Anonymous has left a new comment on your post "Silk Road Was A Partial AgoristBay Implementation":
Bitcoins are actually worth $18.75/bitcoin right now onIt's possible that all those Bitcoin purchases were made by undercover police, preparing for a crackdown!
Psychopath Senator Chuck Schumer has said that "Bitcoin is money laundering!" Bitcoin potentially threatens the State banking cartel. State thugs are already mobilizing violence against Bitcoin and Silk Road.
Mt. Gox is one of the leading exchanges, for trading Bitcoins for State paper money.
PayPal has already shut down the account of people who operated a business trading USD for Bitcoins.
I hope that Mt Gox's owner lives in a country that doesn't have an extradition treaty with the USA!
Based on recent precedent, State thugs may seize a website domain name without trial. There is a risk that the mtgox.com domain will be seized without trial. Some people say that it's a risk for Internet freedom, that the DNS servers are controlled by the US government.
Anybody who operates a business trading Bitcoins for State money is at risk. You might be accused of "money laundering" or "operating an unlicensed money transmitting business".
Such laws were used against E-Gold. The exact same law could be used against Bitcoin exchange operators.
Here's how the scam works:
- An undercover policeman buys Bitcoins from you.
- The undercover policeman uses those Bitcoins to buy drugs or child pornography.
- Now, you're guilty of "money laundering" or "facilitating child pornography" or "operating an unlicensed money transmitting business".
State thugs probably won't go after individual users. However, they may pursue anyone who operates a Bitcoin-based business.
I don't like Bitcoin. Every client gets a copy of every transaction. That's a flaw and not a feature.
I was really offended by articles like this one. I saw this commonly cited.
By using an untraceable currency called Bitcoins and downloading and installing an encrypted browser, the illicit network has remained anonymous since its launch in February, officials said.Bitcoin *IS NOT UNTRACEABLE*. EVERY CLIENT GETS A LIST OF EVERY TRANSACTION. Even if you use a different Bitcoin wallet ID for every transaction, State thugs can analyze the flow of Bitcoins.
Suppose a Bitcoin travels from A to B to C to D. State thugs capture B. Then, A, C, and D are at risk.
Bitcoin is very vulnerable. State thugs won't go after everyone. They will go after anyone who operates a Bitcoin-based business. State thugs will probably wait, and indict/arrest all heavy Bitcoin users simultaneously.
State justice is slow. However, once State thugs aim their "justice" system against you, then you probably are SOL.
Heavy Bitcoin users can be indicted based on laws that already exist. Even if your business is Internet-based, you still have to physically reside somewhere.