BERNANKE: Bitcoin 'May Hold Long-Term Promise'

[Cebu_4_2]

The beautiful thing about Bitcoin, digital currency enthusiasts will tell you, is that it doesn't have a central bank. So with eyes on today's Bitcoin Senate hearing, where does the world's most powerful central banker stand on the elusive cryptocurrency?

Now we know. Ahead of the meeting, U.S. Federal Reserve Chairman Ben Bernanke has released a letter (http://qz.com/148399/ben-bernanke-bitcoin-may-hold-long-term-promise/) to help guide the senate. Quartz's Zachary Seward called it a "cautious blessing," with Bernanke acknowledging the Fed doesn't have the authority to supervise virtual currencies, but that they "may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.”
Here's Bernanke's full letter (https://www.documentcloud.org/documents/835843-virtual-currency-hearings.html) (via Quartz (http://qz.com/148399/ben-bernanke-bitcoin-may-hold-long-term-promise/)):

Dear Senators:
Thank you for your recent inquiry regarding virtual currencies. As you noted, virtual currencies have been receiving increased attention from U.S. authorities over the past several months.

Historically, virtual currencies have been viewed as a form of “electronic money” or area of payment system technology that has been evolving over the past 20 years. Over time, these types of innovations have received attention from Congress as well as U.S. regulators. For example, in 1995, the U.S. House of Representatives held hearings on “the future of money” at which early versions of virtual currencies and other innovations were discussed. Vice Chairman Alan Blinder’s testimony at that time made the key point that while these types of innovations may pose risks related to law enforcement and supervisory matters, there are also areas in which they may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.

Although the Federal Reserve generally monitors developments in virtual currencies and other payments system innovations, it does not necessarily have authority to directly supervise or regulate these innovations or the entities that provide them to the market. In general, the Federal Reserve would only have authority to regulate a virtual currency product if it is issued by, or cleared or settled through, a banking organization that we supervise. Given the Federal Reserve”s authority and the manner in which virtual currencies have developed, the Federal Reserve has focused primarily on a supervised banking organization’s role in the products’ sale and distribution, as well as the applicable regulations, such as Bank Secrecy Act (BSA) /anti-money laundering (AML) requirements.

Policies, Procedures, Guidance or Advisories

In March 2013, the Financial Crimes Enforcement Network issued guidance to clarify that an administrator or exchanger of virtual currency is generally considered a money transmitter under definitions and therefore subject to BSA requirements?’ The Federal Reserve’s supervisory expectations and guidance related to compliance for bank transactions using virtual currencies have been incorporated into the Electronic Cash section of the Federal Financial Institutions Examination Council (FFIEC) Examination Manual. The overall objective of the guidance and examination procedures provided in this section is to assess the adequacy of a bank’s systems to manage the risks associated with electronic cash and management’s ability to implement effective monitoring and reporting systems. The section further lists applicable risk factors and risk mitigation steps for banks to consider. The Federal Reserve supervision staff has on–going initiatives with the FFIEC member agencies to identify additional areas of concern that require heightened attention by the banking organizations we supervise.
Ongoing Coordination

In May 2013, the US. Department of the Treasury (Treasury) named Liberty Reserve S.A. as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act (Section 31l).4 ‘According to the announcement, Liberty Reserve, a web–based money transfer system or “virtual currency,” was specifically designed and frequently used to facilitate money laundering in cyber space. This action also marked the first use of Section 311 authorities against a virtual currency provider.

The statutory language of Section 311 requires Treasury to consult with the Federal Reserve Board when these special measures are being developed and proposed. Therefore, Federal Reserve Board staff participated in coordination and consultation efforts leading up to the designation of the virtual currency provider, Liberty Reserve, under Section 311.
Specific Plans or Strategies

As noted above, the Federal Reserve plans to work with other FFIEC member agencies on electronic cash and related issues such as virtual currencies, as needed, for banking organizations. The Federal Reserve will continue to monitor developments as part of its broad interest in the safety and efficiency of the payment system. We also stand ready to cooperate with other agencies in fulfilling their mandates, as appropriate.

I hope you find this information helpful.

Sincerely,
[Ben Bernanke]


Read more: http://www.businessinsider.com/ben-bernanke-on-bitcoin-2013-11#ixzz2l2EJbUi3

[Libertytree]

In other words... virtual currencies are doomed and to be controlled by the PTP, get your profits now and GTFO before we own this too.

[Santa]

Strong evidence that the Big Banks are indeed investing in virtual currencies.

[ximmy]

LOL...

Continuing with his assignment... keeping the peasants away from precious metals...

[iOWNme]

In other words... virtual currencies are doomed and to be controlled by the PTP, get your profits now and GTFO before we own this too.

I said that 3 years ago about all virtual currencies. The system would love nothing more than for people to embrace a virtual currency. Once the people have accepted it, the system will use various dialectics to corral everyone into a central virtual currency - controlled and regulated by THEM.

Finally, when most of the population has become accustomed to using the new even more convenient virtual currency, the system will use various false flags to instill into the masses that 'Terrorist' and other undesirables use these other 'fringe' currencies to cause harm to the general population, and hence they will accept the Feds using violence against peaceful people who will not use their 'Mark of the Beast'.

