[FoRK] Bitcoin: "tied cryptologically to all the criminal activities that contributed to its shared value"

Gregory Alan Bolcer greg at bolcer.org
Tue Apr 16 11:02:01 PDT 2013


All good scenarios.

But back to the point.  Unlike other currencies, each individual bitcoin 
is cryptographically tied to every single transaction such that you can 
track the individual bitcoin all the way back to any previous uses of 
it.  The equivalent to the USD would be if each time any bill was used, 
the serial number was captured at the point of that exchange similar to 
the where's george app.

http://www.wheresgeorge.com/

In the early days of bitcoin, it was the most popular way to purchase 
social security numbers, credit card numbers, and mass password lists 
because it was capable of completing transactions online, using grey and 
black market exchanges, and not dependent on common financial tools and 
methods.  Many criminal groups had a vested interest in seeing the value 
of bitcoin remain high so that these initial markets didn't dry up.

Also, similar to Napster where there was a percent of Napster used for 
illegal copyright violation, at that time, bitcoin had a higher use for 
legitimate transactions for illegal goods.  Using the Napster legal 
argument, my comment was that at that time and without much galloping 
inferentialism, it wouldn't be a stretch to state that bitcoin would be 
considered a criminal enterprise by certain US courts.

I swear I've explained this concept on 5 different lists already.

Let me ask two questions on the subject of perfect information.

Would you feel comfortable using a US dollar bill that was stolen from a 
little old lady that was murdered on the street?  Maybe, maybe not.  If 
the bank gave you the note and it was recovered, sure why not. 
Ignorance is bliss.  If you personally saw the murder and the murderer 
gave you the dollar bill to make you pretend you didn't see anything, 
probably not.

If you had an ability to look up the provenance of every single bitcoin 
and found that someone wanting to pay you for your pizza or your porsche 
with 20% "dirty" bitcoins and 80% clean ones.  Would you take it?  Would 
you insist on only the clean ones?  Would it matter depending on how 
dirty the coins were?  If at all?

Greg


On 4/16/2013 10:00 AM, Lucas Gonze wrote:
> http://bitcoinintro.com/bitcoin-overview/use-cases/
>
>
> Send emergency Bitcoins instantly to stranded family and friends abroad
> directly to their smartphone! No waiting for the bank to open, no $25 wire
> fees. Instant assistance!
> Want to store a value of bitcoins securely for a long period of time.
> Generate Bitcoin keys off-line, print them, store them in a safe at your
> bank. Transfer Bitcoins to the off-line address and they are super secure
> until you need to spend them! Offline Bitcoins are not vulnerable to
> malicous software that may lurk on your computer.
> Safer than a lemonade stand for kids to make their first earned money (more
> anonymous, no real world contact). They can sell their arts and crafts,
> like home made beads/necklaces/bracelets/etc.
> Worried about making large transactions in public and having to safely
> transport the money to safety afterwards? Accept Bitcoins to your smart
> phone, then transfer them to your home computer or off-line Bitcoin address.
> Your computer just failed to boot with a wierd error message. You Google it
> and discover a forum thread where someone already solved the problem and
> helps you get your computer back online. You decide to reward them by
> sending a few BTC to the Bitcoin address in their signature line as thanks
> for helping you get back to business.
> Are you a merchant and tired of payment processor usage fees? Tired of
> dealing with fraud and chargebacks? Transactions do not require transaction
> fees. And once the money is sent to you, the transaction cannot be reversed.
> Storing cash for a long period of time is not profitable because of
> inflation – a government’s printing of unbacked notes. After Bitcoin’s
> pre-programmed inflation period ends, it will begin to deflate due to
> attrition. Storing your coins for a long period of time may actually
> increase their value!
>
>
-- 
greg at bolcer.org, http://bolcer.org, c: +1.714.928.5476


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