Bit-Coin and the dangerous game it's playing
Recently a thread popped where the participants were discussing how certain banks are "too big to fail", how certain banking personalities, although
shown to have operated in widespread fraud, money laundering, or other illicit banking activities, would not be prosecuted simply because they are too
well connected, too well established, or part of the massive banking empire that currently controls the world money supply today and have
It is pretty common knowledge now that Eric Holder stated he will not go after criminals in the massive banking empire that controls the world money
simply, simply because, "they are too big to be prosecuted."
A criminal case against these large banking personalities and establishments, would create disruption and destruction with the world money supply,
possibly ruining entire industries, entire sectors destabilized because the criminals handling the money, are too inherently tied to the success or
simply the well being of those they administer their services to.
In the thread many were discussing bit coin. I mentioned that the only way to go against the current money handlers would be to create a new currency,
one that circumnavigated the current model, one that didn't need to be part of the current corruption. That to take away power from the banks and the
people behind them, one would need their own form of currency to do daily or large scale transactions.
Enter: Bit Coin
Bitcoin official page.
Bitcoin (BTC) is a digital currency first described in a 2008 paper by pseudonymous developer Satoshi Nakamoto, who called it a peer-to-peer,
electronic cash system. Bitcoin creation and transfer is based on an open source cryptographic protocol and is not managed by any central
authority. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places. Bitcoins can be transferred
through a computer or smartphone without an intermediate financial institution.
It didn't take long for the lifespan of Bitcoin to be debated on the mainstream stage. Bitcoin has received a ton of attention on this forum over the
past six months or so, heck, since its inception it has received attention here off and on with many looking at it from all angles.
I find it a little ironic that some of us on the forum were discussing its lifespan, as well as the implications it could have as a means to subvert
the current money model, and not a day later a number of media outlets started addressing the same topics and issues.
Without further blabbering by yours truly, here are some of the articles I am referring to:
Read more at RT News
What if all the bitcoin exchanges were shut down?
Here’s a thought exercise. What if all bitcoin exchanges were shut down by various governments? What would the current value of a bitcoin be?
This is an important question because of the implied outcome of the current trend by governments to shut down - or prevent the creation of - bitcoin
The mining of bitcoin would continue but transferring them and spending them becomes a problem since there would be no quoted price. The bitcoin
protocol is about mining bitcoin not pricing bitcoin. There is nothing in the protocol about establishing a market price for bitcoin; you need a
market for that, but what if all the exchange markets are shut down?
OTTAWA - Canadians buying and selling an emerging digital currency are running afoul of established banks and operating in uncharted territory for
"The Canadian government doesn't know what a Bitcoin is, doesn't recognize the Bitcoin, and there's no regulatory agency that knows what a Bitcoin
is," said Joseph David, the owner of VirtEx.
His Calgary-based website lets Canadians trade Bitcoins through an online market similar to a stock exchange. David said the two-year-old company
facilitated $15 million in transactions this year.
But the company is one of several Bitcoin dealers struggling to navigate financial regulations that don't account for virtual currencies, and to cope
with major banks shutting down their accounts without explanation.
Unlike traditional currencies such as the dollar, Bitcoins are not issued by a central bank, nor backed by a government. The virtual currency is
governed by a computer program that allows users to exchange Bitcoins anonymously through a peer-to-peer network.
It is interesting to note that banks see the threat with bitcoin and probably have talked about the possibility of it taking off as soon as its
existence was covered online.
They are proactively shutting down accounts that are handling transactions for bitcoin sellers and providers.:
But the campaign to persuade more Canadian retailers to accept Bitcoins is already facing its first hurdle — getting banks to accept that the
currency has legitimate uses.
Earlier this month, the Royal Bank of Canada closed VirtEx's account, along with the bank account of an Ottawa-based Bitcoin dealer.
"Anti-money laundering policy is a big thing, and that's what banks are concerned about," said James Grant, the owner of Canadian Bitcoins in
"Our problem is that we're not laundering money."
Tens of thousands of dollars were flowing through Grant's RBC account, which the company was using to make direct deposits to customers who were
buying and selling Bitcoins.
Grant said the bank refused to tell him why they were closing the account, but he suspects they shut it down when they realized it was a Bitcoin
"It definitely crippled us," Grant said.
The company in this article, I assume was taking cash deposits and switching them out for bitcoins online. They claim to have kept detailed records
for their entire client base. Meaning the information was there if banks or authorities needed to see, or had the right to see it. Instead, the bank
simply shut down the account citing current anti money laundering rules.
So I'm curious, what does the average user think about bitcoin, and will it survive. It did have a shot at thwarting the current system, but
something that doesn't come off as shocking to me, is that the current system acted quick and has already began making it hard for bitcoin users to
"We have invoices, and receipts, and customer documentation for every customer that we deal with," Grant said.
RBC refused to comment on the case for privacy reasons.
The Canada Revenue Agency does not recognize a Bitcoin as a unit of legal tender. Instead, the CRA says purchases with Bitcoins are considered
barter transactions, and should be reported as income.
"When Bitcoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer," said Philippe
Brideau, a spokesperson for the CRA.