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Anorak | Bureaucracy will kill Bitcoin

Bureaucracy will kill Bitcoin

by | 30th, May 2013

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BITCOIN’S this shiny new form of money that has hal the geeks and the libertarians shouting for joy. There’s no government involvement, it’s all entirely produced by code, there’s no nation attached to it and most importantly, there’s no name attached to an account. This makes it superb for anonymous shuffling of money around. And that, of course, is why it’s going to get killed by the bureaucracy :

With mounting pressure on online money exchanges from US regulators, payments processor OKPay has announced that it is suspending processing for all Bitcoin exchanges, including industry leader Mt. Gox.

The thing is, in order for a currency to “work”, in the sense of people being able to use it as a currency, it has to interact with the other currencies out there. At some point in the circle it’s got to be possible to move a bitcoin in or out of £ or or $. And in reality, that means that it’s got to be possible to get from the $ to bitcoin and back again.

Which is where the bureaucracy comes in. The US authorities really don’t like things like bitcoin: as they most certainly didn’t like Wikileaks either. Whether there’s

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Posted: 30th, May 2013 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink