Jump to content
The Official Site of the Vancouver Canucks
Canucks Community

The Everything Bitcoin Thread


Recommended Posts

So the New York Department of Financial Services has released a draft for what the state's BitLicenses will look like, so does this signify "legitimacy" to you now that antiquated government institutions are going to regulate it?

http://www.businessinsider.com/nydfs-bitlicense-draft-2014-7#ixzz39h6M6rRK

Do you have to use terms like "antiquated" or play on words about how the Gov is full of criminals in every single sentence? It sounds like your just an angry unibomber type living in a shack somewhere and makes it almost impossible to take anything you say seriously.

Yes, regulation gives the currency legitimacy. This will help greatly in it gaining acceptance and stabilizing its valuation. Anonymity is gone but thats a good thing in the eyes of the IRS and Treasury dept. Like when buying and selling any currency the taxman wants his cut of the capital gains.

Link to comment
Share on other sites

I hope you were walking your dog because you seemed to log-in just to reply to my post...

Let's be honest here...how can those regulators know if I'm in New York State transacting in bitcoins if I used a highly secured VPN? No New York IP address, no jurisdiction, no case.

Or if I crossed the river into New Jersey, or any other neighbouring state and do my transactions there?

Again, out of their jurisdiction, no case.

But to truly illustrate the point that they are antiquated, and that the free market will outdo government-dictated laws and orders/rules and regulations, the guy who designed the first 3D-printable firearm has helped conceived the Dark Wallet which makes bitcoin transactions truly anonymous and untraceable. And it was released just last month, so talk about a day late and a dollar short.

Now, how are they going to tax it? At which point do they attack savvy bitcoin users from now?

http://www.wired.com/2014/07/inside-dark-wallet/

Edited by CanadianLoonie
Link to comment
Share on other sites

I hope you were walking your dog because you seemed to log-in just to reply to my post...

Let's be honest here...how can those regulators know if I'm in New York State transacting in bitcoins if I used a highly secured VPN? No New York IP address, no jurisdiction, no case.

Or if I crossed the river into New Jersey, or any other neighbouring state and do my transactions there?

Again, out of their jurisdiction, no case.

But to truly illustrate the point that they are antiquated, and that the free market will outdo government-dictated laws and orders/rules and regulations, the guy who designed the first 3D-printable firearm has helped conceived the Dark Wallet which makes bitcoin transactions truly anonymous and untraceable. And it was released just last month, so talk about a day late and a dollar short.

Now, how are they going to tax it? At which point do they attack savvy bitcoin users from now?

http://www.wired.com/2014/07/inside-dark-wallet/

Well thats what they are working on in regards to regulating it, being able to track and tax it at both the state and federal level. The IRS doesnt care about state lines, they are federal and if you are a US citizen they will also go global to find your income. First of all it is illegal as it stands to not declare that income in the US when you realize any gains from the sale of bitcoins there. So if and when institutions start trading them all of those transactions will be monitored and tracked. Capitol gains taxes in the US arent that bad and are fairly close to their Canadian version. Tho the Canadian Tax man doesnt go after foreign income like the IRS does.

If history is any indicator the end result will be that the rich get richer and the poor get poorer. It may take some time but eventually everything gets absorbed into the system even if the system has to completely change to fit it.

Link to comment
Share on other sites

Personally I like the idea of alternate currency but that what it is, just alternate currency; much like a credit card. You still need to earn an income to accrue Bitcoins and that income will have to be taxed so government run services can function.

So while it seems like a really great idea to avoid being taxed on your purchases, the tax you are avoiding is used predominantly to fund essential services. Entities like education and health care would have to be funded solely by the users and the costs set by the suppliers.

Link to comment
Share on other sites

Personally I like the idea of alternate currency but that what it is, just alternate currency; much like a credit card. You still need to earn an income to accrue Bitcoins and that income will have to be taxed so government run services can function.

So while it seems like a really great idea to avoid being taxed on your purchases, the tax you are avoiding is used predominantly to fund essential services. Entities like education and health care would have to be funded solely by the users and the costs set by the suppliers.

Bitcoin is nothing like a credit card and a credit card is not an alternate currency. If a business accepts bitcoin as payment, then the possibility may be there to pay employees in bitcoin.

Link to comment
Share on other sites

Bitcoin is nothing like a credit card and a credit card is not an alternate currency. If a business accepts bitcoin as payment, then the possibility may be there to pay employees in bitcoin.

Bitcoin is essentially a credit card without the middle man that you pay to use it. It's an indirect transfer of payment from you to a vendor with one stop in between rather than the direct peer-to-peer transfer that Bitcoin is.

Link to comment
Share on other sites

Bitcoin is essentially a credit card without the middle man that you pay to use it. It's an indirect transfer of payment from you to a vendor with one stop in between rather than the direct peer-to-peer transfer that Bitcoin is.

Using a credit card denominated in fiat currency artificially expands that currency's money supply, thus it's inflationary.

Payment with bitcoin is payment in full, just like with gold or silver, with no lingering liabilities.

  • Upvote 1
Link to comment
Share on other sites

Using a credit card denominated in fiat currency artificially expands that currency's money supply, thus it's inflationary.

