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Will Governments Try To Shut Down Bitcoin

Can China Contain Bitcoin?

Can China Contain Bitcoin?

It is trying. But the cryptocurrency is bigger than any country, even the one where it has been most popular. It was only a matter of time before Bobby Lee, CEO of Chinas longest-running Bitcoin exchange, found himself in the crosshairs of Chinese regulators. His exchange, BTCC, had occupied a gray area of Chinese law, neither licensed nor explicitly illegal. Bitcoin is a decentralized digital currency that can be sent electronically around the world, and its growing popularity made Chinese authorities nervous. In 2016, most Bitcoin trades worldwide were in Chinese yuan. In January 2017, BTCC was investigated by Chinas Central Bank. In September, China announced that it was banning initial coin offerings (ICOs), a popular fund-raising method for startups that use digital coins or tokens. Even then, Lee thought exchanges like his were safe. Later that month, Chinese regulators made it clear that BTCC and other domestic virtual-currency exchanges had to close, an attempt to make it harder for the general public to enter the market and buy bitcoins. Lee says that he was neither shocked nor panicked, just dismayed. Ah, finally, the partys over, he thought. The party has to end sometime. Blockchains, cryptocurrencies, and why they matter. Thank you please check your email to complete your sign up. Bitcoin, introduced by a mysterious and since vanished character named Satoshi Nakamoto, came into the world around the time of the 2008 financial crisis. The fact that it was not backed by any central authority appealed to those who distrusted governments and big banks. Since then, the currencys riseespecially its popularity among speculators, who helped push the value of one bitcoin from under $1,000 to more than $10,000 during 2017has presented governments with a challenge. Sho Continue reading >>

Can The Government Destroy Bitcoin?

Can The Government Destroy Bitcoin?

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China , which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin two other exchanges based in China have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin and, perhaps more importantly, whether such a ban would be effective. There seems to be no denying that governments can ban cryptocurrencies. Bolivia , Ecuador , Kyrgyzstan , and Bangladesh have already done so. Russia issued a draft bill to ban cryptocurrencies in October 2014 and recent rumors suggest it might follow through. More broadly, governments have taken steps to prevent other alternatives to their preferred monies. Cambodia recently suggested it might ban the dollar. Syria prohibited the use of any foreign currency in 2013. And the U.S. government shut down Liberty Dollar and E-Gold in the mid-2000s. Can governments ban cryptocurrencies? Absolutely. The question is whether or, to what extent a ban will actually discourage use. Some bitcoin proponents have argued that governments cannot really prevent bitcoin use. Jon Matonis once stated that a government ban on bitcoin would be about as effective as alcohol prohibition was in the 1920s. How could a government prevent people from using bitcoin? Its online. Its pseudonymous . And, as Matonis notes, deman Continue reading >>

Why The Government Cant Kill Bitcoin

Why The Government Cant Kill Bitcoin

Editors Note: Bitcoin has had a remarkable year, more than doubling since the start of 2017. Below, Editor at Large Chris Lowe sits down with self-described bitcoin bull Teeka Tiwari to discover what Diary readers need to know about the future of the popular cryptocurrency. Chris Lowe (CL):Bitcoin has been going up steadily for the last three years. What is driving bitcoin higher? Teeka Tiwari (TT):Its that people are waking up to the idea that they can have control over the value of the currency they use. Right now, theres a global currency war. Countries are debasing the buying power of their currencies to try to steal growth from one another. On top of that, you have the War on Cash, which I know youve reported on extensively. Its getting harder and harder to have private ownership of your money. Central banks do not respect private ownership of your cash. There is an increasing number of bans, like the one you saw in India last November. [ Catch up here .] Meanwhile, central banks are using tools such as negative interest rates to punish savers in the hope that theyll rush out and spend their cash to avoid being penalized with a negative rate for saving it. Theres a backlash to all that. People are saying, Hey, this is my money. I want to be able to hold it anonymously. I want to be able to keep it a secret from the government. I want to be in complete control of my own capital. Bitcoin gives you that control. Unlike any other asset or currency, bitcoin does that. Shah Gilanis Monstrous 95% WIN RATE Continues Weve never seen anything like it Since April 21, Shah Gilani has helped Money Morning readers make more money than maybe anyone in history. His last trade recommendation closed out for a 995% win. And hes got seven more trades lined up right now. To date, his Continue reading >>

