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The only thing the US government can ban/regulate are the on and off ramps, going from fiat to crypto and from crypto to fiat. Because at the end of the year yo

The only thing the US government can ban/regulate are the on and off ramps, going from fiat to crypto and from crypto to fiat. Because at the end of the year you most likely need to pay your tax in fiat currencies. But given that the ledger data is public I could see it become regulate so that to buy and sell crypto you need to go through a Know your customer(KyC) process. So they know who's behind which wallet address. This way states can create white lists and black lists of wallet addresses. Only allow white listed miners to add new bitcoins/crypto to exchanges. This will make sure sanctioned nations can't trade with US companies. The can pretty much track in real time when illegal transactions are taking please by cross referencing if transactions from black listed to white listed addresses are taking place and fine instantly. Chain analyses have already been used to find criminal activity.

coldtea 6y ago
>The only thing the US government can ban/regulate are the on and off ramps, going from fiat to crypto and from crypto to fiat. Well, making it illegal to own Bitcoin alone is only enough to delegate it to criminals and libertarian "fbi can come and get me" types. Even if they can't technically police it, it's enough that if you're ever caught with it you can go to jail / pay a fine to discourage most. And of course this means all exchanges have to close, whether in the US, or in places where the US can excert force (not to mention the other countries govermenets might as well agree), etc.
trident5000 6y ago
The govt can go with the flow or against it. If they go with the flow they will get a mostly transparent leading coin (bitcoin) that people use and whereby people abide by the reasonable rules they set out. If they go against the flow, they will be dealing with bitcoin mixers, monero, decentralized exchanges, foreign stable coins instead of usd, and an entire separate digital economy that develops without their involvement.
csomar 6y ago
> But given that the ledger data is public I could see it become regulate so that to buy and sell crypto you need to go through a Know your customer(KyC) process. You already need KYC today for most exchanges. This status quo is unlikely to remain, however, given that Decentralized Exchanges are likely to become cheap and efficient in the future. > The can pretty much track in real time when illegal transactions are taking please by cross referencing if transactions from black listed to white listed addresses are taking place and fine instantly. I think when this happens most people will realize how important the current Proof Of Work concept is. It basically means this white/black listing becomes very hard vs. PoS where the big holders could be manipulated by some government.
- Kbelicius 6y ago
  > This status quo is unlikely to remain, however, given that Decentralized Exchanges are likely to become cheap and efficient in the future. Decentralized exchanges are not the solution to the given problem unless I'm missing something. AFAIK on a decentralized exchange I can trade my BTC for ETH but I can not trade my USD or EUR for ETH. > I think when this happens most people will realize how important the current Proof Of Work concept is. It basically means this white/black listing becomes very hard vs. PoS where the big holders could be manipulated by some government. Are you implying that miners, unlike POS holders, are not humans, or are a special breed of humans, and thus can not be manipulated by governments?

coldtea 6y ago

>The only thing the US government can ban/regulate are the on and off ramps, going from fiat to crypto and from crypto to fiat. Well, making it illegal to own Bitcoin alone is only enough to delegate it to criminals and libertarian "fbi can come and get me" types. Even if they can't technically police it, it's enough that if you're ever caught with it you can go to jail / pay a fine to discourage most. And of course this means all exchanges have to close, whether in the US, or in places where the US can excert force (not to mention the other countries govermenets might as well agree), etc.

trident5000 6y ago

The govt can go with the flow or against it. If they go with the flow they will get a mostly transparent leading coin (bitcoin) that people use and whereby people abide by the reasonable rules they set out. If they go against the flow, they will be dealing with bitcoin mixers, monero, decentralized exchanges, foreign stable coins instead of usd, and an entire separate digital economy that develops without their involvement.

csomar 6y ago

> But given that the ledger data is public I could see it become regulate so that to buy and sell crypto you need to go through a Know your customer(KyC) process. You already need KYC today for most exchanges. This status quo is unlikely to remain, however, given that Decentralized Exchanges are likely to become cheap and efficient in the future. > The can pretty much track in real time when illegal transactions are taking please by cross referencing if transactions from black listed to white listed addresses are taking place and fine instantly. I think when this happens most people will realize how important the current Proof Of Work concept is. It basically means this white/black listing becomes very hard vs. PoS where the big holders could be manipulated by some government.

Kbelicius 6y ago
> This status quo is unlikely to remain, however, given that Decentralized Exchanges are likely to become cheap and efficient in the future. Decentralized exchanges are not the solution to the given problem unless I'm missing something. AFAIK on a decentralized exchange I can trade my BTC for ETH but I can not trade my USD or EUR for ETH. > I think when this happens most people will realize how important the current Proof Of Work concept is. It basically means this white/black listing becomes very hard vs. PoS where the big holders could be manipulated by some government. Are you implying that miners, unlike POS holders, are not humans, or are a special breed of humans, and thus can not be manipulated by governments?