Monday, June 3

Can Bitcoin be closed down one day?

Hello everyone,

As many of you know I'm big Bitcoin fan in case of their anonymity. This article is adaptable to all all other Bitcoin type e-currencies (what use P2P principles). Governments and banking people don't like that regular individuals start to use anonymous e-currencies to pay each other and even worse (from theirs point of view) that they store their funds out of their eyesight where their hands can't reach. 



Bitcoin type e-currency use in our daily life will not come that soon, but today there is already many services that accept payments with Bitcoin and there is many organizations what accept donations with Bitcoin, because other "legal" type of methods are already seized, one example - WikiLeaks. WikiLeaks example just show that there is people who would like to close down accounts of some organizations because of job what they do. They closed WikiLeaks bank accounts and PayPal account, so they had no other option but just ask donations with Bitcoin. But the question is - can they close down Bitcoin?

Technically NO


There is no servers, no domains what to arrest and no people what to put in jail or try to convince them to shut Bitcoin down and truth is Bitcoin will disappear only if internet will disappear. So, one thing is clear - it will not be shut down in Liberty Reserve type scenario.

Theoretically YES - but with different tools


We can't predict what will be moves of big governments in future but eventually they can choose between two ways. First one is to start to regulate exchangers(as much they can) with organizations like FinCen, but second way is just to start taking down exchangers and start spreading rumors around in case to destroy its value to make it completely useless.

When US took down Liberty Reserve then they also arrested domains of various exchangers, because if there is no exchangers then there is no possibility to buy/sell those anonymous currencies. Mostly all of them were located out us US soil and I predict they will continue work under different names or same names with different domain names. For now Mt. Gox Bitcoin exchanger handling more then 60% of all Bitcoin exchanges. It is risky that one exchanger is handling so much of exchanges, but I hope in future it will loose its strength and others will grow. If some banking people would like to take down Bitcoin they can easy start just to shut down exchangers and then value of Bitcoin will start to drop like domino.

In start of April when Bitcoin exchange rate started to run like rocket towards sky then Mt. Gox suspended trading on 11th of April until 2013-04-12 02:00am UTC for "market cool-down" then value of a single bitcoin fell to as low as $55.59. On the other hand when Homeland Security seized accounts associated with largest Bitcoin exchanger Mt. Gox, then there wasn't almost any shaking of currency. So it is hard to predict what would happen if someone would start to shut down exchangers.

Also it is possible them to start spread rumors around that they are investigating Bitcoin "money laundering case" or some other this type of rumors. Next day you wake up and everyone tries to sell coins, but no one is willing to buy them and price drops again like domino.

Actually all what I written before is just my speculation and I think it will not happen, but of course it is not possible to predict anything in this changing world. One day we all can wake up without electricity and then ANY kind of money will be useless or even not anymore in your hands.





From the start of May Bitcoin for now seems quite stable (of course one month is nothing) and now it is around $120 something. If something bad will not happen then Bitcoin and its type cryptocurrency's will grow bigger and bigger because of following reasons:

  • It is totally anonymous, you even do not need provide any name;
  • It is equal for anyone in this world, no one can freeze your funds if someone like government or payment processor do not like what you buy or sell;
  • Money can't be seized and it is more secure then any other currency;
  • It is not possible to regulate it nor shut it down;
  • it is cheap, if you can wait for a while transactions is even for free.

I see huge potential in cryptocurrency, and I know that some people would say that it is just trend of these days, but when more and more e-currencies will close down every day we will move closer and closer to cryptocurrency era where no one will be able to limit us and it will be freedom what people truly deserve.


Thanks for reading and come back later.

David
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1 comment:

  1. Yes David, I agree to everything, nice article. Bitcoin is future to HYIP industry.

    ReplyDelete

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