I Predict The Financial Establishment Will Crash Bitcoin

They agree with you on what?

It's a long winded topic, I'm not going to type 3 pages of explanation when I can refer you to someone else making the same arguments somewhere else.

There's nothing unethical about saying "here, this article explains in detail what I'm talking about". That's what a source is FFS.

 

It is different. My account I have with a bank represents a liability to them to give me federal reserve notes on demand. So you're saying that I could have a bank account where I deposited bitcoin and they would then be liable to give me bitcoins on demand? But that still leaves the unanswered question: What IS a bitcoin?

 

I see Bitcoin as already being in a speculative bubble, especially considering the going price per Bitcoin is above 14000 US$. That makes transactions cumbersome.
Plus, being an absolute example of a pure fiat currency, there's nothing preventing alternatives from forming. At this point, Bitcoin is just a brand image.

 

Okay, let me try to ask my question another way. Let's say that the government makes possession of bitcoins illegal. What would they need to prove in order to convict you of possession of bitcoins?

 

An account showing a balance of bitcoin, or a transaction where bitcoin was used.

 

An account with which financial institution?

 

Actually, banks can, and do, refuse to to give large sums of federal reserve notes to account holders.

You can go to the bank and demand they give you $50,000 cash, and they can refuse.

 

Kind of puts the lie to the concept of demand deposit. Just another reason why banks suck.

 

The one managing the blockchain.

 

It simply underscores my point that the money in your account isn't real money, it's just a representation of value, just like the bitcoin.

The difference is that the US government places the value on that electronic representation of dollars.

 

So they would need to prove that I have an account containing bitcoins with who exactly...?

 

LOL and what do you think of paper money not back by some metal or anything else but the faith and credit of some government?

 

I don't agree, but I won't go into it, as it has nothing to do with bitcoin.

 

The blockchain is what manages the transactions and how much bitcoin you have. You might want to read up on it, it's kinda a long explanation.

 

People don't like to think about it, because it's scary to think about.

If an EMP wiped out all banking records, how much money would you have at that point?

 

Other then by shutting down the internet good luck in controlling bitcoin and similar currencies.

 

So in order to convict me of possession of bitcoins, they would do what with the blockchain?

 

Look at your transactions, or lack thereof. The lack of a transaction is your "balance" for lack of a better term.

It's when you make a transaction though, that people are going to get caught.

If I rob a bank, for example, and keep it in my basement, I'm not going to get caught. It's when I spend it that I'm going to have problems.

That's why money laundering is a thing.

 

Well, I would think that comparing how bitcoins and dollars are managed is a good communication method.

Simply describing bitcoin is fine, but I think it leaves a pretty big hole in understanding what's going on.

 

Yes but you'll spend it on tangible things, in most cases. The business has to account for the sales and movement of goods.

When gold was illegal if you had some you wouldn't get caught. You get caught when you try to exchange it.

 

Today it appears that bitcoin is preferred as a method of moving/laundering money for those involved in crime - drugs, terrorism, etc.

Your description doesn't quite cover why that would be the case.

 

Well of course, it's unregulated by any government.

I brought this issue up earlier in fact.

I'm agreeing with you in case it isn't obvious.

 

So in order to convict me of possession of bitcoin they would need to demonstrate that I opened an account with the blockchain and then deposited my bitcoins into that account? What financial institution do they ask to see if I opened an account?

 

How did you acquire the bitcoin in the first place?

 

OK.

So, you are pointing out that there IS a record of balances and movement.

But, it's just that the information isn't available to those interested in combating money laundering, terrorism, drug enforcement, etc., that the reporting regulations on dollars don't exist for bitcoin, that monetary conversions aren't being tracked, etc?

To me, it seems like the attractiveness of bitcoin comes from this lack of regulation (allowing easier access to banking for criminal use) and in the volatility that makes an opportunity for trading that those who manage dollars work against.