This really is elementary stuff.......

[ximmy]

I said that 3 years ago about all virtual currencies. The system would love nothing more than for people to embrace a virtual currency. Once the people have accepted it, the system will use various dialectics to corral everyone into a central virtual currency - controlled and regulated by THEM.

Finally, when most of the population has become accustomed to using the new even more convenient virtual currency, the system will use various false flags to instill into the masses that 'Terrorist' and other undesirables use these other 'fringe' currencies to cause harm to the general population, and hence they will accept the Feds using violence against peaceful people who will not use their 'Mark of the Beast'.

This really is elementary stuff.......

It really does fit into their plans.... perfectly. The modern cashless society. Every transaction monitored, recorded, taxed.

[mick silver]

in time we all here will see this , they controll this and in time they will want all to use this form of money , no more yard sale no more behind the door deals i could go . but i told you so . the ones with power think 20 years down the road

[Libertytree]

Ya know...I'll have to kind of defer to ol' V..... if it ain't in your possession it don't mean shit.

[mamboni]

http://gold-silver.us/forum/attachment.php?attachmentid=5683&d=1384816418
5683



Bernanke in plain English:



Any monies transmitted via Bitcoin are subject to FED oversight
Bitcoin may be a mechanism of money laundering
Profits gained in Bitcoin sales are subject to capital gains
Any bitcoin transactions deemed suspicious by Homeland Security, IRS and relevant government agencies are subject to review, regulation and potential seizure.

[sirgonzo420]

Ya know...I'll have to kind of defer to ol' V..... if it ain't in your possession it don't mean shit.

That applies to bitcoin too.

That is actually a reason why people like it; because you can hold it yourself. You can be the sole person with access to your money, with no middlemen.

There is a learning curve to Bitcoin, especially for people who aren't tech savvy... it sounds like bullshit until you actually learn about the subject, and then you realize that it is not a scam any more than email is a scam.

[Santa]

That applies to bitcoin too.

That is actually a reason why people like it; because you can hold it yourself. You can be the sole person with access to your money, with no middlemen.

There is a learning curve to Bitcoin, especially for people who aren't tech savvy... it sounds like bullshit until you actually learn about the subject, and then you realize that it is not a scam any more than email is a scam.
Ha! Email IS a scam. The entire Web is a scam. Consumerism is a scam. Free enterprise is a scam. Civilization is a scam. The fucking hippies were right. Lol...:o

[EE_]

Ha! Email IS a scam. The entire Web is a scam. Consumerism is a scam. Free enterprise is a scam. Civilization is a scam. The fucking hippies were right. Lol...:o


http://www.youtube.com/watch?v=iKEZoY-TMG4

[Horn]

My email has that SPAM folder that somehow a really important piece of mail gets thrown into every once in a while, mysteriously.

An E-coin is only as good as the pocket it is contained in.

If the FED likes them, all pockets will be their pockets.

[midnight rambler]

Strong evidence that the Big Banks are indeed investing in virtual currencies.

Wouldn't you run to where the dinero is being made if you were a non-producing parasite sucking off the bottom??

[mamboni]

Wouldn't you run to where the dinero is being made if you were a non-producing parasite sucking off the bottom??


http://gold-silver.us/forum/attachment.php?attachmentid=5684&d=1384821976
5684

[Horn]

The fact that he's telling you its money should say something about it.

Their main mission is to know who has what, so nobody is a threat to their structure.

First they tighten down the screws in one pen (paper) then they "freely" move everyone over to electronic pen to be cooked or sheared.

Bernanke and company are really just shepherds.

[mamboni]

The fact that he's telling you its money should say something about it.

Their main mission is to know who has what, so nobody is a threat to their structure.

First they tighten down the screws in one pen (paper) then they "freely" move everyone over to electronic pen to be cooked or sheared.

Bernanke and company are really just shepherds.

Bernanke: "Bitcoin, sure, it's money! Gold? Not money. It's just a tradition. Yeah, that's the ticket!"

LOL

[Ares]

Well now we know why the government has been cool up to this point. They plan on regulating and taxing the shit out of it.


“While innovation is a wonderful thing, and innovation in the financial services industry is incredibly important, it does come with obligations to have that entry and be a part of the US financial system,” she added. “One of those obligations is to protect that system from illicit actors.”

Calvery called on virtual currency operators to do three things. Firstly, register with FinCEN, she said. Secondly, put solid AML practices in place.

“And maintain records and provide certain reports to FinCEN, including suspicious activity reports,” she concluded, pointing to existing players in the conventional fiat world. “They have all found a way to offer their services while maintaining those same protections.”

http://www.coindesk.com/senate-bitcoin-hearing-legitimacy-challenges-virtual-currencies/

[madfranks]

Calvery called on virtual currency operators to do three things. Firstly, register with FinCEN, she said. Secondly, put solid AML practices in place.

Ha ha! How about no?

[Ares]

Ha ha! How about no?

Should read the entire article at the link, it's pretty amusing. They have the arrogance to say that benefit of moving a BTC business outside the U.S. will be "short lived". They really don't understand BTC at all. They think they'll snap their little fingers and other nations will just comply with their every whim.

