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by joe_the_user 5527 days ago
There is no doubt that bitcoins will fall under one or another regulations.

One argument would be that bitcoin is an illegal pyramid scheme.

Another would be that bitcoin is means circumvent the tax system (all barter and local currency systems, for example, have to pay taxes).

I'm sure many other arguments could be found.
2 comments
webXL 5527 days ago
I'm sure many other arguments could be found.

Like, "Bitcoin is anti-American" or "Bitcoin will be used by heroin dealers who will sell your daughters into prostitution"

If bitcoin is a means to circumvent the tax system, then we'd have to apply whatever tax regulation that results to all other forms of currency. Social Security is an illegal pyramid scheme because it wasn't sold to the American public that way.

Let's start applying the law equitably before we stomp on innovation.

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nandemo 5527 days ago
Well, it is already being used by drug dealers (see Silk Road). In fact, if you have bitcoins it's probably easier to exchange it for illegal drugs than for food.
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cristoperb 5527 days ago
Maybe so, but at least you can exchange it for food: http://www.bitmunchies.com/
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joe_the_user 5526 days ago
No the US dollar is the legal pyramid scheme and the point is that nothing can compete with that part of the dollar.

That is, any "money" is both a medium of exchange and a store of value. It's OK to compete with the dollar as a medium of exchange but if you compete as a store of value, then you've wandered into some heavily guarded turf...

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weavejester 5527 days ago
Actually there's a lot of doubt. Bitcoins are not a pyramid scheme, and whilst they could be used as a method to circumvent tax, any skilled accountant can already suggest a dozen other means to achieve the same thing.

Bitcoins are probably most at risk from being classified as a type of security, which would put them under the scope of a large number of financial regulations. It wouldn't make them illegal, but it would make them more difficult to trade.

However, in general I'm optimistic about Bitcoin's chances. I certainly don't believe it is inevitable that they will be regulated out of existence.

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