2008 Summit on Financial Markets and the World Economy, Washington DC, CC BY 2.0, via Wikimedia Commons, Presidencia de la Nación Argentina

Governments Can and Will Attack Bitcoin -A prelude

Governments are Centers of Power. Power Tends to Corrupt. All Governments Tend Towards Abuse. Bitcoin Will Be Targeted

This article is a warning that Bitcoin almost certainly will be brought under full Governmental control during this decade. That conclusion is rooted in 3 premises.

Premises

  1. In a free market, Bitcoin will outcompete all Government currencies. Bitcoin is an awesome form of money that, if left to the free market, would become the preferred global monetary asset.
  2. Government is not yours. It has been bought, and it is already global. A relatively small group, of extremely wealthy persons, who share traits that are commonly defined as a personality disorder, is using the power of their Trans-National Corporations to direct the policies of Government globally.
  3. Corrupt governments are threatened by honest money. Bitcoin will be centralized to ensure the global control of humanity by a corrupt few.

Future articles will be added to this series, more particularly supporting and describing the Who, What, Where, Why, When, and How of global efforts to achieve total control of Bitcoin. The current version of Bitcoin is built on open, honest, egalitarian, and immutable principles which are at odds with corruption. Bitcoin will be converted and controlled. By the end of the 2020s, only a neutered and greatly devalued version of Bitcoin will be available to the public.

‘Change the Money, Change the World’. Bitcoiner’s Motto, often expressed by Bitcoin spokespersons such as ‘Pomp’ -Anthony Pompliano

‘Bitcoin Fixes This’. Another, Bitcoin Motto

Readers may hope that I’m wrong about corrupt people controlling Government. However, nothing in this article would surprise the founders of the U.S. or the many leaders who have continually warned the public about the fearsome dangers from private control of the government.

The Global Plan for Bitcoin

Global officials already use their control of the mass media to manipulate the public’s perception of and to discourage the public’s use of Bitcoin. Manipulation of the Bitcoin financial markets will increasingly be used to discourage public participation. Increasing taxes, burdensome regulations, and ever more controlling legislation will be imposed to slow Bitcoin adoption.

Despite facing a fearsome array of regulatory and legislative attacks, the global adoption of Bitcoin will continue to grow. There are strong defenses built into bitcoin. It was designed to be decentralized, peer to peer, trustless, immutable, permissionless, and borderless. Despite expanding legislative controls, Bitcoin will remain a publicly preferred store of value for as long as governments continue to devalue fiat currencies.

Ultimately, those who control governments will act to decisively control Bitcoin. Near the middle of this decade, there will be another severe financial crisis. The coming global financial crisis will become a central justification for requiring the public to use new Central Bank digital currencies. In order to implement mandatory Governmental digital currencies, Governments will be forced to severely limit Bitcoin. Multiple uses of Bitcoin will be declared unlawful.

When diehard Bitcoiners persist in using Bitcoin as their preferred currency, Governments will shut down uncooperative Bitcoin exchanges and begin to seize bitcoins. Ultimately, governments will take over the Bitcoin mining pools, control the Bitcoin blockchain and thereby control all future bitcoin transactions.

My Government Couldn’t or Wouldn’t …, Is the Faulty Premise of Many Bitcoin Faithful. -It’s Not Your Government

People who claim that nothing can stop Bitcoin, or declare that Bitcoin cannot be banned, underestimate Bitcoin’s enemy. The Governments of today have been corrupted through the traditional means -bribery, extortion, murder, and mass murder. Government is no longer ‘of the people’ nor even controlled by the people’s representatives. Our Governments are not even national, except in appearance. Your government has been bought, and it is global.

Public Domain Graphic, source WEF DCGC paper, http://www3.weforum.org/docs/WEF_Digital_Currency_Governance_Consortium_2021.pdf

Global government is controlled by a small group (an Oligarchy), of the extremely wealthy (a Plutocracy ), administered through Trans-National Corporations (a Corporatocracy -rule by Corporate interests), and those who control it constitute a Pathocracy (Control of Society by persons with a personality disorder -psychopathy).

