Right now, bitcoin is transitioning from amateur hour to venture capitalist boom. The existing exchanges will likely be pushed out of business by well funded new ventures like Coinsetter, among others, that will be more on the up and up with the legal processes required to remain in business.

This will allow the public the gain confidence in bitcoin as it grows.

quote:
How does it make the transformation to untouchable?

Eventually we're going to see two things happen:

1. Decentralized exchange networks will develop. This will make it easier to get money into and out of bitcoin more anonymously than the VC backed exchanges I mentioned before.

2. The need for exchanges will diminish. As the bitcoin economy grows, the need for exchanging USD (or other fiat) into bitcoin will become less and less. Why exchange into USD when you can just directly pay a merchant with BTC? Or, why take fiat and buy BTC with it when you can just get paid directly in BTC for your labor?

Once #2 happens, it's over for governments. Right now, the exchanges are the choke point, and that's where you'll see governments concentrate their actions, but they will ultimately be unsuccessful at stopping the revolutionary change that is happening. And I readily admit that it may not be bitcoin that survives, but some form of decentralized crypto-currency will.

This post was edited on 5/15/13 at 4:22 pm

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Posted by Broke

AKA Buttercup

Member since Sep 2006

65055 posts

Posted on 5/15/13 at 4:23 pm to WikiTiger

quote:
Once #2 happens, it's over for governments.

You serious Clark?

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Posted by TrueTiger

Chicken's most valuable

Member since Sep 2004

68471 posts

Posted on 5/15/13 at 4:25 pm to WikiTiger

quote:
I readily admit that it may not be bitcoin that survives

Yes, you have been consistent with this.

Someone has to play the Wright brothers' role.

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Posted by LSURussian

Member since Feb 2005

126990 posts

Posted on 5/15/13 at 4:28 pm to WikiTiger

quote:
that will be more on the up and up with the legal processes required to remain in business.

This will allow the public the gain confidence in bitcoin as it grows.

So now you've switched sides? Only through government supervision can trust be developed in bitcoin by the public?

Interesting....

.

quote:
Once #2 happens, it's over for governments

So the government's supervision of bitcoin exchanges which, as you've posted, will create trust in bitcoin by the public, will lead to the government not being able to supervise bitcoin???