Commodity barter is legal — so is BitCoin

BitCoin was legal at creation; commoditizing data with protocol rules violates no laws — anymore than inventing the container, which automated much of what stevedores did, was.

The fact that BitCoin makes for a commodity which HAPPENS to function extremely well as money, doesn’t make it illegal. Perhaps the better way to say it, is BitCoin is misunderstood due to its youth. If recorded history were better (see Tominaga Nakamoto), we’d probably find fine historical precent in ancient Lydia at the time of the first electrum coins. Gold and silver already existed WELL before coins were created to commoditize and verify metallic properties of the commodities involved — gold and silver. In fact, commoditizing the shiny metals WAS the business of goldsmiths and silversmiths before this service was sheparded into private and then public mints. What a Lydian businessman likely started — the Roman, Spanish, and US mints finished. But imagine being able to walk around Lydia in year TWO of electrum coins — there’s probably some eerie similarities to today’s BitCoin.

Two of these for a freshly cooked jalepeno pizza — legal or illegal? Folgers coffee comes in standard sized cans — PERFECT for trading in a vacuum of other monies.

If people today started bartering with barrels of crude oil or stamped copper (which could be construed as making a money) coins from a single trusted issuer then this is no different than trading in Folgers coffee tins — which is not illegal.

Only a country can lawfully promise a currency-for-commodity fixed price, enforced by law and armies.

Creating an unbacked currency IS illegal. If you stamp a silver coin with a dollar value promise on it — THAT is illegal. BitCoin fluctuates like ANY commodity — there is no promises made about its value. If those promises were made then it would compete with national currencies and be deemed illegal. BitCoin does not.

Satoshis aren’t Exchanged for cents based on issuer’s promise. Is it not true Liberty Reserve set the PRICE of their token? [0] This is illegal — what Gilder asked-for is illegal. You cannot pin the value of BitCoin bc it would make it illegal. BitCoin started off having no value, therefore it was created as a commodity not a currency. Notice Von NotHaus talking about his “base” going up from $10 to $20 and higher. There is no “base” set in BitCoin, it can theoretically trade to a price of zero if people don’t value it as a commodity, or it can trade to a market-accepted value as if it’s a coffee tin chock full o’ data.

Chock Full O Data? This tin would be more valuable if you put a flash-memory key in it with your family photos on it.

BitCoin also does much for good, unlike plutonium or uranium, and thus does not need to be controlled as a dangerous commodity. Whereas these cryptocurrencies which have been created for anonymity are more like plutonium and require societal controls or else many innocents can be harmed quickly. BitCoin is not like this at all, because it’s creator was careful to include privacy not anonymity.

Plutonium and Anonymous money are controlled substance; bch-ers, do you think plutonium should be a “free market” commodity?

Nations of the world will need to be challenged in court regarding “money”. We have as a people defined money BACKWARDS due to a modern lack of understanding what money really is. Money is not chosen by governments, money is ADOPTED and written by governments as a matter of convenience. Money is a commodity first, and then later if it proves more beneficial than another commodity as the denominator in trade — the commodity becomes known as money. It is NOT the other way around. If something is created as money FIRST, you can be sure it’s likely either a ponzi scheme (like btc) or a government pulling the wool over it’s people eyes (like a post-Nixon US Dollar).

If governments make laws against trading the containerized version of data then those governments will become losers as data will become the biggest sector of the world economy in time — this has already been happening.

Only fools cut down or diminish the Tree of Souls.

Amazon’s $1.7 trillion valuation is based >100% on profits from AWS — a semi-commoditized form of data. They are not a monopoly, so data is already worth multiple trillions. This value trend will continue for data, and so will BitCoin regardless of how one or another government views it. Outlawing a commodity comes with TREMENDOUS risk and the US should have learned this lesson when they outlawed exporting cryptographic technology not long ago. [2] Maybe lessons need to be learned again — but this time the penalty for getting it wrong on BitCoin will be FAR greater. Empires will be lost, and more importantly GAINED over the future decisions regarding BitCoin.

It’s time to reread “The Prize” [3] and understand how a commodity can drastically change the world — but remember that much more GOOD comes from a new commodity than bad.

No matter who you are, fight against BitCoin at your own risk. Wealth and history will look kindly upon those who support it. BitCoin is not the answer for everything, but it is an answer to MUCH of what ails us now in 2020.


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[0] I am no expert on Liberty Reserve and get it confused with other illegal attempts at money from the past (see #DITR video regarding “GoldMoney” and “eGold” here…

[1] Liberty Reserve ties to national currency

“Cash could be put into the service using a credit card, bank wire, postal money order or other money transfer service. It was then “converted” into one of the firm’s own currencies — mirroring either the Euro or US dollar — at which point it could be transferred to another account holder who could then extract the funds.”

[2] Yet another Bush family blunder…

“This new policy was formalized in changes to the EAR and ITAR which were published in the early 1990’s. In August of 1991, the Commerce Department amended the Commerce Control List of the EAR to reflect the export licensing requirements for cryptographic products subject to its jurisdiction. [FN8] Shortly thereafter, in April of 1992, the State Department amended the U.S. Munitions List to expressly delineate the scope of products which are exempt from control under the ITAR. [FN9]”

[3] The Prize

Someone stole my copy before I finished, and it’s STILL one of my favorite reads — now I’m reading “Salt” whichis the commodity basis for “salary” — as in Roman solider salaries. Hmmmmmm!

Recommends the BEST equities (“Diamonds”) WHEN they are (“in the Roughage”) at the lowest price to achieve the highest long term gains.

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