“Bitcoin ought to be outlawed.” Those were the ominous words of in an last week. economist Joseph Stiglitz interview with Bloomberg He’s not the first to say it and he certainly won’t be the last. Live interview with another old elite who hates Bitcoin, Joseph Stiglitz. It kept grinding through the . It outlasted critics and doubters who . It outwitted an . It , even as it moves billions of dollars around the world in the blink of an eye, something almost . In its short lifetime Bitcoin managed to survive against all all odds. collapse of Mt Gox declared it dead again and again and again exchange and ICO ban from China hasn’t suffered a major security breach no major company or government’s website can claim When you think about just major corporations suffered hacks, from to Sony to Apple to JP Morgan (who’s he can’t even protect his own systems), as well as supposedly secure government websites, from the NSA to the Department of Defense to the Army, Bitcoin’s incredible security is almost unbelievably mind-boggling. how many Equifax CEO laughably called Bitcoin a fraud when But Bitcoin’s biggest battle is yet to come. Governments and banks. Master investor Naval Ravikant calls governments and the old world banking elite the “ ” . final boss For a time, the powers that be only laughed at the little currency that could. But they aren’t laughing anymore. As Bitcoin surges higher and higher, the eye of Sauron turns. Eye of Sauron in The Lord of the Rings. And if you think central powers can’t do major damage to crypto, think again. They wield the ultimate power: The violence hack. That’s power to kill you or put you in jail. Back in October 2017, former Federal Reserve chairman Ben Bernake said “eventually governments .” will take any action necessary to prevent Bitcoin He wasn’t kidding. The only question is whether the distributed design of cryptos can survive the assaults to come? Only time will tell. But the efforts to reign in the decentralized money engine have already started. Classic cold war Russian propaganda. mining is the biggest choke point of the Bitcoin system. It leads to heavy centralization with specialized chips. Miners process transactions around the world and mint new coins. While China has so far laid off on attacking mega-miners like , Russia already set the stage for the assault: . Proof of Work Jihan Wu Registration By forcing miners to register they can keep track of them and tax them and if necessary seize their mines and take all the coins for themselves. In a time of war, that is exactly what they’ll do, take the mines by sending in men with guns. It’s hard to pick up a few thousand ant-miners and move them somewhere else. And because they pull so much electricity they’re easy to spot. Alternative consensus protocols can stop this attack, like . But more work is needed and Proof of Stake needs to prove itself with a major coin. , ones that don’t burn as much energy but still provide proof that a job was done in the correct way and nobody cheated. Proof of Stake Other consensus protocols will develop in the coming years But it’s now a race against time. by making it a crime to hide any wallets or crypto you own with . Congress is looking to expand its money laundering law to target crypto Senate Bill S.1241 It makes it illegal to conceal a digital wallet and cryptocurrency for any reason and while crossing the border. So just declare it, right? You’re a good, law abiding citizen. You pay your taxes including your crypto taxes . You’ve got nothing to hide. Except the border control folks have the right to steal it from you without just cause. In other words, they can take the money just because they feel like it and they don’t even have to tell you why. If that sounds like legalized robbery, it’s because that’s exactly what it is. The . It’s called . And lest you think only liberal leaning organizations see it as a problem, think again. The arch-conservative has a page dedicated to the ever growing problems with the practice. ACLU documents thousands of cases of everyday citizens robbed of their life savings Civil Asset Forfeiture Heritage Foundation When he faced an immediate backlash from both sides of the aisle. It’s one of those rare issues where both the left and right agree. Attorney General Jeff Sessions looked to roll back Obama era restrictions on asset forfeiture So why do we still have state sponsored theft? Greed. Mostly in a time when budgets are falling. the people who are supposed to protect us stole more money from Americans in 2014, over $5 billion dollars, than all the burglars in the US combined, who only managed to nab a measly $3.5 billion. the money is used to pad law enforcement pockets According to the Washington Post The new Senate law creates a nasty dilemma that runs head first into the wall of civil asset forfeiture. If you fail to tell border agents you’re carrying $10,000 or more in crypto . If you do tell them, they can take it from you, by holding you indefinitely and demanding your password, even without charging you with a crime. you could spend 10 years in jail It’s a living, breathing Catch-22 . These are the kind of things the healthy democracies don’t do but that failing, flawed democracies with crumbling infrastructure and institutions do with impunity. That’s why the United States crashed out of the top of the that lists full and thriving democracies and smashed down into the “flawed democracies” range. Democracy Index The Founding Fathers are rolling in their graves. Not for a second would they have allowed a law like that to pass unchecked. They would have tossed it in with the that lead to war with England. The Founding Fathers wanted to protect your private property at all costs. To them property was sacred. The government couldn’t take it without a damn good reason. That’s what the was all about and why they created it. Intolerable Acts 4th amendment “ The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.” Don’t get me wrong. They didn’t want us turning into some banana republic, with arbitrary search and seizure and . The Founding Fathers didn’t want criminals and terrorists keeping their profits and I sure as hell don’t either. But they wanted due process, rule of law, proof and convictions . crooked cops ripping people off like they’re Mexican cops rolling tourists for cash at a traffic stop They did this because they lived in an authoritarian state. They knew exactly what it meant. The English government could . They sometimes charged people in secret courts, called with no possibility of appeal. The Constitution was to halt these abuses but today they’re running rampant because the people alive now have never lived in anything but a free society and don’t know what it means to not live in one. force you to put a soldier up in your house and foot the bill Star Chambers specifically designed They might want to study the history of the countries at the bottom of the Democracy Index because bad laws are a slippery slope that can slide a country right to the bottom of the list almost overnight. Check out Venezuela where they went from . Take a look at , or any of the cutthroat political regimes of central Africa like . Rwanda didn’t just suffer a genocide in 1994, they’ve been as one ousted group regains power and takes revenge on the other side yet