China's Shutdown Of Bitcoin Miners Isn't Just About Electricity

China's Shutdown Of Bitcoin Miners Isn't Just About Electricity

China's Shutdown Of Bitcoin Miners Isn't Just About Electricity I write about the Chinese economy and financial sector. Opinions expressed by Forbes Contributors are their own. The most critical aspect to address for China, however, is criminal activity. A woman touches an ATM machine for digital currency Bitcoin in Hong Kong on December 18, 2017. (ANTHONY WALLACE/AFP/Getty Images) Chinas government is planning to shut down Bitcoin miners in its latest crackdown on the cryptocurrency. The Leading Group of Internet Financial Risks Remediation has requested that local governments make an orderly exit from the industry. China produces the most Bitcoin in the world using Bitcoin mining , which involves an energy-intensive process of solving complex math problems to add transactions to the Blockchain, a public ledger. But the crackdown is about more than the high levels of energy required to mine Bitcoin. China is planning to limit electricity to Bitcoin miners, and government bodies have expressed concern about energy usage. Bitcoin mining is estimated to use up to 4 gigawatts of electricity, equivalent to three nuclear reactors' production levels. However, this move isnt just about the electricity. In fact, it is telling that it was China's central bank that met on the issue of Bitcoin mining, underscoring the fact that the issue is not only, or even primarily, an energy issue. Its about clamping down on perceived risks of the cryptocurrency, which regulators have associated with malicious acts like fraud and money laundering. Authorities have already cracked down on thousands of criminal cases associated with alternative cryptocurrencies, including Onecoin and Ticcoin. These cryptocurrencies were viewed as Ponzi schemes used to raise illicit funds. Later, officials shut Continue reading >>

Can Governments And Central Banks Crush Bitcoin

Can Governments And Central Banks Crush Bitcoin

All who are vocal that Bitcoin will go to zero value (eventually), their sole argument is hinged on the expectation that governments will crush Bitcoin. Some argue that Bitcoin can only be used as money which government will never allow, through capital controls, imprisonment threatsetc. Nor can it be used as a store of value (like gold) since it has no intrinsic value backing it. Lets look at possible actions governments and central banks can take against Bitcoin Governments can decide to restrict people from buying Bitcoins using fiat, and selling Bitcoins for fiat by shutting down centralized exchanges. This has already happened with the recent action of the Chinese government shutting down localized exchanges. Ironically enough, fiat/Bitcoin transactions continued on OTC markets and the F.U.D. was short lived in the global Bitcoin markets. In fact, decentralized exchanges are now becoming popular due to risks of such capital controls. Prohibiting people from purchasing Bitcoins, via credit/debit cards, wire transfers with threats of imprisonment - is a possible action if governments feel threatened. These extreme actions will most obviously affect the price of Bitcoin, with many Bitcoin users leaving the market out of fear, and all speculators running off to legal investments BUT this will not kill Bitcoin. Do not forget that the internet is the fastest growing market, with the largest population of any nation in the world. Any extreme action from one or all governments cannot control what happens on the internet. Hence Bitcoin ecosystem can continue to grow on the internet. Take into consideration the growing Bitcoin developer community, who are tech driven, and highly competent. The Bitcoin developer community is the largest and most experienced group in the cryp Continue reading >>

What Prevents Governments From Banning Bitcoin Or Making It Illegal?