The pathocrats who direct global Government will not defer to public pressure. The corrupt cannot be demonstrated out of power. Nor will they be removed by the political process. Those who seize power through corrupt means cannot be voted out of power. The ruling global Pathocracy will yield only to superior power. People who want Liberty (or honest money), must decide to stand and fight, or they will suffer at the hands of the corrupt, and they will die -along with beneficial monetary systems, like Bitcoin.

Those are harsh words. This series of articles is presented to encourage realism. Bitcoin will prosper tremendously -for a limited time. But, an unsupported belief in Bitcoin invincibility is ultimately dangerous to one’s financial health and freedom. The ruling Pathocracy will eventually defend its monetary monopoly. As shown below, Government can control the current version of Bitcoin. The current reality of an honest, trustless, permissionless, borderless, transmittable, immutable, Bitcoin monetary system will be successfully attacked, in multiple ways, and ultimately will be fully controlled, during this decade, by those who control the government.

Multiple Attack Vectors

  1. Government can enter the Bitcoin market with fiat currencies to financially manipulate Bitcoin’s price until the public grows sick and wary of extreme bitcoin volatility. Price manipulation is likely to be heaviest, during the coming global financial crisis. Extreme losses in crypto from a preplanned liquidity crisis combined with heavy price manipulation will support media attacks that result in severe government regulation.
  2. The government can render Bitcoin unacceptable to much of the public via coordinated media attacks. While media manipulation would not shut down Bitcoin, a well-coordinated global media attack can destroy much of Bitcoin’s value and desirability.
  3. The government can tax Bitcoin into unprofitability, regulate Bitcoin into undesirability, and legislate Bitcoin into the black market.
  4. The government can seize Bitcoin found online. Severe government regulation of Bitcoin will result in a growing black market of unlawful transactions. Eventually, Government will shut down unregulated Bitcoin exchanges, seize bitcoin from unlawful exchanges, snoop private keys that were created online, and use those private keys and back doors to seize bitcoin from online wallets.
  5. The government can and will overwhelm the Bitcoin mining hash rate so that government has near-complete control of the verification of all Bitcoin transactions, resulting in the U.S. government effectively controlling the entire Bitcoin network.

Each of these actions is readily doable by the government. Initial government actions will not control the entire Bitcoin network. For now, the government will slow Bitcoin adoption through media manipulation, limit the value of Bitcoin through market manipulation, and limit the utility of Bitcoin through regulation.

1. Government Can Use the Media to Manipulate the Bitcoin Narrative Globally

Governments will increase their attempts to use mass media to discourage public acceptance of Bitcoin. The global powers can render bitcoin undesirable to the vast majority of the public, merely by establishing the media narrative for bitcoin. Through manipulation of the mass media, the price of bitcoin can be moved erratically, -until the public becomes so intimidated by bitcoin volatility that they crawl back to the “safety” of a government currency. Recently (Jan 2021), mere tweets by Elon Musk were sufficient to move the price of bitcoin 20% in just minutes.

CC0 Graphic Public Domain

The sudden appearance of confidential stories from ‘reliable sources’ describing previously undisclosed bitcoin problems would move the price steeply. Whether true or not, an organized media blitz describing how a new vulnerability to hacking has been discovered, better tech has now been developed, or how bitcoin will soon be outlawed, etc., would cause major price swings. Merely publicizing that a congressional hearing has been scheduled to discuss how to outlaw bitcoin, would move the bitcoin price steeply.

Government’s have a long history of using media manipulation to convince their citizens of great falsehood, like the need to go to war: 1931 -when Japanese needed an excuse to invade China they fabricated what’s known as the Mukden Incident, the destruction of a railroad line in Manchuria; 1939 -the Germans needed an excuse to invade Poland, so they fabricated what’s known as the Gleiwitz Incident, dressing up German soldiers in Polish uniforms to make it look like the Poles were the aggressors; 1964 -the United States needed an excuse to go to war in Vietnam, it fabricated an attack on one of its ships (USS Maddox) off the coast of N. Vietnam; 1991 -when the U.S. wanted to go to war in the Gulf, it circulated the story that Iraqi soldiers were taking Kuwaiti babies from their incubators in hospitals and putting them on a cold floor so they could send the incubators back to Iraq; 2001 -when the powers that be needed an excuse to invade Afghanistan, they destroyed the Twin Towers & Building 7 of the WTC and blamed Islamist terrorists.

