Government Starting To Act On Bitcoin.

The claims that Crypto currency is the future and out of reach of government, divides. Good to give our rulers a wake up call, but we need strong elected government for stability and control of a country and whatever money system there is. The only alternative to that is anarchy.

Much as taxation is unfair in some areas, what other way is there to fund public services? Where are the predictions of how life in a digital currency utopia will be?

Are those in power confident they have the answers to threats to the status quo, or just complacent? Are there any politicians or financial journalists prepared to give a view on how governments can/will respond?

There seems to be very little comment expressed by governments or financial observers, to counter the many statements that the coming digital currency revolution will mean the end of government control and regulation of money.

There was a quote from the bit-talk website  which said  -“In October 2010 The US Financial Task Force warns of the dangers of an unchecked, de-centralised, computer based currency”

Then this morning Thursday June 1^st 2017 this appeared in Bitcoin News  –

Peer-to-peer Bitcoin Exchanges face new legal challenges in America.

Traditionally Governments use financial institutions such as banks to control the flow of wealth. With the growth of trading, buying and selling with crypto currencies, governments are using existing legislation covering money transmitting

Two types of Bitcoin exchanges operate at present. The ones that serve as an arm of government called ‘Trusted Third Party’ Exchanges for Bitcoin, where privacy is removed from users, and the movement of wealth monitored.

The second type ‘Peer to Peer’ Exchanges seek to sidestep the Third Party Digital exchanges, but are slowly being criminalized.

The ‘Sal Mansy Case’ may be a foretaste of the future

Mansy had been trading bitcoin for years. At first, the purchase of bitcoin was apparently conducted through digital currency exchanges Coinbase and Bitstamp, with the sale occurring on Localbitcoins.

Profit & Loss was then channeled through the business bank accounts of his corporation.

Coinbase closed Mansy’s account in 2014 partly because he had not registered with the US Financial Crimes Enforcement Network (FinCEN) as a money transmitter.

Unfortunately for him, Mansy sold bitcoin to undercover agents who may have been alerted to his activity by the digital exchanges, his bank or both.

His residence was raided and three bank accounts were seized Mansy could receive a sentence of five years as well as a $250,000 fine. A tax investigation has not been mentioned but one seems likely to occur.

Localbitcoins is coming under attack because it is an immensely popular alternative to ‘Third Party Digital Exchanges’ for users who wish to retain both privacy and control of their wealth.

The company describes itself as a Peer-to-Peer Exchange “where users can buy and sell Bitcoins to and from each other.” Traders advertise at the online site “with the price and the payment method they want to offer.” As in Craigslist, buyers and sellers in the same area can find each through published ads.

Some of the comments to the above received so far

I bet you nobody would ever believe that because nothing of such has ever been seen or heard of in the history of humanity, I’m not just a programmer, I am a futurist too, i can safely predict that in the next five year bitcoin and altcoin are going to transform our lives

Though in the short term a cryptographic system could work well, in the long run government will force folks to either give cryptographic keys or be shut down totally. Government will not allow free competition to its financial dominion. Make no mistake. Governments will kill freedom lovers rather than allow this to continue.

Were they able to kill the internet ?

One of the reasons initiatives like ‘Internet of Coins’ are slowly gaining a following. Decentralized, Peer2Peer open source exchanges, freely distributed with standard protocols (like bittorrent did) are the only logical next step to ensure personal freedom. Built-in anonymization support is another, and not just in cryptocurrencies.

The irony of the whole thing is that most of the problems we see in cryptocurencies today already have solid solutions but politics is holding so many things back, but then you cant hold a dam for too long at a point you have to let go

I *do* get almost testy with people who dismiss any dangers by appealing to the ultimate utopia of bitcoin. because, compared to what's the norm right now, that's what bitcoin promises.) I still get testy, however, because that utopia will mean nothing to people who are unlucky or imprudent enough to become victims of the state and perish in prison, have their savings confiscated, etc. I have no doubt that bitcoin will prevail. I have no doubt that good people will be casualties of the state's crusade to remain in control. One of the things bitcoin users had going for us is that the government didn't have a clue of what it was. Those days may be ending.

From a practical point of view, the exchange is where people go to get bitcoins and other alt coins. It's the central choke point where everything will be reported. After all, tax collection is the most important aspect of a free society

Surely elected government has to be in control to provide order and normality in a civilised society.The taxes collected by government run the public services of health,education,police, the essentials which are the bedrock of peace and stability.One comment given to the tax collection question is that governments will depend on citizens declaring their income.That  ‘Self Assessment’ is already in use.But it is backed by government having the power to access bank accounts, which apparently is not the case with Peer to Peer Bitcoin Exchanges.

This could get interesting ! 

The above information brought to you by  – http://bitcoin-in.net -  the website for all things bitcoin and cryptocurrencies. Books. Hardware. Gifts. Clothing i.e ‘Bitcoin Accepted Here’ T Shirts, Baseball Caps .Door Signs.

Also visit www.steemit.com The Social Media Site where you get paid to post.Free to join.Many categories to post in and browse including cryptocurrency.