Oddbean new post about | logout
▲ ▼
Phantom Bullfrog | 11 months ago (raw) | root | parent | reply | flag +1 
 Sure but how are nodes and miners supposed to do check all identities of all transactions? That's not gonna work at all, if anything the nodes and miners who comply with this will be creating a de-facto fork of bitcoin, there will be "nice" bitcoin and "not-nice" bitcoin
▲ ▼
789e4172 | 11 months ago (raw) | root | parent | reply | flag 
 Those who can't adapt to the new law will have to shutdown their nodes and use nodes from register businesses. Those who don't comply and chose to keep running their nodes will be cut off and risk criminal charges.

US citizens and residents will also be prevented to transact with businesses outside the US who chose to refuse to serve US customers to avoid the compliance burden and possible retaliation from the US government.

Miniers have to KYC with some pools already. Most mining is done through pools. Solo miming can be declared illegal. Miners suppliers could be requested to perform KYC on the sells and purchases of miners.

Elisabeth Warren doesn't care about the technical feasibility and consequences of her bill, all she wants is traceability off all financial transactions. If it makes live harder for us in the process, even the better.
▲ ▼
Phantom Bullfrog | 11 months ago (raw) | root | parent | reply | flag +1 
 If that happens bitcoin is as good as over, the only value of a cryptocurrency is being independent and resistant to state intervention, if bitcoin proves to be controllable by governments then it's in essence no different from any fiat currency
▲ ▼
789e4172 | 11 months ago (raw) | root | parent | reply | flag +1 
 Doesn't mean it's game over for Bitcoin, but non-kyc transactions, I believe are going away. It just a question of time. 

Unless you opt out by disregarding the laws and finding people willing to trade with you or, you move to another country that is more friendly to Bitcoin and has less invasive legislations. 

But those countries will be bullied by the US, EU, IMF, WB, and other organizations. 

As Bitcoin becomes more intertwined with the financial sector, energy sector, payment network, and businesses in general, there will be more and more laws passed to regulate it and subject it to the same, if not more stringent, regulations than other assets and industries.

That doesn't mean Bitcoin is over. The role it can play in stabilising the grid, facilitate the development of renewable energy infrastructures, reducing methane emissions,  provide a cheap, instant global payment network (what Strike is doing with Lighting),... are what will keep it going.

I'm more bullish with what is happening in the south hemisphere. Arabic countries exploring and getting into mining. Latin American and African countries adopting crypto and Bitcoin communities popping up allover.

The bill is not law yet, and might not got all the way to a vote. But I don't see why the government would KYC and track all financial transactions except for Bitcoin transactions. 

Even in a KYC world, Bitcoin would still be better than fiat. There is the 21M CSP, ability to self- custody even if KYCed, a global payment network (L1/L2).