Bitcoin Should Be 'outlawed', Says Nobel Prize-winning Economist
Bitcoin should be 'outlawed', says Nobel prize-winning economist Joseph Stiglitz says the digital currency has 'no socially useful function' A Nobel Prize-winning economist has called for Bitcoin to be "outlawed" Joseph Stiglitz said that he favours making the digital currency illegal because it does not have a socially useful function. Bitcoin is successful only because of its potential for circumvention, lack of oversight , the renowned economist said. Bitcoin - live updates: Bubble fears increase as value soars The comments by Mr Stiglitz come amid a volatile day for the digital currency, with it having dropped from a record value of more than $11,000, to around $9,300 in 24 hours of trading. The virtual currency is the subject of a fierce debate over whether it is gaining mainstream acceptance - having risen in value tenfold this year - or is just a bubble waiting to burst. Mr Stiglitz is firmly of the opinion that it is the latter. Its a bubble thats going to give a lot of people a lot of exciting times as it rides up and then goes down, he saidduring an interview with Bloomberg Television. The price of one bitcoin had been roughly $1,000 at the beginning of the year. The CEO of JPMorgan Chase appears to be in the same camp as Mr Stiglitz, calling bitcoin a "fraud because it is not based on anything other than software code nor backed by any monetary authority. Neil Wilson, a senior market analyst at ETX Capital in London, says bitcoin is "following the playbook for a speculative bubble to the letter." "This sort of thing never, ever lasts," he said. A model poses during the annual 'World Bodypainting Festival' in Klagenfurt, Austria Firefighters using fire helicopters fighting wildfires in Sordal in Setesdalen in the southern part of Norway. The fires are thought Continue reading >>
Bitcoin Ban: Inside The Indian Governments Struggle To Curb Cryptocurrencies Quartz
India may finally have a set of draft rules for cryptocurrencies by the end of the year, but not before the debate within government circles heats up further. It is, as of now, a tug of war between the stakeholders: suspicion on one side, and a stiff upper lip on the other. A wave of panic swept the Indian cryptocurrency ecosystem last week after finance minister Arun Jaitley, once again, expressed his strong dislike for virtual currencies. The government does not recognise cryptocurrencies as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payments system, Jaitley said in his Feb. 01 budget speech , keeping the legal status of virtual currencies in a state of limbo. The fear of money laundering via investment in these currencies and ensuring customer protection from the price volatility and complex nature of these assets are the main reasons why the government has not been comfortable with these digital assets. The hesitation is not entirely unfounded: The price of one bitcoin, valued at over $19,000 in December, is now worth less than $7,000. However, conversations with half-a-dozen officials reveal that all may not be lost for cryptocurrencies, despite unhelpful statements from the finance ministry and the Reserve Bank of India (RBI). A bunch of career bureaucrats and bankers are currently in the process of writing their fate. And even if they do survive, bitcoin and its peers will likely remain on a tight government leash. India currently has around 10 cryptocurrency exchanges with five million users and monthly volumes of Rs10,000 crore ($1.5 billion), according to industry estimates from early January. In April 2017, the Narendra Modi government set up its first com Continue reading >>
Should Bitcoin Be Illegal?
