Posted on 02/23/2022 1:54:42 AM PST by Mount Athos
To say I've been skeptical about Bitcoin and the rest of the crypto universe would be an understatement of epic proportions.
I could see the fundamental promise of a digital currency free of banks if you were living in a failing state like Venezuela or an overtly authoritarian one like China or Iran, but how was this relevant to the vast number of Bitcoin boosters living in stable Western democracies governed by the rule of law?
Enter the trucker protests in Canada. In just three weeks of honking, blocked streets and bridges, bouncy castles and flag waving, this peaceful protest movement managed to provoke the most shockingly authoritarian response from the Canadian government.
First the Ottawa police department got GoFundMe to confiscate donations with the intention of redirecting them to other causes, then after an outcry, they backed down to merely blocking the money for 7-10 days before refunding.
Just a few days later, the Canadian prime minister imposed martial law on the protestors. Through powers intended for catastrophic events, he took to freeze the bank accounts of both Canadian protestors and donors, to compulsorily demand that tow-truck operators clear the streets, and forced insurance companies to drop policies for the protestors.
That "worked". Together with police storming the protests with pepper spray and stun grenades, the area in front of parliament was cleared. But even that wasn't enough. Even with the protests cleared out, the police vowed to press their new financial powers against anyone involved for months to come.
So Canadians who donated to the truckers should now sleep with one eye open for the next several months, lest they have their bank accounts frozen, and indictments filed on the basis of laws enacted to prevent financing of terrorism? Or maybe their bank will simply preemptively cancel their accounts if they appeared on the hacked list of donators from GiveSendGo?
This is crazy. Absolutely bonkers. Terrifying.
I still can't believe that this is the protest that would prove every Bitcoin crank a prophet. And for me to have to slice a piece of humble pie, and admit that I was wrong on crypto's fundamental necessity in Western democracies.
And that it was the Canadians who brought this on?
Especially since I had some sympathy with fears projected by the US progressive left who spent four years fretting Trump might pull stunts like these. Then it turns out that the worries of an authoritarian overreach would be fulfilled by Trudeau to the North instead? Who's writing this script?
Meanwhile, plenty of American commentators are cheering this on. Those terrible, horrible, no-good, very-bad truckers got what they deserved! To protest for a repeal of pandemic restrictions, so as to live the life enjoyed in Denmark by a population less vaccinated than the Canadians? That's clearly beyond the pale!
Is France really that different from Canada? Is Austria? Is Denmark? This is a real wakeup call.
It reminds me of the Snowden revelations. Prior to him bringing proof, the idea that America was processing all the emails in the world, recording any phone call anywhere at will, and monitoring all internet traffic just seemed so hyperbolic. I remember discussing this with a friend in the 2000s when the rumors of Echelon had gained some traction. I just didn't seem believable until it was undeniable.
I'm sitting with that same feeling here. Even just a few months ago, I would not have found it credible if you said a three-week peaceful protest in Canada could have lead to martial law, frozen bank accounts, and terrorist-financing laws being used to hunt protest donors. Unbelievable then, undeniable now.
I don't think we have any idea what kind of radicalizing seeds have been planted by Trudeau with these actions.
These types don’t seem to understand that if the ptb deem your crypto account illegal, it’s pretty much becomes worthless. No diiferent than having some offshore secret account. Sure you can access funds but you can also go to prison. A court ordered Canadian trucker protestors to not touch their cryto account. Can they still do it? Sure, just like you can do any “crime”.
The ptb can tell if you are going to a crypto exchange. And they are not idiots, you’re accessing it because you have coins. No different than when some pasty white suburban kids drive to some inner city corner late at night, it’s hoes or drugs they are hoping to score. The local Leo’s are not fooled by lame stories as to why they are their.
Forget the bank account stuff. It is now evident that they will use and abuse any law to stop the opposition. Crypto? They will and can track that down too, you just do not realize it yet. And then they'll deem that you were hiding assets! What a mess that will be under the color of law!
