Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Bitcoin is Gold 2.0: But how can it be regulated?
American Thinker ^ | 12/28/2013 | Chriss Street

Posted on 12/28/2013 10:41:57 AM PST by SeekAndFind

Bitcoin is the name of a group of peer-to-peer payment networks that serve as an open-source form of digital currency that was originally introduced in 2009 by a software developer with the alias of 'Satoshi Nakamoto." Bitcoin currency is created as rewards to "miners" for providing the computing power to solve difficult math problems to maintain the "blockchain" of internet transactions in the currency. Unlike online credit cards and PayPal systems that allow buyers to claim their money back, bitcoin permanently transfers value. The bitcoin cyber-economy compassed of merchants, users, service providers, and startup enterprises has flourished for the past three years. The value of bitcoins has appreciated by 6,000% and the capitalization of the bitcoins in circulation has ballooned to over $8 billion. The emergence of bitcoin virtual currency has created a powerful competitor to the dollar that will limit Congress and the Federal Reserve's effectiveness in fostering inflation as a way to tax away American's wealth. This is why the tech-savvy refer to the bitcoin as Gold 2.0.

Since the beginning of human history, only about 5.6 billion troy ounces of gold has ever been mined. The value of gold is rooted in its medium rarity, easily handling and other qualities most other metals lack. These properties are the basis of gold serving as money. Bitcoin has a stark resemblance to gold: "Both are backed by no one. Both are, relative to fiat currency, inconvenient for day to day use." Since there is a limit of 21 million that may ever be "mined" by the year 2140, Bitcoins are rare units of exchange. Bitcoins will remain rare like gold; by 2040 when the world population reaches 10 billion there will only be 1 bitcoin for every 500 people on the earth.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Society
KEYWORDS: 61tc01n; anoncoin; b1tc01n; bitcoin; currency; fastcoin; fastcpon; francos; gold; litecoin; namecoin; peercoin; ponzi; ponzischeme; pyramid; quarkcoin; ripple; scheme; zerocoin
Navigation: use the links below to view more comments.
first 1-2021-25 next last

1 posted on 12/28/2013 10:41:57 AM PST by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

Isn’t the WHOLE POINT that it is not regulated???


2 posted on 12/28/2013 10:49:44 AM PST by null and void (I'm betting on an Obama Trifecta: A Nobel Peace Prize, an Impeachment, AND a War Crimes Trial...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Errant

Ping


3 posted on 12/28/2013 10:51:01 AM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Bitcoin is not gold.
It will be regulated, as soon as the current administration decides how to sock it to the folks who have some.


4 posted on 12/28/2013 10:52:08 AM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
But how can it be regulated?

I think Mr Street badly misses the point of BitCoins.

5 posted on 12/28/2013 10:54:12 AM PST by DManA
[ Post Reply | Private Reply | To 1 | View Replies]

To: null and void

When the control freaks see something the first thing they think of is regulate. It’s for the children don’t you know.


6 posted on 12/28/2013 10:54:18 AM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind
Bitcoins will remain rare like gold; by 2040 when the world population reaches 10 billion there will only be 1 bitcoin for every 500 people on the earth.

My poop is also rare. About a pound a day. By 2040 there will only be 9,855 pounds. Rarity does not equate with value.

7 posted on 12/28/2013 11:05:05 AM PST by FatherofFive (Islam is evil and must be eradicated)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Bitcoin cannot be allowed to continue to be a competitor to all of the government controlled fiat currencies of the world. If bitcoin cannot be manipulated like all of the current fiat money, it should be banned with extreme prejudice, and the proceeds be invested back into the fiat fake global markets.

The peasants cannot be allowed to circumvent our monopoly. If they wise up, the global players will be screwed.


8 posted on 12/28/2013 11:06:49 AM PST by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FatherofFive

Very true. There also needs to be demand for it.


9 posted on 12/28/2013 11:08:46 AM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
[ Post Reply | Private Reply | To 7 | View Replies]

To: SeekAndFind
I'm supposed to believe that something (actually nothing) that's increased 6000% has value and won't come tumbling down?

Still a nonbeliever.

10 posted on 12/28/2013 11:14:06 AM PST by grania
[ Post Reply | Private Reply | To 1 | View Replies]

To: grania

Beanie Babies!!


11 posted on 12/28/2013 11:15:12 AM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
[ Post Reply | Private Reply | To 10 | View Replies]

To: GeronL
Beanie Babies

But a beanie baby or a pet rock is a thing. Maybe fairie dust and unicorn tusks?

12 posted on 12/28/2013 11:18:18 AM PST by grania
[ Post Reply | Private Reply | To 11 | View Replies]

To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...

Thanks Lurkina.n.Learnin!

13 posted on 12/28/2013 11:19:42 AM PST by Errant
[ Post Reply | Private Reply | To 3 | View Replies]

To: null and void
Isn’t the WHOLE POINT that it is not regulated???

I'm not sure exactly what the point of it is really. I understand that currently there's a speculative aspect to it, but other than that, I don't really see the point.

If one happens to make a real financial gain from selling/bartering bitcoins, they're already taxable just like any other gain in this country. If you give me a big mansion then I'm just as liable to the IRS as if you had given me the cold cash instead. Same thing would of course apply to bitcoins.

Personally, I prefer to accumulate my wealth in things like real estate, gold, fine art etc. If the economy croaks, I can at least generate rents from the property (or perhaps services/labor in lieu of rents if need be). Gold has value in that it has always been viewed as desirable due to it's beauty when made into jewelry and the like, and after some huge world disaster it stands a good chance of retaining some value.

I view bitcoins as a fad, a gimmick. Sure, some will cash in with them (probably the early acquirers who are now trying to talk them up in order to raise their value so they can now cash in while they still can).

I can't think of one valid reason for me to convert any sum of my hard earned cash into bitcoins. I don't care how many retailers start accepting them... they still accept my cash.

14 posted on 12/28/2013 11:45:44 AM PST by Cementjungle
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind
Bitcoin only exists as encrypted data on distributed servers.

You can't regulate it because it's anonymous and doesn't exist in any one place.

When you pay someone with bitcoin, there is no way to trace the transaction to the recipient.

15 posted on 12/28/2013 12:08:56 PM PST by E. Pluribus Unum (Government is the greediest, most corrupt, incompetent and murderous force on earth.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum
When you pay someone with bitcoin, there is no way to trace the transaction to the recipient.

The very reason the government will regulate it "for the children" (stop kiddie porn sales), "fight the War on Terror," and "fight the War on Drugs."

The feds have been telegraphing this for the past year. Silk Road is the poster child for why it will be regulated.

Bitcoin miners will be heavily regulated, Converting bitcoins to U.S. fiat currency will be heavily regulated or illegal. If regulated, the I.R.S. will be used as the weapon to hit people with tax evasion charges for nonreporting of bitcoins as income.

It's a matter of when, not if.




16 posted on 12/28/2013 2:07:36 PM PST by peyton randolph (Tagline copyright in violation of Directive 10-289)
[ Post Reply | Private Reply | To 15 | View Replies]

To: SeekAndFind; RichInOC; Prince of Space; JoeFromSidney; TNMountainMan; alphadog; infool7; ...


17 posted on 12/28/2013 2:11:36 PM PST by narses (... unless you eat the flesh of the Son of Man and drink his blood, you do not have life within you.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: peyton randolph
My point was that they won't be able to regulate it.

They'll have to treat it like a controlled substance.

Anybody whose IP address is caught pinging a Bitcoin server will be arrested and incarcerated.

They won't be able to prove anything other than you visited a particular server.

18 posted on 12/28/2013 2:40:14 PM PST by E. Pluribus Unum (Government is the greediest, most corrupt, incompetent and murderous force on earth.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: SeekAndFind

The US government will just confiscate it. They have done it already and will do it soon enough. It will simply be declared a tool for terrorism and poof. All your bitcoin are belong to us.


19 posted on 12/28/2013 2:49:27 PM PST by Organic Panic
[ Post Reply | Private Reply | To 1 | View Replies]

To: FatherofFive
By 2040 there will only be 9,855 pounds.

Not to belabor the point, but unless you're freezing it, there will be none left. Gold and [we might expect] BitCoins will both still be around. Durability along with scarcity begin to meet the qualifications for value.

20 posted on 12/28/2013 3:22:36 PM PST by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
[ Post Reply | Private Reply | To 7 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-25 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson