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    Author Topic: How long until governments outlaw bitcoin usage?  (Read 15929 times)
    MoonShadow
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    April 06, 2011, 06:05:09 PM
     #81

    Can anyone suggest while this bit of paranoia-inspired "we need to be able to watch all money flows for your own safety" legalese would *not* apply to USA based Bitcoiners ?    Would a legal technicality of how bitcoin is "not *money*" in the FinCEN regulated sense be enough to hold off the wolves ?

    I suppose, ultimately, nobody will know the answer to this question until a case has been heard in court.  However, the reality is that there are so many laws on the books that everyone is a criminal already, even the little old lady from Pasadena.  Consider all the sales tax revenue that US states lose to online sales.  How many people do you know who don't shop online?  Of the people who do shop online, how many dutifully calculate and remit the required state sales taxes?  Since everyone is already guilty of financial crimes, it's much more productive to talk about methods of defense than what is legal or illegal.  I think the best defense for this type of attack against the Bitcoin system is to have as many small exchangers as possible.  Ideally, everyone who participates in the Bitcoin economy should offer to do exchanges.  It just won't be worth the government's while to chase down and audit/prosecute everyone.  This is, in a general sense, how distributed systems will ultimately triumph over centralized forms of control.

    And this is a good argument for establishing a legal defense fund for the day that the government decides to make a test case out of one of these, otherwise indefensible, exchangers.  With many small exchanges, it is indeed impossible to stop it from occurring.  However, as we can see with the pot industry, they can sustain a persecution campaign for a long time; and we could lose years if the precendent is unfavorable.

    "The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

    - Carroll Quigley, CFR member, mentor to Bill Clinton, from 'Tragedy And Hope'
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