Thursday, May 2, 2013

"Bitcoins Have the Direct Attention of Government"

Jeff Berwick of DollarVigilante has announced he is ending his relationship with the BitcoinATM Project.

The break appears to be over a dispute with his former partners, but in his announcement he did make a couple of observations about the BitcoinATM project and the government and bitcoins that should be kept in mind by Bitcoin fans:
The biggest issue with BitcoinATM, and one that I have stated in the past many times, is that it is hardware.  Any government, anywhere, can just come and take it away.
It was always the achilles heel of this product.
Can it succeed?  Sure, under the right guidance and a massive amount of capital of lawyers to fight off every single country in which the machine is placed.  And, even then, there is no guarantee.  Just look at Canada which has already begun to shutter bank accounts of anyone even involved in a bitcoin exchange.  As I've also stated numerous times in the past few years, there is no real law.  Those with the guns do what they want.  And, those with the guns are backed by the major money controlling cartels (central banks and those who control them).  They don't like a major distruption in their business.
 If there is one thing that my involvement with BitcoinATM has shown me very plainly in the last month is that bitcoin has the direct attention of the governments, central banks and banks.  It took them nearly two decades to figure out the internet would be their downfall.  In this case, it has only taken them months to realize that bitcoin could end their monopoly on money and banking. The only way for us freedom fighters to defeat them will be to do so much in the same way as bitcoin is and has been doing - by being decentralized and unable to be stopped by guns and regulations.

Note: I continue to believe that the point of vulnerability for Bitcoin remains the point of exchange between bitcoins and other currencies. I fully expect government to make a massive shutdown of these exchanges at some point.

1 comment:

  1. Episode 3 of has an excellent discussion of just how effective a government ban on exchanges may be.