Online Cash Bitcoin could Challenge Governments, Banks

#1

Post by kiba » Sat, Apr 16, 2011, 2:20 PM UTC

Online Cash Bitcoin could Challenge Governments, Banks
techland.time.com

Re: Online Cash Bitcoin could Challenge Governments, Banks

#2

Post by patja » Sat, Apr 16, 2011, 3:12 PM UTC

Good recent Bitcoin podcast interview on Econtalk: http://www.econtalk.org/archives/2011/04/andresen_on_bit.htm...

Re: Online Cash Bitcoin could Challenge Governments, Banks

#3

Post by gaius » Sat, Apr 16, 2011, 3:12 PM UTC

This is what happens when you challenge governments and banks: http://news.ycombinator.com/item?id=2451302

Re: Online Cash Bitcoin could Challenge Governments, Banks

#4

Post by gte910h » Sat, Apr 16, 2011, 3:20 PM UTC

To me this press effort always seems like just people who already have bitcoins trying to get buyers to raise the price of the currency.

Re: Online Cash Bitcoin could Challenge Governments, Banks

#5

Post by weavejester » Sat, Apr 16, 2011, 3:24 PM UTC

gaius wrote: post #3

This is what happens when you challenge governments and banks: http://news.ycombinator.com/item?id=2451302

There are lots of examples of governments or large organisations taking down networks with single points of failure, but far fewer examples of taking down highly distributed networks like Bitcoin.

I don't think this fight is a foregone conclusion. I think it would be difficult to write a law that would make Bitcoin illegal, without making things like MMO currencies or SSL certificates illegal.

Re: Online Cash Bitcoin could Challenge Governments, Banks

#6

Post by mshron » Sat, Apr 16, 2011, 3:28 PM UTC

As far as I can tell, the only way to actually stay anonymous and have a foothold in the bitcoin economy would be to exchange bitcoins for cash in person with someone.

Even then, once you tried to combine that account with any other you owned that was traceable to you (record in an exchange, email sent to a client containing your bitcoin address) it would be easy to link them together, since the entire ledger is public.

I guess what I'm saying is that your level of sophistication to stay anonymous would have to rise along with the sophistication of an attacker, which is not immediately obvious from these glowing articles on Bitcoin.

Re: Online Cash Bitcoin could Challenge Governments, Banks

#7

Post by iterationx » Sat, Apr 16, 2011, 3:31 PM UTC

>>Intermediaries as Choke Points

Interesting to see an article using network theory. http://en.wikipedia.org/wiki/Choke_point

Re: Online Cash Bitcoin could Challenge Governments, Banks

#8

Post by zacharypinter » Sat, Apr 16, 2011, 3:33 PM UTC

weavejester wrote: post #5

gaius wrote: post #3

This is what happens when you challenge governments and banks: http://news.ycombinator.com/item?id=2451302

There are lots of examples of governments or large organisations taking down networks with single points of failure, but far fewer examples of taking down highly distributed networks like Bitcoin. I don't think this fight is a foregone conclusion. I think it would be difficult to write a law that would make Bitcoin illegal, without making things like MMO currencies or SSL certificates illegal.

One guess is they might write a law that requires U.S.-based online businesses to collect certain information about the transactions they accept that would make accepting bitcoins illegal.

Re: Online Cash Bitcoin could Challenge Governments, Banks

#9

Post by tcoppi » Sat, Apr 16, 2011, 3:39 PM UTC

mshron wrote: post #6

As far as I can tell, the only way to actually stay anonymous and have a foothold in the bitcoin economy would be to exchange bitcoins for cash in person with someone. Even then, once you tried to combine that account with any other you owned that was traceable to you (record in an exchange, email sent to a client containing your bitcoin address) it would be easy to link them together, since the entire ledger is publ…

I agree that many articles are a little too glowing on the anonymous aspect, but the level of anonymity you have with any system is proportional to your sophistication, so I don't see it as a problem inherent in bitcoin. See https://en.bitcoin.it/wiki/Anonymity for more info on the anonymity of the current bitcoin implementation and system.

Re: Online Cash Bitcoin could Challenge Governments, Banks

#10

Post by bonzoesc » Sat, Apr 16, 2011, 3:41 PM UTC

mshron wrote: post #6

As far as I can tell, the only way to actually stay anonymous and have a foothold in the bitcoin economy would be to exchange bitcoins for cash in person with someone. Even then, once you tried to combine that account with any other you owned that was traceable to you (record in an exchange, email sent to a client containing your bitcoin address) it would be easy to link them together, since the entire ledger is publ…

It's possible to run a Bitcoin laundromat; you control addresses A and D, laundromat controls B and C. Send money from A to B, receive from C to D. As long as the laundromat doesn't recycle addresses and moves a lot of cheddar, it'll be difficult to establish a linkage.