4 ms·
There's lot here, but I'll make it short: - The fed does not exercise control over Bitcoin directly, so Bitcoin is still fundamentally different than fiat curr
by nemild 9y ago
There's lot here, but I'll make it short:
- The fed does not exercise control over Bitcoin directly, so Bitcoin is still fundamentally different than fiat currencies
- All fiat onramps into crypto are controlled by governments, which is one way to regulate it (KYC, AML)
- You still have to follow the rules for your country, and if the government finds out you haven't, it can censure you; with crypto, it can be harder to see if someone followed the rules, but it's not impossible with the pseudonymous approaches used by most cryptocurrencies today
- sixdimensional 9y agoFair enough, maybe this falls apart when we started talking about fiat currencies being exchanged directly for Bitcoin (i.e. when "real" money got involved). Prior to that really happening, it seemed like one could create new Bitcoin through mining, which was a conversion of computing power/electricity/time directly into crypto-currency value - not a direct conversion of fiat currency into crypto-currency value. With mining now being cost prohibitive, it's not as reasonable of an avenue of gaining Bitcoin.. and "real" money has entered the game - and with that, comes regulation.
- zxcmx 9y agoNearly all fiat onramps have AML/KYC. There's also localbitcoins.com, one way to meet parties who are interested in transacting person to person. Naturally you are still supposed to pay your taxes if you do this.