[LINK] Fwd: BitCoin DDoS and/or Wallet-Hack

Jim Birch planetjim at gmail.com
Fri Apr 5 17:39:58 AEDT 2013


If Bitcoin starts to seriously challenge the state or it's revenue base it
is certain to be clobbered with some form of taxation or maybe simply
rendered illegal.  Control and taxing of transactions are fundamental
functions of the state - the whole reason for the state to issue currency
is to be able to efficiently tax economic activity.  It beats collecting
bags of wheat.   At present Bitcoin is a tiny part of the black economy. It
appeals to criminals who want untraceable cash, eg for drug dealing, and
somewhat romantically to technolibertarians of a
what-have-the-Romans-ever-done-for-us variety.

The black economy is always in the sights of the state but at present the
return for effort is probably better in other areas.  If Bitcoin becomes
too big they will go after it and kill it and/or tax it.  (Why should
anyone, even drug dealers, be excluded from paying tax?)  However, it may
it may die in the meantime when someone cracks the system.  It might also
be hit for other reasons, eg, to crack down on drug dealing, or, perhaps
when terrorists have been found to use it to buy weapons, or if it exerts a
destabilising or distorting influence on the white economy.

Jim



More information about the Link mailing list