pleasehelpmeout
Junior Member
What is the name of your state (only U.S. law)? OR
So, this will be a post with two different but related questions.
Question #1: Is Bitcoin legal?
If you haven't heard of Bitcoins before, it's basically a cryptocurrency started by a bunch of nerdy libertarians who don't like the government having control over their money and inflating it as they please. I sympathize with that view, but there's never been a clear consensus as to whether this is legal.
The constitution says that congress has the power:
I suppose one of the biggest draws of Bitcoins is that it's virtually unstoppable, even if it was deemed to be illegal. It's completely decentralized, so there are no central servers that can be seized or shut down.
Question #2: Would a Bitcoin-like currency based on USD be legal?
If Bitcoins were not deemed to be illegal, then what about a currency LIKE Bitcoin, but backed by USD? One potential issue with Bitcoins is that people like to speculate with them, like they would on a commodity. This results in highly volatile values, which is bad for merchants and vendors who try to sell goods and services for Bitcoins. If they accept $10 worth of Bitcoins for an item that costs them $8 to purchase from a vendor, then those $10 of Bitcoins are only worth $7 the next morning when they go to exchange them for USD, then that's a problem.
So, what if someone created a new electronic currency like Bitcoins, but offering to buy/sell any of these coins for $1 each. If the person minted 10T coins right off the bat, and offered to sell these coins for $1, with the guarantee that they would buy the coin back for $1 in the future, would this be legal?
Thanks for considering these questions. There has already been a lot of discussion on the legality of Bitcoins, as a few lawyers have made their way onto the main Bitcoin forum, but I am curious to hear more opinions about it.
So, this will be a post with two different but related questions.
Question #1: Is Bitcoin legal?
If you haven't heard of Bitcoins before, it's basically a cryptocurrency started by a bunch of nerdy libertarians who don't like the government having control over their money and inflating it as they please. I sympathize with that view, but there's never been a clear consensus as to whether this is legal.
The constitution says that congress has the power:
A recent electronic currency, eGold, was shut down by the government. Many people believe that this was because eGold was actually minting physical coins as well. With Bitcoin, it is completely electronic, with no physical coins or bills being minted.
I suppose one of the biggest draws of Bitcoins is that it's virtually unstoppable, even if it was deemed to be illegal. It's completely decentralized, so there are no central servers that can be seized or shut down.
Question #2: Would a Bitcoin-like currency based on USD be legal?
If Bitcoins were not deemed to be illegal, then what about a currency LIKE Bitcoin, but backed by USD? One potential issue with Bitcoins is that people like to speculate with them, like they would on a commodity. This results in highly volatile values, which is bad for merchants and vendors who try to sell goods and services for Bitcoins. If they accept $10 worth of Bitcoins for an item that costs them $8 to purchase from a vendor, then those $10 of Bitcoins are only worth $7 the next morning when they go to exchange them for USD, then that's a problem.
So, what if someone created a new electronic currency like Bitcoins, but offering to buy/sell any of these coins for $1 each. If the person minted 10T coins right off the bat, and offered to sell these coins for $1, with the guarantee that they would buy the coin back for $1 in the future, would this be legal?
Thanks for considering these questions. There has already been a lot of discussion on the legality of Bitcoins, as a few lawyers have made their way onto the main Bitcoin forum, but I am curious to hear more opinions about it.
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