/biz/ - Business & Finance

I can actually see a valid issue with BTC now.

1] Government(s) allow BTC payments everywhere.

2] All store's and ATM's accept BTC as payment.

3] Government(s) create a white listed group of addresses which you are allowed to use and pay with.

4] ATM's and other stores will reject all payments that are not on the white list. This effectively allows the government to "freeze" certain addresses.

5] To get a white listed address you have to apply for it with the government and give up all your personal info. These address will then be linked to your name/personal data.

6] If large amounts of BTC flow into your address you will be put on a blacklist and the IRS will conduct an investigation from where that money came from. If valid it will be put back on the white list else you will be questioned.

7] The government will have access to your private key since they will issue you a personal address, this means they can seize the "illegal" BTC that flowed into your address.

8] Crypto is now regularized just the same way as fiat is (fiat has certain money IDs blacklisted) but less securely since once your funds are stolen they are gone. Albeit the attacker will have to structuring to launder the money in some way which might decensitive this.

I just realized crypto solves jack shit.

Even if ATM's are gone and we all use BTC payments, using your bitcoins will not be possible unless you are white listed.

This is actually a huge valid flaw in BTC.

Same thing could be done for any ALTcoin btw.

We need some way addresses mutate over time so it can not be bound to a certain person. (Monero has the same issues I can imagine)

Anybody an idea how to solve this shit, you can guarantee something similar of this nature will happen.