6 ms·

This is just the beginning, and every major government in the world will be on board. In the end, fiat currencies are the foundation and core of every industria

by anewaccount2021 6y ago

This is just the beginning, and every major government in the world will be on board. In the end, fiat currencies are the foundation and core of every industrialized nation. There can be no alternatives. There's just no way bitcoin will be allowed to become an accepted medium for exchange. Janet Yellen is trying to provide early warning, although I doubt many will bother acting on it. edit: welcome bitcoin bagholders/downvoters!

toomuchtodo 6y ago
This was always going to be the outcome of attempting to subvert governments, central banks, and other interconnected institutions with technology. Laws versus tech, the law almost always wins (one of the few scenarios I'm familiar with where tech "won" was the reversal of PGP being treated as an export restricted munition [1] [2]). Tech is just a tool, and the arguments for crypto currencies compared to traditional fiat digitally represented (Central Bank Digital Currencies aka CBDCs [3]) just aren't that compelling (especially with countries, 54 so far more on the way, continuing to roll out instant payment networks [4]). This emboldens the very real observation Ms Yellen makes that crypto exists to obfuscate the transfer and storage of value against the intent of government financial regulation. [1] https://en.wikipedia.org/wiki/Export_of_cryptography_from_the_United_States https://en.wikipedia.org/wiki/Export_of_cryptography_from_th... [2] https://security.stackexchange.com/questions/55023/what-was-so-dangerous-about-pgp-that-its-creator-was-charged-in-court-for-it https://security.stackexchange.com/questions/55023/what-was-... [3] https://en.wikipedia.org/wiki/Central_bank_digital_currency https://en.wikipedia.org/wiki/Central_bank_digital_currency [4] https://empower1.fisglobal.com/rs/650-KGE-239/images/Report_Flavors_of_Fast_2019.pdf https://empower1.fisglobal.com/rs/650-KGE-239/images/Report_...
- asah 6y ago
  ...except the horse has left the barn and Bitcoin has already infiltrated the highest levels of business, finance and government. Even the IRS recognizes it. What seems more likely is KYC regulation for transactions and SEC review for ICOs. If this happens, Bitcoin will skyrocket in value as it crosses into the mainstream. (disclosure: minor HODLer since 2013)
worker767424 6y ago
They seem to tolerate gold, and its price is more stable and it's easier to use as a currency than any cryptocurrency.
- anewaccount2021 6y ago
  Because governments own gold.
- vorpalhex 6y ago
  There are a whole bunch of restrictions on moving gold across borders, and it's generally impractical to transact in gold for small transactions. You would have to not only carry the gold with you in useful increments, but also the appropriate assays to prove its value (which means you can't subdivide gold on the spot to make change). That makes gold less useful as a currency than cocaine, ammunition or ram sticks.
- CerealFounder 6y ago
  Don't underestimate the power of incumbency. Gold has been something used as an exchange commodity far before currency. Its also impractical at scale so much less a threat to the general system.
CerealFounder 6y ago
This was always the major existential risk of all of these currencies. It always felt like the cryptoheads viewed currency economics through an academic perspective instead of a practical one. While fiat currency is about money, at the macro level its much more about cultural and political control. Yes, it would be ideal if we decentralized and things were more transparent, but to get there you are literally going to war with every major military in the world by asking them "hey guys, hand over that control/influence." It seems like an uphill battle and one that doesn't truly start until they begin to be seen as a threat. Good luck fighters...
- sekmet 6y ago
  Yes, we will need to fight to keep our crypto money alive.... these communist suckers will try fuck everything to control us... be prepared!
  - deeeeplearning 6y ago
    >these communist suckers will try fuck everything to control us Yeah Janet Yellen the famous Marxist... wtf??
    - prichino 6y ago
      I mean the smarter ones usually hide it...
      - deeeeplearning 6y ago
        Thats the dumbest thing I've ever heard. So you are admitting you have no idea at all that she's actually a "Marxist" and that it's just a catch all term used by American morons for people they don't like?
        sekmet 6y ago
        :D :D :D you are a fucking american MORON!!!
yowlingcat 6y ago
> every major government in the world will be on board I can see a strong argument for governments to be intrinsically against something that takes away their own power. On the other hand, if that thing takes away the power of their rivals more, there's no reason for them to see it as a net win and act accordingly.

