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Senator Manchin wants to ban bitcoin


SuperAdventurer

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According to a press release posted on his website:

http://www.manchin.senate.gov/public/index.cfm/press-releases?ID=237cbd66-6a26-4870-9bcb-20177ae902b0

 

"Today, U.S. Senator Joe Manchin (D-W.Va.) sent a letter to federal regulators seeking a ban on Bitcoin, the virtual currency that is unregulated and unstable, and has been used in illicit activity, including drug trafficking and money laundering."

 

So apparently bitcoin is very dangerous and we should all be terrified of it, because:

 

1. It is unregulated. Because without government regulation, how would money work?

2. It can be used to fund illicit activities. Unlike cash, for example.

3. It is highly unstable. Look how much its value has increased over the past year alone! Runaway deflation, oh no!

4. It is "disruptive to our economy". The economy was running nicely until bitcoin came along, and it's something completely different that didn't exist before, so it must be stopped.

 

Anyway it's predictably idiotic fear-mongering. The senator probably barely understands what bitcoin even is but the bankers who fund him don't like it. Toward the end is this gem:

"The clear ends of Bitcoin for either transacting in illegal goods and services or speculative gambling make me weary of its use." Quit clinking around all those noisy bitcoins, the senator needs his sleep!

 

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"Senator Manchin does not yet own Bitcoin."

 

Or

 

"Senator Manchin owns a whole stack of Bitcoin and wants to make it illegal to drive up the price."

 

Or

 

"Senator Manchin is appealing to a bunch of backwaters who are afraid of computers."

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This article was the Federal Reserve's recent response to congressional pressure for the executive branch to regulate or ban bitcoin.

 

http://www.theguardian.com/business/2014/feb/27/janet-yellen-federal-reserve-no-authority-regulate-bitcoin

 

Basically, the state knows that they want to either ban it or claim oversight over it. However, they do not know how to do it or what to do and they don't want to be the one to do it. Currently, there is a perpetual passing the buck for the next department to deal with. It will be interesting to see who ends up making the first attempts at regulation.

 

Then, unfortunately, we will hit a number of awkward years where governments try to apply decades-old laws and regulations to something they do not understand. Volatility and growth will decrease some (after attempts at regulation are the norm). Slowly, regulations will be shown to be obsolete or silly. Hopefully this awkward period is short-lived.

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