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 >>

Bitcoin: Jpmorgan's Jamie Dimon Lays Into Bitcoin Again

Bitcoin: Jpmorgan's Jamie Dimon Lays Into Bitcoin Again

Eventually governments will close down cryptocurrencies: JPMorgan CEO JPMorgan Chase Chief Executive Jamie Dimon has laid into bitcoin and digital currencies once again, warning that governments will shut them down if they grow too large. "Right now these crypto things are kind of a novelty. People think they're kind of neat. But the bigger they get, the more governments are going to close them down," Dimon said during an interview with CNBC-TV18 in New Delhi on Friday. Dimon was concerned that with bitcoin, ethereum and various initial coin offerings (ICOs), there are now cryptocurrencies everywhere. "It's creating something out of nothing that to me is worth nothing," he said. "It will end badly." Dimon warned that governments will eventually crack down on cryptocurrencies and will attempt to control it by threatening anyone who buys or sells bitcoin with imprisonment, which would force digital currencies into becoming a black market. These are the latest comments from Dimon attacking bitcoin. Earlier this month he called the cryptocurrency a "fraud." . His comments, along with several prominent hedge fund investors, came before a sharp sell-off in bitcoin. The price for one bitcoin fell from around $4,340 to as low as $2,981.05 in the days after his comments. Bitcoin has since recovered to around $3,640.68, according to CoinDesk data. Despite this volatility, bitcoin's value has risen 264 percent this year. Dimon's comments came under criticism from several bitcoin investors and experts. "Comments like Jamie's show a failure to grasp the significance of the blockchain and the power of brand in a fundamental sea of change," said Scott Nelson, chairman and CEO of blockchain firm Sweetbridge, in an email to CNBC last week. Meanwhile, a company called Blockswater has fi Continue reading >>

Governments Will Close Down Bitcoin And Cryptocurrencies If They Get Too Big - Jamie Dimon : Bitcoin

Governments Will Close Down Bitcoin And Cryptocurrencies If They Get Too Big - Jamie Dimon : Bitcoin

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. News articles that do not contain the word "Bitcoin" are usually off-topic. This subreddit is not about general financial news. Submissions that are mostly about some other cryptocurrency belong elsewhere. For example, /r/CryptoCurrency is a good place to discuss all cryptocurrencies. Promotion of client software which attempts to alter the Bitcoin protocol without overwhelming consensus is not permitted. Trades should usually not be advertised here. For example, submissions like "Buying 100 BTC" or "Selling my computer for bitcoins" do not belong here. /r/Bitcoin is primarily for news and discussion. Please avoid repetition /r/bitcoin is a subreddit devoted to new information and discussion about Bitcoin and its ecosystem. New merchants are welcome to announce their services for Bitcoin, but after those have been announced they are no longer news and should not be re-posted. Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system . Do not post your Bitcoin address unless someone explicitly asks you to. Be aware that Twitter, etc. is full of impersonation. Continue reading >>

Some Governments Want To Shut Down Bitcoin But They Dont Know How

Some Governments Want To Shut Down Bitcoin But They Dont Know How

This is Part 1/chapter 9 in The Blockchain Economy serialised book. For the index please go here . The idea of a stateless digital currency is radical. It has never been done before; gold is the the original stateless currency but gold is not digital. Like any radical innovation, Bitcoin is greeted with lots of narratives that explain why this can never happen. One narrative is that a stateless currency will never happen because governments wont let it happen. This chapter/post explains why many governments do want to shut down bitcoin, but why governments will be constrained from doing so in the real world. Desire does not equal capability; I want to run a 4 minute mile but I cannot do so. Bias disclosure: I think good government is a good thing. I agree with Thomas Hobbes that life without any form of government is solitary, poor, nasty, brutish, and short. Bad government is obviously a bad thing (fascism, communism). Sadly we dont have many examples of good government, so there is rightly a lot of pushback against bad government and bitcoin is part of that pushback. This chapter/post looks at five types of countries and how they think about bitcoin: Countries with weak currencies and weak democracies. Offshore Countries positioning as global hubs. Countries with a tendency towards freedom & innovation. Superpowers that may set the de facto standard. Countries that are confused and have competing agendas. Then we move on to look at four things that worry governments about bitcoin and how these worries can be addressed. We end with 3 stories about government and bitcoin that you can safely ignore. For a long time, entrepreneurs faced competition and regulators sent them the rule book. Regulators were government employees who thought about competition only in the abstr Continue reading >>

Can The Government Destroy Bitcoin?

Can The Government Destroy Bitcoin?