Current events demonstrate that global media is subject to coordinated manipulation. Global media can be used to convince the public of astounding unreality -such as we are in imminent danger and must therefore give up our jobs, our mobility, and our freedom of group association.

Daisy Ridley, English Actress Oct 2020, CC0 public Domain Internet Meme

Media manipulation is a standard tool of government control. It is demonstrably powerful enough to completely rearrange society, it can similarly be used to destroy public acceptance of bitcoin.

2. Government Can Manipulate the Bitcoin Price in the Financial Markets

Until the Bitcoin future’s market was opened in late 2017, the U.S. government allowed Bitcoin to develop with little market interference. However, Western Governments have declared their distaste for Bitcoin. Ultimately, governments will need to completely control all bitcoin transactions. Until then, governments will limit public adoption of Bitcoin by manipulating its price in the market. Governments will use their fiat currencies to whip-saw the Bitcoin price up and down until the public becomes intimidated by Bitcoin volatility and return to the “safety” of the government currency.

Volatility, CC0 Graphic, Source

Agencies of the U.S. Government are experienced in manipulating all asset classes, including assets that are far greater in market capitalization than bitcoin. Currencies, as well as the countries which print them, are manipulated by the U.S., its military, and by IMF Loans, See, ‘Currency and Coercion, by Jonathon Kirshner.

The U.S. bond market is manipulated. As is evident from today’s unnaturally low and negative interest rates. See the article, ‘How the Fed Took Control of the Economy’, Dion Rabouin, author of Markets. The U.S. Stock Markets are directly manipulated by the Working Group on Financial Markets -also known as the “Plunge Protection Team” (consisting of the Federal Reserve Bank, the U.S. Treasury, the U.S. Comptroller of Currency, and the FDIC)

The U.S. Real Estate market is manipulated by the Federal Reserve Bank’s control of Interest Rates, as well as by the policies of Fanny Mae, Freddie Mac, USDA, and HUD, ‘Housing, the Most Manipulated Market in the World’. The Gold price is manipulated by Banks and by the London Gold pool https://www.gata.org/. Compared to these huge asset classes, manipulation of the much smaller bitcoin market would be child’s play. The creation of bitcoin futures contracts and the coming exchange-traded funds (ETFs) provide large additional avenues for governmental manipulation of bitcoin’s price and utility.

3. Government Can Discourage Bitcoin Adoption with Taxation, Regulation, and Legislation

In order to contain Bitcoin, Governments will increasingly turn to their standard tools of financial control; taxation, regulation, and legislation. The global government will tax, regulate and legislate Bitcoin globally.

Taxation to Control Bitcoin

Government can tax Bitcoin towards unprofitability. Bitcoiners often fail to realize that during this decade, Taxation is becoming Global.

“Treasury Secretary Janet Yellen has proposed that governments around the world require payment of at least a uniform “global minimum corporate tax.” A motivation for Yellen’s push for a global minimum corporate tax is fear that the Biden administration’s proposed increase in the US corporate tax will cause some American corporations to flee the US for countries with lower corporate taxes. … Yellen’s global corporate tax proposal will no doubt be supported by governments of many European Union (EU) countries, as well as the globalist bureaucrats at the Organization for Economic Cooperation and Development (OECD). For years, these governments and their power-hungry OECD allies have sought to create a global tax cartel.” Ron PaulGlobal Taxes — Global Stagnation April 12, 2021

The World Economic Forum is also studying how to tax cryptocurrencies. A WEF Forum was held on April 6th, 2021, for this reason.

“Digital trade has flourished in the pandemic even as governments enacted over 100 new digital taxes.” The World Economic Forum ‘Taxing Digital Value’

Regulation to Control Bitcoin

Increasing regulation is coming to Bitcoin.

President Trump’s Working Group on Financial Markets released a report that said stable coins should meet the same regulatory standards as other aspects of the financial system. “They could become systemically important overnight,” Powell said. “We don’t begin to have our arms around the potential risks and how to manage those risks. The public will expect that we do and has every right to expect that. So that’s something that we’ve been working on with our colleagues around the world.”

