BITCOIN


This article is a comment by a user Ginsoakedboy in a Telegraph article on Bitcoin.  I thought it worth re-blogging as its perspective was not its validity or lack thereof, but the effect of its growth and how governments may or may not deal with it.

The beauty of bitcoin is that any discussion of its merits or otherwise, also includes much discussion about the problems of the current system.

Any attempted shutdown or prosecution of the bitcoin network and users simply generates publicity for bitcoin and the philosophy that lies behind bitcoin. I Imagine that most governments and secret services have so far not thought it worth it to increase the profile of bitcoin through an attempted shut-down  Perhaps they are betting on it falling down on its own.

Of course, there must be a theoretical level of exchange in bitcoins which would cause governments and central banks to go for the legislative solution, but we’re not there yet. Most people have no idea what bitcoin is, or its potential significance. If and when the ‘threat level’ occurs, it will be interesting because governments and central bankers will have to mobilise against an idea that calls into question their very legitimacy. At that point, the battle will be messy, there will be many people invested in bitcoin who will be eloquent spokespeople who will engage in high profile debate against the system. I’m not sure what TPTB would fear more, the proliferation of an alternative currency, or a high profile debate about the current system?

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