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The secret to bitcoins success is that if you cry wolf enough times, and take away peoples freedom to such an extent that they are impoverished by the wealthy,

The secret to bitcoins success is that if you cry wolf enough times, and take away peoples freedom to such an extent that they are impoverished by the wealthy, they will find a way to exert their power. This is what happens when you lose the moral high-ground. Freedom is hard. Actually requiring probable cause before being subjected to the justice system used to be a thing. Then the US government started stealing peoples money without ever even charging them with a crime. So now we have crypto. So the government can't do it anymore. "But but but what if they are committing a crime!" they say. Prove it i say. You know. Rule of law. That's what democracies are supposed to be about aren't they? That attack on freedom now has crypto as a response. The thing that it is counter-intuitive about crypto, is that the solution to electronic anonymous and censorship resistant money, turned out being record everything forever. When someone can flick a switch and take everything from you, you don't have freedom. When you can access the ledger from anyone, prove that it it is valid, and be able to send your money to anyone, for whatever purpose, you do. This technology has been developed as a direct response to the insidious and anti-democratic implementation of AML/KYC laws on a global scale over the past 30 years. The extrapolation of these laws, given a long enough timeline, is slavery. Not figurative slavery, actual slavery. Bitcoin is the technical response to that problem.

acdha 9y ago
That’s a rather incongruous jumble of ideas and, as usual, Bitcoin doesn’t actually solve any of the mentioned problems. If you’re concerned about asset forfeiture laws, vote better to change them – your Bitcoin will be seized and liquidated like everything else, and if you think you can hide a wallet ask how that’ll work out better than burying money or storing it offshore.
- deleted 9y ago
  [deleted]
- DennisP 9y ago
  Yes, you can store wealth in place by burying money. What you can't always do so easily is move it. But you can transfer bitcoins anywhere in the world without anyone blocking the transfer, and you can carry them in your car in a hardware wallet without fear that a cop will confiscate them. Countries like Russia are looking for a way to move beyond the world dollar standard because the U.S. is able to shut down international dollar transfers for particular countries and banks, and uses that capability somewhat liberally. The U.S. probably can't do that to cryptocurrency, so I'd say it does in fact solve a problem for Russia. A lot of us vote to change things. I've also gone to protests, gotten involved in party politics, all that stuff. It's not that effective anymore. 80% of the country wants net neutrality and a couple million people took the trouble to file comments with FCC; it made no difference at all. At some point you have to stop begging and start inventing things. As Buckminster Fuller said, "To change something, build a new model that makes the existing model obsolete."
  - acdha 9y ago
    > But you can transfer bitcoins anywhere in the world without anyone blocking the transfer, and you can carry them in your car in a hardware wallet without fear that a cop will confiscate them. As soon as they’re converted to/from real money, they fall under the same restrictions as everything else, and most of the places you’d want want to live share restrictions on unregulated financial transactions. Similarly, while there’s egregious abuse of cash seizures it’s not like the cops haven’t heard of other stores of value. If they suspect you’re doing something serious, following the money in is what already leads to headlines about police selling large quantities of Bitcoin — and that hidden hardware wallet is going to be seen as proof that you’re hiding something. That latter point is the key one: there are a lot of people in jail because they thought they could hide money. I would not bet on having the opsec necessary to remove money from your accounts without leaving a trace, and with Bitcoin any mistake means you’ve left an irrevocable evidence trail behind.
    - DennisP 9y ago
      I'm not talking about hiding money. Plenty of people have had large amounts of perfectly legal and reported cash confiscated from their vehicles. They're often able to get it back eventually but only by suing. With a hardware wallet the cop can take it, but it won't make any difference. All of which is beside the point of the actual article, which is about Russia using crypto to get past sanctions.
      - acdha 9y ago
        I agree that forfeiture is a huge problem but I’m missing what Bitcoin adds to this versus, say, just not keeping large quantities of cash. I don’t hear about cops running charges on people’s cards, for example.
        Frogolocalypse 9y ago