As the Silk Road came tumbling down today , and its signature currency Bitcoin has been pushed into the spotlight again. Will Bitcoin survive? Should it survive? Should people keep using it if it does? We're here to talk it out. The fact that all this trading was taking place over the internet and with an entirely virtual currency makes this a particularly sticky issue to grapple with, but for better or worse, digital currency is already here. The percentage of people who carry actual cash is dropping as alternatives like credit cards, Square, online banking, and NFC continue invading every corner of the market. But Bitcoin is a different beast. For all that Silk Road craziness, Bitcoin has its upsides, depending on who you talk to, anyway. One of Bitcoin's biggest drawbacks is also its biggest strength: a lack of a regulating body. Whether that's good or bad is a matter of who you ask. Bitcoin is complicated , but the system works a little something like this. Each Bitcoin maintains a single, public record of past and current ownership. Then, every 8 minutes, a network of verifiers checks the public Bitcoin ledger against their own to make sure that they line up, at which point they're rewarded with newly created Bitcoins for their hard work. And that, boys and girls, is how Bitcoins are mined (and regulated). It's a weird system , but it's not beholden to any big man with a cigar. It just sort of does its thing. It's free in a unique sort of way other currencies aren't. It can be kind of hard to wrap your mind around a currency with no inherent value, but the US dollar falls under that very same description. Ever since Richard Nixon axed the gold standard in 1971, US currency has had nothing physical to back it up. From the US Treasury to Bank of America's databases, Continue reading >>
Why Bitcoins Success Could Be Its Downfall
Analysis Interpretation of the news based on evidence, including data, as well as anticipating how events might unfold based on past events Why bitcoins success could be its downfall By Benjamin A.T. Graham and Allison Kingsley By Benjamin A.T. Graham and Allison Kingsley December 11 U.S. exchange groups and markets, including NASDAQ and CME Group Inc., will begin trading Bitcoin in 2018. The value of the cryptocurrency has soared to $17,000 a coin in December. (Jhaan Elker/The Washington Post) Digital currencies have been front-page news as the value of bitcoin, the most popular of the cryptocurrencies, continues to surge , albeit with wild fluctuations . Bitcoin backers argue that once digital currencies become widely used, governments will be unable to destroy them users simply wont allow it. This view falls short on two points. First, digital currencies, even in their current form, are a bigger threat to national governments than most people currently understand. Second, bitcoins success would also be its downfall. As bitcoin gains popularity, and especially if it stabilizes in value, it becomes a viable substitute for government-backed currencies. But national governments have little incentive to allow this type of direct competition. National governments tolerate bitcoin and other forms of cryptocurrency because these currencies are still bit players in the global economy. Bangladesh , Bolivia and Kyrgyzstan are among the handful of countries to have banned bitcoin transactions. The United States, Japan, the European Union and other governments have discussed stricter controls, but most seem to be taking a wait-and-see approach to regulation. Most countries allow citizens to buy and spend digital currencies. In the United States, some stores and restaurants accep Continue reading >>
Bitcoin 'ought To Be Outlawed,' Economist Joseph Stiglitz Says
Bitcoin 'Ought to Be Outlawed,' Economist Joseph Stiglitz Says Nov 29, 2017 at 18:00 UTC|UpdatedNov 30, 2017 at 00:54 UTC The former chief economist of the World Bank wants bitcoin banned. "Bitcoin is successful only because of its potential for circumvention, lack of oversight," Joseph Stigliz, currently a professor at Columbia University, said in an interview on Bloomberg Television today, as the cryptocurrency reached new all-time highs this week. "So it seems to me it ought to be outlawed. It doesn't serve any socially useful function." However, Stiglitz, who also chaired the U.S. President's Council of Economic Advisers during the Clinton Administration, said he does support technological innovation in payments, but thinks digital money should still be fiat created and controlled by the government. "Let's move away from paper into the 21st century of a digital economy," he said. Like many other members of the Davoisie , Stiglitz - who won theNobel Memorial Prize in Economic Sciencesin 2001 - called the run-up in bitcoin's price unjustified and unsustainable. "It's a bubble that's going to give a lot of people a lot of exciting times as it rides up and then goes down," he said. "The value of a bitcoin today is expectations of what the bitcoin is going to be tomorrow." And even though bitcoin is a decentralized network, with participants scattered around the globe, Stiglitz seemed to think Washington could easily nip it in the bud. "If the government says 'the reason bitcoin is being used is circumvention,' they could close it down at any moment," he said. "And then it collapses." Joseph Stiglitz photo via Wikimedia Commons . The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of ed Continue reading >>