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China , which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin two other exchanges based in China have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin and, perhaps more importantly, whether such a ban would be effective. There seems to be no denying that governments can ban cryptocurrencies. Bolivia , Ecuador , Kyrgyzstan , and Bangladesh have already done so. Russia issued a draft bill to ban cryptocurrencies in October 2014 and recent rumors suggest it might follow through. More broadly, governments have taken steps to prevent other alternatives to their preferred monies. Cambodia recently suggested it might ban the dollar. Syria prohibited the use of any foreign currency in 2013. And the U.S. government shut down Liberty Dollar and E-Gold in the mid-2000s. Can governments ban cryptocurrencies? Absolutely. The question is whether or, to what extent a ban will actually discourage use. Some bitcoin proponents have argued that governments cannot really prevent bitcoin use. Jon Matonis once stated that a government ban on bitcoin would be about as effective as alcohol prohibition was in the 1920s. How could a government prevent people from using bitcoin? Its online. Its pseudonymous . And, as Matonis notes, deman Continue reading >>

Big Governments Are Crushing Cryptocurrencies

Big Governments Are Crushing Cryptocurrencies

Big Governments Are Crushing Cryptocurrencies Opinions expressed by Forbes Contributors are their own. Big governments are catching up with Bitcoin and other cryptocurrencies. And are crushing them. A couple of days after announcing that Initial Coin Offerings (ICOs) are seriously disrupted the economic and financial order, the Chinese government banned ICO funding. That was certainly bad news for cryptocurrencies, whichcrushed across the board, with Bitcoin losing close to 10 percent, Ethereum 21.74%, Litecoin 24.92%and BitConnect 32.10%. The Chinese governments heavy-handed action against digital currencies comes two months afterthe SEC ruled that cryptocurrency IPOs or ICOs are investments, and therefore, should be subject to the same rules as regular stocks. The Chinese and American governments arent alone. Last week, the Russian government opened a criminal investigation involving Bitcoin, whilethe Venezuelan government has been jailing Bitcoin miners. On the surface, these actions try to protect the public from market manipulations.But on closer examination, they are tryingto kill any currency that may threaten government monopoliesonprintingmoney and earn seigniorage income, as discussed in previous piece here . Thats why digital currency investors should cast a wary eye on big governments. Continue reading >>

If Bitcoin Gets Too Big, Won't The Us Government Try To Shut It Down? : Bitcoin

If Bitcoin Gets Too Big, Won't The Us Government Try To Shut It Down? : Bitcoin

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. News articles that do not contain the word "Bitcoin" are usually off-topic. This subreddit is not about general financial news. Submissions that are mostly about some other cryptocurrency belong elsewhere. For example, /r/CryptoCurrency is a good place to discuss all cryptocurrencies. Promotion of client software which attempts to alter the Bitcoin protocol without overwhelming consensus is not permitted. Trades should usually not be advertised here. For example, submissions like "Buying 100 BTC" or "Selling my computer for bitcoins" do not belong here. /r/Bitcoin is primarily for news and discussion. Please avoid repetition /r/bitcoin is a subreddit devoted to new information and discussion about Bitcoin and its ecosystem. New merchants are welcome to announce their services for Bitcoin, but after those have been announced they are no longer news and should not be re-posted. Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system . Do not post your Bitcoin address unless someone explicitly asks you to. Be aware that Twitter, etc. is full of impersonation. Continue reading >>

Jpmorgan Ceo Jamie Dimon Says The Government Will 'stop' Bitcoin

Jpmorgan Ceo Jamie Dimon Says The Government Will 'stop' Bitcoin

JPMorgan CEO Jamie Dimon Says The Government Will 'Stop' Bitcoin One of these days I'm finally going to get around to writing the piece I've been planning for the better part of a year on the importance of the blockchain and cryptocurrencies, but in the meantime, it's still fun to see the way traditional bankers try to wrap their heads around it. Apparently, for JPMorgan CEO Jamie Dimon, it's to say he's not at all concerned about it because he's sure that the government will step in and kill Bitcoin should it ever really matter: Virtual currency, where its called a bitcoin vs. a U.S. dollar, thats going to be stopped, said Dimon. No government will ever support a virtual currency that goes around borders and doesnt have the same controls. Its not going to happen. That's kind of an incredible statement when you think about it -- a sort of direct admission that Wall Street knows how tightly it's in bed with Washington DC, that should something like Bitcoin ever challenge Wall Street's power, he has no fear that the politicians will "stop" the virtual currency. Of course, that confidence that the US government will kill the innovation is perhaps the biggest weakness of Dimon's argument. We have no doubt that governments are already trying their damnedest to kill off innovation around cryptocurrencies, but the larger question is really whether or not that's even really possible. Here's the problem for Dimon: should Bitcoin really reach the point at which Wall Street really views it as a true threat, then it's probably too late for it to be stopped. That's one of the (many) interesting parts about cryptocurrencies. The ability to stop them as they get more and more successful becomes significantly more difficult, to the point of reaching a near impossibility. But, it sure Continue reading >>