The U.S. House of Representatives passed H.R. 1602, which will,

“… establish a digital asset working group to ensure collaboration between regulators and the private sector to foster innovation,” Eliminate Barriers to Innovation Act of 2021

The bill requires the Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a working group focused on digital assets.

Legislation to Control Bitcoin

Governments will increasingly declare various uses of bitcoin to be unlawful.

Public Domain, Presidential Executive Order by Franklin D. Roosevelt

As the global government confirms that taxation and regulation are insufficient to stop the growth of bitcoin, the government will outlaw key uses of Bitcoin.

When U.S. President Franklin D. Roosevelt feared that physical gold could replace the U.S. dollar, he outlawed gold. The Fed explained, “Individuals and firms preferred holding metallic gold to bank deposits or paper currency.” With a single executive order, FDR forced Americans to turn in their gold savings. Roosevelt made gold ownership illegal for all Americans and punishable by up to 10 years in prison.

Legislation can be used to slow down bitcoin adoption, but even heavy taxation, regulation, and increasing legislation will not destroy Bitcoin.

The entire point of Bitcoin is to neutralize government controls on money, which includes Anti Money Laundering (AML) and taxes.” Joe Kelly in his article, ‘How To Kill Bitcoin (Part 1): Is Bitcoin ‘Unstoppable Code’?”, (July 8, 2020)

Taxation regulation and legislation will be merely part of government efforts to control bitcoin.

4. Government Can Shut down Exchanges and Seize all Bitcoin found Online -Even from Private Wallets

Governments have a greater ability to seize the public’s Bitcoin than most Bitcoiners realize. Governments can seize all bitcoin on regulated exchanges and they can seize bitcoin from private wallets that are online. The more Bitcoin threatens the government’s monopoly on money, the greater motivation government will have to act.

Continually increasing depreciation of the fiat currencies will eventually make Bitcoin so obviously desirable that it is seen as an imminent threat to State currencies. The government will then preserve its monopoly on money by forcing Bitcoin onto centralized exchanges which government can control. Even with fair notice of an impending change in Bitcoin’s legal status, there would be Tens of Billions of Dollars worth of bitcoin left on unregulated wallets and decentralized exchanges after unregulated use of Bitcoin is declared unlawful. Governments will then begin to seize bitcoin left online. Seized bitcoin would then provide the government with greatly increased leverage to manipulate the Bitcoin market.

Global governments can seize bitcoin from the online wallets of private citizens. Government Intelligence Agencies can push “Security Updates” globally to online wallets which record for the government all cryptographic “seed phrases” and “keys” entered by bitcoin holders. The governments can require back doors on hardware wallets.

NSA Photo. CC0 The National Security Agency’s Utah Data Center. One of four similar NSA facilities controlled by the U.S. government

“The NSA has extreme computers, working in tandem. They scrub every bit of data on Earth every second of every day. The computers are essentially super computers, about the size of a DVD player, stacked up 12 feet high, in rows like a giant library inside an enormous warehouse. There are 1,000,000 square feet of these libraries/warehouses of extreme computers. The complex is so large vehicles are required for crossing the warehouses to do maintenance. …. “ Bill Bray paraphrased -Former Research Scientist at Central Intelligence Agency, Ph.D. Physics & Chemistry, Princeton University (Graduated 1962) (Retired) Updated September 24, 2019

Bill Bray further describes how deeply the U.S. Government is already in our devices.

“Use three different system cleaning apps on your pc with the Wi-Fi turned off, including cleaning your registry files. Turn the Wi-Fi on and just go to (the) Yahoo homepage. Your computer will stall for a few minutes. Turn wifi off, close the browser. Run the cleaners again. You will have two thousand tracking programs and about 350 MB DATA dumped onto your hard drive and operating system.”

“If you turn handshake, cookies, off, you cannot connect to any sight. The idea that 350MB, in the form of two thousand security files that ‘track’ your movements is just a normal computer thing is quite absurd. On your cell phone it is the same, clean it, connect, and run the cleaner again, half a gig of tracking software [will be] dumped onto your cell; this time tracking every spoken word.” Bill Bray, on Quora.com, ‘Did CIA Director William Casey really say, “We’ll know our disinformation program is complete when everything the American public believes is false.”.