Bitcoin $12k? More Like: Bitcoin Should Be Illegal, According To Nobel Prize Winner
Bitcoin $12K? More like: Bitcoin should be illegal, according to Nobel Prize winner We ought to just go back to what weve always had Nobel Prize-winning economist Joseph Stiglitz isnt a bitcoin fan. Bitcoin on Wednesday blew past the $11,000 mark just one day after it took out $10,000. Next stop, $12,000? Maybe. Or, if one Nobel Prize-winning economist has it right, perhaps the whole thing will collapse at the hands of the law. Bitcoin is successful only because of its potential for circumvention, lack of oversight. So it seems to me it ought to be outlawed. It doesnt serve any socially useful function. One function it has served in a big way is delivering massive profits to its investors. Bitcoin BTCUSD, +0.35% has exploded for a 12-fold gain so far this year, flying in the face of all the critics , like Joseph Stiglitz, who have consistently called for the rally to come crashing down. The Columbia professor warned that bitcoin is smoke and mirrors and that there could be devastating government crackdown at any moment. Its a bubble thats going to give a lot of people a lot of exciting times as it rides up and then goes down, he told Bloomberg in an interview on Wednesday. We ought to just go back to what weve always had. Continue reading >>
Bitcoin Bans - Bitcoin "banned" By 8 Countries
Officials of the Peoples Republic of China announced in 2017 that the country will use their own digital currency. Bitcoin is thus rapidly depreciating as it is likely that the use of digital currencies such as Bitcoin will be banned in the country and that the official digital currency developed by Chinas Central Bank will be used. Exchanges around the world are reporting trading records, the Bitcoin price has reached three-year highs, and even the mainstream media is feeling Bitcoin fever. Yet, not every nation in the world is enamored with The Internet of Money, as the South American nation of Colombia has decided to end 2016 by banning Bitcoin usage, domestically. Continue reading >>
Bitcoin Ought To Be Outlawed, Nobel Prize Winner Stiglitz Says
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Bitcoin Ought to Be Outlawed, Nobel Prize Winner Stiglitz Says Stiglitz discusses Bitcoin on Bloomberg Television. Nobel Prize-winning economist Joseph Stiglitz said bitcoin is successful only because of its potential for circumvention, lack of oversight. So it seems to me it ought to be outlawed, Stiglitz said Wednesday in a Bloomberg Television interview with Francine Lacqua and Tom Keene. It doesnt serve any socially useful function. Bitcoinsurpassed $11,000 in a matter of hours after hitting the $10,000 milestone, taking this years price surge to almost 12-fold as buyers shrugged off increased warnings that the largestdigital currency is an asset bubble. Its a bubble thats going to give a lot of people a lot of exciting times as it rides up and then goes down, Stiglitz added. Before it's here, it's on the Bloomberg Terminal. Continue reading >>
Bitcoin Regulation? Nah. Governments Cant Do A Thing To Stop It | Digital Trends
Bitcoin is a famously dececentralized cryptocurrency, a system of storing value, and a somewhat less-effective transaction medium. It allows near-instantaneous transfers all over the world without a middle man or regulatory body giving it the go-ahead. Fans of cryptocurrency fear government regulation could ruin it, but they shouldnt be concerned. Any attempt control bitcoin simply wont work. Beyond the difficulties presented by the decentralization of bitcoin itself, governments and regulatory bodies have shown they lack understanding of technological topics, and bitcoin is one of the most complex. As governments struggle to ban technologies like Tor and encryption, it seems impossible to imagine them gaining the ability to truly impact bitcoin and its alt-coin contemporaries in a way that could impede its progress. The oversight jitters are understandable. There have been some attempts at regulation over the years, and now that bitcoins value has spiked to unprecedented new heights, there is greater discussion than ever from governments around the world. Perhaps its no wonder that half of those surveyed in a recent report of bitcoin owners claimed they didnt want any regulation of cryptocurrency in the coming years. The blockchain its built upon does not require an institution to operate it. In December 2013, the Chinese government banned financial institutions from using bitcoin, causing a downturn in the cryptocurrencys value that would set a precedent for its worth over the coming years. Less than a year later, in April 2014, several Chinese bitcoin exchanges had their bank accounts closed.That spurred concern that government oversight limiting access to fiat currency (traditional, real world currency) could be lead a wave of future regulations to curtail bitcoins Continue reading >>
What Prevents Governments From Banning Bitcoin Or Making It Illegal?