The Govt. Realized Bitcoin Could Not Be Shut Down, Says U.s. Federal Prosecutor

The Govt. Realized Bitcoin Could Not Be Shut Down, Says U.s. Federal Prosecutor

The Govt. Realized Bitcoin Could Not Be Shut down, Says U.S. Federal Prosecutor Join our community of 10 000 traders on Hacked.com for just $39 per month. In an almost hour long interview, Kathryn Haun , Assistant Attorney for the U.S. Department of Justice in San Francisco and lecturer on digital currencies at Stanford Law School, who prosecuted her own colleagues, Shaun Bridges , a former Secret Services agent and Carl Mark Force , a DEA agent, for public corruption in an investigation arising from Silk Road, the infamous drug bazaar shut down in 2013, stated that the reason United States government did not shut down bitcoin is because they recognize you cant shut down bitcoin. There is simply no way Haun said, with these technologies once the genie is out of the bottle you cant put it back inbut even if we could hold the developers of these technologies accountable, the federal prosecutor continued, that would be counter to the legal system. The federal prosecutor wondered whether the law should be changed, emphasizing she was not saying so or otherwise, before arguing that developers state it is for privacy, which I like, but it is obviously the case a large percentage of criminals will use the technology. At what point you, as a developer, are comfortable with the technology being used for more harm than good? the prosecutor rhetorically asked. Ironic Bitcoin Exchanges Ask Us to Investigate Thefts It is ironic developers or exchanges ask federal agencies to investigate digital currency-related crimes, such as bitcoin thefts, Assistant Attorney for the U.S. Department of Justice in San Francisco stated. Haun compared the situation to a bank robber who, after prison, is assaulted. Its not like I would not take the case because we had previously been in an adversaria Continue reading >>

Heres A Reason Why China Would Want To Shut Down Bitcoin - Marketwatch

Heres A Reason Why China Would Want To Shut Down Bitcoin - Marketwatch

Last week was tumultuous for bitcoin, as Chinese authorities announced plans to ban the cryptocurrencys trading in the country. I am not surprised that Chinese authorities are acting to put a lid on bitcoin BTCUSD, -0.45% trading. What is surprising is why more governments, including the U.S., are not doing the same. The CEO of the largest bank in the U.S., Jamie Dimon, labeled bitcoin as a fraud last week. Ray Dalio, the head of the worlds largest hedge fund, says the same . These financial titans have the ears of President Donald Trump and Fed Chair Janet Yellen, so if fraud on massive scale is going on, U.S. authorities should act. Bitcoins price declined from about $5,000 to a low of around $3,000 last week as of Monday the cryptocurrency traded around $4,000 . In China, bitcoin sold off more sharply on yuan exchanges than it did in U.S. dollar DXY, -0.11% terms is not surprising, as traders may not be able to get their bitcoins out of China before the ban goes into full effect, so there has to be a discount in yuan-denominated bitcoins (See this chart ). I looked at bitcoin several years ago, concluding it was a scam. I even posed the question in one of my weekly commentaries: "Is bitcoin a bubble or a scam?" One colleague astutely noted that "It's a scam within a bubble." That was in early 2014. While bitcoin then crashed from about $1,000 to about $300 in 2014, bitcoin recovered. This year it has run up from about $1,000 six months ago to about $5,000 before its latest tumble. The bitcoin sales pitch is to get more people into a finite amount of bitcoins , with a cap expected to be around 21 million bitcoins. There are about 17 million bitcoins now; the algorithm is designed to increase that cap slowly before it is exhausted. (The number of bitcoins increase by Continue reading >>

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