I’ve gotten into a pair discussions not too long ago with individuals involved about an Order 6102 state of affairs the place a authorities tries to confiscate Bitcoin. I wished to make a submit and get extra ideas from individuals about this. I’ve my very own ideas that I’ll submit beneath and should you assume my view is fallacious I want to know why.
For those who do not know, Order 6102 was an govt order within the US made in 1933 that outlawed possession of gold and empowered govt officers to confiscate it. They took individuals’s gold and compensated them at a fee of $20/oz. Then they set the value at $35/oz, successfully stealing that worth by devaluing their very own foreign money towards gold. It was form of like a one shot 75% inflation increase to their coffers. It was fallacious on so many ranges and regarded by many to be the govt. defaulting on their debt obligations.
On the time gold was nonetheless the reserve that backed up US foreign money and so they had been in the midst of the good despair. It was a really totally different time, and gold may be very totally different from Bitcoin. Economies had been rather more localized and knowledge was vastly extra scarce than it’s right this moment. Gold couldn’t be simply transported or hidden from authorities.
At its present market cap and adoption stage, Bitcoin shouldn’t be thought-about a menace to greenback hegemony, so that they don’t have any cause to confiscate it. What about when Bitcoin has grown a lot bigger, to say a $10T MC? In the event that they did then, it could in all probability nonetheless drive up the worth even additional as it could sign to everybody that they view it as a respectable menace. We stay in a worldwide financial system now and large quantities of data can be found at our fingertips. The information would unfold immediately and all the world would take discover and start eager about how they’ll benefit from the state of affairs.
Then we have now to contemplate what the govt. intends to do with the confiscated coin. Are they attempting to take it out of circulation? Properly then all of the remaining Bitcoin simply acquired extra scarce and invaluable. Are they going to make use of it as a reserve to again up their very own foreign money? Wow, what a tremendous consequence that will be. They might surrender all their energy in financial coverage that the central financial institution at present holds to take action. Is not that what we wish?
On high of all that we have now to contemplate the logistics of the confiscation effort. It will be extraordinarily tough to get individuals to adjust to the order to give up their Bitcoin, particularly in the event that they had been attempting to compensate at a fee decrease than market worth. In the event that they tried to straight up steal it the resistance could be violent. That is not even making an allowance for how lengthy an order like this may be caught up in a authorized battle.
My essential level on that is that if it ever got here all the way down to a big govt just like the US attempting to confiscate Bitcoin it’ll imply that Bitcoin has gained the battle. It’s the finest type that cash has ever taken, and it may well’t be stopped. It’s so a lot larger than anyone authorities can deal with, even at its present measurement. In the event that they tried to confiscate it I might be celebrating as a result of it’ll open so many eyes to the worth of Bitcoin the world over.
