Wednesday, January 14, 2015

"Bitcoin Replacing the Dollar is a Pipe Dream"

Martin Armstrong correctly notes:
 New York State regulators..[are] not interested in mere apps that allow use of Bitcoin. What they are after is taxes. New York would not back off of requiring Bitcoin businesses to track their customers’ addresses, as well as the addresses of people who send their customers money. They want taxes....

BitCoin is trying to replace the dollar and therein lies the problem. This has falsely made people to think this is a tax-free game that defeats government. Sorry, they can tax whatever they want...

Meanwhile, SEC Chair Mary Jo White in a letter she wrote to the Senate Homeland Security Committee committee last year, stated that “interests issued by entities owning virtual currencies or providing returns based on assets such as virtual currencies likely would be securities and therefore subject to our regulation.” BitCoin cannot survive as an alternative to the dollar. It can be regulated and taxed so the idea that this will displace the dollar is just another pipe-dream.


  1. The exact same observations apply to gold too, but most goldbugs aren't honest enough to admit it.

    1. I think most goldbugs do admit that gold is subject to most of the same, except that it's much harder to track than Bitcoin. Also, physical gold is not a "security" subject to SEC regulation.