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Posted: Wed Mar 05, 2014 12:15 pm
by TPRJones
Push for regulation where? Washington DC? They won't be able to regulate the exchanges in Germany and Japan from Washington DC, all they could do would be to try to make it illegal for US residents to do business with them.
Is the UN going to be trying to regulate bitcoin exchanges globally? That seems unlikely.
This is beyond nations, and thankfully there's no global government yet.
EDIT: The real solution is for people to stop leaving their bitcoins in the hands of these exchanges. You keep them in your personal wallet and only do a transfer when you are ready to do a transaction. Leaving them somewhere you yourself don't control is just asking for trouble.
Edited By TPRJones on 1394039811
Posted: Wed Mar 05, 2014 12:42 pm
by Vince
TPRJones wrote:Push for regulation where? Washington DC? They won't be able to regulate the exchanges in Germany and Japan from Washington DC, all they could do would be to try to make it illegal for US residents to do business with them.
In the countries they reside in. And then they'll set up other regulatory agencies for the foreign ones in order for the domestic ones to do business with them, etc. If they can do it internationally with banks, they can do it with Bitcoins.
Posted: Wed Mar 05, 2014 12:56 pm
by Malcolm
If they can do it internationally with banks, they can do it with Bitcoins.
Says who? The model is entirely different. Banks trade in currencies backed by nations.
Posted: Wed Mar 05, 2014 12:56 pm
by TPRJones
If they can do it internationally with banks...
That's a pretty big assumption, based on recent history. Plus, banks are rooted in a physical location and tied to a government through it's currency. Bitcoin has no roots in any country.
Japan has already ruled that bitcoin is outside the purview of their ministry of finance and won't be doing anything to regulate exchanges like MtGox. So, any country that tries to regulate the exchanges in ways the exchanges don't like, nwo they'll just move to Japan.
And then they'll set up other regulatory agencies for the foreign ones in order for the domestic ones to do business with them, etc.
The exchanges have no business with each other. This isn't like with banks where person A in country X needs to do a transaction with person B in country Y so they each go through their own banks and the banks handle the currency exchanges. Each person deals with whatever bitcoin exchange they wish wherever it is individually and directly. The only legal hold a country could have on a foreign bitcoin exchange would be to make it illegal for their citizens to do business with it, and I don't see that working very well in most western countries.
The sort of regulations you are envisioning here would take very specific and strongly built multi-national treaties of the sort that cedes regulatory power over to an international agency like interpol. I don't see that happening anytime soon - if ever - over bitcoins.
Edited By TPRJones on 1394042284
Posted: Wed Mar 05, 2014 1:10 pm
by Vince
Malcolm wrote:If they can do it internationally with banks, they can do it with Bitcoins.
Says who? The model is entirely different. Banks trade in currencies backed by nations.
And as long as bitcoins remain backed by nothing, they are going to be seen as risky.
Posted: Wed Mar 05, 2014 1:12 pm
by Malcolm
That's kind of the trade off.
Posted: Wed Mar 05, 2014 1:16 pm
by TPRJones
Meh, every other currency is backed by nothing these days, and they do well enough. Fiat currency is pretty much accepted as just the way money works now.
As long as someone somewhere is willing to buy a bitcoin for a certain price it will keep having that value.
EDIT: Plus, digital video game currencies of all sorts are teaching people that money is whatever you decide it is. The only difference between Isk and Bitcoin is where you can spend it.
Edited By TPRJones on 1394043759
Posted: Wed Mar 05, 2014 1:23 pm
by Vince
Malcolm wrote:That's kind of the trade off.
True. Like I said, it'll be interesting to see where it goes. I think it'll die out. May take a couple of years, but I think it will.
Posted: Wed Mar 05, 2014 1:28 pm
by Vince
TPRJones wrote:Meh, every other currency is backed by nothing these days, and they do well enough. Fiat currency is pretty much accepted as just the way money works now.
True, but the US dollar is protected by the FDIC with banks for ripping you off up to a certain amount. As is becoming apparent to lots of bitcoin holders, you get no such protection with their currency. And when a bank goes under, at least another bank can come in and buy all the assets and keep the members solvent. When the bit coin exchanges go bankrupt, there are no assets.
Posted: Wed Mar 05, 2014 2:17 pm
by Malcolm
True, but the US dollar is protected by the FDIC with banks for ripping you off up to a certain amount. As is becoming apparent to lots of bitcoin holders, you get no such protection with their currency. And when a bank goes under, at least another bank can come in and buy all the assets and keep the members solvent.
Another bank that can go under? And the FDIC's promise is only as good as the fed's checkbook.
Posted: Wed Mar 05, 2014 2:33 pm
by TPRJones
In a sense, bitcoins are backed by the security of the bitcoin P2P network. The one thing that would irrevocably destroy the value of bitcoins is if someone figures out how to hack the software that supports the network to create or steal bitcoins at will.
Posted: Wed Mar 05, 2014 2:47 pm
by Malcolm
If public key crypto gets broken, then the banks will get hit way way before the BC exchanges.
Posted: Wed Mar 05, 2014 3:41 pm
by Vince
Malcolm wrote:Another bank that can go under? And the FDIC's promise is only as good as the fed's checkbook.
As long as they control the printing presses, the money's protected. Might only be worth 10 cents on the dollar by the time they're done, but they'll protect your dollars in the bank. While at the same time destroying them...
Posted: Wed Mar 05, 2014 3:57 pm
by GORDON
Vince wrote:Malcolm wrote:Another bank that can go under? And the FDIC's promise is only as good as the fed's checkbook.
As long as they control the printing presses, the money's protected. Might only be worth 10 cents on the dollar by the time they're done, but they'll protect your dollars in the bank. While at the same time destroying them...
It would depend on when the next election is, and if the party of the person in the White House is at risk.
Posted: Wed Mar 05, 2014 4:01 pm
by Malcolm
Depends my ass. Either major party would do it.
Posted: Wed Mar 05, 2014 4:02 pm
by GORDON
Yeah, I know. That's why I didn't name names.
Posted: Fri Mar 28, 2014 2:01 pm
by TheCatt
Bitcoin down to 500... LTC down to 14.
Mining LTC has gotten super unproductive, turned off my miner. Was doing 0.12 a day, which is basically break-even at $14/LTC. Time to sell the vid card.
Posted: Wed May 21, 2014 9:51 am
by Paul
Posted: Wed May 21, 2014 10:10 am
by Leisher
The world's oldest currency.
Edited By Leisher on 1400681443
Posted: Sun Jun 22, 2014 7:50 am
by Paul
