Tuesday, December 5, 2017

A Roundup of Government Comments On Bitcoin

This can be read as a reason to own or a reason to sell, your call.
From ZeroHedge:

Bitcoin Jumps To New Record High As Governments, Regulators, Bankers Panic
Another dip to be bought as the weekend's pump'n'dump in Bitcoin has led to yet another new record high this morning at $11,850....Bitcoin's market cap is now $200 billion... 
...This resurgence comes after a week of considerably more active propagandizing from the establishment. 
As we noted previously, this week has seen a new group of establishmentarians jump on to the offensive against anti-decentralization, de-control, pro-freedom cryptocurrencies - urging bans, crackdowns, fatwas, taxation, creating their own cryptocurrencies, demanding citizens sell, and outright confiscation (this group includes governments world wide and their mainstream media mouthpieces)... 
India's finance minister, Arun Jaitley, has clarified that the government does not recognize bitcoin as legal tender. According to the Economic Times, when asked about the government's plans to regulate the cryptocurrency, Jaitley told reporters, "recommendations are being worked at." He continued:
"The government's position is clear, we don't recognize this as legal currency as of now."Concerned over bitcoin's anonymity and its potential illicit uses, justices issued a notice to the central bank and other agencies asking them to answer a petition on the matter, reports indicated. 
Turkey has claimed Bitcoin is in fact “not compatible” with Islam due to its government being unable to control it.In a statement from a meeting of the state Directorate of Religious Affairs (Diyanet), lawmakers said that Bitcoin’s “speculative” nature meant that buying and selling it was inappropriate for Muslims.
“Buying and selling virtual currencies is not compatible with religion at this time because of the fact that their valuation is open to speculation. They can be easily used in illegal activities like money laundering, and they are not under the state’s audit and surveillance,” Euronewstranslates the statement republished by local news outlet Enson Haber. 
Diyanet added that the same principles of “unsuitability” in particular applied to Ethereum. 
South Korea 
Kim Dong-yeon, South Korea’s deputy prime minister and the minister of strategy and finance, revealed earlier this week that the government is investigating various methods to better regulate the local Bitcoin market and tax Bitcoin users accordingly. 
While the South Korean government and its local financial authorities are actively discussing the possibility of enforcing a policy on Bitcoin taxation, at a press conference, Deputy Prime Minister Kim stated that the government does not intend to include any Bitcoin taxation policy in 2018’s amendment of the tax law. 
A Dutch news paper urges its citizens to sell their bitcoins patriotically because cryptocurrencies can undermine government and destabilize the economy.A bitcoin world can destabilize the real economy, a euro is also solidified trust.First, the bitcoin undermines the government because a lot of transactions are about money laundering and tax avoidance. Another problem is that the profits of new bitcoins that come with it do not benefit the government (as with normal money creation), but are absorbed in heavily environmentally harmful computer power. 
Central banks also have less influence on keeping the economy stable. In times of crisis, central banks can, through their influence on ordinary banks, ease credit conditions and encourage people to consume. The bank has no control over the bitcoin economy and an economic crisis can become deeper.The investor has air in his hands when the bitcoin crashes, but also when the company turns out to produce baked air. 
Putting money in an empty type of asset is “very, very worrying,” Robert Ophele, chairman of France’s market regulator. Bitcoin has no link to the real economy, Ophele says in a panel discussion at the Paris Europlace Financial Forum, warning that cryptocurrencies are a way to commit cybercrimes, allowing access to illicit goods and services. 
If bitcoin was a currency, "it would be a bad one," Ophel exclaimed, as it poses major challenge for central banks and regulators....MORE
For some reason the hubristic sounding "...As Governments, Regulators, Bankers Panic" reminds me of a prior note on General Custer's comment as he rode into the valley of the Little Big Horn, variously reported.
Here's's one version: 
They've fallen into my trap, We've got them where we want them. 
And another:
"Hurrah, boys,we've got them!,  We'll finish them up and then go home."
Unfortunately we've already use the headline "The Battle of Little Bitcoin", it would fit this ramble nicely.