[mick silver]

mad you know how they work , they will be force to turn info over are with going to jail , everyone know how this works , you with us are your not

[Jewboo]

http://images4.fanpop.com/image/photos/18300000/NCIS-ncis-18305201-2560-1920.jpg
TOO FUNNY DINOZZO...AS SOON AS WE DEPICTED BITCOINS AS BEING TERRORIST MONEY THE PRICE TANKED!







:rolleyes: the week just before they roll out their electronic KOSHERKOINS

[Ponce]

I can see what their plans are.....everyone gets away from the green back, gold and silver and into bitcoins..........and then......all the money will be collected in one place and easier to take away....... and if you don't think that they know how then think again.

V

[MNeagle]

http://www.youtube.com/watch?feature=player_detailpage&v=-DT7bX-B1Mg

[mick silver]

there looking at way to control shit 30 years out .

[midnight rambler]

FinCEN = the Financial Crime Enforcement Network = the face of the beast

[Ares]

FinCEN = the Financial Crime Enforcement Network = the face of the beast

So far the FinCEN only has authority over dollars. How do they regulate a currency they did not issue or have authority over? Where do they draw their authority to oversee bitcoin?

[Hypertiger]

there is no way to stop me from using bitcoins or anything trained monkeys think is worth dying for to rule their asses in my sleep.

Money started out as a food substitute and food is power.

Power is the true medium of exchange.

Think about the affect I have on you when you read my posts.

I do not require monkey chow to rule monkeys.

[Hypertiger]

The FED does not regulate shit...You all just think they do...Just like Chris Angel mindfreaks you all with slight of hand.

Penn and Teller have more power to regulate money than the FED.

[Horn]

Think about the affect I have on you when you read my posts.

I do not require monkey chow to rule monkeys.

Get a glass eye, and move to Vegas.


http://www.youtube.com/watch?v=dbXQ-Dh1EyA

[mamboni]

Get a glass eye, and move to Vegas.


http://www.youtube.com/watch?v=dbXQ-Dh1EyA


Candidate for best snarkiest retort in GSUS history! LOL

Bravo!

[Hypertiger]

The FED chair is nothing more than the birdie of a broken coo coo clock everyone has been toilet trained to believe can tell what time it is.

[ximmy]

The FED chair is nothing more than the birdie of a broken coo coo clock everyone has been toilet trained to believe can tell what time it is.

Please do not drink and speak at the same time...
http://www.ohmagif.com/wp-content/uploads/2012/03/funny-drunk-guy-in-a-store.gif

[Hypertiger]

This is the Internet.

if you have a bar of gold and I have a bag of rice and a gun...the exchange rate on that day is one bar of gold for one bag of rice...That is your wonderful gold standard.

The top owns and controls the global food/fuel production and distribution networks...They can raise the prices and tax the flesh off your pathetic skeletons...and there is zero you can do about it.

According to the recorded history written by the winners or top for the bottom or losers to read...of course after the top teaches the bottom to read of course.

Let me guess...You all taught yourselves to read, write, do math and how to think...

[mamboni]

http://gold-silver.us/forum/attachment.php?attachmentid=5687&d=1384832259

5687


http://www.youtube.com/watch?feature=player_embedded&v=ipGIOip5zc4

[Hypertiger]

A guy asked me if buying gold was the right choice to invest in currently...I told him that buying 1/10th of an ounce of gold a paycheck until the day he dies will amount to a huge pilr of gold after awahile.

and that skeletons that are found with gold are treated better than skeletons without gold.

When the British empire collapsed the Ottoman empire and took over in Egypt...they burnt massive amounts of poor mummies to power locomotives since Egypt was rich in mummies and poor in coal.

While the rich mummies found with gold like king Tut were taken care of, exalted, and revered.

[mamboni]

A guy asked me if buying gold was the right choice to buy currently...I told him that buying 1/10th of an ounce of gold a paycheck until the day he dies will amount to a huge pilr of gold after awahile.

and that skeletons that are found with gold are treated better than skeletons without gold.

When the British empire collapsed the Ottoman empire and took over in Egypt...they burnt massive amounts of poor mummies to power locomotives since Egypt was rich in mummies and poor in coal.

While the rich mummies found with gold like king Tut were taken care of, exalted, and revered.

Bullish mummies bitchez!

[Hypertiger]

Yes like I said this is the Internet...I helped build this technological terror you all are having spooky sexual relations at a distance with.

The Internet = matches.

You all = children.

Internet + you all = Children playing with matches made in heaven and burning everything down to hell.

[Horn]

The top owns and controls the global food/fuel production and distribution networks...They can raise the prices and tax the flesh off your pathetic skeletons...and there is zero you can do about it.

5688

Come to Costa Rica, HT.

You can get some sun on your scalp, and tax free mangos.

[Hypertiger]

You all can talk the talk and cliam to walk the walk in here.

Out in the real world...you can talk the talk...but when it comes time to walk the walk...It's spectacular face plant time.

[Hypertiger]

Ponce is the smartest of you all...

[mamboni]

You all can talk the talk and cliam to walk the walk in here.

