re: How to convert USD to Bitcoins

quote:

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I will note though that in order for a bitcoin ecosystem to be fully viable these sorts of mechanisms must exist whether provided for by a government or by private entities.

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Yes, it will be necessary for there to be some sort of referee/enforcement mechanism for the public confidence necessary for universal acceptance of bitcoins as a medium of exchange. The U.S. government announced just last week that third parties performing these services are subject to government regulation. Thus, bitcoins will be relying on governments to provide the necessary security for universal acceptance. And that defeats one of the claimed main advantages of bitcoins.

I have nothing against bitcoins as a conceptual system. My beef is that in practice bitcoins do not perform as conceived. The real world imposes limitations that will make bitcoins almost indistinguishable from any currency issued by a government.