HOW THE UNITED STATES IS WORKING TO BAN BITCOIN & WHY IT DOESN’T MATTER

By Jeff Berwick – The Dollar Vigilante –

Dinosaurs will die. And decentralized systems – like bitcoin and 3D printing and even WordPress – are the asteroid which will ensure just this.

I’ve been doing a lot of thinking, and I simply don’t think totalitarianism can withstand the global political awakening we see taking shape before our very eyes.

Things are changing on Planet Earth. I can tell because the dinosaurs are getting desperate.

The United States as whole looks a whole lot to me like the German Democratic Republic (East Germany) did during its existence. My head researcher Justin O’Connell and I were just talking about how the wall fell, and he cleared some things up for me I wasn’t 100% sure about. He will be writing an article on that in the coming week…

Let’s just say, the things he and I talked about, in regards to the German Democratic Republic (GDR), look a whole lot like the US of today. Like the GDR, the US constantly looks bad in the world media. It also looks a bit behind the times…

And it’s politicians make (or try to make) similar totalitarian decrees as the former German Democratic Republic counterparts.

When I read that Senator Joe Manchin (D-W.Va.) called for a ban on bitcoin, I laughed out loud. Obviously, this guy has no idea what he is talking about, and obviously he has deep psychological issues which force him to want to control…things. I can’t wait until he learns that you can print a gun using 3D printing.

He wrote a letter. Or likely an assistant wrote a letter. Maybe it took a few assistants and Manchin to write the letter, since we all know the state of US public education.

Anyway, “he” addressed it to the Treasury, Federal Reserve, and multiple financial regulatory agencies, saying that bitcoin and digital currencies are “disruptive to our economy.” If he had to direct this anywhere, he really should have directed this at Congress, since that is where the power is supposed to lie in Washington, D.C.

Here is most of the text in italics, with my comments in regular font.

I write today to express my concerns about Bitcoin. This virtual currency is currently unregulated…

FALSE: Already Manchin has stated something false. Bitcoin is regulated. What else could one deduce from criminal charges being brought against Charlie Shrem, Mt. Gox & Dread Pirate Roberts? High profile cases have been solved, making public agencies look good. The feds should be celebrating the success they’ve had bringing computer nerds to “justice.” Bitcoin is value, and when it is transacted, it is subject to basically all the same taxes and laws, etc., as real money. And just like gold and silver, you don’t pay taxes on the gains until you sell the bitcoins for fiat. His letter continues:

…[Bitcoin] has allowed users to participate in illicit activity, while also being highly unstable and disruptive to our economy.

FALSE: We’ve heard the illicit activity spiel before. Bitcoin is less anonymous than cash. Further, bitcoin has not disrupted the US economy one bit. The entire bitcoin market has yet to reach more than $14.5 billion in market cap. The Federal Reserve prints out of thin air $85 billion and invests that into the pockets of banksters and war-mongerers. That is called disruptive to an economy. And he continues some more:

For the reasons outlined below, I urge regulators to take appropriate action to limit the abilities of this highly unstable currency.

FALSE: Bitcoin is not a currency. This is a highly subjective disposition on what bitcoin is. Bitcoin is technology. Decentralized digital currencies go beyond our historical understanding of what money is. Please continue, Sen. Manchin:

By way of background, Bitcoin is a crypto-currency that has gained notoriety in recent months due to its rising exchange value and relation to illegal transactions. Each Bitcoin is defined by a public address and a private key, thus Bitcoin is not only a token of value but also a method for transferring that value. It also means that Bitcoin provides a unique digital fingerprint, which allows for anonymous and irreversible transactions.

FALSE: Again, bitcoin does not allow for anonymous transactions like cash does. And what the heck is a “digital fingerprint” if bitcoin is so anonymous? Doesn’t a fingerprint make something not anonymous? As our very own Jim Karger says, bitcoin has built-in FATCA controls, meaning that it is not really that anonymous at all nor hard for agencies like the National Security Agency, etc., to detect. But, please continue Sen. Manchin with your half-truths (at best):

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