Graphic CC0, Source www.MaxPixel.net

The following is an excerpt from a Reddit discussion hypothesizing a possible scenario by which government could seize bitcoin.

“The software distributed in the recent security updates pushed to your device was developed by the NSA,”

“As corporations based in the United States, we were ordered to comply with Executive Order #6820 which was shared publicly by the White House today. The software distributed in the recent security updates pushed to your device was developed by the NSA, and we were ordered to proceed in distributing this as a critical security update to every device that our update procedures had access to, globally. The NSA’s software was in binary form, so we did not know in advance the purpose nor the capabilities of that software.”

“U.S. Treasury announcement, July 31, 20??”

“The recent operating system updates for computer servers, desktops, and mobile phones have software that has scanned files, intercepted keystrokes, and performed other actions such that any cryptocurrency seeds and private keys found were used to transfer those funds such that they are now securely in the hands of the U.S. Treasury. You may use the following form to submit a claim for the value of those coins, which we will verify and then forward your claim to the government of your country for processing. If it is their policy, they will then reimburse you (at our expense) in your country’s currency, at the conversion rate of $XXXXX USD per bitcoin — the rate at which bitcoin was trading when the seizing of cryptocurrency assets occurred.”

“Signed: Microsoft (Windows); Google (Android, Chrome OS); Apple (iOS, Mac OS X);”

The Corporate World CC0, Pixabay.com

5. Government Will Overwhelm The Bitcoin Mining Pools -For Total Control of Bitcoin

Governments can control the entire Bitcoin Blockchain by overwhelming the hash rate of the network of Bitcoin miners (Computers that verify bitcoin transactions). To control Bitcoin entirely, the government needs to control just over half the computational power of computers that mine bitcoin. Control of over half of Bitcoin mining is known as a 51% attack. Such an attack from the government could be made suddenly, overwhelming, and could be conducted to deny the remaining bitcoin miners sufficient opportunity to recognize the attack and respond to it, or to recover from it. But a 51% attack by the government will be just as effective if the government’s intent is announced in advance -even advertised.

“The basic idea is that announcing the plan of attack openly, ahead of its actual execution, is a key, impactful step. If you introduce information into the ecosystem that shows Bitcoin is on a trajectory towards becoming dysfunctional in e.g. 6–12 months because of the course of action you’re going to take, people have to evaluate that information now and take appropriate action to protect their interests long before the attack itself actually manifests.” Joe Kelly in How To Kill Bitcoin (Part 3): No Can Defend, And The General Theory of Destroyment of Interest in Money (May 29, 2021)

Bitcoin Mining ASICS, CC0

Multiple commentators believe that governments will attempt to eliminate Bitcoin to preserve the government’s monetary monopoly. (Ray Dalio, Ron Paul, Michael Burry, Steve Forbes, E.B. Tucker)¹[1] The cost to purchase and install sufficient new computers to match half the hash rate of the Bitcoin mining network (April 2021) is estimated to be near $10 billion. Source -www.Brains.com How Much Would it Cost to 51% Attack Bitcoin?;-A thorough explanation of 51% attacks.

Even if the cost of acquiring sufficient bitcoin miners to control the blockchain was an order of magnitude higher (i.e. closer to one hundred billion dollars than to ten billion), $100 billion is hardly a challenge for a major government. It amounts to just over 5% of the most recent U.S. stimulus package. Conducting a 51% attack is clearly within the means of multiple governments²[2].

However, as more computers are added to the difficulty of completing blocks of transactions automatically adjusts upward. The Bitcoin code is programmed to change the algorithm so that each miner must work harder to verify a block of Bitcoin transactions. Therefore, unless done suddenly, adding computational power in a brute force attack would require considerably more computer hash power than 51% of the network hash power that had been in existence when the attack started.

Another factor affecting an attacker’s ability to overwhelm the Bitcoin mining network is that the required Application-Specific Integrated Circuits (ASICs), are already in short supply. Together, the preprogrammed difficulty adjustment of the Bitcoin computer code and the shortage of ASICs mean that a brute force 51% attack would likely require multiple months or years of preparation.

