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Bitcoin blow: U.S. government freezes funds of digital currency


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Provided for context: http://www.16persona...ntj-personality

 

Also here's the test: http://www.16persona...ersonality-test

 

I took it 2 times, because, on many questions, it depends on my mood.

 

I ended up with INTJ and ENTP. Interesting.

As a medical intern, I took that test during one of our group "touchy-feely" days. I got an INFP. The director of our internal medicine program, a really great guy and excellent doctor, looked at it and said "by that, you shouldn't be a doctor." Then he added "I got the same thing." ;)

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Newsweek published a story that apparently unearthed the mysterious Bitcoin founder. A legitimnate journalistic coup, if you ask me.

 

Yet, the bitcoiners' response is that Newsweek is putting his life in danger.

 

Yeah, they're not a paranoid bunch.

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Newsweek published a story that apparently unearthed the mysterious Bitcoin founder. A legitimnate journalistic coup, if you ask me.

 

Yet, the bitcoiners' response is that Newsweek is putting his life in danger.

 

Yeah, they're not a paranoid bunch.

Why do the two have to be mutually exclusive?

 

While it is excellent journalism to identify the bitcoin founder; identifying him publicly likely does putr his life in danger because of the sphere in which he opperates.

 

His goals are to create a currency that competes with those of global elites, and to upset the apple cart a bit.

 

You don't see how that might make him target him for assassination?

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Why do the two have to be mutually exclusive?

 

While it is excellent journalism to identify the bitcoin founder; identifying him publicly likely does putr his life in danger because of the sphere in which he opperates.

 

His goals are to create a currency that competes with those of global elites, and to upset the apple cart a bit.

 

You don't see how that might make him target him for assassination?

 

Just like the cabal that killed the Paypal founder? I wonder who he is and what he's up to these days?

 

What an image of Jamie Dimon with a laser scope that must be.

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Just like the cabal that killed the Paypal founder? I wonder who he is and what he's up to these days?

 

What an image of Jamie Dimon with a laser scope that must be.

 

Dimon just has Matt Zames grunt and throw a bowler hat at people.

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Just like the cabal that killed the Paypal founder? I wonder who he is and what he's up to these days?

 

What an image of Jamie Dimon with a laser scope that must be.

You don't see the difference between creating a new currency, and creating a new way to exchange existing currencies?

 

That's fine, but you're being myopic.

Edited by TakeYouToTasker
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You don't see the difference between creating a new currency, and creating a new way to exchange existing currencies?

 

That's fine, but you're being myopic.

 

It's not a new currency, because there's nothing tangible that backs the new currency. That's why no one among the "elites" is afraid of it as a new currency. It does have the potential to change the payment mechanisms of existing currencies, kind of like .... PayPal

 

But go ahead and readjust the tinfoil.

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All fiat currency is backed by the faith of the people who use it, nothing more.

 

And if you don't realize that Bitcoin is, in fact, a currency (albiet, unstable, and in it's infancy), then your positions here are invalid.

 

Of course my positions are invalid because I understand the global funds markets and the movement of payments. Bitcoin is as much of a currency as Pokemon cards.

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Of course my positions are invalid because I understand the global funds markets and the movement of payments. Bitcoin is as much of a currency as Pokemon cards.

Bitcoin is as much a currency as the US Dollar which are, "not redeemable in gold, silver or any other commodity, and receive no backing by anything This has been the case since 1933. The notes have no value for themselves, but for what they will buy."

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Bitcoin is as much a currency as the US Dollar which are, "not redeemable in gold, silver or any other commodity, and receive no backing by anything This has been the case since 1933. The notes have no value for themselves, but for what they will buy."

 

And gold is just a shiny piece of rock.

 

And please, using the "fiat currency" term doesn't scare anyone. The paper and coins represent the backing authority of the entity that issues that currency (and the implicit claim on the assets and revenue generation of that entity). That's why a US dollar is worth infinitely more than a Zimbabwe dollar, even they're both called a dollar.

 

But the main point is - Nobody cares about Bitcoin's rise as a currency to displace the existing global currencies. It's a neat feat of technology that could remove some of the frictions involved in payment transfers. That's its biggest promise and benefit.

 

That's also why we get a kick out of the tinfoil crowd thinking there's a bullseye on Bitcoin's founder.

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Incorrect.

 

The paper and coins hold value only in-so-much as individuals are willing to redeem them for good and services; which relects the confidence they have in them. This also holds true for your Zimbabwe example. No one accepts Zimbabwe notes in exchange as they are not confident in it.

 

Also, why are you getting your panties in a knot over the term "fiat currency"? It's not a scare term, but rather the proper term for descibing non-backed currencies.

 

As for the "neat feat" of Bitcoin? It's managed to 100% circumvent the central banking system in establishing an alternative medium of exchange. One which is now being accepted by major retailers.

 

Finally, the US government will absolutely treat Bitcoin (as well as any other emerging cryptos) as currency. If it doesn't, it will only be able to tax it as investment, instead of the high income rate.

