A Letter To Senator Manchin

http://avc.com/a_vc/2014/02/a-letter-to-senator-manchin.html

by trendspotter • 12 years ago

38 24 12 years ago

avc.com

Realskeptic• 12 years ago

Clear example of fear of the unknown

drakaal4• 12 years ago

Senator Manchin is doing what America does.

We live in a country where a Governor will ban large soda's for our protection.

Every bag comes with a warning "not a toy".

Houses come with disclaimers not to eat the paint chips.

Raw Milk (which I wouldn't touch) is illegal for public safety.

By all counts, Bitcoin is scarier than any of these things. If not banned it should have warnings. We don't have a good way to put warnings on it so we ban it. Right wrong or indifferent that is what America does. Manchin is just making sure he gets credit for an idea that was sure to come up.

clamprecht• 12 years ago

Why is the US like this? (I'm from the US). Was it caused by lawyers? Liability laws that allow crazy lawsuits? How can this be avoided in other up-and-coming countries? (I fear it's too late for the US to change course on this). Or is it just an inevitable result of being a rich country founded by lawyers?

drakaal4• 12 years ago

Liability is a big part. We decided at some point that the populous is stupid and needs protection.

minimax3• 12 years ago

I see it the other way. From the comfort of my home computer I can speculate on the value of U.S. corporations, the future value of U.S. corporations, the value of shiny yellow metal, the exchange rate between the dollar and the turkish lira, the exchange rate between the dollar and the euro 12 months from now, the price of cattle, the price of corn, the interest rate on 30 year treasury bonds 6 months from now. The list goes on and on. I can do all of that legally. We have all the necessary legal and regulatory framework to support it. So to say, "yes you can make risky speculative bets on the price of gold but not on the price of bitcoin" doesn't really make sense to me as an American.

drakaal4• 12 years ago

Those are all regulated. BTC is not easily regulated.

DanAndersen• 12 years ago

As someone genuinely curious (and without a lot of international experience), I was wondering what countries are out there that you feel are better at not over-litigating on those things.

drakaal4• 12 years ago

The ones that are also the most corrupt. Myanmar, Somalia, Sudan. Countries where they have few laws, and little or no civil justice system.

andrewfong• 12 years ago

All the major Bitcoin exchanges have been built outside of the US

Is Coinbase not considered a major Bitcoin exchange?

kordless• 12 years ago

We shouldn't practice bandwagon bias at this early stage. There are plenty of exchanges in the US. Kraken, for one.

walden42• 12 years ago

Kraken is from Europe.

minimax3• 12 years ago

Coinbase isn't an exchange. It's a dealer. Coinbase is the counterparty to every trade and they have no obligation to quote you a good price. There isn't an order book or anything like that. Amazing how many people don't get this.

wslh• 12 years ago

Could you elaborate a bit more about the difference between an exchange and a dealer? Thanks!

jeremyt3• 12 years ago

Despite what everybody likes to think, politicians aren't idiots.

When somebody disagrees with me, I like to assume that they're not idiots and that the disagreement might be based on some legitimate point that I've missed.

The truth is that Bitcoin is an existential threat to the United States government. As long as it's some third tier crypto currency only used by nerds on the Internet, it doesn't matter. But the infrastructure is being laid to push it as a (the) new global currency.

If that happens, we will witness an economic revolution with no parallel in history. It will literally be raining cats and dogs in the street.

Practically overnight, the US will lose the ability to borrow in its own currency, forcing a quick tightening of monetary policy, further exacerbated by foreign governments dumping their dollar reserves. The dollar <-> XX exchange rate would approach zero. Anyone holding dollars would no longer be able to afford any foreign goods. Dollar inflation would be rampant. A recession or depression would quickly follow.

Anyone not holding bitcoin will become the new underclass, and the new rich will be those who got in early. Essentially, the new world order will basically be made up of lottery winners.

Pensions would become practically worthless, as they would need to be converted to the new currency to be spent.

Etc, etc.

That's why I don't have any money in bitcoin. It can't succeed. The current world order won't let it.

webkike• 12 years ago

You're making a whole lot of speculation here that you don't back up in the slightest.

jeremyt3• 12 years ago

You are correct. I'm not writing a research paper.

I'm simply stating an alternative hypothesis that you are free to accept or reject.

I offer it as food for thought and invite you to do some more research into the issue if you are intrigued.

mathattack2• 12 years ago

There are a lot of bold comments that you're making here.

Pensions would become practically worthless, as they would need to be converted to the new currency to be spent.

If pensions hold real assets (land, companies, etc) the currency of the realm doesn't matter much, whether it's dollars, euros or bitcoins. Most pensions aren't just sitting on cash.

Anyone not holding bitcoin will become the new underclass, and the new rich will be those who got in early

Again, real asset holders don't care about the coin of the realm. If you own a company, you can sell it to buyers in whatever currency you want. Net lenders may be harmed, because they could get paid back in less valuable dollars. Net borrowers may be helped, because they can pay their debts in less valuable dollars.

It will literally be raining cats and dogs in the street.

Literally?

I find a lot to disagree with your points and hyperbole. The irony is I am fully in agreement with your last point. It can't succeed. The current world order won't let it.

jeremyt3• 12 years ago

The cats and dogs line was a joke. In this case, I added the word literally to mean "usually when people utter this phrase they actually mean it figuratively, but I'm making such a strong statement that I'm really trying to say this time it's for real". Its extra hyperbole for comedic effect.

I take your point that a lot of pensions hold real property, but they also hold a significant amount of dollar-denominated assets. They don't have to go to zero for my raining cats and dogs point to hold, they just have to decline a significant amount.

Your second point is actually missing my point. I'm specifically referring to the transition in which anyone holding dollars will find their dollars worthless and anyone holding bitcoin will become filthy rich practically overnight. Think of it like a bank run. After the transition, business will continue as normal in the new currency.

Also, it is a good point that anyone holding debt denominated in dollars will find their debts disappear. I'm not sure this is a positive outcome.

chrisBob• 12 years ago

Congrats on the open letter. Have you also tried emailing, or writing a real letter? I have gotten a few personal responses from well reasoned emails I have sent, including one after seeing my senator publicly change his position in my favor. They really do listen. An open letter is mostly just going to get other people on the internets to agree with you.

Oh, and if you are going to fight for less regulation you might want to wait for the only BTC news story in the popular media to blow over.

fredwilson• 12 years ago

through senate staffers i know, i made sure Senator Manchin sees my post and also my partner's post http://www.usv.com/posts/when-did-america-become-to-afraid-t...

kolev• 12 years ago

Aren't you guys getting tired of all the annoying buzz around Bitcoin already? Do something good for this world and create something of essence, not yet another vehicle for speculators and ugly (personality) people like Barry Silbert and the Winklevii. When I look at those two (three?) alone, I see "greed" and "envy" in all caps! Fred Wilson really lost all my respect after I saw him during the hearing - he's a small little person! He and Paul Graham are like night and day!

It's beyond obvious that 2013 will be the year of Bitcoin growth and 2014 - the year of its demise. I have to agree that the technology has some decent niche applications, but world-changing it is not.

A Letter To Senator Manchin

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