Bitcoin; untraceable currency

http://www.deathandtaxesmag.com/9066...en-the-dollar/

This is essentially what the creators of BitCoin have done with the introduction of their open source digital currency, controlled by each user, kept on one’s computer and impervious to hacks and manipulation, including the inflation that occurs when governments flood countries with newly-minted currency.

Not only does the BitCoin already have practical value—for users are already exchanging them via the internet—but it has struck a symbolic blow against states everywhere, even in its very early stages.

What are the defining characteristics of a BitCoin? They cannot be tracked or frozen, for one thing. They cannot be taxed, which would remove yet another source of power the state has over individuals. The power of the state essentially lies in its taxation powers, which allows it to wage war and allow for modern empire, as well as dispense that taxpayer money to other countries. BitCoin exchanges can be done anywhere in the world and fees are extremely minimal compared to similar exchanges within and across banks.

BitCoins have already been used to purchase books, video games and other items. Of course, since the BitCoins can’t be tracked, it opens up a wealth of exploitable opportunity for black markets such as drug dealing and prostitution. This alone will alarm politicians, who one can imagine are already considering making the new currency illegal. The same thing could be said of CraigsList, however, and yet it is still legal.

The power of the state essentially lies in its taxation powers, which allows it to wage war and allow for modern empire, as well as dispense that taxpayer money to other countries. Originally Posted by 78704

Almost correct. The actual power lies in the members of a government willingness to use violence. Taxation is just state sanctioned extortion, i.e., theft under threat of violence.

BOT, my prediction is that our gang in government is already looking for, or seeding, a scenario where they can claim BitCoin enables or promotes or is used by terrorists (their newspeak definition of terrorist, not the traditional definition, which would be themselves).

http://www.deathandtaxesmag.com/9066...en-the-dollar/



What are the defining characteristics of a BitCoin?

They cannot be taxed, which would remove yet another source of power the state has over individuals.

BitCoin exchanges can be done anywhere in the world and fees are extremely minimal compared to similar exchanges within and across banks.
Originally Posted by 78704

Huh - kinda sounds like taxation to me...

Digital currency has been around for a while and is probably more prevalent than any of us wants to admit. PayPal? BillPay? Electronic check?

BitCoin will probably work until someone figures out a way to "regulate" it. That means the banks before the Congress... who's still clueless as to how to regulate the internet.

I'm guessing taxation works for 90 percent of the world... and has since the pre-Roman days. (What did the Romans ever do for us?) Of course, free speech also works in those countries as well.

Haven't heard a single protest from Europe demanding the U.S. style of government. Have you? My last trip through Europe was a real eye opener.

Howdy, Folks!


You've Got Gold?


Interesting concept for financial transactions.


As a financial instrument, Hawala is something to take note of as well; it has been around for centuries.

As I stated in earlier posts - the economics of The Hobby is fascinating to me.