Payment with bitcoin is payment in full, just like with gold or silver, with no lingering liabilities.

Hence the use of the word 'essentially'. I understand what you are getting at but the bottom line is it is just another form of payment; transfer of funds from one to another.

Link to comment
Share on other sites

Using a credit card denominated in fiat currency artificially expands that currency's money supply, thus it's inflationary.

Payment with bitcoin is payment in full, just like with gold or silver, with no lingering liabilities.

If a fiat currency is a currency not backed by a physical commodity then Bitcoin is the ultimate Fiat currency.

Link to comment
Share on other sites

If a fiat currency is a currency not backed by a physical commodity then Bitcoin is the ultimate Fiat currency.

Incorrect on an epic scale.

Fiat currency is fiat because of government fiat ie. laws and orders/rules and regulations, aka because the government said so.

Or in your lexicon, government makes it legitimate.

So until a government passes legal tender laws declaring bitcoin to be use for payment, bitcoin is not a fiat currency.

The Canucks will win back-to-back Stanley Cup championships before that will happen!

Link to comment
Share on other sites

Hacker with access to Canadian ISP stole $83K in bitcoins: researchers
by The Canadian Press | Story: 120774 - Aug 11, 2014 / 2:32 pm

A hacker with access to a Canadian Internet provider hijacked net traffic from large foreign networks to steal more than US$83,000 in virtual currency over a four-month period, a cyber security company said Monday.

Researchers with the U.S.-based Dell SecureWorks said the hacker's attack started last February and stopped in May, after the Canadian Internet service provider (ISP) was notified.

Joe Stewart, director of malware research at SecureWorks, said the hacker targeted firms that hosted servers generating virtual currencies such as Bitcoin — including Amazon in the U.S. and OVH in France — and redirected some activity.

"We were able to track the origins to a Canadian ISP," he told The Canadian Press from Las Vegas, where he was attending a computer security conference.

"Someone had access to a router at that ISP. It had to be someone who managed to hack into that router and gained administrative rights, or someone who already had access."

Stewart said the hacker likely works alone, and could be a former or then-current employee of the ISP.

Pat Litke, another security researcher at SecureWorks, said the firm is "fairly confident" the attacks came from Canada, but the hacker may be based elsewhere.

"To execute the cyberattack, you literally can be anywhere in the world, as long as you have privileged access," he said.

According to SecureWorks, a total of 51 networks from 19 other ISPs were "compromised" in the attack, which also netted the hacker a few dollars in another virtual currency, Dogecoin.

Bitcoins are produced through using programs to solve complex algorithms — dubbed "mining" — a process which also validates the currency's transactions.

Stewart said he noticed the hacking in March when he realized his personal mining — done through one of the affected servers — had been hijacked, and notified the Canadian ISP in May, after which the "malicious activity" stopped.

SecureWorks did not go to the authorities, and it is not immediately known what further steps the ISP has taken.

A spokeswoman for SecurityWorks said the Canadian ISP will not be publicly identified, as is company policy.

Anthony Di Iorio, executive director of the Bitcoin Alliance of Canada, said those affected will likely never recover their bitcoins from the hacker.

"He's pretty good at covering his tracks," Di Iorio said. "The chance of prosecution is very low."

He added that the incident indicates an issue with cyber crime in general, though not necessarily Bitcoin itself.

"This was a security flaw with third-party services," he said.

"People use cash every day and lose cash. There's nothing you're going to be able to do to get it back."

South of the border, federal regulators warned consumers Monday about the risks of using virtual currencies.

The Consumer Financial Protection Bureau issued an advisory warning, saying the currencies are not backed by the government, have volatile exchanges rates and are targeted by hackers and scammers. And unlike bank accounts, Bitcoin-based deposits are not federally insured.

Link to comment
Share on other sites

Incorrect on an epic scale.

Fiat currency is fiat because of government fiat ie. laws and orders/rules and regulations, aka because the government said so.

Or in your lexicon, government makes it legitimate.

So until a government passes legal tender laws declaring bitcoin to be use for payment, bitcoin is not a fiat currency.

The Canucks will win back-to-back Stanley Cup championships before that will happen!

I gave an exact example of how I was describing fiat currency in the same sentence and you ignored it to say how I was wrong based on another interpretation of fiat currency. Wow.

Link to comment
Share on other sites

I gave an exact example of how I was describing fiat currency in the same sentence and you ignored it to say how I was wrong based on another interpretation of fiat currency. Wow.

We have to get our definitions of words and terms accurate and correct in order to properly debate and discuss ideas.

For example, how do you define the word liberal?

Or anarchy?

Link to comment
Share on other sites

Hey Loonie, nothing to say about the $83k security breach? On Terra CAnadiana no less!!!

The article doesn't give enough details but here's what I'll say...

Leaving your bitcoin in a wallet hosted online by third-party services is very dangerous and absolutely irresponsible behavior.

Like leaving cash under the mattress, a thief who can break-in to the house (hack the server it's hosted on) can know exactly where to find your stash.

Your bitcoin wallent should be stored offline (on a USB key) and/or stored cold (on paper wallets).

And unlike bank accounts, Bitcoin-based deposits are not federally insured.

Good, that's they way it should be!

Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...