Prediction: Governments Will Create Their Own Cryptocurrencies

" No sane person can deny the many benefits of crypto-currency compared to fiat, and certainly the government can’t deny them, either. The age of e-money seems to be taking off. "

A Totalitarian State’s Dream

It is not far-fetched to think that a totalitarian state would LOVE its own cryptocurrency. Think about it for a second: Cryptos do not necessarily need to be open source and decentralized. The evil empire could just enforce their own OppressionCoin, closed-source and despotic.

Let’s become a tyrant for a minute and marvel at some of the wonders of cryptocurrency to tie the people up with blockchains:

Money is able to be confiscated with a single click. No middle-men, no door knocking, no unnecessary expenditures. Just plain money reallocation. If colored coins were in effect, this would translate to houses, lands, cars, etc.

No longer can anyone hide anything from them. Now your tyrant of choice has perfect one-to-one access to your patrimonial status. Not only that, every purchase you ever make gets recorded in the blockchains and tied to your state issued identity. Much like credit/debit cards in real life.

Infinite money cheats can be enforced. Something as wacky and simple as not charging the government’s officials wallets could be held in place. Why bother printing money on batches, when you can create it on demand?

Embezzlement magic can take place. It is really cheap to mint money in the chains, but what’s to stop the law from doing whatever it pleases with its currency? Barring inflation as a limiting factor, all sorts of cheating measures such as double spending could be enforced by the ruling party; they could even make you “lend” your money to them. It’s all in the database.

Slave tracking becomes easier than ever. Why limit yourself to tracking people’s money when you can track their position also? By enforcing every government issued wallet to provide GPS coordinates per transaction or per fixed amount of time, people’s positions would be democratized from the realm of telephone companies to the monopoly of the ruling party. Why limit this to position data? Why not biometrics? And the list continues…


cointelegraph.com...

" The good thing of decentralization is that it provides necessary resilience through redundancy. Every node is a backup. This is always a good feature, regardless of your morals. "

No currency is good. Eventually it will be corrupted.

a reply to: wasaka

I agree that using cryptocurrency would be a method of much greater control over finances than paper money. But, not nearly to the extent I think you expect. For every rule, there is an exception. For every law, there is a loophole. By simply handing my money with an escrow company, I can hide my transactions for as long as I'd like. I could probably spend the rest of my life devising ways around these controls. But a compliant population means that generally the controls would work. However, when the population is more like that of Greece where people view taxation as theft and would view this cyptocurrency system you talk about as theft, it would simply be worked around and generally only mildly effective.

originally posted by: Enlil2215

No currency is good. Eventually it will be corrupted.

That sounds like a religious conviction--based on emotion.
The facts do not support such a strongly held opinion.

Bitcoin is a "trust-less" system, meaning is honest money
and designed to remove any need for any trusted third party.

In the future, companies will issue stock in crypto-currency
using the same Blockchain technology as Bitcion. This will
have the effect of removing corruption from the current
"Wall Street" system.


“Crypto equity is the use of the blockchain to create a parallel universe, that parallels the financial system as we know it; Wall Street as we know it.” says Overstock's CEO, Patrick Byrne

cointelegraph.com...

Once the platform has been established for Overstock to sell its crypto equity, Byrne aims to open the system to other companies wanting to sell shares. Until the SEC grants permission for the company's release of the US$500 million in crypto shares, however, Overstock shares will continue to only be available through their Nasdaq ticker OSTK.

a reply to: wasaka

The real deal fact is that for the most part they already have it. Everyone uses cards, which require the merchants ($0.30/3% a transaction too), which report all to the authorities. The first time Paypal blocks your money due to political reasons or "terrorism" related concerns, you get it. You don't have this with p2p cryptocurrencies like Bitcoin, which you can use anonymously. But at the same time, you don't have a lot of things Paypal offers, like the ability dispute fraudulent transactions, etc. I think the best outcome uses something like Bitcoin as platform, and then offers a non-anonymous layer on top of it, which can allow third party companies like Paypal to offer those mediation and security services to those partaking in transactions, again for a fee.

Looking at swipe fees, cryptocurrencies are great. You have single computers that can handle millions of swipes a day, millions in fees for handling them, fees set based on 1970's computer cost and capabilities. A small p2p network can easily handle the same for free. Something that good just can't last.

When Bitcoin first started gaining value we were told this is just a fad, it will not last, it will be worthless soon. Then SR blew up and the bitcoin skyrocketed in value. After SR was taken down and the MtGox exchange ripped everyone off, we again were told the bitcoin is going to become worthless, ect. ect.

My opinion is the Big banks and government insiders have been trying to take down the currency. Now I think they have realized they can not destroy the Bitcoin. Recently the NASDAQ has integrated the bitcoin blockchain into the way it does business and the NYSE now(as of this week) has a Bitcoin index, this shows it is gaining mainstream credibility.

It's like the old saying: "If you can't beat them, join them!"

a reply to: wasaka

They don't need cryptocurrency

They already do everything through false businesses and bank accounts.

CIA has all kinds of registered businesses.

originally posted by: Aboveway
a reply to: wasaka

They don't need cryptocurrency

They already do everything through false businesses and bank accounts.

CIA has all kinds of registered businesses.

Did you read the article?

a reply to: wasaka

An article from March last year :

Meet Auroracoin, Iceland's New Digital Cryptocurrency

And then six month later :

The Failed Crypto Coin Experiment in Iceland

At least now, they have experience of what could go wrong with such an attempt.

a reply to: theultimatebelgianjoke

I didn't hear the Aura went down.

That is sad. I had great hopes for that ALT-COIN.

a reply to: theultimatebelgianjoke

Is Iceland's cryptocurrency truly dead? I need to read into what went wrong.

I heard scores of times that the Bitcoin is dead.

a reply to: theultimatebelgianjoke

Is Iceland's cryptocurrency truly dead? I need to read into what went wrong.

I heard scores of times that the Bitcoin is dead.

a reply to: wasaka
a reply to: jrod

It is not 'dead' since the Auroracoin is still traded.
At the time the article was written, it was worth peanuts ...
Here are some charts : Auroracoin (AUR)

a reply to: wasaka

Nah I'm not all religious and junk but there is proof to support that currency can corrupt and many times will. We would be alot better off if we were to run on a resource based society by first eliminating scarcity. That would allow for everyone to meet their needs with the middle man, being currency, being completely eliminated.