To extrapolate my point though, if the IRS can tax it, the Fed (through Treasury and the SEC) can move to regulate it, or outlaw it. Treasury, the Fed, and the investment banks are literally the same people.
This is actually the industry I work in, so you're preaching to the choir. The thing to consider is, the Fed/IRS/Government/God can outlaw it all they want, but they can't stop it from being used. And like gold in the past, they can't confiscate it and make it illegal to own, because it doesn't exist physically. And in a data state, it's just a string of 24 numbers. You could still buy/sell overseas by speaking or writing the code in a letter. That's one of the things about this Currency that's intriguing, it's really unstoppable.
Good point about gold. I think the only real question left is which cryptocurrency will eventually be adopted widely enough to shift the fiat currency paradigm, or God forbid...a return to actual money rather than fiat debt instruments issued by a private cartel. I have really enjoyed this debate.
Given the state of a few of the major players in this area, I would be getting out if possible additionally, if GOV agencies decide to shut this down, they surely could. I know this for a fact.
I assume you have read our running battle above. The interesting thing coming out of this discussion is that the days of central bank fiat currency are numbered... What's your take? Notice we are keeping this discussion in the economic arena...the politics of all this can get sticky....
I think part of the allure of Bitcoin and any cryptocurrency is that while it's just another fiat currency, it's one made by the users and adopted by choice, not foisted on us all. There's something more empowering about it too. And so have I.
Here is an example of setting up a PC to do Bitcoin mining, and also setting up a Bitcoin wallet: You don't have to do mining to get Bitcoin or fractions of Bitcoins. There are cash to Bitcoin machines, and also people can transfer Bitcoins to you. If you sold something and the buyer paid in Bitcoins, for example.
From what I understand, you can't mine bitcoin on a PC anymore. ASICS or nothing, and even then it's highly competitve.
If you consider the source of the encryption codes, and the origin of Bitcoin itself...it's not hard to believe that Silk Road was allowed to move billions before the players were outed and busted...in fact I wonder if this is not the true purpose of Bitcoin specifically. Cryptocurrency in general is here to stay, but Bitcoin (specifically) has issues that make me avoid it at this point. (And no it's not about hiding, it's about almost knowing who I am really dealing with that bugs me about Bitcoin specifically.)
Saw in the news today that Microsoft now accepts Bitcoin payments. http://mashable.com/2014/12/11/microsoft-bitcoin/
Very interesting. This is the scale of early adopters that cryptocurrency must necessarily have to make the jump.
Dell's been doing bitcoin for awhile, not sure when they started. The MS announcement really surprised me.
Slightly OT- Do you see cryptocurrency as a hedge against falling commodities? Or more as just a way to protect against the collapse of the petrodollar system? The way oil is getting hammered by the Saudis and the metals market nuttiness this year...I am left wondering if we are close to entering stagflation/deflation.