Out in the real world...you can talk the talk...but when it comes time to walk the walk...It's spectacular face plant time.


http://www.anglersdigest.net/images/waterside-fatty.gif

[midnight rambler]

http://www.anglersdigest.net/images/waterside-fatty.gif

WTH did you find that GIF of Twisted Kitty?? ???

[Horn]

You all can talk the talk and cliam to walk the walk in here.

Out in the real world...you can talk the talk...but when it comes time to walk the walk...It's spectacular face plant time.

Well the invitation is still open.

We could even take the ferry to mal pais, is like the end of the world out there.

[Hypertiger]

In real life I flex my muscles and the shockwaves bitch slap you all into all submission.

[Hypertiger]

I go out of my way to save spiders lives to deal with the mosquitos and flies that invite me to believe their lies.

[Horn]

In real life I flex my muscles and the shockwaves bitch slap you all into all submission.

Cool, so you can carry your own luggage.

pack light, not alot of room on the ferry.

[Horn]

http://www.youtube.com/watch?feature=player_embedded&v=ipGIOip5zc4

Good info. there.

[slvrbugjim]

http://gold-silver.us/forum/images/misc/quote_icon.png Originally Posted by Hypertiger http://gold-silver.us/forum/images/buttons/viewpost-right.png (http://gold-silver.us/forum/showthread.php?p=673734#post673734)

In real life I flex my muscles and the shockwaves bitch slap you all into all submission.

Um er oh um what, I need a drink now I thought you were a woman perhaps
on some enhancing chemical, I am disappointed but that is ok

[Ponce]

It is easier for the cowboys to corral all the horses into a canyon and take them all at once than to chase them all over the open range....the government are the cowboys the Bitcoin is the canyon and you are the horses......

To me this is like the tulip mania of Holand......

V

[slvrbugjim]

damn we go with the cowboys, Dallas fans agree the problem is with Jerry Jones
Sorry could not help that one

[Ponce]

Why? is he buying bitcoins?.........oh oh

V

[sirgonzo420]

Ha! Email IS a scam. The entire Web is a scam. Consumerism is a scam. Free enterprise is a scam. Civilization is a scam. The fucking hippies were right. Lol...:o

Everyone is supposed to find that out for himself, over the course of lifetimes.

Thanks for ruining it, Santa. ;D


But yes, all that we can see (and beyond) is illusion, called माया (māyā) in Sanskrit. This simply cannot be understated.

All these myriad perceived differences in form are all manifestations of One, Non-Dual Ultimate Will, and we are no different. We are but reverberations of the eternal sound of Creation!


None of my words ever do justice to the Truth!

[mamboni]

"If you don't encrypt it, you shouldn't transact it."

-Digiponce the Magnificent


http://www.youtube.com/watch?v=w4HGVJjqDVk&feature=player_embedded

[mamboni]

Martin Armstrong said:"The virtual dollar is coming. I would say after 2015.75 when the Fed has zero power and they will go electronic. So for now, bitcoin serves a purpose to get people use to the idea of a cashless society."amd if you can read german:


http://deutsche-wirtschafts-nachrichten.de/2013/11/18/straf-zinsen-fuer-...
(http://deutsche-wirtschafts-nachrichten.de/2013/11/18/straf-zinsen-fuer-sparer-finanz-eliten-wollen-bargeld-abschaffen/)

The plan is to go to virtual money.
Bitcoin paves the way.

[Horn]

The plan is to go to virtual money.
Bitcoin paves the way.

Real items in a virtual money world should become virtually worthless, or effectively priceless?

[Ponce]

Once again........the final solution will be a "debit-credit card" where all your income will go there and all your expenses will come from there........the government will even save you the trouble of paying your taxes by taking it from there or of giving themselves a "loan" by also taking it from there.

The underground economy will be the greatest thing to happen and government agents will be all over the place.

All types of old currency will be traded and by using it you could even get a high discount on your purchases.

V

[chad]

Once again........the final solution will be a "debit-credit card" where all your income will go there and all your expenses will come from there........the government will even save you the trouble of paying your taxes by taking it from there or of giving themselves a "loan" by also taking it from there.

The underground economy will be the greatest thing to happen and government agents will be all over the place.

All types of old currency will be traded and by using it you could even get a high discount on your purchases.

V

this is pretty much almost true for those under 30 or so. they look at me all weird when confronted about currency. they pay EVERYTHING with a debit card. saw a kid buy a pack of gum with one the other day.

[Horn]

they pay EVERYTHING with a debit card. saw a kid buy a pack of gum with one the other day.

Doesn't that piss you off?

And they call for it in the name of convenience.

While making you wait longer in line...

[mamboni]

this is pretty much almost true for those under 30 or so. they look at me all weird when confronted about currency. they pay EVERYTHING with a debit card. saw a kid buy a pack of gum with one the other day.

Modern day Eloi.

[Ponce]

I have had only one credit card for the past 25 years, or more, and all that I have use it for before 15 years was for "extreme emergency" and for the past 10 years only to order on line....have never paid any interest.......12 years ago I paid $100.00 to a company to find out all that they could about me and they came up with only half a page (it usually take six) and most of it was wrong because it was for "my" arrest record that wasn't even me.

V

[Horn]

Modern day Eloi.