toomuchtodo 6y ago

This was always going to be the outcome of attempting to subvert governments, central banks, and other interconnected institutions with technology. Laws versus tech, the law almost always wins (one of the few scenarios I'm familiar with where tech "won" was the reversal of PGP being treated as an export restricted munition [1] [2]). Tech is just a tool, and the arguments for crypto currencies compared to traditional fiat digitally represented (Central Bank Digital Currencies aka CBDCs [3]) just aren't that compelling (especially with countries, 54 so far more on the way, continuing to roll out instant payment networks [4]). This emboldens the very real observation Ms Yellen makes that crypto exists to obfuscate the transfer and storage of value against the intent of government financial regulation. [1] https://en.wikipedia.org/wiki/Export_of_cryptography_from_the_United_States https://en.wikipedia.org/wiki/Export_of_cryptography_from_th... [2] https://security.stackexchange.com/questions/55023/what-was-so-dangerous-about-pgp-that-its-creator-was-charged-in-court-for-it https://security.stackexchange.com/questions/55023/what-was-... [3] https://en.wikipedia.org/wiki/Central_bank_digital_currency https://en.wikipedia.org/wiki/Central_bank_digital_currency [4] https://empower1.fisglobal.com/rs/650-KGE-239/images/Report_Flavors_of_Fast_2019.pdf https://empower1.fisglobal.com/rs/650-KGE-239/images/Report_...

asah 6y ago
...except the horse has left the barn and Bitcoin has already infiltrated the highest levels of business, finance and government. Even the IRS recognizes it. What seems more likely is KYC regulation for transactions and SEC review for ICOs. If this happens, Bitcoin will skyrocket in value as it crosses into the mainstream. (disclosure: minor HODLer since 2013)

worker767424 6y ago

They seem to tolerate gold, and its price is more stable and it's easier to use as a currency than any cryptocurrency.

anewaccount2021 6y ago
Because governments own gold.
vorpalhex 6y ago
There are a whole bunch of restrictions on moving gold across borders, and it's generally impractical to transact in gold for small transactions. You would have to not only carry the gold with you in useful increments, but also the appropriate assays to prove its value (which means you can't subdivide gold on the spot to make change). That makes gold less useful as a currency than cocaine, ammunition or ram sticks.
CerealFounder 6y ago
Don't underestimate the power of incumbency. Gold has been something used as an exchange commodity far before currency. Its also impractical at scale so much less a threat to the general system.

CerealFounder 6y ago

This was always the major existential risk of all of these currencies. It always felt like the cryptoheads viewed currency economics through an academic perspective instead of a practical one. While fiat currency is about money, at the macro level its much more about cultural and political control. Yes, it would be ideal if we decentralized and things were more transparent, but to get there you are literally going to war with every major military in the world by asking them "hey guys, hand over that control/influence." It seems like an uphill battle and one that doesn't truly start until they begin to be seen as a threat. Good luck fighters...

sekmet 6y ago
Yes, we will need to fight to keep our crypto money alive.... these communist suckers will try fuck everything to control us... be prepared!
- deeeeplearning 6y ago
  >these communist suckers will try fuck everything to control us Yeah Janet Yellen the famous Marxist... wtf??
  - prichino 6y ago
    I mean the smarter ones usually hide it...
    - deeeeplearning 6y ago
      Thats the dumbest thing I've ever heard. So you are admitting you have no idea at all that she's actually a "Marxist" and that it's just a catch all term used by American morons for people they don't like?
      - sekmet 6y ago
        :D :D :D you are a fucking american MORON!!!

yowlingcat 6y ago

> every major government in the world will be on board I can see a strong argument for governments to be intrinsically against something that takes away their own power. On the other hand, if that thing takes away the power of their rivals more, there's no reason for them to see it as a net win and act accordingly.