Regulation vs Banning: USA Peacocks to Censor Bitcoin Transactions

LeoFinance
13 days ago
7 Min Read
1401 Words

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A lot of people are worried about Bitcoin being banned all around the world. It only makes sense. Bitcoin threatens the stranglehold that fiat currency has on the world. Why wouldn't countries ban it?

Bitcoin Showdown With Governments Could See It Banned—But Markets Don’t Care

However, billionaire investor and founder of asset management firm Bridgewater Associates, Ray Dalio, sees it differently. He believes Bitcoin has no long term value given that governments will do all they can to crush those who oppose their fiat currencies.

Ray Dalio has apparently sparked some serious FUD as of late. Perhaps he's trying to steal The Biggest-Troll title from Nouriel Roubini.

WHY BANNING BITCOIN WON’T HAPPEN, AND GOVERNMENTS CAN’T STOP IT

#1. Gold Ban Failed

From 1933 to 1975, the US made it illegal for citizens to own over a certain amount of gold to prevent gold hoarding. It was done to push citizens increasingly toward paper dollars that were at the time losing purchasing power.

Back then, the law was difficult to enforce, and only a few cases where gold buyers were prosecuted exist. It also serves as an example as to why the situation won’t arise again, the dollar isn’t pegged to Bitcoin as it was to gold when the ban was put into place.

#2. War on drugs failed

Next, the sheer cost in resources and time required to add Bitcoin to the ever-growing list of “banned” goods like weapons, drugs, and more would be large, and wasteful. And if the “war on Bitcoin” is as large of a failure as the “war on drugs” or “war on terrorism,” Bitcoin will become part of everyday society whether there are wars waged against it or not.

#3. Digital

Another reason that would make a war on Bitcoin far more challenging, is because it lacks a physical form. The lack of a physical form and cryptography makes it difficult to confiscate.

#4. Corporate Adoption

No one actually controls Bitcoin, so governments’ only chance at stopping the rapidly expanding cryptocurrency network is to ban citizens from owning it. But as gold has proven, it doesn’t work. Also, time is running out on any chance of that happening at all, the more major companies like Square, Inc, MicroStrategy, and billionaire hedge fund managers put their capital behind it.

Billionaires, millionaires, and corporations, have considerably lobbying power. If companies continue to get behind Bitcoin in this way, and the market cap grows to $1 trillion or more, the impact of a government ban would be too considerable to warrant it.

#5. Irrelevant

The reasons could go on and on as to why governments won’t ban Bitcoin, and even if they do, there’s simply no stopping it.


Indeed the reasons can go on and on. I can think of a few myself. For starters, no one can ban abundance technology. Nation-states are in competition with one another, and if the most powerful nations in the world try to ban the most important abundance technology in human history, that's basically like choosing to be North Korea. Sure, you get to control everything, but you're lording over an empire of dirt. Not worth it.

I for one would not look forward to all those nations that we've been fucking over for the last 100 years to rise up and embrace crypto while we banned it. They become strong while we are weak... and on top of that shit-sandwich they hate America? That's not a good combination, and top-brass knows it.

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At it's core, decentralization allows for lower tiers of the wealth pyramid to extract more shares from the level above them. Who would possibly fight against that? Only the people at the tippy top. Only Central Bankers.

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Think that Jezz Bezos is the richest man in the world? Think again. The richest people in the world don't need money in their bank account. They can create bank accounts and create money out of thin air. Central banks can take away all the wealth that the world's perceived billionaires have. The only reason why they don't do that is that it would destabilize their entire system and the party would be over.

But now we are in a situation where every person and entity can be its own central bank. No longer do corporations have to bend the knee to central banking. They don't quite realize it yet, but when they do it will be quite impossible to ban Bitcoin in any sense of the word. Central banking's keys to power are about to turn against them and automate money itself.

We all saw how Libra got batted down quick. Corporations noticed. The reason that failed is because Zuckerturd is a complete toolbag. All Facebook had to do was incorporate Bitcoin into the protocol and maybe help with lightning network development. Instead they tried to go full greed and create their own fractional reserve shitcoin. Central banks did not approve so he got slapped.


We are already seeing Paypal doing just that.

But I need to save that for another post.


So how are countries going to rein in Bitcoin?

By regulations and other controls, of course.
Already we see this in the works.

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The government actually learned a lot from the war on drugs. It wasn't as profitable as they would have liked. Too much overhead cost and tax dollars wasted. Now they have learned that the key to controlling these things is with very meticulous regulations. Tax Tax Tax.

A New Bitcoin Mining Pool Claims It Has Tools to Censor Blockchain Transactions

A blockchain and technology company claims its new bitcoin mining pool is embedded with tools that enable the pool to censure transactions in the blocks they mine. According to a statement issued by the DMG, the parent company to Blockseer mining pool, this ability allows the latter to “exceed” the compliance requirements of the U.S. Government’s Office of Foreign Assets Control (OFAC).

The mining pool’s ability to filter or censor transactions means “high-risk wallets will not be included in Blockseer’s posted blocks.”

Furthermore, DMG claims that Blockseer’s pool “may further decentralize the bitcoin blockchain, readjusting the balance of hash rate to North America, where more Bitcoin nodes operate.”

LOL

This doublespeak is fucking legendary. They are basically saying they are going to force miners by law in America to use regulated mining pools that censor blacklisted accounts. This could get pretty crazy fellas.

Obviously no Bitcoin miner would willfully give their hashpower to a mining pool that censored transactions. That destroys the sanctity of Bitcoin and damages its fungibility and value (something a miner would never do). The only reason a miner would do this is if they were forced to by law. Get ready.


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It becomes painfully obvious that privacy technology like Monero's XMR and other tactics of obfuscation are going to become critical in the future.

I still feel dumb for emptying my XMR bag.
I'll get it back one day.


However, others see Blockseer’s new mining pool, which is the culmination of a two-year effort by DMG, as a threat to bitcoin.

You don't say?

Also, how is this "the culmination of a two-year effort by DMG"??? That is absolutely pathetic and embarrassing. In fact, it shows just how ill-equipped the regulators are for dealing with this "problem".

Two years? Two years!?

All they had to do was create a regular mining pool. Add a blacklist for addresses, and make sure the blocks they produce don't have transactions from the blacklisted accounts. I swear someone out there could do that in a day. These guys are incompetent.

Bitcoin transactions are censorship-resistant, while its blockchain network is decentralized. Therefore, when centralized entities retain the right to reject certain transactions, this does not bode very for bitcoin’s future.

Others fear that if Blockseer’s new mining pool proves to be successful, most miners will be forced to enable the same transaction filtering in the future. At the time of publication, Blockseer’s pool is not represented among the 15 mining pools pointing hash at the BTC chain.

Good luck forcing Bitcoin miners to participate in a system that lowers the value of Bitcoin. No, seriously, good luck... I'm legitimately curious to see how it turns out.

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