have already written to regulators once on the now-closed Silkroad, which operated for years in supplying drugs and other black market items to criminals, thanks in large part to the creation of Bitcoin.
This of course is out and out exaggeration and fearmongering. The US Dollar has been used for hundreds of years to purchase weapons, drugs and just about everything else related to black markets and crimes against humanity, but we never hear calls for the US Dollar to be banned.
The true motive for Manchin's outburst is revealed by the fact that one of his major campaign contributors is the notorious bank J. P. Morgan, who have become more vocal against Bitcoin. If it were not for this it is doubtful whether Manchin would have even heard of Bitcoin, much less cared.
It is also apparent that Manchin has no concept of how either Bitcoin, the Federal Reserve rf the financial system works, because clearly Bitcoin falls outside of these as stated by the Chair of The Federal Reserve, Janet Yellen who responded to Manchin thus:
Bitcoin is a payment innovation that’s taking place outside the banking industry. To the best of my knowledge there’s no intersection at all, in any way, between Bitcoin and banks that the Federal Reserve has the ability to supervise and regulate. So the Fed doesn’t have authority to supervise or regulate Bitcoin in anyway.
While this is an extreme case of a call for an outright ban on Bitcoin, it typifies what may be expected in future calls for regulation and banning based upon totally erroneous factors. The governments are notorious for leveraging a problem-reaction-solution model, as an excuse to exert control over the population and the World, resulting in such entities as "Homeland Security" and to justify intrusive spying by the NAS and other serious breaches of human rights as well as the Constitution.
This and widespread government corruption with politicians being bribed by banks and other corporate entities for their own agendas will see Bitcoin come under widespread attack and further threats of regulation and banning.
In practice of course it is impossible to ban Bitcoin - it is a protocol and distributed peer to peer network, not a tangible entity. Anyone with Internet access can create a wallet and use Bitcoin.
The only points where Bitcoin can be regulated or banned are centralised resources such a exchanges and web based wallets. One solution as discussed in a previous article is to move these away from corrupt regimes to offshore locations in the same way that tax havens are located offshore, away from the regulatory reach of the USA and other such corrupt governments. The existing centralised exchanges are no more than a temporary but necessary step on the Bitcoin evolution, and ones that will fade in to history.
As for "protecting the population" - people have got to learn to grow up and start taking responsibility for their own actions including due diligence management of transactions. Bitcoin is tough - it enforces personal responsibility and liability, but that must surely be a good thing, and a small price to pay for the total freedom Bitcoin brings from the interference of governments, banks and other corrupt and self-interested entities.
Ultimately though the only possible future for Bitcoin is to remain faithful to its roots as completely decentralised, distributed and peer to peer using the cryptographic blockchain infrastructure.
Vote In The Poll