        I'm actually confident that America will eventually get it right. I expect that America, when backed into it, will legislate your rights to protect the fruits of your labour. And then they'll have the moral authority again. They're just going to have to work harder in diplomacy. Which they are quite capable of doing at times. Underrated? Treaty with Iran. Iran ain't really in the news of late? That is better. But to your question, keeping $1 million in cash, all legitimately acquired, in your house, which could be seized under the flimiest of pretenses, is madness. Bank? Gold? No thanks. It's going to happen eventually. You might as well figure out how to get used to it. In spite of how the US sometimes is, they have inevitably come down on the right side of history.
- IIAOPSW 9y ago
  You still don't get it. To bust sanctions is to go against the Washington consensus. But why did bitcoin become popular with American's in the first place? The answer is that the Washington consensus has evolved to be just as opposed to the interest of every day American's as it is to the interests of states like Russia and Iran. Civil liberties have been eroded in the name of terrorism and pedophiles for a long time now. No amount of voting seems to fix these problems. The founding fathers put gun rights in the constitution under the belief that the final protection of personal freedoms is the ability to defend it for yourself. Cryptography is the guns of the 21st century. If bitcoin is being used to bust sanctions, its a problem that could have been avoided if the plutocrats in Washington hadn't prosecuted the endless drug war, engaged in civil forfeiture, used taxes to pursue unpopular bailouts, and just generally gave people a reason to want to exit their financial system.
  - acdha 9y ago
    Again, my point isn’t that the state of executive powers is great but rather that magical thinking about technology won’t solve them. Moving real money into Bitcoin will leave a paper trail, as does moving it out. If you don’t disclose that or surrender control when required by law, they’re not going to just give up — that’s more like jail time until you cooperate (money laundering is an obvious lever), and most other countries will go along with that. Similarly, companies which are trying to be legit aren’t going to touch tainted bitcoins since they don’t want to be pulled in as accomplices.
    - IIAOPSW 9y ago
      >If you don’t disclose that or surrender control when required by law, they’re not going to just give up. But its trivial to manage several separate financial persona's (wallets) and generally amortize yourself against losing/revealing everything. >and most other countries will go along with that. Countries within the Western sphere of influence sure. Just look at how the US got that BTC-E Russian on holiday in Greece. But consider the fact that some countries have more to gain by destroying US financial hegemony than they stand to lose by their own citizens petty crime. Russia makes bitcoin completely unregulated. So you try to contain the problem by blocking Ruble/USD exchange. Then China follows Russia's lead. Now you contain the problem by blocking RMB/USD exchange? Pretty soon you've locked so much of the world out that really all you've done is lock yourself in. In the near future there will be so many leaks that the US and the West in general doesn't have enough fingers to plug every hole. >aren’t going to touch tainted bitcoins Monero
- abecedarius 9y ago
  > your Bitcoin will be seized and liquidated like everything else I suspect there's a difference. Old-style, the Man says to the bank, "Hey, until further notice, acdha's money isn't theirs anymore." The bank says "Yes, sir." Then you try to contest this using a lawyer on contingency or something, I don't know. New-style, they say to you, "Hand over your private keys, you don't own them anymore." You say, "I'm calling my lawyer." Maybe the process ends in the same place, maybe it doesn't, but if possession is really whatever percentage of the law, outcomes will change on the margin accordingly. To the extent this helps the likes of Putin, it's bad. (see https://en.wikipedia.org/wiki/Magnitsky_Act https://en.wikipedia.org/wiki/Magnitsky_Act)
  - acdha 9y ago
    New style seems more like they hold your devices until someone can crack them and/or keep you in jail without access until you hand over the keys, which a judge agrees to because there’s no other way to freeze your accounts. Meanwhile, the prosecutor is going to use not following existing financial disclosure/access laws as proof that you must be doing something really bad – and since those assets are off limits, you’re relying on an overworked public defender.
    - htormey 9y ago
      Devils advocate: That assumes they know about all of your wallets? It would be relatively easy to hand over one but keep another they don't know about right?
      - acdha 9y ago
        How did anything get into those wallets in the first place? If it involved any legitimate business or a known address, they know you had something and will follow up. If it’s totally off the books, you need to flee to a few countries with lax banking laws before accessing it because you’ll have to explain either the income or non-trivial purchases (“how does a guy reporting $100k salary buy a $500k house in cash?” is the kind of thing which routinely catches small scale crooks). Do any of that wrong, well, you probably lied to a federal agent and can face severe penalties for that alone.
loceng 9y ago
People could alternately rally around strong thought leaders and get them elected. The problem is most people vote based on knee-jerk reactions and there is too money easily in politics.