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Incorrect.

 

The paper and coins hold value only in-so-much as individuals are willing to redeem them for good and services; which relects the confidence they have in them. This also holds true for your Zimbabwe example. No one accepts Zimbabwe notes in exchange as they are not confident in it.

 

Also, why are you getting your panties in a knot over the term "fiat currency"? It's not a scare term, but rather the proper term for descibing non-backed currencies.

 

I guess it's a perception that you think a currency that is backed by a shiny piece of rock is better than full faith & credit of an entity that produces $15 trillion of goods & services and has the best global military force to protect its assets. Why is that shiny rock more valuable than another shiny rock?

 

As for the "neat feat" of Bitcoin? It's managed to 100% circumvent the central banking system in establishing an alternative medium of exchange. One which is now being accepted by major retailers.

 

It's circumvented the central banking system in the same manner that a Pikachoo card circumvented the banking system. Did you know there's a Pokemon Bank? There is, and it is a valid place to store and exchange a currency that is not a dollar. Stock exchanges trade assets that are not official currencies. People barter for goods & services without any monetary exchange. Congratulations to bitcoin for discovering West India.

 

Finally, the US government will absolutely treat Bitcoin (as well as any other emerging cryptos) as currency. If it doesn't, it will only be able to tax it as investment, instead of the high income rate.

 

US and other governments will treat bitcoin for what it is - a value transfer mechanism. They will monitor its movements and will tax people on the difference in the exchange. It will be another asset that will/is being traded.

 

But it does have a lot going for it for facilitating broad digital transactions that can be instantly verified. That's where all the serious money is going into bitcoin. Not some paranoids who fear of the dollar getting obliterated.

 

BTW, you still haven't answered on exactly who fears bitcoin enough to have its creator killed.

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Wow. To hear GG talk in these terms? I thought Bitcoin was DOA. Now?

 

And, question: If we begin to use Bitcoin, in any capacity, isn't that utilization directly proportional to its legitimizaton, especially over time?

 

And what about that legitimacy "bleeding"? If I become used to accepting Bitcoin as a means of transfer, and I keep doing that for a while, what prevents me from evolving??? into seeing Bitcoin as something I would accept as currency?

 

It seems to me that the day I believe that the Bitcoin I get is worth something...is the same day I accept it for my services. All it takes is that belief.

 

And, Tasker's point is interesting: don't they HAVE to treat it as currency?

 

Otherwise, IT .com type businesses will be all over this. If a .com could get paid in Bitcoins, it could do all sorts of stuff "off the books", and only leave a very little "profit" to be taxed, you know, after the board has traded their bitcoins for new cars, etc. :lol: In all seriousness, 2 sets of books seems to be the logical, ultimate outcome here. What CEO, at least in IT, given Bitcoin, isn't going to run as much of his business in Bitcoin as possible?

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Wow. To hear GG talk in these terms? I thought Bitcoin was DOA. Now?

 

And, question: If we begin to use Bitcoin, in any capacity, isn't that utilization directly proportional to its legitimizaton, especially over time?

 

And what about that legitimacy "bleeding"? If I become used to accepting Bitcoin as a means of transfer, and I keep doing that for a while, what prevents me from evolving??? into seeing Bitcoin as something I would accept as currency?

 

It seems to me that the day I believe that the Bitcoin I get is worth something...is the same day I accept it for my services. All it takes is that belief.

 

And, Tasker's point is interesting: don't they HAVE to treat it as currency?

 

Otherwise, IT .com type businesses will be all over this. If a .com could get paid in Bitcoins, it could do all sorts of stuff "off the books", and only leave a very little "profit" to be taxed, you know, after the board has traded their bitcoins for new cars, etc. :lol: In all seriousness, 2 sets of books seems to be the logical, ultimate outcome here. What CEO, at least in IT, given Bitcoin, isn't going to run as much of his business in Bitcoin as possible?

 

DOA as a currency to challenge the existing global currencies. But, as a payment mechanism to transfer the existing currencies? Very possible.

 

Think of bitcoin as a share in a company. You can pay your employees in cash, in deferred compensation (iou) or in stock. Each payment mechanism has a plus and a minus. Cash is the easiest to trade. But you can trade the stock, and exchange it for cash or stock in another company. You and the counterparty agree on a value. There will be no difference in the bitcoin, because the taxman & regulators will look at it as a transfer of value from one person to another. To the extent the value of that bitcoin changed from when you acquired it to when you disposed it, and you didn't add a capital improvement to that bitcoin, you will be taxed on the difference.

 

Because it's at an early stage, the regulators are trying to wrap their hands around it. Ironically the tinfoil crowd is the biggest impediment to its legitimacy. By trying to keep the transactions opaque and untraceable, bitcoin is ideal for illicit and black market goods. Good luck legitimizing a currency whose primary utility is for drug & gun running. Also, the one way nature of bitcoin transmissions isn't very good for commerce because there are times when you need to process refunds or errors.

 

It's still early stages, but let's not get carried away at what it is.

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