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Don't Be Silly, The Entitlement State Won't Allow Bitcoin

11 pointsby rubikscubealmost 12 years ago

6 comments

Sealyalmost 12 years ago
Oh yes they will. And no, they won't like it at all.<p>The more they try to stop bitcoin, the more it will succeed. Why? Because of the network effect it is built upon. The more people hear about it, the stronger it gets.<p>If the US tries to block bitcoin. Opponents such as Russia and China will do the opposite. Why? Because the US will shoot itself in the foot. They will automatically lock themselves out of a rapidly growing economy currently worth $1.5BN.<p>US Government, take note of a simple fact: Tax evasion existed before bitcoin, and it will continue to exist regardless of if you accept bitcoin.<p>To the people. The more the government takes note of bitcoin, the more you should. They are worried because at last, they cannot control YOUR hard earned money or dilute it. Let me remind you about how much the fed has devalued the US dollar since the financial crisis... trillions.
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leohutsonalmost 12 years ago
The author Henry Binswanger's personal statement:<p>&#62;I defend laissez-faire capitalism, using Ayn Rand's Objectivism.<p>Why not keep an open mind? This sort of personal statement seems more apt for a religious proselytiser than a Philosopher.<p>Anyway, the article is not worth reading, just a political polemic without any worthwhile thought about the actual issue he raises, what effect will a cryptocurrency have on tax enforcement?
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gonvaledalmost 12 years ago
"No leftist, or even middle-of-the-road, government will accept that."<p>It is funny that the author equates left-leaning with freedom limiter. In reality, a left-leaning government limits economic freedoms, and a right-leaning government limits social freedoms. A virtual currency is not only a threat to economic control but, since economics underpin the rest of social interactions, it is a direct threat on social policy monopoly. So it is also a threat to right-leaning governments.<p>So it is not the entitlement state which will fight bitcoin but, quite simply, "The State". It doesn't follow the state will succeed.<p>"When men are free to choose, they choose gold."<p>Ha! Those men who are free to choose, pay as little a wage as possible to some other poor bastard who will sell his time in order to perform all tasks related to arcane metal verification, so that he can be halfway certain that their gold is really gold, that it is properly stored, and that it is properly handled during transfers (to pay for things, otherwise what is the point?). They will also pay journalists to write articles about how great gold is.<p>For <i>any</i> men to choose freely, technology must come helping, to lower the costs of handling the value storage. Bitcoin is here for that. Maybe rich men will continue to hoard gold, but the cost of doing so will be much higher than those of handling bitcoins. So, one would assume, at some point rich men will do their math and switch to bitcoin. Of course, not before all risks associated with bitcoin have been cleared - rich men are very conservative with regards of where to put their savings, prefering high fees (which they make up for with their multiple businesses, or government association) to uncertainty. Later, when they move to bitcoin, they will sing the "I-knew-this-bitcoing-thing-would-fly-and-was-there-since-the-beginning" song.
rtpgalmost 12 years ago
Somebody made the point before, but bitcoin is great for the gov't. Because it allows it to have a complete record of your spending with enough warrants. Because at one point in the chain someone will have to turn the bitcoin into USD. The "anonymity" argument is useless because you'll get linked at the "get dollars" phase.<p>Obviously the idea is that if everyone uses bitcoins then nobody will use dollars, but in that case the gov't just decides to declare bitcoins currency, and tax things as usual.<p>In a universe where everyone is using bitcoin, the global economy will be pretty fucked though, considering that everybody would be in a de facto liquidity trap (since inflation would no longer exist). But so long as property tax exists, that issue might not come up.
quchenalmost 12 years ago
&#62; Consider the attraction of bitcoin and the like. People are [...] are willing to try a virtual currency backed by nothing, so long as they believe that its supply will remain relatively stable<p>Well, Bitcoin may not be backed by anything, but neither is gold.
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commentzorroalmost 12 years ago
WTF is this crap. Is the author really implying the government decisions have anything to do with Democrats? I guess the US would be on the "Bitcoin Standard" if the 'pubes had won the election?!