• Leading Economist Predicts a Bitcoin Backlash
    29 replies, posted
[URL="http://www.technologyreview.com/news/520296/leading-economist-predicts-a-bitcoin-backlash/"]MIT Technology Review[/URL] [quote][B]Economist Simon Johnson says governments will feel the urge to suppress the crypto-currency Bitcoin.[/B] Governments and established financial institutions are likely to launch a campaign to quash the decentralized digital currency Bitcoin, according to a leading economist and academic. Simon Johnson, a professor of entrepreneurship at MIT’s Sloan School of Management, expects Bitcoin to face political pressure and aggressive lobbying from big banks because of its disruptive nature. “There is going to be a big political backlash,” Johnson said on stage at MIT Technology Review’s EmTech conference in Cambridge, Massachusetts, last Thursday. “And the question is whether the people behind those currencies are ready for that and have their own political strategy.”[/quote] Is this the end of the reddit island dream? ;_;
They will just bring more media attention and interest to it, and the fact that the government cares about it gives a certain insurance that bitcoin is resilient enough to challenge the government system. People that are anti-government will jump on it big time.
Not really surprising. Banks would be annoyed that they don't get a piece of the pie, governments would be annoyed by the criminal activity it makes possible, regardless of what it's majority use is. To be honest, I couldn't care less to see it go; would make /pol/ hilarious to read when it happens.
The fact that majority of it's users treat it like a get rich quick scheme instead of just a currency probably doesn't help, either.
Like they haven't already been causing turbulence and profiting from it? The chart looks like a visualization of bipolar mood swings.
[QUOTE=Sgt Doom;42521014]governments would be annoyed by the criminal activity it makes possible, regardless of what it's majority use is.[/QUOTE] Isn't its majority use criminal activity with a side of optimistic speculation already?
[QUOTE=Aphtonites;42521037]The fact that majority of it's users treat it like a get rich quick scheme instead of just a currency probably doesn't help, either.[/QUOTE] Have you been on r/bitcoin? Most of the users worship it as if it was Ron Paul's holy relic gift to society. The most obscure, random positive news of someone adopting bitcoin causes its users to go into a frenzy over how awesome bitcoin is, the downfall of fiat, etc. (of course in reality most of the big money entering into btc are investors who love the fact that they can play in a "wild west" market with no rules that is big enough to profit from) [editline]14th October 2013[/editline] Relating to the OP, governments will likely want to regulate BTC and that will hurt its value, but they really can't do much to stop BTC from being used. Its like trying to ban piracy - it wont work. The only way one entity can "control" BTC in any meaningful way is if they controlled more than 51% of the hashing power of the entire network. This is pretty much impossible to do at this point. Even then, its likely any real government pressure will just cause the value to rise due to all the new attention put into. This whole thing about Silk Road and the recent PBS Money2020 stuff relating to bitcoin has done nothing but put more attention on it. And guess what? The value of BTC is now breached $150, and the value has been steadily rising the past few months. Last time BTC was over $150, shortly after it went through the bubble that took it to over $233/btc. There's a very real possibility that BTC will either enter a new bubble or raise to a new bottom value sometime soon.
It's really interesting to see how BTC is slowly stabilizing, with how much the value fluctuates. With the closing of Silk Road, it was more amazing how little value the currency fell, many users were expecting it to fall a lot more. The more people that use bitcoin, the more the value stabilizes.
[QUOTE=KorJax;42521123] Relating to the OP, governments will likely want to regulate BTC and that will hurt its value, but they really can't do much to stop BTC from being used. Its like trying to ban piracy - it wont work. The only way one entity can "control" BTC in any meaningful way is if they controlled more than 51% of the hashing power of the entire network. This is pretty much impossible to do at this point. [/QUOTE] You are forgetting that the major soft points of bitcoin are the exchanges. They are run by physical, tangible people - easy targets for authorities who can charge them with pretty much anything they like (recall the recent crackdown on Liberty Reserve). If you can't exchange bitcoin for dollars or any other widely used currency people will lose interest in it.
You still can't buy much with Bitcoins (you certainly can't buy anything in person with them), so I don't see BTC going anywhere.
[QUOTE=SPESSMEHREN;42521627]You still can't buy much with Bitcoins (you certainly can't buy anything in person with them), so I don't see BTC going anywhere.[/QUOTE] I can give someone 150 bitcoins to [sp]____[/sp] you.
I don't understand this gloating attitude people have towards bitcoin. It's private and it's pretty convenient. It doesn't need to be so stable if you only want to do a single transaction once in a while instead of using it as your bank. [QUOTE=Alec W;42521655]I can give someone 150 bitcoins to kill you.[/QUOTE] Oh shit you're gonna get the internet cops on your ass. edit: on the other hand you can then rack up some more bitcoins and have them killed too. [QUOTE=demoguy08;42521591]You are forgetting that the major soft points of bitcoin are the exchanges. They are run by physical, tangible people - easy targets for authorities who can charge them with pretty much anything they like (recall the recent crackdown on Liberty Reserve). If you can't exchange bitcoin for dollars or any other widely used currency people will lose interest in it.[/QUOTE] People can first exchange bitcoins for some third currency and then into dollars.
