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Originally Posted by jscott
Sorry ADG, I know u seem like a smart guy and all, generally speaking, but your last post in this thread seriously was a "thread bomb", troll-like, ridiculously low class post.
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We've had thread after thread on GFY by bitcoin apostles who defend bitcoin regardless of how much bad news comes out about it. I consider my last post a small counter-balance.
Let's break down the images I posted...
There has been case-after-case of people/companies high-up in the bitcoin food chain who have been arrested on serious criminal/civil charges, and shady bitcoin organizations closing down operations overnight, which threaten to undermine confidence in the entire bitcoin system - but don't take my word for it, do your own research:
Bitcoin Savings and Trust:
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SEC Confirms That Bitcoin Savings & Trust Was A Ponzi Scheme; Files Lawsuit
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GBL Bitcoin exchange:
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The GBL Bitcoin exchange held as much as $4.1 million USD worth of the digital currency for its customers. But on October 26, 2013, it was taken offline.
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Silk Road:
Silk Road was the de facto symbol of the legions of bitcoin devotees who view bitcoin as a thumb in the eye of the established banking systems.
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Federal officials announced a grand jury indictment Tuesday of 29-year-old Ross Ulbricht, the man accused of creating online drug marketplace Silk Road.
Ulbricht, who remains in custody after being arrested back in October, could be behind bars for the rest of his life. He is charged with engaging in a continuing criminal enterprise, computer hacking, money laundering, and operating a narcotics conspiracy.
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BitInstant:
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On January 26, 2014, Shrem was arrested at New York's JFK Airport on money laundering charges. Prosecutors allege that Shrem and another defendant, Robert Faiella, conspired to supply bitcoins to users of the original Silk Road marketplace.
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Charlie Shrem is a
founding member of the Bitcoin Foundation and was
Vice Chairman until late January 2014 (when he was arrested).
The Mt Gox meltdown:
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The survival of Bitcoin-trading exchange Mt.Gox was in doubt Monday after its CEO left the digital currency's top advocacy group and the exchange's website went offline.
Mt.Gox chief executive Mark Karpeles resigned from the Bitcoin Foundation's board of directors on Sunday. Former colleagues said he left the organization to focus his attention on Mt. Gox's copious issues.
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While some may brush aside and poo-poo Mt Gox as a rouge outfit (after they went under), the fact is Mt Gox was the largest bitcoin exchange on the internet, and some hundreds of millions is unaccounted for and may be lost.
Until being unceremoniously tossed under the bus, Mt Gox was one of the major players at the Bitcoin Foundation.
Silk Road 2:
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Silk Road 2 moderator Defcon reported in a forum post that hackers have used a transaction malleability exploit to hack the marketplace. The hackers stole 4474.26 bitcoins worth $2,747,000, emptying the site?s escrow account.
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BTC China:
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The exchange, BTC China, made the announcement in a post on its verified account on Weibo, China?s Twitter-like messaging service.
The development comes less than two weeks after China?s central bank and four other government agencies that regulate finance and technology issued a joint announcement banning Chinese financial institutions from dealing in the virtual currency.
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It's not just in the US that bitcoin is being met with increased scrutiny and measures to reign it in, or ban it altogether:
Russia:
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(Reuters) - Russian authorities have issued warnings against using Bitcoin, saying the virtual currency could be used for money laundering or financing terrorism and that treating it as a parallel currency is illegal.
"Systems for anonymous payments and cyber currencies that have gained considerable circulation - including the most well-known, Bitcoin - are money substitutes and cannot be used by individuals or legal entities," the Russian Prosecutor General's Office said on February 6th.
It added that Russian law stipulates that the rouble is the sole official currency and that introducing any other monetary units or substitutes was illegal.
Russia's central bank also said on January 27th, that Bitcoin trade was highly speculative and that the unit carried a big risk of losing value.
"Citizens and legal entities risk being drawn - even unintentionally - into illegal activity, including laundering of money obtained through crime, as well as financing terrorism," it warned.
The Prosecutor's General Office said it was working with the central bank and other law enforcement agencies to tighten regulations and prevent legal offences committed with the use of pseudo-currencies.
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More governments turning against Bitcoin:
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Russia is only the latest country to release a statement detailing its position on Bitcoin. In early December, China barred financial institutions from using Bitcoin, though it didn't ban the currency outright.
In late January, Canada released a statement that said Bitcoin is not legal tender in the country. Countries like these have expressed skepticism in Bitcoin not only because of its links to money laundering, but also for its overall volatility.
Most recently, on February 7th, a string of thefts hit Bitcoin's most reputable wallet service Coinbase, while leading Bitcoin exchange Mt. Gox suspended withdrawals, causing prices to plummet.
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Many bitcoin proponents are in serious denial if they think the examples I cited above (and there are plenty more) are not indicative of some rather serious and potentially fatal problems/flaws with bitcoin.
Just because someone posts an opposing viewpoint does not mean they are trolling.
ADG