Tagged under: bitcoin, Illegal, Politics, Problem, Russia
The long-term concerns about the viability of Bitcoin , although this new model priced at nearly $ 1,000 , avoid participation. And the opinion of Saxo Bank, those concerns are still valid . This virtual currency has been very present lately , and not everything that has been positive , as indicated by the recent arrest of a Bitcoin trader in New York for money laundering . This must have been foreseen : limited offer and too much advertising and demand. It seems obvious in retrospect , as with many things.
Bitcoin is wrong to maintain the anonymity of their owners, although some users , among which include some very low esteem , adhered to it for that very reason . This gives the authorities an excuse to ban it forever and wherever they want. And this may be an unfair ban, based on false pretenses , just because the authorities do not like competition. Russia and China were the first to react.
Given its structure, ban Bitcoin not eradicate , but what will is to prevent individuals and companies that respect the law and use it , therefore, will make it virtually useless. So the false sense of security and truly unstoppable Bitcoin network offers , it does not really do much if concerted efforts are made to limit their market. Thus, we believe it would be wise to accept and adopt some degree of regulation , though this does not seem right to them several of his followers , if only to prevent a reaction even worse than the governments they do not like to be challenged its monopoly of banknote printing .
Of course, for those who were wiser than me and bought when the initiative was launched , the great increase in prices has been extraordinary , but it also carries some negative consequences. I think the high price and volatility ( has fallen from highs of $ 1.242 in late November to about $ 500 in a few hours ) , will make it more difficult to accept as a serious business .
The regulation may be the key
Bitcoin may be seen to face tough challenges in the long term , although it seems that this type of electronic currencies could get a place in the economy better elaborate structures whose values are better associated with real assets. There is no doubt that several central banks made mistakes when introducing its own fiat money without keeping any relation to reality , and it is expected that the successful private sector also has a better performance in the area of foreign exchange public institutions .
All that can be set in the financial sector will be regulated.
With electronic currency regulation can be your gateway to true acceptance and success and, therefore, should not be seen only as something negative.
Bitcoin is still a small part of the economic system and do not represent a real threat to more established models in the short term . But if one day it does and if it exceeds the regulatory issues , will be received with open arms. This electronic currency is being increasingly used by migrant workers to transfer money home and , therefore , has begun to fulfill real purpose beyond ideological , which is promising.
The high volatility and ownership structure are a risk to all users of Bitcoin . And I think that over time new and better models is developed. It is common for the first act to win the game and take the pot , given the weaknesses I mentioned earlier , I think there is much room for improvement . At least 80 similar initiatives in the market are known, and most fail. But know first hand a couple of projects in the design phase with a better structure and can obtain a prompt delivery , which will turn them into real competition for Bitcoin .
Tagged under: ban, bitcoin, Bitcoin news, Illegal, Russia, why is bitcoins so cheap?
He joins the list of countries reporting to the virtual currency could be used for money laundering or terrorist financing
Russia bans bitcoin
The Russian authorities have issued a series of warnings against use of securing Bitcoin virtual currency that could be used for money laundering or terrorist financing and that " treat it as a currency is illegal ."
Anonymous payment systems and currency through Internet have grown exponentially and have glimpsed as money substitutes and can not be used by individuals or legal entities , said the office of the Prosecutor General of Russia after meeting with representatives of the Russian Central Bank , FSB ( anteriomente known as KGB) and the Ministry of Interior.
The agency has acknowledged that Russian law stipulates that the ruble is the only legal tender and that the introduction of any other currency or substitutes will be considered illegal . The Russian central bank has also added that trade was very speculative Bitcoin on 27 January and the unit provides a high risk of losing value.
"Citizens and legal persons are at risk of contributing to illegal activity including the laundering of money obtained through crime and terrorist financing ," he warned. The General Attorney's Office said it was working with the Central Bank and other bodies responsible for law enforcement to strengthen regulations and prevent crimes " by using these pseudomonedas '.
It is not the first country to be illegal use to bitcoin . Thailand banned argued the lack of applicable laws last July. China also warned to use.