“There’s no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for me to live without breaking laws. Who wants a nation of law-abiding citizens? What’s there in that for anyone? But just pass the kind of laws that can neither be observed or enforced nor objectively interpreted - and you create a nation of law-breakers - and then you cash in on guilt.” Atlas Shrugged, Ayn Rand
One of the huge advantages of cryptocurrencies such as Bitcoin is disintermediation. Funds transfers occur peer-to-peer, without an exchange in the middle.
The weakness happens when you have to exchange bitcoin for real world cash or goods.
Governmental “final solution” for bitcoin would be to prohibit this last stage without a full audit trail of how the bitcoin got to you. Can’t supply an audit trail? Then any business exchanging cash, goods, or services becomes subject to seizure, which would result in a hefty “service charge” for Bitcoin transactions.
Do not assume that governments will hesitate to go full “final solution” if they feel their power threatened. Canada demonstrated they will go totalitarian if faced with actual disobedience.
I agree that using an online exchange for conversion from crypto to fiat currency presents an obvious opportunity for governments to interfere.
Then HOW can any third party (e.g., Big Brother Govt.) monitor such transactions?!
Regards,
The distributed ledger is public. It’s difficult, but not totally impossible, for State-level actors to analyze the blockchain and potentially find links to individuals, when combined with other data at their disposal.
But you still have to go out onto to the net and have that traffic pattern visible. It would be like always having to go to some street corner in town to exchange cash with another individual. Not really private.
If all the financial agencies are required to stop any crypto transaction then it is all pointless. You still can not get to your money.
Canada did just that, made it so the banks will stop any transaction based on who the person is. This makes crytpo useless. Sure you still have funds but you can not get to them.
Yes, any transaction you make goes into the ledger. That’s the way it works. However, tracing an address back to an individual is nontrivial, unless you give up the information on your own.
Crypto is not foolproof. Bitcoin and others can be traced - indeed Bitcoin is easy to trace. Even privacy coins like Monero can be traced. Governments can regulate centralized exchanges like Coinbase, Kraken, Binance, etc in their territory.
BUT
There are decentralized exchanges governments cannot regulate. They can make it difficult though not impossible for you to convert your crypto into cash. They can do nothing to stop you from converting your crypto to cash outside their territory.
So yes, there are limits to the financial freedom crypto can give you……but it’s a damn sight better than traditional banks.
The weak link for cryto is the exchanges where you exchange national currency for crypto. Some US Banks have heavily limited your ability to use credit & debit cards. Then the IRS is watching the transactions — supposedly for the purposes of taxation — but tax enforcement requires the identification of the users. Finally there is still only limited acceptance in commerce. Some businesses accept crypto, most do not.
“They can do nothing to stop you from converting your crypto to cash outside their territory.”
ROFLOL I guess you are not aware of the IRS requirements to disclose offshore accounts. Your statementcis akin to saying “They can do nothing to stop you from robbing a bank.” Sure that may be true, and you’ll be hopping into the getaway car with a bag of cash, BUT...!!!
You may have heard of various websites getting hacked and the intruders demanding millions in crypto? US law enforcement has been able to recover significant portions of the lost crypto. That means that on some level they are reading the blockchain I would think. The anonymity of crypto-currency may be overstated.
Bitcoin is no different than government “created” fiat currency in concept. The main difference though is who gets to control it and bitcoin is not controlled by a government.
“Some businesses accept crypto, most do not.”
The same issue comes up with the hard gold bug types. They have never thought out real world scenarios when their big crash occurs. They take one of their 1 oz gold bars to the local grocery store and hand it to some 17 year old cashier, who stores at it with the biggest blank look and goes “whats this?”. Lol
“Then HOW can any third party (e.g., Big Brother Govt.) monitor such transactions?!”
They could just ask Al Gore to turn off the internet.
Trudeau froze the crypto wallets too, didn’t he?
This is insane. Absolutely gut wrenching.
All thanks to the Patriot Act (here in the US). Thanks to George Bush.
I think we need Rand Paul in the White House, he has always hated the patriot act.
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