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The government will revoke their license and file charges against the executives / fiduciaries for violating their laws. Exchanges operate under the laws of the

The government will revoke their license and file charges against the executives / fiduciaries for violating their laws. Exchanges operate under the laws of the countries they are based in, many of which are offshore (Cayman, Seychelles, etc.) which have less strict rules than US / EU / UK exchanges. Of course you lose legal protections as a customer, but the free market has not been valuing those protections as much as statists would want you to believe their value is.

didibus 6y ago
So, if I get the political idea behind cryptocurrency, it would be that for example, no one could control or intercept exchange of money between individuals? But instead the members of the cryptocurrency itself is in control of the rules around the exchange? So for example, there could be a cryptocurrency that imposes a tax on transactions, but the tax could just go back evenly distributed to all members of the cryptocurrency? And if a certain group within that didn't like this scheme, they could choose to move to some other cryptocurrency with a scheme they'd prefer? But now between cryptocurrencies, your exchange power would be dictated based on which crypto's total assets are? Thus which crypto is most popular would be valued more between cryptos as well? If I understood well till here let me know. From that, what I wonder is, wouldn't each cryptocurrency then be it's own state, but just in a virtual sense? So if that aligned with a geography, wouldn't we just be back in the same system as gold and/or cash money but digital? For example, if all US citizen traded in crypto X. And if crypto X had in its code rules that transactions outside crypto X into another crypto arn't allowed? Or come with some tax on the transaction? Or needed to be recorded permanently as too how much each wallet was transacting outside? And after some amount the wallet would get seized, or would get capped out? Etc. And that all taxed and seized money would go a particular wallet that is controlled by an elected group of member that can allocate where the money goes? Etc. I say that because, all this happened with gold and cash money? And they were similarly anonymous and untraceable? So I'm trying to see what is different in crypto that it couldn't lead to this type of group organization of people into states?
- danielheath 6y ago
  Moving substantial amounts of gold/cash money across the world is a difficult, risky operation. Have a real think about how you would get, say, 10 million across a border safely. In contrast, moving millions in bitcoin is no more difficult than moving cents.
  - didibus 6y ago
    I probably lack the imagination and there's probably a lot I don't know. Because it's not all adding up for me. Let's say the US decides to use some new UScoin cryptocurrency. And that as part of that network all transactions are taxed automatically and it goes into the US governments wallet. Now let's say everyone can create a UScoin wallet or not. But in the US, any company is regulated such that it must pay its employees in US coins, and any company must only accept payment in UScoin or otherwise convert it to UScoin. So what's different with the status quo? Except that maybe we no longer need to waste paper? In fact, it seems a cryptocurrency would be way easier to apply regulations and monitor, since the coin code itself could guarantee all transactions are taxed and kept track off. You could even have it that each wallet must be associated with an SSN, and if not, the wallet coin's could be automatically taken from the wallet by the network. Where's as today, you need to have audit mechanisms to find cheaters, with crypto it could all be guaranteed. As I understand, currently the Bitcoin network and others have implemented relax regulations on their transactions and provide anonymity and all that. But this is only true as countries have allowed the use of the currencies. If a country wanted to ban it? How hard would that be? And even if say you couldn't ban it, you'd still have the problem people have today. When you transfer US dollars into Bitcoin and back, this is where they can track you. This seem like it be true as well if transferring some UScoin in/out. In fact again, I think such a UScoin would make it even easier to monitor than current cash money.

didibus 6y ago

So, if I get the political idea behind cryptocurrency, it would be that for example, no one could control or intercept exchange of money between individuals? But instead the members of the cryptocurrency itself is in control of the rules around the exchange? So for example, there could be a cryptocurrency that imposes a tax on transactions, but the tax could just go back evenly distributed to all members of the cryptocurrency? And if a certain group within that didn't like this scheme, they could choose to move to some other cryptocurrency with a scheme they'd prefer? But now between cryptocurrencies, your exchange power would be dictated based on which crypto's total assets are? Thus which crypto is most popular would be valued more between cryptos as well? If I understood well till here let me know. From that, what I wonder is, wouldn't each cryptocurrency then be it's own state, but just in a virtual sense? So if that aligned with a geography, wouldn't we just be back in the same system as gold and/or cash money but digital? For example, if all US citizen traded in crypto X. And if crypto X had in its code rules that transactions outside crypto X into another crypto arn't allowed? Or come with some tax on the transaction? Or needed to be recorded permanently as too how much each wallet was transacting outside? And after some amount the wallet would get seized, or would get capped out? Etc. And that all taxed and seized money would go a particular wallet that is controlled by an elected group of member that can allocate where the money goes? Etc. I say that because, all this happened with gold and cash money? And they were similarly anonymous and untraceable? So I'm trying to see what is different in crypto that it couldn't lead to this type of group organization of people into states?

danielheath 6y ago
Moving substantial amounts of gold/cash money across the world is a difficult, risky operation. Have a real think about how you would get, say, 10 million across a border safely. In contrast, moving millions in bitcoin is no more difficult than moving cents.
- didibus 6y ago
  I probably lack the imagination and there's probably a lot I don't know. Because it's not all adding up for me. Let's say the US decides to use some new UScoin cryptocurrency. And that as part of that network all transactions are taxed automatically and it goes into the US governments wallet. Now let's say everyone can create a UScoin wallet or not. But in the US, any company is regulated such that it must pay its employees in US coins, and any company must only accept payment in UScoin or otherwise convert it to UScoin. So what's different with the status quo? Except that maybe we no longer need to waste paper? In fact, it seems a cryptocurrency would be way easier to apply regulations and monitor, since the coin code itself could guarantee all transactions are taxed and kept track off. You could even have it that each wallet must be associated with an SSN, and if not, the wallet coin's could be automatically taken from the wallet by the network. Where's as today, you need to have audit mechanisms to find cheaters, with crypto it could all be guaranteed. As I understand, currently the Bitcoin network and others have implemented relax regulations on their transactions and provide anonymity and all that. But this is only true as countries have allowed the use of the currencies. If a country wanted to ban it? How hard would that be? And even if say you couldn't ban it, you'd still have the problem people have today. When you transfer US dollars into Bitcoin and back, this is where they can track you. This seem like it be true as well if transferring some UScoin in/out. In fact again, I think such a UScoin would make it even easier to monitor than current cash money.