acdha 9y ago

That’s a rather incongruous jumble of ideas and, as usual, Bitcoin doesn’t actually solve any of the mentioned problems. If you’re concerned about asset forfeiture laws, vote better to change them – your Bitcoin will be seized and liquidated like everything else, and if you think you can hide a wallet ask how that’ll work out better than burying money or storing it offshore.

deleted 9y ago
[deleted]
DennisP 9y ago
Yes, you can store wealth in place by burying money. What you can't always do so easily is move it. But you can transfer bitcoins anywhere in the world without anyone blocking the transfer, and you can carry them in your car in a hardware wallet without fear that a cop will confiscate them. Countries like Russia are looking for a way to move beyond the world dollar standard because the U.S. is able to shut down international dollar transfers for particular countries and banks, and uses that capability somewhat liberally. The U.S. probably can't do that to cryptocurrency, so I'd say it does in fact solve a problem for Russia. A lot of us vote to change things. I've also gone to protests, gotten involved in party politics, all that stuff. It's not that effective anymore. 80% of the country wants net neutrality and a couple million people took the trouble to file comments with FCC; it made no difference at all. At some point you have to stop begging and start inventing things. As Buckminster Fuller said, "To change something, build a new model that makes the existing model obsolete."
- acdha 9y ago
  > But you can transfer bitcoins anywhere in the world without anyone blocking the transfer, and you can carry them in your car in a hardware wallet without fear that a cop will confiscate them. As soon as they’re converted to/from real money, they fall under the same restrictions as everything else, and most of the places you’d want want to live share restrictions on unregulated financial transactions. Similarly, while there’s egregious abuse of cash seizures it’s not like the cops haven’t heard of other stores of value. If they suspect you’re doing something serious, following the money in is what already leads to headlines about police selling large quantities of Bitcoin — and that hidden hardware wallet is going to be seen as proof that you’re hiding something. That latter point is the key one: there are a lot of people in jail because they thought they could hide money. I would not bet on having the opsec necessary to remove money from your accounts without leaving a trace, and with Bitcoin any mistake means you’ve left an irrevocable evidence trail behind.
  - DennisP 9y ago
    I'm not talking about hiding money. Plenty of people have had large amounts of perfectly legal and reported cash confiscated from their vehicles. They're often able to get it back eventually but only by suing. With a hardware wallet the cop can take it, but it won't make any difference. All of which is beside the point of the actual article, which is about Russia using crypto to get past sanctions.
    - acdha 9y ago
      I agree that forfeiture is a huge problem but I’m missing what Bitcoin adds to this versus, say, just not keeping large quantities of cash. I don’t hear about cops running charges on people’s cards, for example.
      - Frogolocalypse 9y ago
        I'm actually confident that America will eventually get it right. I expect that America, when backed into it, will legislate your rights to protect the fruits of your labour. And then they'll have the moral authority again. They're just going to have to work harder in diplomacy. Which they are quite capable of doing at times. Underrated? Treaty with Iran. Iran ain't really in the news of late? That is better. But to your question, keeping $1 million in cash, all legitimately acquired, in your house, which could be seized under the flimiest of pretenses, is madness. Bank? Gold? No thanks. It's going to happen eventually. You might as well figure out how to get used to it. In spite of how the US sometimes is, they have inevitably come down on the right side of history.
IIAOPSW 9y ago
You still don't get it. To bust sanctions is to go against the Washington consensus. But why did bitcoin become popular with American's in the first place? The answer is that the Washington consensus has evolved to be just as opposed to the interest of every day American's as it is to the interests of states like Russia and Iran. Civil liberties have been eroded in the name of terrorism and pedophiles for a long time now. No amount of voting seems to fix these problems. The founding fathers put gun rights in the constitution under the belief that the final protection of personal freedoms is the ability to defend it for yourself. Cryptography is the guns of the 21st century. If bitcoin is being used to bust sanctions, its a problem that could have been avoided if the plutocrats in Washington hadn't prosecuted the endless drug war, engaged in civil forfeiture, used taxes to pursue unpopular bailouts, and just generally gave people a reason to want to exit their financial system.
- acdha 9y ago
  Again, my point isn’t that the state of executive powers is great but rather that magical thinking about technology won’t solve them. Moving real money into Bitcoin will leave a paper trail, as does moving it out. If you don’t disclose that or surrender control when required by law, they’re not going to just give up — that’s more like jail time until you cooperate (money laundering is an obvious lever), and most other countries will go along with that. Similarly, companies which are trying to be legit aren’t going to touch tainted bitcoins since they don’t want to be pulled in as accomplices.
  - IIAOPSW 9y ago
    >If you don’t disclose that or surrender control when required by law, they’re not going to just give up. But its trivial to manage several separate financial persona's (wallets) and generally amortize yourself against losing/revealing everything. >and most other countries will go along with that. Countries within the Western sphere of influence sure. Just look at how the US got that BTC-E Russian on holiday in Greece. But consider the fact that some countries have more to gain by destroying US financial hegemony than they stand to lose by their own citizens petty crime. Russia makes bitcoin completely unregulated. So you try to contain the problem by blocking Ruble/USD exchange. Then China follows Russia's lead. Now you contain the problem by blocking RMB/USD exchange? Pretty soon you've locked so much of the world out that really all you've done is lock yourself in. In the near future there will be so many leaks that the US and the West in general doesn't have enough fingers to plug every hole. >aren’t going to touch tainted bitcoins Monero
abecedarius 9y ago
> your Bitcoin will be seized and liquidated like everything else I suspect there's a difference. Old-style, the Man says to the bank, "Hey, until further notice, acdha's money isn't theirs anymore." The bank says "Yes, sir." Then you try to contest this using a lawyer on contingency or something, I don't know. New-style, they say to you, "Hand over your private keys, you don't own them anymore." You say, "I'm calling my lawyer." Maybe the process ends in the same place, maybe it doesn't, but if possession is really whatever percentage of the law, outcomes will change on the margin accordingly. To the extent this helps the likes of Putin, it's bad. (see https://en.wikipedia.org/wiki/Magnitsky_Act https://en.wikipedia.org/wiki/Magnitsky_Act)
- acdha 9y ago
  New style seems more like they hold your devices until someone can crack them and/or keep you in jail without access until you hand over the keys, which a judge agrees to because there’s no other way to freeze your accounts. Meanwhile, the prosecutor is going to use not following existing financial disclosure/access laws as proof that you must be doing something really bad – and since those assets are off limits, you’re relying on an overworked public defender.
  - htormey 9y ago
    Devils advocate: That assumes they know about all of your wallets? It would be relatively easy to hand over one but keep another they don't know about right?
    - acdha 9y ago
      How did anything get into those wallets in the first place? If it involved any legitimate business or a known address, they know you had something and will follow up. If it’s totally off the books, you need to flee to a few countries with lax banking laws before accessing it because you’ll have to explain either the income or non-trivial purchases (“how does a guy reporting $100k salary buy a $500k house in cash?” is the kind of thing which routinely catches small scale crooks). Do any of that wrong, well, you probably lied to a federal agent and can face severe penalties for that alone.

loceng 9y ago

People could alternately rally around strong thought leaders and get them elected. The problem is most people vote based on knee-jerk reactions and there is too money easily in politics.