again. thriving democracy to utter collapse Zimbabwe, which suffered insane levels of hyperinflation Rwanda suffering them for a hundred years These laws are only the beginning. More will follow. Yet all hope is not lost. Some countries, like Japan and Switzerland, have already taken an enlightened approach to crypto. The enlightened approach. Smart countries are embracing it with open arms. They see cryptos as a game changing technology that will help create more wealth and prosperity than any other technology in the history of the world. Other countries should learn from these smart countries. But less enlightened regimes are taking a dark view of cryptos, particularly the ones that worship power and control at all costs. . , despite the fact that and most of their population is completely unbanked. Vietnam has already banned crypto Indonesia did the same their money is essentially worthless None of these efforts will work in the long run. The decentralized nature of cryptos make them hard to completely stamp out but central powers can do serious damage to them in the short run and create a lot of pain and suffering for regular people, while utterly failing to stop the bad guys. Cryptos are not going away. Every day more and more traditional powers join the crypto party. The starts trading Bitcoin futures in a few weeks. beat them to it and starts trading on the 10th. The more money that floods into them, the more incentive they have to protect them. CME Group The CBOE And a world wide ban is never happening. In today’s fractured society, there’s almost zero chance that all the countries in the world will agree on anything. Some countries will oppose a ban just to spite their rivals or because they see it as a way to get around global sanctions. That means there will always be nodes running somewhere in the world to process transactions. Crypto is changing with the new threats, morphing and shifting. Anonymity technology is surging in popularity with privacy focused coins like and leading the charge. If governments push too hard, they’ll only make it harder and harder to get a better handle on their uses for illicit purposes. Zcash Monero Better to embrace them openly and bring them into the light. Make them mainstream. Let people and Snickers and books on Amazon! buy kittens ! Crypto Kitties Cryptocurrencies are incredibly resilient, world changing technologies. They’re unlike any other asset class that has ever existed. For all the doubters who try to pigeonhole them as digital gold they’re really missing the boat. They’re programmable money. You can’t program a dollar to self-escrow in a smart contract that pays out every month. But you can do that with Ethereum. . Too often it’s been psychopaths who’ve run the world They’re also a path to self-sovereignty and control of . A refugee fleeing a war torn country can simply delete their wallet, once they get to a safe haven. No more will ruthless regimes rob the poorest people of everything they have as they’re fleeing the battles of psychopathic monsters. the money you earned memorize its special phrase and recreate it Cryptos can and will change the world for the better. But to get there they’ll have to face , a relentless one that will do anything to keep control of the money supply. . And nobody gives up power without a fight. the final boss Never forget that money is power Bowser, the final boss in Super Mario Brothers. The war on crypto is coming like a dark storm. Governments will sell it with the same tired old song, as a way to stop criminals and terrorists. But it’s never really about that. It’s about control. It’s about whether they can take your money just because they feel like it. The people who cheated the system thrived. Cryptos have central powers scared. All the people who benefited from got away with their crimes. They didn’t just get away with it, you helped bail them out. You gave retirement packages to the biggest perpetrators who are now living in even bigger mansions and laughing. the collateralize debt obligations while you lost your house Of course, it’s always the short sighted and the wicked who try to stop new technology to make sure they maintain their own position at all costs. It’s just that this time it won’t work. Countries that stand against the blockchain will find that it blows back on them and punishes them severely, while the rest of the world roars past. They won’t get to play in the new sandbox. They’ll watch as other economies leave them in the dust, armed with brand new financial technology that makes the snail speed of current fintech worthless. And the people who robbed the world of its wealth and the dictators who crashed their economies and lived in palaces while their people starved will pay a terrible price. The world won’t miss any of them. ########################################### Get your for a limited time. Nothing can stop the Money Badger as he takes over the world (not even the big bankers)! Money Badger shirt right here The ! Grab one for your crypto loving friends for Christmas. ultimate Bitcoin t-shirt ########################################### If you love my work you might consider visiting because I’m trying to save the world and I can’t do it alone. my Patreon page ############################################ A bit about me: I’m an author, engineer and serial entrepreneur. During the last two decades, I’ve covered a broad range of tech from Linux to virtualization and containers. that readers call “the first serious competition to Neuromancer” and “Detective noir meets Johnny Mnemonic.” Check out my first novel, The Scorpion Game , a mind bending far future noir, Feel free to join my Readers Group if you want to stay up to date with the latest and greatest I have to offer. ############################################ You can also , where we discuss all things tech, sci-fi, fantasy and more. join my private Facebook group, the Nanopunk Posthuman Assassins ############################################ For some of my most exclusive stories and the best utility coin research on the planet, check out Strategic Coin ! ############################################ Lastly, if you love the crypto space as much as I do, come on over and join , where you can rub elbows with luminaries from multiple projects. It’s totally free forever. Just come on in and socialize, work together, share code and ideas. Make your ideas better through feedback. Find new friends. Meet your new family. DecStack, the Virtual Co-Working Spot for CryptoCurrency and Decentralized App Projects ############################################ As always, thanks for reading.

Monero

Zcash

Amazon

Apple

Blink

Facebook

Mashable

Sony

Super

Target

Techcrunch

Twitter

Mastering Shitcoins: The Poor Man’s Guide to Getting Crypto Rich

The Coming Age of Killer Machines

Join me on Patreon

Nominated for 2022 - HackerNoon Contributor of the Year - Machine Learning

Too Long; Didn't Read

Download free Tech Leaders Productivity Report!

Bitcoin’s Final Boss

Bitcoin’s Final Boss

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

A Roundup Review of the Latest Deep Learning Books

06/09/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

A Roundup Review of the Latest Deep Learning Books

06/09/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps