U.S. plans cryptocurrency crackdown

[Hughinn]

I guess we all seen this coming.
For those of us that use Bitcoin (probably most of us here), it seems unclear what the ultimate effects are going to be.

Politics aside, losing a free market anonymous currency like Bitcoin can't be good. And if the aim is to make it as traceable as as a debit card, then what's the point of crypto?



U.S. financial authorities are preparing to actively regulate the $1.5 trillion cryptocurrency market amid growing concerns of a lack of oversight, the Financial Times reports.

Why it matters: New efforts under the Biden administration reflect a break from the Trump-era approach, in which the administration at times encouraged cryptocurrency use within the financial system.


https://news.yahoo.com/news/u-plans-...151803743.html

I hope someone stops them from overregulation of this. Cash is literally all we'll have left.

[956Vette]

I guess we all seen this coming.
For those of us that use Bitcoin (probably most of us here), it seems unclear what the ultimate effects are going to be.

Politics aside, losing a free market anonymous currency like Bitcoin can't be good. And if the aim is to make it as traceable as as a debit card, then what's the point of crypto?



U.S. financial authorities are preparing to actively regulate the $1.5 trillion cryptocurrency market amid growing concerns of a lack of oversight, the Financial Times reports.

Why it matters: New efforts under the Biden administration reflect a break from the Trump-era approach, in which the administration at times encouraged cryptocurrency use within the financial system.


https://news.yahoo.com/news/u-plans-...151803743.html

I hope someone stops them from overregulation of this. Cash is literally all we'll have left.

There has never been bad news about Bitcoin. Best advice is to avoid AML/KYC when buying/selling cryptocurrency (had you not want gov bean counters auditing your every move).

[Beetlegeuse]

Most governments -- and the US government in particular -- will never sit idly by and let someone conduct secret transactions that it would be receiving taxes from if it knew about them. Their ability to document that a transaction is taking place is essential to that plan, so Crypto was always going to be a bug up the gummint's ass.

That's another reason why battery-only EVs and battery-assisted hybrid vehicles are never going to be markedly cheaper to operate than dinosaur-powered cars if the public should ever adopt them in large numbers. Because that threatens government revenues that it ordinarily would receive from taxing fuel, so I guaran-goddam-tee you that the government will find a way to offset those losses. The state of Oregon already charges a higher annual registration fee for high-mpg hybrids than for garden-variety dino-powered cars, and higher still for battery-only EVs for that very reason. Amortized over the mileage any given car will be driven it's a fairly small amount but that's because the dino-powered cars are still buying enough fuel that the state isn't yet feeling the bite. The fee is certain to increase in response to any increase in the popularity of hybrids and EVs.

The current cumulative value of all crypto is well in excess of a trillion USD, and the spectre of a trillion $$$ in untaxed capitalism whizzing around over the Internet scares the holy hell out of the Tax Man. And the government won't hesitate to hare-lip the Pope if that's what it takes to get what they figure they're owed.

[956Vette]

Most governments -- and the US government in particular -- will never sit idly by and let someone conduct secret transactions that it would be receiving taxes from if it knew about them. Their ability to document that a transaction is taking place is essential to that plan, so Crypto was always going to be a bug up the gummint's ass.

The current cumulative value of all crypto is well in excess of a trillion USD, and the spectre of a trillion $$$ in untaxed capitalism whizzing around over the Internet scares the holy hell out of the Tax Man. And the government won't hesitate to hare-lip the Pope if that's what it takes to get what they figure they're owed.

Anyone can view every bitcoin transaction on its public ledger. Hyperbitcoinization is likely spearheaded by corporations and governments adopting crypto.

[Fluidic Kimbo]

I do think it's good that we don't need to trust anyone in order to store and make transactions in Bitcoin. This to me was always the #1 thing about Bitcoin -- especially since I've had bad experiences with banks.

The #2 thing for me was the privacy. Yes I know everyone can see the public ledger but still you can move money between a few dozen wallets, and so then you have a lot of plausable deniability as to whether the money originally came from.

But the major problem with Bitcoin is these two things:
(1) It's too easy for a cocaine buyer in England to pay a cocaine seller in Columbia
(2) It's too easy to kidnap someone and demand a ransom, or to encrypt data and demand a ransom

So if you ask me whether it's better to have or not to have Bitcoin, I'm leaning toward not having it so that it's more difficult for the pure evil people among us to thrive.

I still despise banks though.

[Hughinn]

The real tragedy of government regulation of Bitcoin, is that it violates the idea of a free market.

Bitcoin enabled trillions of dollars worth of free market, individual exchanges with little to no government involvement.

Basically, goods, services and capital could be exchanged by individual people all over the world. With no currency exchange, no taxes and no government records. Bitcoin is the equivalent of digital cash.

This, is the definition of free market world capitalism. A man in Singapore could purchase goods from another man in India or Bangladesh with no currency exchange, no government involvement and no government oversight. This is private individual exchanges among people. Anytime, anywhere.

Which is why of course as beetle points out, the biden administration seeks to stifle it.

Because the goal of modern government isn't trying to protect individual liberties or national sovereignty.

It's to regulate and control individual consumption and private enterprise.

[Fluidic Kimbo]

Which is why of course as beetle points out, the biden administration seeks to stifle it.
Because the goal of modern government isn't trying to protect individual liberties or national sovereignty.
It's to regulate and control individual consumption and private enterprise.

20 years ago if I kidnapped your child and demanded a ransom, there was at least a little optimism that I'd be caught when you leave the bag of cash on a bench at the public park, or in a trash can at the Mall.

Now I just need to send you an email with a photograph of her bound in duct tape with something like "Send the 120 bitcoins to 012sfkk23f4k325215fkjg3521gkg15 or I'm pouring the acid on her face".

[Hughinn]

20 years ago if I kidnapped your child and demanded a ransom, there was at least a little optimism that I'd be caught when you leave the bag of cash on a bench at the public park, or in a trash can at the Mall.

Now I just need to send you an email with a photograph of her bound in duct tape with something like "Send the 120 bitcoins to 012sfkk23f4k325215fkjg3521gkg15 or I'm pouring the acid on her face".

Kimbo, I'm an American. My family was from Denmark. But I believe in American ideals of liberty. I understand you're European and see things differently. But, our nation was founded, and our laws written by men who seen things clearly.

"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." - Benjamin Franklin

"Any society that would give up a little liberty to gain a little security deserve neither and will lose both." - James Madison.


In other words, my family's safety is my responsibility, not the governments. And I'm not interested in giving up one additional scrap of liberty for the belief that government will help me or make my life or family more secure by doing so.