With Bitcoin already having survived numerous attempts to kill the crypto-currency by the establishment, and through failures from global exchanges such as Mt. Gox and Bitfinex, the future of the digital de-centralized money continues to look steady as it appears ready to breakout even more in light of the financial situations occurring in Europe, the U.S., and Japan.
And because of this, the European Commission has decided to shift gears towards cataloging Bitcoin users rather than trying to regulate the currency, and is in the process of creating a massive new database which will force registration of anyone using the alternative form of money.
In the wake of multiple terror attacks, the European Commission is moving towards creating a mandatory, centralized database of Bitcoin ownership.
Of course, their official reason is that Bitcoin is being used to finance terrorism.
So for everyone’s safety and security they need even more authority to spy on people’s finances, but the reality is that these governments have hated Bitcoin since the beginning. They don’t like the idea of a decentralized currency that they can’t control.
In the conventional financial system, governments have the power to regulate the banks and seize any account they want… they can use their gun-toting police agencies to confiscate citizen’s physical cash… and given the alarming rise of Civil Asset Forfeiture in the Land of the Free, it’s clear they’re not exactly shy about stealing people’s money.
But they can’t do any of that with Bitcoin.
Bitcoin is a decentralized, distributed system. It’s impossible for anyone, or any government, to control it. So the more people use Bitcoin, the more governments lose control. – The Sovereign Man
Rather than through the excuse of ‘fighting terrorism’ as the reason to begin cataloging Bitcoin users, the real catalyst behind this desperate attempt to dissuade the people from moving their money out of the system is because Eurozone banks stand on the threshold of insolvency, and by taking ones money out of these institutions it limits the potential for the EC to engage in bail-ins to re-capitalize the banks when their day of reckoning comes upon them.
The rush into Bitcoin is not just a phenomenon taking place in Europe, but it is also being done in economies such as China where investors there are also trying to get out of their own currencies and into something that the governments cannot devalue, or institute capital controls against. And the more that political entities like the European Commission attempt to clamp down on Bitcoin, the more likely it is that the people will wake up and realize that the attack really isn’t on the currency itself, but on anyone who seeks to get out from under the control of the establishment.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.