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Are the Feds Cracking Down on Bitcoin? -- Also, I bought something with Bitcoin! (#020)

MB · 2013-05-17 ·00:04:01 ·MadBitcoins
Kingston, Jamaica -- using Magic Formula Investing and beating the Dogs of the Dow -- here are Today's MadBits: 1.) Bitcoin is non-political, has gone viral and is impossible to stop http://rt.com/business/bitcoin-threat-financial-system-425/ 2.) I bought something with Bitcoins! http://bitcoinke...

Summary

This episode, broadcast on May 17, 2013, addresses the growing tension between government scrutiny and the decentralized nature of Bitcoin, while also highlighting the practical, real-world use of the currency.

1) Main Topics Discussed:
* Government Scrutiny: The perceived "crackdown" by US authorities (DHS) on virtual currency, specifically targeting exchanges like Mt. Gox rather than Bitcoin itself.
* Adoption and Resilience: The increasing popularity of Bitcoin among merchants and consumers who view it as a free, open alternative to traditional fiat currency and banking systems.
* Practical Utility: The speaker details a personal experience successfully purchasing physical goods (badges, keychains) using Bitcoin.
* Market Stability: Analysis suggesting that legal troubles at major exchanges are not impacting the underlying value or trajectory of Bitcoin.

2) Key Quotes:
* "Bitcoin is non-political, has gone viral and is impossible to stop."
* "The value of currency is decided by social consensus. How does it acquire this value? It acquires this value by people using it."
* "Mt. Gox's legal troubles don't seem to be affecting the value of Bitcoin..."

3) People/Entities Mentioned:
* DHS (Department of Homeland Security)
* Mt. Gox (Exchange)
* CoinLab and Coinbanks (Competitor exchanges)
* LePelpin (Seller of physical goods)

4) Bitcoin Price:
* The price was reported to have been hovering in the 115 range for the last week, and was rising to 123–125 that morning.

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