Updated on August 13, 2018
The Catch-22 Of Legal Enforcement of Crypto-Currency Hacking
Recently, I was discussing crypto-currencies with an acquaintance at our local Starbucks, and he tell me this individual was working with a couple of entrepreneurs who would previously been academic experts in IT Security. Of course, for crypto-currencies it is all about safe transfer of the data, and the rely after the intrinsic value of these one’s and zero’s, or Q-bits. Perhaps, I might look into their business plan, although these digital foreign currencies have had some lumps in the road to the future I are sure will be the future norm – that is the way the world is headed seems like. sell bitcoin
Does indeed this mean we will have a distributive forex like distributive energy on the smart grid, or distributive information like the Internet? Well, humans usually do what works and there is both negative and positive with centralization and with a distributive redundancy strategy.
Now then, what’s the latest you ask? Well, there are two articles I read not more than an hour there after meeting, as I was cruising through the information, I’d recently saved to write on this topic later; Partially Useful – Bitcoin itself may fail as a currency, however the underlying technology is beginning suggest valuable new applications, ” by Paul Ford (February 18, 2014) and mind you this article was written just days before the Bitcoin theft from one of their top exchanges.
The other article was written by Naette Byrnes the day after those findings hit the newswires on February 25, 2014 “Bitcoin on the Warm Seat – A significant bitcoin exchange shuts down, elevating questions about the cybercurrency. ” Are you astonished? No, me either.
The second article went on to state; “Tokyo-based Mt. Gox, once one of the major exchanges of the bitcoin cybercurrency, halted operating Tuesday amid rumours that millions may have been stolen from the firm and rising concerns about the long-term potential clients for the unregulated digital currency. Other bitcoin exchanges quickly relocated to distance themselves from Mt. Gox and assert that they were still open for people who do buiness. The value of the currency itself dropped greatly to just over $250 by mid-afternoon. It strike an all-time a whole lot of $1, 100 in November. ”
What do you say to that? Ouch. Does this demonstrate that the naysayers phoning it a Ponzi Structure were right? Do they get the last giggle, or is this just an expected evolutionary process of disruption as all the kinks are worked well out? Well, consider this thought experiment I got.
Let’s say there were hanky-panky involved, let’s say someone hacked the system or stole the digital forex. Now, digital currency jigs under the radar as it is not acknowledged even with all the new Too Big To Fail regulations on finance institutions, etc. How do a digital currency have value? Hard to say, how can a fancily printed part of paper marked 20 dollars be worth anything, it can not, but it is worth what it symbolizes whenever we all concur to that and have trust in the money. What’s the difference, really a matter of trust right?
Okay so, parenthetically that the regulators, FEDERAL BUREAU OF INVESTIGATION, or another branch of government interferes and data files charges – if they file criminal charges that someone defrauded someone otherwise then how much defrauding was involved? In case the authorities enforcement and justice division put an amount amount to that, they are inadvertently agreeing that the digital currency is real, and it has a value, thus, acknowledging it. If they do not get involved, then any fraud that may or may well not occurred sets the complete concept back a ways, and the media will continue to lower the trust of all digital or crypto-currencies.
So, 2 weeks. catch-22 for the government, regulators, and observance folks, plus they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, We personally hate regulation, but isn’t this how it usually starts. Once it is regulated credibility is given to the idea, but his digital currency principle could also undermine the full One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there could be terrible to pay for that as well. Can the global economy handle that level of disruption? Stay tuned for more, We guess we shall see.