[FoRK] Bitcoin: "tied cryptologically to all the criminal activities that contributed to its shared value"
Gregory Alan Bolcer
greg at bolcer.org
Tue Jun 5 14:37:37 PDT 2018
On 4/15/2013 9:50 PM, Joseph S. Barrera III wrote:
> "tied cryptologically to all the criminal activities that contributed to
> its shared value"
> Greg, you've seen this, but I post this for folks on this list who haven't.
> I'm curious if anyone can convincingly refute the following statements
> from this article. Oh, and also note:
> ".... In order to do this the system that implements the currency must
> maintain and expose a full and complete record of each and every
> transfer from the origin of that particular coin forward!
> "This is the only way I can know that nobody else was presented the same
> token before I was, and that the last transfer made of that token was to
> you. I must know with certainty that both of these conditions are true,
> and then to be able to spend that coin I must make the fact that I hold
> it and you transferred it to me known to everyone as well.
> "Now consider the typical clandestine transaction -- Joe wishes to buy a
> bag of pot, which happens to be illegal to transact. He has Bitcoins to
> buy the pot with. He finds a dealer willing to sell the pot despite it
> being illegal to do so, and transfers the coins to the dealer. The
> dealer must verify the block chain of the coins to insure that he is not
> being given coins that were already spent on gasoline or that Joe didn't
> counterfeit them, and then he transfers the pot to Joe. There is now an
> indelible and permanent record of the transfer of funds and that record
> will never go away.
> "This creates several problems for both Joe and the dealer. The dealer
> can (and might) take steps such as using "throw-away" wallets to try to
> unlink the transfer from his person, but that's dangerous. In all
> jurisdictions "structuring" transactions to evade money laundering or
> reporting constraints is a separate and unique crime and usually is a
> felony. Therefore, the very act of trying to split up transactions or
> use of "throw-away" wallets in and of itself is likely to be ruled a
> crime, leaving any party doing that exposed to separate and distinct
> criminal charges (along with whatever else they can bust you for.)
> "Second, due to the indelible nature of the records you're exposed for
> much longer that with traditional currencies to the risk of a bust and
> in many cases you might be exposed for the rest of your life. In
> particular if there is a tax evasion issue that arises you're in big
> trouble because there is no statute of limitations on willful
> non-reporting of taxes in the United States, along with many other
> jurisdictions. Since the records never go away your exposure, once you
> engage in a transaction that leads to liability, is permanent.
> "Third, because Bitcoin is not state-linked and thus fluctuates in value
> there is an FX tax issue. Let's say you "buy" Bitcoins (whether for
> cash or in exchange for a good or service you provide) at a time when
> they have a "value" of $5 each against the US dollar. You spend them
> when they have a "value" of $20 each. You have a capital gain of $15.
> At the time of the sale you have a tax liability too, and I'm willing to
> bet you didn't keep track of it or report it. That liability never goes
> away as it was wilfully evaded and yet the ability to track the
> transaction never goes away either! [...]"
> On 11/16/2012 8:25 AM, Gregory Alan Bolcer wrote:
> > Bitcoin, while elegant in theory, is blood money, tied
> cryptologically to all the criminal activities that contributed to its
> shared value--with its participants condoning that criminal activity by
> being compensated through accretive value by turning a blind eye to that
> very same criminal activity.
> > Greg
> > On 11/16/2012 8:13 AM, Gary Stock wrote:
> >> Does ZS have a "loyal opposition"? The presentation is appealing, but
> >> avoids revealing any weaknesses.
> >> Brief examples of triggers of doubt:
> >> Discussing BCI, without ever defining the acronym, suggests a mild but
> >> natural flavor of "inbreeding toward irrelevance." It leaves me
> >> wondering if the group is too self-referential.
> >> Pitching Bitcoin as so highly profitable has all the hallmarks of an
> >> investment scam. It leaves me wondering if the group is unaware of how
> >> that appears to outsiders.
> >> Can someone recommend a usable -- i.e., rational, moderate, concise --
> >> statement of ways in which ZS or bitcoin may ~not~ work as intended?
> >> Of what has not been said, but might ~need~ to be considered?
> >> Thanks,
> >> GS
> >> On 11/16/12 5:13 AM, Eugen Leitl wrote:
> >>> ----- Forwarded message from "ZeroState.net"<info at zerostate.net>
> >>> From: "ZeroState.net"<info at zerostate.net>
> >>> Date: Fri, 16 Nov 2012 09:34:57 +0000
> >>> To: Doctrine Zero<DoctrineZero at googlegroups.com>,
> >>> zs-business at googlegroups.com
> >>> Subject: Reminder: ZSF launch event tomorrow! Please help spread the
> >>> word if
> >>> you can!
> >>> Reply-To: zs-business at googlegroups.com
> >>> Reminder: ZSF launch event tomorrow! Please help spread the word if
> >>> you can!
> >>> http://zerostate.net/ZSF.html
> >>> ZSF - The Zero State Fund - is a mutual fund being planned by and for
> >>> Zero State citizens and friends.
> >>> This is an important historical opportunity for avowed Transhumanists
> >>> and others aware of a radically disruptive future to achieve a degree
> >>> of control over their collective fates by beginning to gather
> >>> resources and a degree of influence over how world events affect us.
> >>> It is particularly important that you inform yourself ahead of the
> >>> launch event by watching the Youtube presentation beforehand, and
> >>> thinking about it carefully. Please also allow yourself time to test
> >>> the Openqwaq client software (again, details below), to minimise the
> >>> chance of having any difficulties on the day.
> >>> The following message is from Anu (Rudiger Koch), regarding the ZSF
> >>> launch event on November 17th, 2012:
> >>> Hi all,
> >>> I'd like to invite you to the first virtual ZSF conference on Nov
> >>> 17th, 18:00h UTC ( 05:00h ZST). This meeting will start where the
> >>> Youtube presentation (http://www.youtube.com/watch?v=QihIz59sfxY) ends
> >>> - it will mainly be a panel discussion of the Zero State Fund (ZSF).
> >>> A video of the event will be published via this webpage
> >>> (http://zerostate.net/ZSF.html) immediately after discussion has
> >>> finished, and an email thread will be created for discussion of
> >>> pledges on the main Zero State mailing list:
> >>> http://groups.google.com/group/DoctrineZero
> >>> Pledges are currently at $6,015 for options, $48,120 for shares. As
> >>> the minimum initial capital for a mutual fund in St.Kitts is $100,000,
> >>> we need at least $12,500 in pledges on options to reach that. But we
> >>> need to be a bit higher just to make sure.
> >>> Deadline for Pledges will be Nov 19, 24:00h ZST. If at this point we
> >>> have more than $15,000 in pledges, ZSF will happen, otherwise it will
> >>> be canceled and a chance for ZS to shape history will have passed
> >>> unused.
> >>> The Conference will take place in Openqwaq. Please get the client
> >>> software from:
> >>> http://qwaq.3dicc.com/client/
> >>> Please ask Eugen [eleitl at zerostate.net] for a login.
> >>> We'll meet at the teleXLR8 Main Conference Hall.
> >>> Thanks
> >>> Anu
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