Rough ride for the Bitcoin while EU struggles to fight the crypto

Bitcoin

Well, back in December I thought that Bitcoin will regain value quite fast after the holidays, but it didn’t, and it stayed true to my first experiment in graph-based-prediction (which I still think is more of a Rorschach test for Dunning-Krugerrands, bu lo, some of them happen to be right sometimes, just as my graph was!).

With bitFlyer entering the EU scene I thought it’stime for good news, but lately it seems that the EU bureaucrats are focused on egulation, even calling for a global regulation for Bitcoin (what the fuck would be that). Portugal, though, has put the crypto-trade in the legal vacuum, and Santander Branch started serving crypto-related transfers (again, how do they mark these?) after an outcry against their previous decision, and that tells a story of fracturing in the opinions in EU.

I can’t agree on any bank closing crypto-related transfers. IMO It’s not their job to regulate where my money can go, their supposed role is moving the money for a fee (albeit a low one in EU). Yet ECB representatives are calling for regulation and banks in Europe started cutting such transfers, which somehow beats the whole purpose of the banks in my eyes. At the end – they are just glorified money-lenders, the rest of their services are derived from government regulation – such as cash payments restrictions, for example (which are popular in EU, but it doesn’t make them right or effective tool against money-laundering). Moving money for a fee is what they should do, but with denying us this, what becomes of them? We still cannot exist without the fiat currencies. Every price in Bitcoin is derived by the USD/EUR/GBP exchange rates, and most business owners take the cash after you pay and don’t keep their coins.Meaning that effectively we are not paying with bitcoins, but with fiat money and a bank transfer. What if bank stop serving BitPay and other similar services? No more trade with Bitcoins whatsoever, we are back in the times we exchanged them p2p or through shady exchanges.

The current banker trend dictates that “crytocurrencies are used by terrorist, the mafia and for money laundering”. Which is a statement so full or bullshit that I don’t even know where to start with it. For once, every fucking exchange requires verification, and the person would receive the money in a bank account. Meaning any high-value transfer is still a subject of prying eyes. How would a mobster be able to get his drug-trade money with BTC, if he would be caught pants down when he receives his fiat transfer? Or this is suggesting that the underworld uses only bitcoins and stopped using USD/EUR?Yeah, right. They probably pay to the neighborhood drug-dealers with satoshis? And don’t even get me started on money-laundering! Nobody needs to go through crypto for that, when they can setup any kind of real business and declare amazing profit. Wait – they do it all the time! It’s even how some banks started!

Sure, there is the possibility some people would use illiterate junkies  and do everything on they name. For example, according to the rumor, the owner of the First Investment Bank in Bulgaria does that with his other companies, all of which are owned by some poor Greek and all of them  started with fake credits, under fake ownership, and do very high-profile business in the country and abroad. Considering most of the banks in ex-communist countries (incl. Russia) were founded by the not so ex-Secret Services or related mafia branches, even if later they were sold to old-Europe bank dinosaurs, we are all aware banks and shady business are always going hand to hand, and any notion that they are somehow trying to cut such businesses is hilarious.

Now they tell us the bitcoin and others are used by the shady businesses, mafia and terrorists.  Yet no terrorist can exchange Bitcoins freely on the street (it’s so much easier to anonymously exchange dollars, why bother with crypto?), and the mafia outgrew its street roots and became legal-businesses only oligarchy everywhere (well, they still keep drugs and prostitutes trade, but I haven’t heard of a hooker that accepts BTC, should one start doing it, she would become a celebrity), I fail to see any merit behind such reasoning. Even if it was a fact, the amount of the money flow dedicated to the shady business and terrorists would be much smaller, even negligible compared to the flow of money by regular trades, miners, etc, and would be a fraction of the amounts of fiat money used by the same people and organizations. Why the resistance then?

Well, they are sharks. Never been anything but sharks. And we should fear them. But also fight them.

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