Quote from: BTC Books on May 07, 2013, 04:32:22 AM

Quote from: Anth0n on May 07, 2013, 03:54:05 AM

If production of certain goods/services are restricted, supply will decrease and price will go up. If an artificial incentive is created to boost demand for a good/service, demand will increase and price will go up. If Bitcoin use is restricted, supply will stay the same and demand will decrease. That will cause the price to go down.

Anyway, the CFTC is only regulating financial instruments related to Bitcoin, not Bitcoin itself, so it's not a problem. I just wanted to demonstrate that the OP doesn't understand basic economics.

Wow. History much?

Prohibition = booze supply increased, price went way down
WWII parachute material = supply of nylon stockings went up, price stayed the same
War on Pot = supply increased massively, price to get high went down (price per weight went up, but quality went through the roof)
War on file sharing = supply dwarfed demand, price went free
War on porn
War on etc., etc., etc.

EDIT: silk stockings... * sigh *

Oh - and war on literacy (Medieval Era) = printing press

Restricting things that mass numbers of people want

NEVER

EVER

Works.

Alcohol prices skyrocketed during prohibition, and alcohol quality decreased dramatically. The rest of those items got cheaper because of new technologies. As an example, do you think the war on file sharing made files free, or did the invention of file sharing itself make them free? Did porn get cheaper because of the internet or because governments frown upon porn? You are confusing inventions with interventions. The invention of the printing press is not the same as a war on literacy.

Do you really think that if Bitcoin exchanges were closed down, the price per coin would go up? I'm just asking a hypothetical question; I don't actually think that the exchanges will be closed down. Imagine if tomorrow, Mt. Gox announced that they were being shut down. People would be scrambling to sell their coins and get their dollars back in the bank.