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US v. Bitcoin: American’s Fate Hanging in the Balance

US v. Bitcoin: American’s Fate Hanging in the Balance


The United States is at a critical junction in determining it’s future trajectory. As it stands, we aredeeply in debt and in addition to our credit rating taking a hit, the tough questions are starting tobe asked that we so far lack answers for. Now, we need to really focus in and make a fatefuldecision on this new digital currency called Bitcoins. The Senate is holding a hearing on Bitcoinin the next week which should yield some light on their take to this point.The problems with this are many, but mainly that we have a self-interested group of elderly menmaking decisions on things that frankly they don’t understand and doesn’t serve their self-interestwhatsoever. The scary part of what is about to happen is that the decisions made now will havedramatic effect for the future, long after all of these dinosaurs find their tar pits. As we saw with the Obamacare website, we are no longer in an era where amateurs can faketheir way through technology. Most people are completely unaware of exactly how muchsophisticated work goes into building a scalable and dynamic website with multiple APIs thatneed to work in real-time for millions of people. That’s not child’s play. We just wasted around$300M to learn that lesson. The lesson we are about to learn in digital currency will prove to be amulti-billion dollar lesson if we aren’t very careful. The United States has been trying for months to stop Bitcoins. They spent millions of dollars to‘raid’ this Dark Website called ‘Silk Road’ and they arrested the alleged ‘drug lord’ RossUlbricht. Problems involved: No drug sellers or buyers were actually arrested. Ross ran awebsite which allowed other people to make illegal sales. The money ‘seized’ wasn’t actuallyseized as they need his passwords which they don’t have. They caught him not through thewebsite, but through Google Plus where he was asking for help building the Silk Road. BUT, theimportant thing of this was framing the news story. Bitcoin is for criminals. Bitcoin is related toillegal things. Those are the headlines. It’s perception in place of reality. United States raided Dwolla and seized about $5M of Mt. Gox’s cash. Mt. Gox at the time wasthe largest Bitcoin exchanges based out of Japan. The idea in this raid was that Mt. Gox doesn’thave the proper regulatory paperwork to be a money transmitter for US dollars.The United States government has the SEC looking into regulating Bitcoin. The previousstatement in itself explains how badly they don’t understand Bitcoin. These people are going totry to rule the roost on something they don’t understand. If everyone thought the Obamacarewebsite was a debacle, get ready because this will be a real hootenanny. Pretty sure I am thefirst person to use that in a credible sentence this century. What do I mean? Bitcoin by it’s verynature isn’t controlled by any entity, any government, or organization. It’s a peer-to-peer network,meaning transactions are done and confirmed throughout an extensive and vast networkspanning the globe. The Bitcoin cannot be compromised, but it can be tracked via Blockchain.The SEC would have to sit around scanning tens of millions of transactions, and try to track themto an IP, then prove that’s a real IP, who owns the IP and then who within the domicile owns thewallet those Bitcoins were being transacted out of. Oh, and they have to be within the US for it tobe of consequence. As previously mentioned with the Obamacare website, I cannot wait to seehow that would play out. 


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This entry was posted on November 12, 2013 by and tagged .

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