US government clamps down on BitCoin exchange Dwolla

[1fast1]

It's finally happened.

 

 

Bitcoin has always been (rightly) perceived as a threat to the establishment since it became popular. The banks and governments of the world cannot control (or "regulate", to put it euphemistically) a decentralised currency. Loss of control is loss of power, and this is something they fear above all else.

 

The US government is shutting down Bitcoin to protect its own narrow, selfish interest. It has nothing to do with protecting the interests of the people. I've never trusted the US government (I mistrust all governments on general principle, but the US government has given me a lot more reason to mistrust it), so this takedown by the DHS was a foregone conclusion to my mind.

 

Bitcoin, apart from its many legitimate uses, is also used on sites like The Silk Road, which provides access to illegal services. The Feds have probably had a devil of a time trying to shut it down, without success - because of the decentralised nature of the deep web on which The Silk Road resides. They can't shut down the principal currency either: BitCoin is also protected by its decentralisation. However, they can (and now have) gone after the soft target - the point at which BitCoin is exchanged into "common" currency - the US dollar. That's always been the one vulnerability in the whole system.

 

If people stop using "common currency" and switch over entirely to BitCoin or similar decentralised cryptocurrency, the governments of the world would completely lose their stranglehold over time. Don't think of this as anarchy. Think of it as the dawn of responsible government and true democracy. I don't have to quote the line from "V for Vendetta", do I?

 

EDIT: The news is apparently 2 months old, but I just heard about it. I apologise if it's been posted before, if so mods please merge.

Edited July 21, 2013 by Turboflat4

[Myxilplix]

Shut down one and another one will take it's place.

[1fast1]

Shut down one and another one will take it's place.

 

Even BitCoin is very far from being shutdown.

 

The US gahmen is playing a dangerous game. If they anger the really serious hackers badly enough, I shudder to think what will happen to them (and us, as a consequence).

[Nullifi3d]

It's finally happened.

 

 

Bitcoin has always been (rightly) perceived as a threat to the establishment since it became popular. The banks and governments of the world cannot control (or "regulate", to put it euphemistically) a decentralised currency. Loss of control is loss of power, and this is something they fear above all else.

 

The US government is shutting down Bitcoin to protect its own narrow, selfish interest. It has nothing to do with protecting the interests of the people. I've never trusted the US government (I mistrust all governments on general principle, but the US government has given me a lot more reason to mistrust it), so this takedown by the DHS was a foregone conclusion to my mind.

 

Bitcoin, apart from its many legitimate uses, is also used on sites like The Silk Road, which provides access to illegal services. The Feds have probably had a devil of a time trying to shut it down, without success - because of the decentralised nature of the deep web on which The Silk Road resides. They can't shut down the principal currency either: BitCoin is also protected by its decentralisation. However, they can (and now have) gone after the soft target - the point at which BitCoin is exchanged into "common" currency - the US dollar. That's always been the one vulnerability in the whole system.

 

If people stop using "common currency" and switch over entirely to BitCoin or similar decentralised cryptocurrency, the governments of the world would completely lose their stranglehold over time. Don't think of this as anarchy. Think of it as the dawn of responsible government and true democracy. I don't have to quote the line from "V for Vendetta", do I?

 

EDIT: The news is apparently 2 months old, but I just heard about it. I apologise if it's been posted before, if so mods please merge.

 

This is one of the emerging trends for money-laundering and takes up a hellva alot of my time investigating.

[1fast1]

It's very interesting. See this chart:

 

 

Bros who are into Forex will surely be able to interpret that better than I can. But it's quite obvious that after a long bull run, BC started declining and becoming volatile around early to mid-April. I can't think of an obvious reason, unless someone had inside foreknowledge of the Dwolla bust and was trading on it. At any rate, the currency didn't really get affected in the immediate aftermath of the takedown - probably because that had already been priced in.

 

Anyway, there's already a newer and better alternative cryptocurrency called LiteCoin. It's just a matter of letting the new kid on the block catch up to big brother.

[1fast1]

The 2008 crisis is a result of aggressive deregulation, .. blame who ?

 

There are many who would argue that the crisis was brought on by irresponsible behaviour by the banks and the governments that supported them. That crisis can always recur when so much power is vested in the hands of so few - remember that the American Federal Reserve is a *private* institution and when push comes to shove it answers to noone except its owners (which are a number of other private banks). All the more reason to deregulate currency so that its value is determined purely by the common people who use it.

[Felipe]

it's like diesel cars and means to generate your own electricity. govt will never allow it, esp in sg.

[Kangadrool]

it's like diesel cars and means to generate your own electricity. govt will never allow it, esp in sg.

 

You can't even take a pail out on rainy days to collect rain water; it's illegal here.

[Felipe]

You can't even take a pail out on rainy days to collect rain water; it's illegal here.

wah din noe tat!

[Hydrocarbon]

You can't even take a pail out on rainy days to collect rain water; it's illegal here.

 

Wa? Really? In Singapore cannot collect rain water? What are they gonna charge the people who do that with?

 

If true, really

[Latio2005A]

You can't even take a pail out on rainy days to collect rain water; it's illegal here.

 

You must be kidding!

[Latio2005A]

You can't even take a pail out on rainy days to collect rain water; it's illegal here.

 

-double post-

Edited July 21, 2013 by Latio2005A

[1fast1]

You must be kidding!

 

I don't know if he's kidding, but I've certainly never heard of this bucket thing either. Perhaps he's referring to the NEA inspectors catching people for leaving buckets of water outside untended?

[Macrosszero]

I don't know if he's kidding, but I've certainly never heard of this bucket thing either. Perhaps he's referring to the NEA inspectors catching people for leaving buckets of water outside untended?

 

It was an offence last time but not anymore since 2005.

 

http://www.challenge.gov.sg/magazines/arch...0/work/pub.html

[1fast1]

It was an offence last time but not anymore since 2005.

 

http://www.challenge.gov.sg/magazines/arch...0/work/pub.html

 

Thanks for fact-checking and clarifying.

[Chucky2007]

You can't even take a pail out on rainy days to collect rain water; it's illegal here.

Really? Why is that so?

[1fast1]

"Determined purely by common people" is an economics ideal which even academics and analysts cannot guarantee what the outcome will be. Some currencies may just disappear and millions of people go into poverty, some other currencies become dominant. Like marxism is so ideal, but in practice never succeeded. Chances are, by human nature, there will be new players overpowering the majority.. thus, always need regulation and balance of power even if it is not ideal and inefficient allocation of resources.

 

All those instances of economies collapsing, etc. have been because of central mismanagement. Not because of the irresponsibility of the people. Markets have to remain fluid and efficient for an economy to thrive and the best way to do this is to decentralise things and let the "wisdom of crowds" take over completely. There might be occasional glitches like the Dutch tulip mania, but by and large, a mass of people will act fairly rationally.

 

The reason for central regulation is largely because the plutocrats are afraid that a significant amount of their power will be divested should they give up currency control.

[Ender]

Really? Why is that so?

Becoz our water bills covers only those from our tap. From the sky, need to pay extra tax,