Bitcoin Mining Warehouses, CC0 by CryptoMaximum News

Asymmetric 51% Attacks are Faster and Cheaper

Overwhelming the computational power of Bitcoin miners with new ASICs is unnecessary. See particularly the analysis of Joe Kelly, “ How To Kill Bitcoin (Part 1): Is Bitcoin ‘Unstoppable Code’?” or Achim Littlepage “The Pissing Attack against Bitcoin”, and ‘How To Kill Bitcoin with Ethereum’.

A governmental attack on Bitcoin would be akin to warfare. Combatants in war, should not expect their opponent to ‘fight fair’. An attack on Bitcoin will be an Asymmetrical, Full Spectrum attack involving Overwhelming Force, using Divide & Conquer techniques, that apply bribery and extortion (take our silver or receive our lead). The government would make agents of key personnel in the existing mining pools, and would then turn the ASICs of Bitcoin mining against the Bitcoin network itself.

A coordinated attack by a major nation and its allies would also attempt to incapacitate uncooperative mining pools at points of vulnerability (severing communication links, disabling power sources, destroying cooling systems, forcibly removing essential human operators, etc.). By disabling a significant portion of the Bitcoin mining network, a government actor will have a lowered the Bitcoin difficulty adjustment, making it more effective to bring volumes of its own computer hashing power onto the Bitcoin network. Multiple researchers recognize the possibility of an asymmetric attack by a government(s) on the bitcoin mining network.

“The current estimate of …. how much it would cost to shut down the bitcoin network, …the forgone bitcoin [value of bitcoin that could otherwise be mined], … -if for example, China were to decide simply to start mining empty blocks and … releasing empty blocks into the system, continually presenting them to the nodes who would refuse them, but [would be] unable to prevent the processing from going forward, -the total cost of that is around seven billion dollars a year.” Mike Green, at minute 16 to 17, of YouTube Video, Labeled “The Best Bitcoin Debate Ever Recorded (Anthony Pompliano vs Mike Green)” at Min 16 to 17:30.

The major nations of the world hardly function as separate countries anymore. The globe has become one gigantic 100 Trillion dollars a year business venture. Almost the entire Global Domestic Product is a USA/Euro/Asian joint venture. The nations of the world will fight Bitcoin as a common enemy. An honest Bitcoin monetary system has an ‘unfair advantage over each of the continuously inflating government currencies.

Global 100 Trillion per year Business Venture, CC0 by CBB

Summary: Bitcoin has Multiple Vulnerabilities

Governmental power is a real and looming danger to Bitcoin. Claiming invulnerability for the Bitcoin network is unrealistic. Any monetary system which significantly outcompetes the existing government monopoly on money should expect to be attacked. When that happens the current Bitcoin network will lose. Bitcoin hodlers will be hurt.

“Nobody’s ever defended anything successfully, there is only attack and attack and attack some more.” George S. Patton, General, U.S. Army WWII

The global governments have the power to destroy much of the public’s desire for bitcoin via media manipulation, and the power to destroy much of bitcoin’s value and monetary usefulness via market price manipulation. The government has the power to greatly limit Bitcoin’s utility and desirability through taxation, and regulation and the governments can legislate bitcoin into the black market. The U.S. Congress has already considered criminalizing; certain bearer instruments (like bitcoin), along with money service businesses, money concealment activities, closely related transactions, conduct in aid of such transactions, concealment of account ownership, concealment of the source of funds, and freezing bank accounts upon arrest for, or even upon mere suspicion of illegal financial activities.

In addition, Government can confiscate bitcoin from the central exchanges and can seize bitcoin from online wallets through its snooping software and hardware backdoors. Ultimately, Governments have the power to seize control of the Bitcoin blockchain via direct or asymmetric attacks on Bitcoin’s network of mining computers.

The Bitcoin Idea Will Live On

When the bitcoin blockchain is corrupted, all is not lost, at least not permanently. As Bitcoin proponent Dan Held and others have reminded us,

“You can’t kill an idea. Bitcoin extends beyond code, it’s a mindset. … Ideas are bulletproof.”