I was about to ask you about those a week ago, they only use Bitcoins correct.

While the grunts use silver? ;)

[ximmy]

Yes like I said this is the Internet...I helped build this technological terror

Thanks Al...
http://jdwaggoner.files.wordpress.com/2011/07/political-pictures-al-gore-internet.jpg

[mamboni]

I was about to ask you about those a week ago, they only use Bitcoins correct.

While the grunts use silver? ;)


In The Time Machine[edit (http://gold-silver.us/w/index.php?title=Eloi&action=edit&section=1)]By the year AD 802,701, humanity (http://gold-silver.us/wiki/Human_race) has evolved into two separate species: the Eloi and the Morlocks (http://gold-silver.us/wiki/Morlock). The Eloi are the childlike, frail group, living a banal (http://gold-silver.us/wiki/Banal) life of ease on the surface of the earth, while the Morlocks live underground, tending machinery and providing food, clothing and infrastructure for the Eloi. Each class evolved and degenerated from humans (http://gold-silver.us/wiki/Human). The novel suggests that the separation of species may have been the result of a widening split between different social classes, a theme that reflects Wells's sociopolitical opinions.

The main difference from their earlier ruler-worker state is that, while the Morlocks continue to support the world's infrastructure and serve the Eloi, the Eloi have undergone significant physical and mental deterioration. Having solved all problems that required strength, intelligence, or virtue, they have slowly become dissolute and naive. They are described as being smaller than modern humans, having shoulder-length curly hair, chins that ran to a point, large eyes, small ears, and small mouths with bright red thin lips. They are of sub-human intelligence, though apparently intelligent enough to speak, as they have a primitive language. They do not perform much work, and in the book and 1960 film when Weena (http://gold-silver.us/wiki/Weena_(The_Time_Machine)) falls into the river, none of the Eloi help her.

While one initially has the impression that the Eloi people live a life of play and toil-less abundance, it is revealed that the Morlocks are attending to the Eloi's needs for the same reason a farmer tends cattle; the Morlocks use the Eloi for food. This is why there are no old people, and why the Eloi seem to fear the dark.

[Shami-Amourae]

In The Time Machine[edit (http://gold-silver.us/w/index.php?title=Eloi&action=edit&section=1)]

By the year AD 802,701, humanity (http://gold-silver.us/wiki/Human_race) has evolved into two separate species: the Eloi and the Morlocks (http://gold-silver.us/wiki/Morlock). The Eloi are the childlike, frail group, living a banal (http://gold-silver.us/wiki/Banal) life of ease on the surface of the earth, while the Morlocks live underground, tending machinery and providing food, clothing and infrastructure for the Eloi. Each class evolved and degenerated from humans (http://gold-silver.us/wiki/Human). The novel suggests that the separation of species may have been the result of a widening split between different social classes, a theme that reflects Wells's sociopolitical opinions.

The main difference from their earlier ruler-worker state is that, while the Morlocks continue to support the world's infrastructure and serve the Eloi, the Eloi have undergone significant physical and mental deterioration. Having solved all problems that required strength, intelligence, or virtue, they have slowly become dissolute and naive. They are described as being smaller than modern humans, having shoulder-length curly hair, chins that ran to a point, large eyes, small ears, and small mouths with bright red thin lips. They are of sub-human intelligence, though apparently intelligent enough to speak, as they have a primitive language. They do not perform much work, and in the book and 1960 film when Weena (http://gold-silver.us/wiki/Weena_(The_Time_Machine)) falls into the river, none of the Eloi help her.

While one initially has the impression that the Eloi people live a life of play and toil-less abundance, it is revealed that the Morlocks are attending to the Eloi's needs for the same reason a farmer tends cattle; the Morlocks use the Eloi for food. This is why there are no old people, and why the Eloi seem to fear the dark.


http://www.youtube.com/watch?v=h1BQPV-iCkU

[Horn]

Give me convenience, and give me death.

Should be the tops motto.


http://www.google.com/images/errors/logo_sm.gif (http://www.google.com/) 502. That’s an error.


The server encountered a temporary error and could not complete your request.
Please try again in 30 seconds. That’s all we know.

[learn2swim]

It's no coincidence that movement against the FED along with all kinds of videos world wide against central banking have become popular. Then Bitcoin pops up that's anti-central bank but a virtual currency. The establishment was behind it all along. Now China will give Bitcoin the wings it needs take off and take over the global markets. http://qz.com/148313/china-and-bitcoin-are-going-steady-but-does-beijing-approve/

[Horn]

Strange how it skips over Japan.

Yes, my guess is its a concentrated effort by some singular or group entity there.

Russia being fairly dense is a surprise also.

5693

[EE_]

Email from a friend

November 19, 2013
En route from Hong Kong to the United States

Senator Tom Carper (Delaware) is confused about Bitcoin.

As Chairman of the Senate Committee on Homeland Security and Governmental Affairs, this is how Carper framed his opening remarks yesterday at a hearing about digital currencies-- with complete, incoherent confusion.