What prevents governments from banning Bitcoin or making it illegal? Reason is simple, when our government looks at bitcoins, they are incapable of tracing any person or company holding responsibility for Bitcoin not only in their jurisdiction, but in the entire planet! Legal Implication : In order to recognise any medium as authorised payment and settlement system, they should have proper licences from Reserve/Central Bank of the respective country. So that government can ensure all the preventive measures against fraud , money laundering and any antisocial activity . When a case is filed against Bitcoin, not the people transacting bitcoins, inside the jurisdiction, governments cannot be able to perform their legal obligation to the society ! This is the first part that makes the government to take hostile approach to crypto-currency. Governments are not able to tract payments in bitcoins as anybody with out a proper identification can open up an account and make the transaction. Even though exchanges are collecting KYC from their customers, it is possible to do transactions with out using ID card issued by Government it becomes very much difficult for governments to audit transactions, and perform their obligations . How government can make Bitcoins a legal form of payment and settlement in their jurisdiction ? Governments have to provide bitcoin infrastructure in their jurisdiction, so that they can keep the network going. Just like operating banks, it will cost a large sum of money. Governments can pass a law enacting all the citizens to update their bitcoin address to the existing identification medium so that governments can trace the transactions. Governments can decentralise the infrastructure by franchising the process just like issuing licences to private ban Continue reading >>
6 Countries Where Bitcoin Is Banned
If you're caught trading bitcoin or using bitcoin to buy goods in these six countries, you could go to jail. When the calendar changes to 2018, investors will almost certainly look back on 2017 and label it as the "year of the cryptocurrency." Since beginning the year with an aggregate market cap of $17.7 billion, the value of all cryptocurrencies combined recently surged, at least temporarily, to more than $325 billion. That better than a 1,700% return in about 11 months' time, and it's emblematic of just how widespread optimism has been for digital currencies this year. Why virtual currencies are off to the races This optimism has essentially taken on three forms. First, there are those who are excited about the potential for blockchain , the digital and decentralized ledger that logs virtual currency transactions in a secure and efficient manner without the need for a financial intermediary like a bank. Enterprise customers are showing plenty of interest in blockchain, and since nearly all are open-source networks, it would make altering logged data practically impossible. That makes blockchain particularly secure. Another group of optimists is encouraged by the uptake of digital currencies by merchants. A number of brand-name businesses have begun accepting bitcoin, the largest virtual currency by market cap, with online retailer Overstock.com opening its arms to six popular cryptocurrencies . The belief is that as more merchants jump on board, the staying power of these virtual currencies will increase. Finally, we can't argue against the role emotions have played in sending cryptocurrencies higher. The fear of missing out on big gains has perpetuated consistently strong buying in bitcoin and other digital currencies. Six countries that just said "No" to bitcoin H Continue reading >>
Is Bitcoin Banned In China?
By Shobhit Seth | February 12, 2018 6:45 AM EST Earlier this month, the People's Bank of China (PBOC) which is the central regulatory authority that regulates financial institutions and drafts the monetary policy of the country, issued a statement that it would block access to all domestic and foreign cryptocurrency exchanges and ICO websites. As per the news , China aims to clamp down on all cryptocurrency trading with a ban on foreign exchanges. China has recently beenissuing regular advisories and taking steps to deter the use of cryptocurrency in the country. The recent development can completely eliminate cryptocurrency trading and mining activities in the worlds most populous nation. Chinese regulatory authorities had imposed a ban on initial coin offerings (ICO) , a cryptocurrency-based fundraising process, and termed it illegal in China inSeptember 2017. That ban triggered an instant 6% decline in bitcoin prices. Following the ban, theShanghai-based BTCC bitcoin exchange was forced to close its Chinese trading operations. (For more, see China Intensifies Crackdown On Bitcoin Mining .) These regulatory actions by China are aimed at controlling the increasingmania involving decentralized, non-regulated cryptocurrencies which have recently soared toastronomical valuations. However, despite the ICO ban and momentary decline, cryptocurrency trading continued in China, as many participants switched to foreign exchanges, like those based in Hong Kong and Japan, to deal in virtual currencies. (See more: China's Cryptocurrencies Have Gone Underground .) In a series of measures, the PBOC is tightening regulations on domestic dealers engaged in foreign cryptocurrency transactions and ICOs. It has also forbidden China-based financial institutions from any dealing and fundi Continue reading >>
Why Rbi Should Not Ban Cryptocurrencies Like Bitcoin?
