By James Rickards-Daily Reckoning.
Many advocates of bitcoin and other cryptocurrencies have a naïve belief that their digital assets are ‘beyond the reach of governments’, ‘cannot be traced’, and ‘cannot be frozen or seized’. But it’s really not true.
..using bitcoin on the dark web is a haven for criminals, arms dealers, tax evaders, and state enemies of the US. How long will it be before the US joins the effort to shut down, interdict and disrupt bitcoin message traffic on the dark web and the bitcoin exchanges themselves? ..Governments enjoy a monopoly on money creation and they’re not about to surrender that monopoly to cryptocurrencies like bitcoin.
..Governments don’t want to kill it; they want to control it..They seek to do so using powers of regulation, taxation, investigation, and, ultimately, more coercive powers, including arrest and imprisonment of individuals who refuse to obey government mandates with regard to blockchain.
..the blockchain depends on critical infrastructure, including servers, telecommunications networks, the banking system and the power grid, all of which are subject to government control, ..That’s the back door governments will use to regulate and control the blockchain. ..If the power grid goes down for whatever reason ..good luck accessing your bitcoins. Bitcoin may have made you a millionaire on paper. But what good does it do if you can’t access it when you need it most?