Tagged under: Illegal, Politics, Problem, Russia
For a criptocoin succeed, its proponents must recognize that it is difficult to divorce money from politics
Money is always a political issue. Something that becomes apparent when we discuss the policy of the Federal Reserve of the United States, or who should lead the institution responsible for setting interest rates . For over a thousand years, we have discussed the nature of our monetary system and have gone through different ways to make payments. Seen in this historical context, Bitcoin and other criptomonedas are just the latest in a long list of challenges to the prevailing technology, and existing political arrangements.
The dominant design of the current monetary system is based on a western tradition that can be traced to the silver denarii of the emperor Charlemagne and before the organization of the Roman Empire . This design bases the amount and nature of money in the economy in an interaction between government policies and private individuals who wish to have. Continued political pressure and repeated technological opportunities have been numerous changes in the model over the years. The rise of Bitcoin may be one more round of that process.
Enthusiasm for criptomonedas is based , in part, at a very reasonable frustration with our existing agreements. The leftists who distrusts power accumulated by global megabanks in recent decades has joined the right-wing people who believe that the government takes too much space. But history suggests that building a system of national and international payments entirely outside the control of governments will not be easy .
For starters, the money has value only to the extent that can be converted into goods and services . And at the time of conversion , governments will have much say in the matter , for example if you paid taxes, or if the transaction is legal.
Secondly , it is very difficult to create a technology that hides transactions governments altogether. The movement of goods, people and information can always be traced , as shown by the case Silk Road.
Third, there will be a political backlash led by the powerful interests of the banks. Highlight any illegality in the Bitcoin system and make political pressure for restrictive legislation .
Enter this battle will be very difficult . It would be much more reasonable than the Bitcoin community and its allies launched a proactive political strategy. Could focus on the fact that currently illegal payments already made worldwide using hundred dollar bills and you need to reduce transaction costs in countries where the legal power is weak and there is a high risk of theft . One could argue that Bitcoin to operate more transparently not destabilize the credit system and undermine the ability of small banks to get a reasonable profit.
The monetary system of the United States and the world has changed many times and will definitely do it again. In the late nineteenth century, for example , was a general push to reform the monetary system and credit of the United States . Ideas that was initially rejected by populist , and away from a very strictly defined gold standard , became commonly accepted ideas in just one generation .
Certainly new technologies can provide better ways of organizing transactions . But it is unlikely that simply assume that you can move from state to function . Bitcoin needs a political strategy must evolve to meet the legitimate criticisms that poured against him.
Tagged under: bitcoin, earn bitcoin, Illegal, Russia
Russian authorities indicated that the virtual currency can not be used " by persons or legal entities" while linked to the financing of terrorist operations and money laundering
Russia warned against the use of bitcoins to hold virtual currency that could be used to launder money or finance terrorism and stressed that treat it as a parallel currency is illegal.
" Anonymous payment systems on the network and coins that have significantly increased their circulation - including the famous bitcoin - are substitutes for cash and can not be used by individuals or legal entities ," said the Russian Prosecutor General 's Office on February 6 .
He added that Russian law provides that the ruble is the official currency and only enter or substitute any other unit was illegal.
The Russian central bank also said on January 27 that trade in bitcoins was highly speculative and that the unit carried a high risk of loss of value.
"Citizens and legal entities risk being dragged - even unwittingly - toward illegal activities including money laundering obtained through criminal activities and terrorist financing ," said the organization.
In China, for example, the authorities banned the use of bitcoin in financial institutions in December last year , so businesses must stop accepting such payment.
The Russian Prosecutor General 's Office said it was working with the central bank and other law enforcement agencies to strengthen regulation and prevent crimes committed with the use of these pseudomonedas .
Putin 's party , United Russia, in the Russian parliament introduced a bill to limit the use of electronic payment systems , restrictions which , if approved, would also extend to the use of other anonymous payment means like bitcoin , as highlighted by the Financial Times.
In the United States, much more developed than the Russian bitcoin community is already under scrutiny as authorities are you taking action against illegal activity conducted through the use of this digital currency.
Canada , meanwhile , said in January that currently does not recognize the bitcoin as a legal tender , but noted that monitoring the progress of electronic currency. The country is the first to have a bitcoin ATM .