Carper's hearing went on for several hours as one witness after another testified about the potential evils of digital currencies. They hailed from agencies and organizations like:

The Homeland Security committee
Criminal Division of the US Attorney General's Office
US Secret Service Criminal Investigative Division
The Financial Crimes Enforcement Network
The International Centre for Missing & Exploited Children
Based on the way they stacked the witness list, the message they're sending is clear: digital currencies like Bitoin equate to crime, terrorism, and child exploitation.

But the height of absurdity in yesterday's hearing probably came during the testimony from the testimony from the Financial Crimes Enforcement Network (FinCEN), in which the agency's chief cited the BENEFITS of digital currencies, including:

anonymity
simple, easy to navigate
lower fees than the conventional financial system
globally accessible
can be used as both a store of value and medium of exchange
security
etc.

Yet in listing all of these benefits, FinCEN's chief was actually trying to make a case AGAINST Bitcoin! In her mind, only criminal terrorists want low-fee, secure, globally accessible money.

All of these politicians and bureaucrats can't wait to get their arms around digital currency to regulate the hell out of it. They don't understand it... therefore they think it's dangerous.

Even the World Bank president (a US government-appointed stooge) weighed in on digital currencies. It's obvious they're all afraid.

And their entire argument begins with the deeply flawed premise that financial privacy is somehow wrong, immoral, and nefarious.

There's no sense trying to convince them otherwise. Government's mission is to obstruct... particularly a government in decline.

So we can expect more hearings, more regulation, more disclosures. At least, in the Land of the Free.

Over here on the other side of the world, though, they're not afraid of Bitcoin.

Places like Hong Kong and Singapore understand that they have a role to play as preeminent international financial centers in becoming financial hubs for digital currencies.

If the US wants to shoot itself in the foot (again) and shut itself out of the market, so be it. But Asia is embracing its potential role in the marketplace, complete with all the risks and rewards.

It wasn't but a few weeks ago that a Hong Kong-based bitcoin exchange ran off with a few million dollars of customer money. But that hasn't cooled demand in the region... nor has it sparked a wave of debilitating regulations to clamp down on digital currencies.

What this ultimately means is that all the new businesses and intellectual capital associated with digital currencies will flock to Asia... just in the same way that all the cutting edge precious metals firms are now basing themselves in Singapore.

The US government is sharpening its steak knives in anticipation of a great digital currency roast. But they'll find out very soon that Bitcoin has left the building... and moved on to greener, safer pastures in Asia.

This is good news, especially for second generation digital currencies and related firms like litecoin, ripple, and ven.



Until tomorrow,

Simon Black
Senior Editor, SovereignMan.com

[Ares]

Strange how it skips over Japan.

Yes, my guess is its a concentrated effort by some singular or group entity there.

Russia being fairly dense is a surprise also.

5693

Not really surprising at all actually. Electricity is expensive in Japan. Bitcoin Nodes are basically mining pools. Most SuperNodes (data centers full of Bitcoin mining equipment) are located in China, U.S., Germany, and Russia. That's because there aren't many Japanese individuals who can keep a Bitcoin miner on consuming 400-500 Watt's an hour 24/7.

What I was trying to tell you in a previous thread, mining is not cheap so to have a pool perform a selfish mining attack and not pay their miners for a month or 2 while it builds up it's hidden share chain, isn't going to go over well for miners who have bills to pay.

[EE_]

Can you put in a bit at any number you want and leave it sit there to see if it gets filled? Say $375
If you can, for how long?

[Horn]

The US government is sharpening its steak knives in anticipation of a great digital currency roast. But they'll find out very soon that Bitcoin has left the building... and moved on to greener, safer pastures in Asia.

And what prey tell would China do with Bitcoins all to itself, trade them for oil?

Imo, china has too many dollars and not enough to do with them, is the only reason they're gambling with Bitcoin. Possibly they could facilitate trade between other eastern nations with them, but that would be their fateful demise now wouldn't it. maybe that's the plan china's trying to loop everyone in the eastern block into digital bits the way U.S. looped them into paper bits.

What's good for other digital currencies is bad for Bitcoin. Until a middleman comes out to mash them all together in his currency.

A proprietary Windows of E-coin currency.

[Horn]

Not really surprising at all actually.

I would think Japan would have something going on in it at least around Germany and Russia's level, or Australia's even.

Seeing as how they're typically tits up in the Tech. field.

Electricity keepin it from happening sounds like it could run into trouble other places.

[Ares]

I would think Japan would have something going on in it at least around Germany and Russia's level, or Australia's even.

Seeing as how they're typically tits up in the Tech. field.

Electricity keepin it from happening sounds like it could run into trouble other places.

I've got a brother-in-law who lives in Japan. He said unless you're well connected with the upper echelons of society, or a tech giant, you pay full price for electricity which can be up to 3-4 times what we pay for here in the states. He said his power bill actually went up when Fukushima went off line. It makes sense though, it's an island nation with few natural resources. The UK at least has coal, Japan doesn't have any Coal reserves. So they pay a huge penalty for importing their power.

[Horn]

If the Netherlanders are involved anything's possible.

Talk about an unseen elite crew, the Netherlands is always a good place to begin.

Agents in more places then you might imagine.

Not kidding.

[Ponce]

Bitcoins are not yours, only the illusion...... that is to say.....until such a time that you actually use it to buy something that you can hold in your hands.

