"Bitcoin is not the anarchist's currency." And what *is* the anarchist's currency, Robert?The answer is simple: gold (and silver)
Gold can not be tracked by government. It is the enemy of government fiat currencies.
Bitcoins will be tracked by government with ease. Anyone who through any algorithms attempts to hide the source of his bitcoins will eventually be considered a money launderer. Government paws all over a currency does not make it an anarchist's currency of choice, cash is even better, but gold is king.
Of course we love gold, but it can be tracked and can be seized. Big gold purchases have to be reported, just like 10K cash deposits or withdrawals in a bank have to be reported. And how long will before gold purchases and sales will be prosecuted for "structuring" if they say you are deliberately trying to evade the 10k reporting requirement through multiple small transactions? And your gold at home can be stolen, either by common thieves, or thieves wearing a government costume.
ReplyDeleteAlso, try moving your gold across a border or putting it in your suitcase and flying to Europe. Or for that matter large amounts of cash? OTOH, you can email your bitcoin wallet to your self and fly wherever you want, then cash it back out to local currency. Even if the government learns of it, it is certainly not easier to stop than a wire transfer at a bank.
Bitcoin isn't perfect, but it is certainly a useful instrument. That is demonstrated by how hard governments are trying to stop it. The more they try, the more they expose their true nature to more and more people. And maybe they will succeed in stopping it, but I'm rooting for bitcoin and not them.
Agreed, great post. I can't for the life of me understand how bitcoin is anything but another fiat currency. No thanks, I'll take precious metals any day of the week.
ReplyDeleteIf Bitcoin is a thumb in the eye of violent rulers for a time then long live Bitcoin.
ReplyDeleteWhile Bob has been hating on bitcoin over the past 12 months, my holdings have appreciated 2,500%. As a result, my personal freedom has grown proportionately to my financial freedom.
ReplyDeleteIs Bitcoin perfect? No, but in my opinion it is head and shoulders above cash, gold and silver.
Gold and silver the Anarchist's currency? You're joking right? Gold and silver have already failed as a currency - just look at how easily they were supplanted by fiat. Bullion qualifies more as a store of value but even that is losing its luster.
ReplyDeleteIdiots like this one abound I'm afraid.
DeleteWhy don't you make a logical argument instead of an ad hominem attack?
DeleteLast 12 months:
DeleteBitcoin +2,500%
Gold -21%
Hmm...
You can't send Gold down a transmission wire. Saying gold is a viable currency in today's age is like saying people should send cash in the mail to buy things. It's absurd.
ReplyDeleteAs for this, "Anyone who through any algorithms attempts to hide the source of his bitcoins will eventually be considered a money launderer. " - For that to be true, the state would have to initially know who owns which wallet. Since wallets are created anonymously, and bitcoins can be sent to tumbling services anonymously, there's no way to know who owns the wallet that was used to tumble the coins. The sending transaction could have been done with complete legitimacy.
Further, there are new technologies in the works that will totally anonymize transactions making them impossible to follow through the block chain:
http://www.youtube.com/watch?v=Ouo7Q6Cf_yc
@Libertarian News:
DeleteMostly Bitcoin haters around here. Don't try talking sense because you'll be wasting your breath. They'll just end up joining the party later and at much higher prices. They always do. I've watched people trash bitcoin since it was trading in the in the single digits LOL. The "honey badger" of money doesn't give a damn what anyone thinks. :)
What about the anarchist's footwear? What should that be?
ReplyDeleteIn each of the cases of the government's seizure of bitcoins, it seems that the seizure did not come from carefully constructed algorithms, but through real-world detective work or failure of the 'perp' to properly cover his or her tracks. These weaknesses also apply to gold, silver, fiat, diamonds, nice speakers, toilet paper, etc. If a team of detectives is watching your every move, then it is very difficult to hide much of anything. As the above commenters note, the government has its paws all over gold. I would be willing to bet that when they ban gold, the fancy x-ray machines at the airport and wherever else they decide to install them will be tuned to make anything made of gold appear in a bright color as every material reflects and attenuates radiation a little differently.
ReplyDeleteI think those wishing to obfuscate financial dealings of any sort will have to be very tech savvy and will have to diversify.