Friday, April 12, 2013

The Empire Strikes Back: How the State will Attack Bitcoin / By Michael Krieger / April 12, 2013
I’m on plane headed to Nashville and it remains to be seen whether or not I can get this out.  I’ll be pretty much out of the loop for the next several days so hopefully I can get this posted.
A friend of mine, Paul Rosenberg wrote this fantastic piece the other day about how the government would go after Bitcoin.  It very much reminds me of the famous Gandhi saying “first they ignore you, then they laugh at you, then they fight you, then you win.”  I think we are somewhere in between the mockery phase and the battle phase at the moment.  Whether the recent massive DDOS attacks on primary Bitcoin exchange Mt, Gox was sophisticated criminal hackers or oligarchs in government and central banking may never be known, but there’s no doubt about the threat that Bitcoin and alternative currencies presents to the current power structure.  So without further ado, here are excerpts from Paul:
Bitcoin – poorly understood and frequently talked about ignorantly – is a wonderful new financial tool… and a very timely one. But because of its virtues, it is about to be attacked.
Why The Fiat Masters Must Attack Bitcoin
I say that Bitcoin will be attacked for the simple reason that it is the anti-fiat currency… and a lot of very powerful people have their entire kingdoms built upon fiat currency and its central banking game.
It is actually very similar to gold and silver in its overall effect: If Bitcoin, or gold, or silver – or any combination thereof – ever became dominant, no one could play games with the world’s money and skim from millions of people at once… or run welfare states in defiance of economic reality.
The bankers do not want to lose their positions, and if they let this alternative currency take over, they will. So, they will have to attack.. In fact, I am sure as I can be that they are doing it already.

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