V

[gunDriller]

I've got a brother-in-law who lives in Japan. He said unless you're well connected with the upper echelons of society, or a tech giant, you pay full price for electricity which can be up to 3-4 times what we pay for here in the states. He said his power bill actually went up when Fukushima went off line. It makes sense though, it's an island nation with few natural resources. The UK at least has coal, Japan doesn't have any Coal reserves. So they pay a huge penalty for importing their power.

it's the same way in New Zealand.

it makes me wonder if energy price manipulation is one of the ways that TPTB use to affect manufacturing & where factories are located.

i am hearing about factories being re-located to the US because our energy costs are lower.


headlines about new factories is a great way to make people think that the economy is recovering.

never mine that some town or county or state had their water supply destroyed to get that 'cheap energy'.

[madfranks]

I can see what their plans are.....everyone gets away from the green back, gold and silver and into bitcoins..........and then......all the money will be collected in one place and easier to take away....... and if you don't think that they know how then think again.

V

I have a different view. I think the bureaucrats and the elite are stuck in the old paradigm and don't understand new technology and new ideas. They thrive on stopping progress and limiting innovation, that's how they make their hold on the rest of us. They never fathomed bitcoin, what it is or what it can be. Hell, they're still trying to understand how it works, and most of them are too stuck in the past to understand it. Just reading their press releases or their comments and opinions on the matter shows they have no idea what it is they're facing.

[Horn]

Political vampires never know how anything works, just whether or not it threatens their seat.

Of this they are quite sure, and do know.

Its the only thing they do know.

[Ares]

I have a different view. I think the bureaucrats and the elite are stuck in the old paradigm and don't understand new technology and new ideas. They thrive on stopping progress and limiting innovation, that's how they make their hold on the rest of us. They never fathomed bitcoin, what it is or what it can be. Hell, they're still trying to understand how it works, and most of them are too stuck in the past to understand it. Just reading their press releases or their comments and opinions on the matter shows they have no idea what it is they're facing.

I noticed that too reading over the comments that the "regulators" were discussing trying to tie identities to Bitcoins, and how to go about taxing it. It's laughable. They don't have a clue on what they are dealing with. I liked what Tony Gallippi (Founder and CEO of BitPay) said: "If the United States doesn’t allow our businesses to accept bitcoin and create more jobs and exports, then countries like Germany and China certainly will."

What they don't seem to understand is that BTC's don't stop or care where their legislative authority is. With the advent of Dark Wallet, and other anonymizing technology coming online, they'll be left scratching their heads wondering why the hell they're unable to tax or regulate it.

[mamboni]

Tuesday, 19 November 2013Bitcoin + Physical Gold = Bitbond + Bitmortgage (http://twoshortplanksunplugged.blogspot.com.au/2013/11/bitcoin-physical-gold-bitbond.html)


Bitcoin + Physical Gold = Bitbond + Bitmortgage

I have been mulling-over the pro’s and con’s of Bitcoin for some time now and have concluded (IMO only) that Bitcoin is indeed a flier HOWEVER, not in its current manifestation.

Bitcoin is indeed a better option than paper/electronic money in that the ownership and transmission of Bitcoin as an asset is outside of the Banking sector. So let’s be honest with ourselves, that’s the sole argument for Bitcoin in the first place, isn’t it, that although Bitcoin is within a broader definition of the finance sector, it is outside of the Banking sector? So really, everyone’s gripe is with Banks, not currency per se.

Bitcoin is the Banking version of buying off the Internet…if you’re sick of pushy retail sales when you go shopping, then buy off the internet and bypass the whole ordeal.

There is little anyone can say to me which will convince me to own Bitcoin over physical Gold and Silver in my hand, right now. The key argument is that physical is physical and Bitcoin is vapourware. I expect my “vapourware” tag will be a moot point once Asia has its Physical Gold Commodity Exchanges running as I certainly expect a Bitcoin-style trading platform to emerge hand-in-hand (and there will be hundreds of species of Bitcoins which will emerge…hundreds!!!). This of course means that not all Bitcoin-style platforms will be equal; not all currencies and bonds are equal.

In terms of Bitcoin’s future, I believe that we will see the emergence of fractional Gold-backed ‘BITBOND’ which will take the world by storm and underpin Bitcoin once Gold is emancipated from its current derivative position.

So in its first iteration, Bitcoin is akin to the days of old whereby a Goldsmith would give a paper Claim Check to a client. In the future, we may see all manner of paper assets in Bitcoin form, more so I see Bonds in Bitcoin form, and while we’re on the subject of diversity, have a think about a the future of lending; imagine a world where home owners could derive their mortgages from a Bitmortgage Exchange whereby their credit rating can secure a lower interest rate on the open market, a market where creditors spend Bitcoin to purchase Bitmortgage credit and do so leveraged upon Bitbond assets.


Hopefully you can see my point, we’re merely creating a Free-Market Financial System outside the Banking System, but if Bitcoin gets enough traction the banks will react and create their own Bit-currency, effectively sending the Banking Sector back to the days where each Bank had their own currency…history rhymes?!