Dan Held, in ‘Can Governments Kill Bitcoin(Nov. 19, 2020)

The current version of Bitcoin will be stopped, but Bitcoin’s principles are the idea that will not die. Despite the coming control of Bitcoin and the accompanying destruction of human freedom, Bitcoin’s awe-inspiring idea of honest money, along with the fundamental human impulse for justice -will ascend. The idea of a decentralized, permissionless, immutable, hard currency (the quantity of which is difficult to increase) is now with us forever.

“To believe that all the people in the world that have adopted bitcoin for the financial freedom and sovereignty it provides would suddenly lay down and accept the ultimate infringement of that freedom is not rational. … A government can marginally restrict access, or even make possession illegal, but it cannot make something of value demanded by a broad and disparate group of people magically go away.”

Parker Lewis in Bitcoin Cannot be Banned’ (Nov 8, 2019)

Parker, that is a pleasant thought. Unfortunately, Government has already demonstrated often and harshly that the freedoms of the public must be subordinated to the dictates of government. Bitcoin is an idea whose time has -started, but it will require a fight.

“The only winning move is to play.”

Michael Goldstein

_______________________________________________

[1] Commentators stating that government is likely to limit Bitcoin.

Ray Dalio,

Like back in the ’30s in the war years … cash and bonds were such bad investments relative to other things, there was the movement to those other things still, and then the government outlawed them … They outlawed gold,…That’s why also outlawing bitcoin is a good probability. …“they also established foreign exchange controls, because they don’t want the money to go elsewhere.” … “every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control,” https://news.bitcoin.com/billionaire-hedge-fund-manager-ray-dalio-government-outlawing-bitcoin/

Ron Paul, The government is the threat,” he said, noting that “they will crack down because they have the ability to do it. https://news.bitcoin.com/ron-paul-warns-government-crackdown-bitcoin/

Michael Burry, (of The Big Short)

“Prepare for inflation.” “In an inflationary crisis, governments will move to squash competitors in the currency arena. $BTC #gold” … I don’t hate BTC. However, in my view, the long term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood interests in monopolies on currencies. In the short run anything is possible — why I am not short BTC.https://news.bitcoin.com/big-short-investor-michael-burry-governments-squash-bitcoin/

Steve Forbes,

“… a far bigger story is brewing, which will rock the worlds of politics, economics and finance: the attempt by governments and central banks to crush digital currencies with taxes and regulations so that they don’t become alternatives to government money, such as the dollar and the euro. … Politicians and central bankers will fiercely fight to preserve their currency monopolies.” https://www.forbes.com/sites/steveforbes/2021/02/18/bitcoin-warning-are-we-headed-for-a-cryptocurrency-war/?sh=5112558066ce

E.B. Tucker,

“And several high-ranking officials and intellectuals have warned of the dangers of private cryptocurrencies. … What all these global elites agree on, however, is that the only cryptocurrencies that should be allowed to survive are the ones backed by governments.” https://www.rogueeconomics.com/bill-bonner-diary/why-the-government-will-outlaw-bitcoin/ ;

Nothing in this analysis is intended to promote the idea that governments (or the persons behind them) are all-controlling. The reach of all governments is limited. Unfortunately, the reach of the government is long enough to control or destroy a competing currency like Bitcoin.

[2] Computing Power Needed for 51% Attack

The computational power of the Bitcoin network is formidable. The verification of Bitcoin transactions (bitcoin mining) is done by over 5 million Application Specific Integrated Circuit computers (ASICs). The network of Bitcoin mining ASICs together produces 200 quadrillion Hashes per second. https://bitcoincharts.com/bitcoin/ The Bitcoin mining network is calculated to have many times greater computational power than all known supercomputers in the world. https://www.top500.org/ This is an estimate since Bitcoin mining calculations (hash rate) can only be approximately compared with Floating Point Operations per Second (FLOPS), which is a standard measure of supercomputer performance. As of April 2, 2021, the bitcoin mining network’s performance was rated at just under 81,000,000 petaflops.

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Davido Davido

Davido Davido

Voluntarist, Agorist, not Pacifist. Don’t Tread on Anyone. Rely on Hard Assets, Hard Principles, and Hard People