Bitcoiners Are Unfazed As Senator Manchin Calls For US Treasury To Ban Bitcoin

Those who truly comprehend Bitcoin's technology are aware of the futility in trying to "ban Bitcoin."  I might be more inclined to believe the possibility of Bitcoin being banned when,if ever, I see BitTorrent banned.

Earlier today, Rob Wile of BI published this article detailing Senator Joe Manchin III (D-WV) and his call for the US Treasury, and a host of other financial regulatory bodies within the United States, to ban Bitcoin.  That's right, Senator Manchin sent a letter to a long list of important names in the US government asking them specifically to ban Bitcoin.

The overzealous call for Bitcoin's ban obviously comes on the heels of Mt. Gox shuttering its doors.  The mainstream media is reeling in self-induced confusion and chaos; Bitcoiners on the other side of the coin, have actually seen a double digit rise in the exchange rate since the news that the damning document leaked from Mt. Gox was actually authentic.

These types of poorly researched publications about Bitcoin is getting very, very, very, very, very, very dated.  Even the newest Bitcoiner with but a few satoshi to his name and one Moronic Monday Bitcoin thread under his belt, can spot all the blatant lies in Senator Manchin's piece of "work."

Senator Carper, made a more reasoned statement regarding recent events where he asked the government to look into regulation.  Even this might be too much political involvement for some Bitcoiners' tastes; however, the differences between Senator Carper's understanding of Bitcoin and Senator Manchin's understanding of Bitcoin are abundantly clear.

If you enjoyed Kyle Torpey's thorough trouncing of Professor Bitcorn, stay tuned to CCN because I believe he has some words for Senator Manchin forthcoming as well.

Update: Here's Everything Senator Manchin Got Wrong in His Bitcoin Ban Letter

Read the full text of Senator Manchin’s letter on his website.  
I've highlighted a few talking points for us all to discuss.

manchin on Bitcoin
Senator Manchin has revealed just how little he knows about Bitcoin. Photo from AP

"It also means that Bitcoin provides a unique digital fingerprint, which allows for anonymous and irreversible transactions."

I love Bitcoin's irreversible transactions, and if you've ever paid with cash to save 5% at a brick and mortar location then you also like irreversible transactions.  1% of the worlds GDP is lost on an annual basis due to fraud and chargebacks, Bitcoin would alleviate that problem in ways people like Senator Manchin clearly can't even understand.

More importantly, "unique" and "anonymous" don't always mix very well; in fact, they actually contradict each other most of the time.  This is exactly why Bitcoin isn't "anonymous" such that it will forever hinder law enforcement activities; rather, Bitcoin is merely "pseudonymous".  The privacy of individuals are protected in ways that the current financial system cannot provide.

 

Indeed, it has been banned in two different countries—Thailand and China—and South Korea stated that it will not recognize Bitcoin as a legitimate currency.

Thailand just had a bank run, good thing Bitcoin was clarified as legal there. China only banned third party payment processors to work with Bitcoin, and the major Bitcoin exchanges have long since found a way to service their customers.

 

"I am most concerned that as Bitcoin is inevitably banned in other countries, Americans will be left holding the bag on a valueless currency."

Besides the cold hard fact that China and Thailand haven't banned Bitcoin it any way shape or form, claiming that other countries will ban Bitcoin and Americans would somehow be buying the entire time shows an utter lack of appreciation for the driving factors being Bitcoin adoption (Here's a hint Senator, money laundering isn't the primary concern).

Needless to say, Bitcoin won't be banned in other countries for the same reason it won't be banned in the United States.  Not unless the politicians there are all carbon copies of Senator Manchin.  That reason is simply this: Bitcoin is good for the people, Bitcoin is good for every business, and most of all Bitcoin has the potential to break the hegemonic hold that the US has on the world financial system.

 

"As of December 2013, the Consumer Price Index (CPI) shows 1.3% inflation, while a recent media report indicated Bitcoin CPI has 98% deflation. In other words, spending Bitcoin now will cost you many orders of wealth in the future. This flaw makes Bitcoin’s value to the U.S. economy suspect, if not outright detrimental."

Let's take a step back from the whole Bitcoiners vs. unenlightened Bankster paradigm and examine these statements through the lens of logic and the English language.  Spending Bitcoins now will only cost you many orders of wealth in the future, if Bitcoin is worth many orders of wealth in the future.

What Senator Manchin has revealed here is a blind adherence to CPI data without even a second thought to how the data is collected or what it must mean for Bitcoin adoption.

 

If you live in West Virginia, I apologize but it is your civic duty to contact your Senator and tell him to rescind his statements before they damage his credibility... Just this American's patriotic perspective.

This article is protected by copyright laws and is owned by CCN Markets.

About the author

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Caleb Chen

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.

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