IMO, Bitcoin isn’t an asset at all, like paper currency, digital currency and paper assets, Bitcoin is merely an alternate mechanism for asset storage/transfer which points to existing wealth or promise to pay and you will see the truth behind this statement when Bitcoin’s competition emerge from the ether, in a multitude of species and iterations.

If you’re buying Bitcoin today, you are effectively buying into a Bitforex market with just one player; you need to take into consideration that there will be many competing players.

WARNING: The real loser in all of this is the BIS (Central Banking Cartel), so watch their reactions closely.

TSP


http://twoshortplanksunplugged.blogspot.com.au/

[Ares]

Thanks for sharing that article. Sums up my feelings exactly what Bitcoin and other Altcoins are. A free market solution to a centrally controlled problem.

Right now I don't believe the BIS is paying much attention to BTC. With a market cap of 7 Billion, it's peanuts. But it's potential is limitless.

[learn2swim]

I have a different view. I think the bureaucrats and the elite are stuck in the old paradigm and don't understand new technology and new ideas. They thrive on stopping progress and limiting innovation, that's how they make their hold on the rest of us. They never fathomed bitcoin, what it is or what it can be. Hell, they're still trying to understand how it works, and most of them are too stuck in the past to understand it. Just reading their press releases or their comments and opinions on the matter shows they have no idea what it is they're facing.

Sorry, but if Bitcoin was really a threat to TPTB, they would destroyed it years ago. TPTB created the internet, it's their baby, and they plan this shit at least 30 years in advance.

[Ares]

Sorry, but if Bitcoin was really a threat to TPTB, they would destroyed it years ago. TPTB created the internet, it's their baby, and they plan this shit at least 30 years in advance.

Oh great, another person who thinks TPTB are all powerful. :rolleyes:

Since when have human beings ever been all powerful with the ability to control whatever they want on a whim? If they were so powerful why did the Roman empire collapse? You don't think they had their own version of "TPTB"?

The only entity that is Omnipotent and Omnipresent is the creator. I give no such power to those who believe they control anything while still only just flesh and blood.

The ONLY way to completely shut down the internet is by getting rid of or shutting off the Root DNS servers. But don't be surprised if volunteer's start operating their own DNS servers to replace them..

When it comes to decentralization they are powerless. No one to harass, jail, intimidate, fine, torture, extort, etc. If they were all powerful they would of shut down bit torrent years ago. How did that work out for em?

[Horn]

The plain fact that Bitcoin is sitting front of and in Senate committee hearings, and its market came from places that TpTb loves is a testament to the fact that it is supported by them. Taxing a company that operates in drugs or contraban gives it legitimacy in certain circles, setup as a front business doing something else legal (on the side).

[Ares]

The plain fact that Bitcoin is sitting front of and in Senate committee hearings, and its market came from places that TpTb loves is a testament to the fact that it is supported by them. Taxing a company that operates in drugs or contraban gives it legitimacy in certain circles, setup as a front business doing something else legal (on the side).

There's a similar theory on GLP and this user came up with what I think is a pretty good response:


This has been on my mind too..

The main prob with this theory is that BTC is open for review and signed with hash.. so you can't just make changes to the code and run the new app without some approval from the userbase. Also, there are a few Alt Coins out now so that adds to the mystery.

But I told a friend the same thing last night while we had been talking about BTC.. my point to him was if BTC is allowed to progress without sharp and swift cut down attempts.. then it is the bank's brainchild.

But then again, it could be the work of white-hats and the level of hubris on the other side is so large that they don't yet realize the size of the camel they just let into the tent..

http://www.godlikeproductions.com/forum1/message2415132/pg1

[Horn]

The black market is already hugely powerful, but it follows lock and step the "white hats". My guess is all to keep the larger dollar game afloat and on the level with China possibly, accountable.

Bitcoin provides legitimacy to that side, and is also easily manipulated to provide better service to them. Gaming was a boon to certain small countries costa rica is one, so they take most of it away then bring it back (if everyone plays hush) and keeps following in tow.

[learn2swim]

Oh great, another person who thinks TPTB are all powerful. :rolleyes:

Since when have human beings ever been all powerful with the ability to control whatever they want on a whim? If they were so powerful why did the Roman empire collapse? You don't think they had their own version of "TPTB"?

The only entity that is Omnipotent and Omnipresent is the creator. I give no such power to those who believe they control anything while still only just flesh and blood.

The ONLY way to completely shut down the internet is by getting rid of or shutting off the Root DNS servers. But don't be surprised if volunteer's start operating their own DNS servers to replace them..

When it comes to decentralization they are powerless. No one to harass, jail, intimidate, fine, torture, extort, etc. If they were all powerful they would of shut down bit torrent years ago. How did that work out for em?

LOL, yes.. being in power since the Roman Empire, and probably well before then tends to make me believe that TPTB aren't stupid fucks who made a mistake by creating the interent.

[Ares]

LOL, yes.. being in power since the Roman Empire, and probably well before then tends to make me believe that TPTB aren't stupid fucks who made a mistake by creating the interent.

:rolleyes:

whatever you say..... They no more created the internet than Al Gore.

What happened after the Roman empire fell? Were "they" still in power? I remember a period called the dark ages and the rise of monarchies around that time frame. Silly me.. I had it all wrong... :rolleyes: