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Government will regulate Mt. Gox Bitcoin transactions

From Business Insider:

We reached out to ConvergEx Group Chief Market Strategist Nick Colas, who wrote about the Bitcoin market recently in a note to clients, for his thoughts on why the virtual currency has gone so wild this week.

Colas says it looks like Bitcoins may finally be about to go mainstream:

My thought was that [the move this week] was a result of the CoinLab announcement of becoming Mt Gox’s partner in the US and Canada. Along with that comes the involvement of Silicon Valley Bank.

That’s a big thing potentially, because now we’re talking about a real US bank with all the AML and KYC regulations that will make Bitcoin much more relevant for legitimate transactions.

(AML refers to anti-money laundering and KYC refers to "know-your-customer.")

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"We" told you it was coming.

.

Patriot Cell #345,168
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GoodSamaritan's picture

Bump

for government ruining yet another great free-market idea.

Ron Paul - Honorary Founding Father

GoodSamaritan's picture

Well, it was nice while it lasted

Looks like the number one reason for Bitcoin's success - the ability to buy and sell over the Internet anonymously - will be short-lived.

Ron Paul - Honorary Founding Father

You are not forced to go

You are not forced to go through Coinlab to buy and sell bitcoins. You can meet someone at a coffee shop and exchange bitcoins for cash. There are lots of other ways to buy and sell also.

GoodSamaritan's picture

Mt. Gox is the largest Bitcoin exchange

You are correct, but I think teaming with a U.S. bank will put pressure on other exchanges because Mt. Gox will now be able to scale even faster.

Private transactions are still a possibility as with any fiat currency but this action will enable the government to get its tentacles into a large share of what would otherwise be anonymous transactions.

Ron Paul - Honorary Founding Father

Fine with me really

Even if your transactions are tracked, you can still "wash" your bitcoins if you want afterwards. With mining becoming affordable and easy for the average joe, more and more bitcoins will be in your local area for local transactions. We all knew the government would be sticking their nose in bitcoin, but there are lots of ways around it, its far from "Game over" http://localbitcoins.com

GoodSamaritan's picture

Affordable?

It takes specialized equipment to even hope for a return on investment:

http://www.i-programmer.info/news/202-number-crunching/5413-...

Ron Paul - Honorary Founding Father

Yes Affordable

http://products.butterflylabs.com/

When butterfly labs finally gets to shipping these.

The $149 products is "affordable" It would have cost a few grand for equal amount of power the old way of mining with graphics cards. With ALOT less power usage.

GoodSamaritan's picture

Interesting

Do you have an idea on when they might start shipping?

Also, can you put their hardware into some context, like how long it might take to mine a Bitcoin using an x GH/s Miner?

Ron Paul - Honorary Founding Father

Supposedly soon

There has been many delays with this company. They should start shipping soon, but they have to take care of the people that preordered first. You can start earning bitcoins right away. Lots of variables go into how much you will get. If you had the $149 one today, you would make about a half a bitcoin a day (around $20) Although as more of this hashing power comes online the less everyone will get since the difficulty rises. The exchange rate could go up, or could go down. Lots of variables. I'm thinking about getting the $149 one just for fun and to contribute to the security of the network. I used to mine in the old days with graphics cards on many computers and it was a pain. This is alot easier. :P