Quote:
Originally Posted by kane
I don't see why they couldn't just do like they did with internet gambling. Make it illegal for banks to process transactions that involve bitcoins. If you can't trade the bitcoin for cash it will make it much less appealing for some.
Sure, a person could still likely trade them for Euros then trade the Euros for US dollars, but that makes things kind of a pain in the ass.
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Not happening, an act of Congress would have to declare BTC is not a currency, which it clearly is. A law like this would have scant chance of making it though BOTH houses AND be signed into law by Obama...Then of course furious legal challenges (well funded by BTC Millionaires and the big exchanges) would fight it tooth and nail all the way to the Supreme Court - where it would stand little chance of success.
But for the sake of discussion let's say it succeeded those years long legal battles - right now there are many exchanges in other nations where you can easily convert your BTC into other Forex Currencies - or gold or silver etc - then BAM right into dollars...so the absolute max the US Gov could do it make you go through 1 extra step to get to US dollars. The net effect of this would ONLY be to fuck the IRS out of millions (billions?) of dollars in Tax revenue.
Ultimately this would begin to weaken the dollar as BTC grows - people would simply stop using it or caring about it. Bitcoin is international, the US Dollar...US law can't touch this.