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. While Bitcoin's popularity is at an all-time high around the world and India, regulations in India still haven't wavered in favour of them.Bitcoin is the worlds first decentralized cryptocurrency or virtual asset which was launched in 2009 and the transaction are based on blockchain technology. On one side, Bitcoin is gaining popularity among investors, including in India andtouching its all-time high at $7,500 level, the Government of India and Reserve Bank of India continue to remain cautious of the non-fiat cryptocurrency. A few months ago, Sudarshan Sen, Executive Director, RBI said the regulator is not comfortable with non-fiat cryptocurrency like the bitcoin and is looking at fiat cryptocurrency. Additionally, earlier this month, rumors started doing the rounds that the regulator might ban cryptocurrency altogether. The governments present status is very unclear and the India bitcoin industry is in constant dilemma about the future of their product and the technology. While industry players agree that the government has legitimate concerns over user protection and scams, they are not happy with the knee-jerk reaction to the use of the technology. When Sandeep Goenka started Zebpay with Saurabh Agrawal and Mahin Gupta, their well-wishers thought it was a risky business and advised them to exit the Bitcoin exchange. But the trio was confident about the technology and its potential. So, ignoring all the words of cautions, they decided to work hard to play a bigger role in the cryptocurrency revolution in India. For a potential scam that could affect a small percentage of the user base, you cannot rule out the entire technology as unsafe.There are so scams on the internet, so will yo Continue reading >>
Ban Bitcoin! Says Nobel Prize Winner, While Ignoring Fang Losses
Ban Bitcoin! Says Nobel Prize Winner, While Ignoring FANG Losses Bitcoin should be banned, but what about FANG stocks, Joe? In a statement that will be widely approved and vilified by opposing camps, Joseph Stiglitz said on Bloomberg TV that cryptocurrencies like Bitcoin should be banned . His commentary is based on analysis saying that the market for Bitcoin is driven mostly by its potential to circumvent government agencies. His rant continued, stating that the Bitcoin market will go up, and then come down, leaving many investors injured, and therefore it should be banned, adding that it doesnt serve any socially useful function. Apparently, Dr. Stiglitz may also desire to ban the famous FANG stocks ( Facebook , Apple , Netflix, and Google), which, on the same day as the recent price decline for Bitcoin, faced far greater losses . In fact, while Bitcoin lost around $3 bln in market cap, the FANG stocks lost $60 bln - twenty times as much. If consumer protection is the main goal, the FANG stocks are a far greater risk, and worthy of the ban. In the final analysis, however, regardless of the opinions of economists, the very nature of Bitcoin may make it impossible to ban. Instead, governments must simply deal with the cryptocurrency, and regulate its trade in reasonable and rational ways. According to Kain Warwick, Founder of Havven: "Thankfully its somewhat irrelevant whether anyone in particular thinks Bitcoin should be banned, because one of its strongest points is that it is, in practice, not able to be banned." Continue reading >>
Legality Of Bitcoin By Country Or Territory
Legality of bitcoin by country or territory For a broader coverage related to this topic, see Bitcoin . The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them.  Whilst the majority of countries do not make the usage of bitcoin itself illegal (with the exceptions of: Bangladesh, Bolivia, Ecuador & Kyrgyzstan), its status as money (or a commodity) varies, with differing regulatory implications. While some countries have explicitly allowed its use and trade, others have banned or restricted it. Likewise, various government agencies, departments, and courts have classified bitcoins differently. While this article provides the legal status of bitcoin, regulations and bans that apply to this cryptocurrency likely extend to similar systems as well. The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin. VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.  :European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the bitcoin virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to currency, bank notes and coins used as legal tender", making bitcoin a currency as opposed to being a commodity.   According to judges, the tax shouldnt be charged because bitcoins should be treated as a means of payment.  According to the European Central Bank , traditional financial sector regulation is not applicable to bitcoin because it does not involve t Continue reading >>