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The more mainstream Bitcoin becomes, the greater the likelihood that it will be shut down. As an alternate currency, it's a direct threat to the dollar. That th

The more mainstream Bitcoin becomes, the greater the likelihood that it will be shut down. As an alternate currency, it's a direct threat to the dollar. That threat is miniscule at present, but as Bitcoin gains traction, through services like Bitpay that reduce friction, it will be targeted for elimination by the economic powers that be.

jamoes 14y ago
Yep. But then the question is how will they shut it down? The powers that be hate bittorrent, but it's still alive and prospering. The powers that be hate drugs, but the war on drugs has been an abysmal failure. Bitcoin will prove to be very difficult for the powers that be to shut down. That is why it has so many fervent early adopters.
- gallerytungsten 14y ago
  I suspect a number of strategies will be used. First, they'll say it's being used for drug transactions. (Which is of course already the case.) Then they'll say it's being used for terrorist funding. Once it's thoroughly demonized, they'll start going after people with bitcoin balances, and seize them through existing asset forfeiture laws. (Which allow the government to seize whatever they want; and if you want it back, the burden of proof is on you.) They'll probably also focus on methods for converting Bitcoin back into mainstream currencies. In the end, those massive NSA databases that record everything that everyone is doing will probably be used to crack down on larger numbers of individuals. While this wouldn't be a "technical" shut-down, it would have a chilling effect as these "examples" will be publicized as a warning to other Bitcoin users.
  - jerguismi 14y ago
    > Once it's thoroughly demonized, they'll start going after people with bitcoin balances How do you determine that someone has bitcoin balance? > They'll probably also focus on methods for converting Bitcoin back into mainstream currencies. This sounds more viable strategy: attack the exchanges. After all, the value of bitcoins comes from the fact that it is liquid - easily convertible to existing currencies and back. However even shutting the exchanges down would require global cooperation from goverments and probably heavy internet censorship as well. That is because many exchanges don't even need any ties to the existing banking infrastructure, and can operate from any country.
- Nursie 14y ago
  "Yep. But then the question is how will they shut it down?" They don't need to stop the internet underground using it to have a severe impact. Simply declare that any business accepting payment in bitcoins is liable to prosecution and punitive damages. This makes it very unlikely that any IRL store will accept it, and puts a severe limit on the economy as a result. In some ways I'm surprised that they haven't already gone after people running BTC gambling sites.
tedunangst 14y ago
So are euros. Or Canadian dollars. Gasp! Apparently Tide is also on the list. I really doubt the Smoking Man gives a shit about bit coins.

jamoes 14y ago

Yep. But then the question is how will they shut it down? The powers that be hate bittorrent, but it's still alive and prospering. The powers that be hate drugs, but the war on drugs has been an abysmal failure. Bitcoin will prove to be very difficult for the powers that be to shut down. That is why it has so many fervent early adopters.

gallerytungsten 14y ago
I suspect a number of strategies will be used. First, they'll say it's being used for drug transactions. (Which is of course already the case.) Then they'll say it's being used for terrorist funding. Once it's thoroughly demonized, they'll start going after people with bitcoin balances, and seize them through existing asset forfeiture laws. (Which allow the government to seize whatever they want; and if you want it back, the burden of proof is on you.) They'll probably also focus on methods for converting Bitcoin back into mainstream currencies. In the end, those massive NSA databases that record everything that everyone is doing will probably be used to crack down on larger numbers of individuals. While this wouldn't be a "technical" shut-down, it would have a chilling effect as these "examples" will be publicized as a warning to other Bitcoin users.
- jerguismi 14y ago
  > Once it's thoroughly demonized, they'll start going after people with bitcoin balances How do you determine that someone has bitcoin balance? > They'll probably also focus on methods for converting Bitcoin back into mainstream currencies. This sounds more viable strategy: attack the exchanges. After all, the value of bitcoins comes from the fact that it is liquid - easily convertible to existing currencies and back. However even shutting the exchanges down would require global cooperation from goverments and probably heavy internet censorship as well. That is because many exchanges don't even need any ties to the existing banking infrastructure, and can operate from any country.
Nursie 14y ago
"Yep. But then the question is how will they shut it down?" They don't need to stop the internet underground using it to have a severe impact. Simply declare that any business accepting payment in bitcoins is liable to prosecution and punitive damages. This makes it very unlikely that any IRL store will accept it, and puts a severe limit on the economy as a result. In some ways I'm surprised that they haven't already gone after people running BTC gambling sites.

tedunangst 14y ago

So are euros. Or Canadian dollars. Gasp! Apparently Tide is also on the list. I really doubt the Smoking Man gives a shit about bit coins.