At least we can resort to trading TF2 hats.
Edgy anarchist currency that will not operate correctly in a capitalist world.
[QUOTE=KorJax;42521123]Have you been on r/bitcoin? Most of the users worship it as if it was Ron Paul's holy relic gift to society.[/QUOTE] Well subReddits are more or less circlejerk central when they're so specific as this. Honestly not surprised at all.
[QUOTE=Alec W;42521655]I can give someone 150 bitcoins to [sp]____[/sp] you.[/QUOTE] Cool, I could really use a hug.
[QUOTE]Bitcoin to face political pressure and aggressive lobbying from big banks because of its disruptive nature[/QUOTE] Because the banks that cause 2009 recession and politicians who shutdown the government aren't disruptive at all. I'm all for bitcoin even though I know nothing about it because it represents an alternative to the current paradigm, at least a lil bit. Which I find refreashing.
[QUOTE=Sgt Doom;42521014]Not really surprising. Banks would be annoyed that they don't get a piece of the pie, governments would be annoyed by the criminal activity it makes possible, regardless of what it's majority use is. To be honest, I couldn't care less to see it go; would make /pol/ hilarious to read when it happens.[/QUOTE] they get piece of pie you dumb ass, no one sells Bitcoin to the cash, almost everyone transfer it through banks, and they cut their fees.
huh... i would think the CIA would fully support a decentralized anonymous currency for their line of work, and we all know if the CIA or the NSA wants to do something....well they kinda get it really its turning into the next big tax dodge though, thats why you see millionares buying up shitloads of bitcoins, at some point the IRS is gonna start cracking down on this with the help of the FBI and then the real shit will start
[QUOTE=Alec W;42521655]I can give someone 150 bitcoins to slather your naked body in butter and throw gummy bears at your sticky, sweaty body and have llamas gently nibble them off to sexually pleasure you.[/QUOTE]That's rather odd and descriptive, but I accept.
[QUOTE=Sableye;42522872]really its turning into the next big tax dodge though, thats why you see millionares buying up shitloads of bitcoins, at some point the IRS is gonna start cracking down on this with the help of the FBI and then the real shit will start[/QUOTE] Pretty damn sure they accounted for that, since it requires a massive amount of processing power to generate bitcoins in the first place. [B]AND [/B]that the maximum number of bitcoins is also finite. The only one getting rich are those selling bitcoins.
[QUOTE=SPESSMEHREN;42521627]You still can't buy much with Bitcoins (you certainly can't buy anything in person with them), so I don't see BTC going anywhere.[/QUOTE] [url]https://www.spendbitcoins.com/places/[/url] [url]https://en.bitcoin.it/wiki/Trade#Material_.2F_Physical_Products[/url] Please stop being objectively wrong.
I don't see how ensuring the bitcoin market follows legislated financial regulation is quashing it, it'll presumably still be able to operate.
I kind of thought that shady organizations could make better use of the bitcoin. Wouldn't it be easier to launder money with it?
[QUOTE=Eudoxia;42525380][url]https://www.spendbitcoins.com/places/[/url] [url]https://en.bitcoin.it/wiki/Trade#Material_.2F_Physical_Products[/url] Please stop being objectively wrong.[/QUOTE] So what, 1000 places of the millions of total places? That's like saying polished turds are a popular currency because I can find 1000 collectors of polished turds willing to trade things for them Bitcoin isn't even physical so it's an unpolishable turd
[QUOTE=Eudoxia;42525380][url]https://www.spendbitcoins.com/places/[/url] [url]https://en.bitcoin.it/wiki/Trade#Material_.2F_Physical_Products[/url] Please stop being objectively wrong.[/QUOTE] Wohoo, I can rent dumpsters in San Francisco with Bitcoins!
[QUOTE=Zeke129;42526012]So what, 1000 places of the millions of total places? That's like saying polished turds are a popular currency because I can find 1000 collectors of polished turds willing to trade things for them Bitcoin isn't even physical so it's an unpolishable turd[/QUOTE] can you really find 1000 collectors of polished turds? if so, i have been literally flushing money down the drain!
ITT :dumb cunts who don't know shit about btc.
[QUOTE=Lonestriper;42525660]I don't see how ensuring the bitcoin market follows legislated financial regulation is quashing it, it'll presumably still be able to operate.[/QUOTE] You're disregarding the part where relatively unknown economic dignitaries have very good abilities to affect decision making in their favor. Today has many examples of downright protectionism, not for the benefit of nations but for corporations.
The fact that the concept of BTC has been introduced is enough for it to virtually live on through LTC and its other branches.
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