Quote from: bitrebel on August 12, 2011, 07:52:38 PM

Quote from: twobits on August 12, 2011, 03:57:23 PM

Quote from: bitrebel on August 12, 2011, 11:02:10 AM

Anyone care to explain here just how a government can attempt to outlaw bitcoin?

Something like:

1) all transactions must be denominated in and carried out using our legal tender

2) anyone doing fx or any international trade must be licensed, and per the terms of the license only approved units of trade may be used.

Total FAIL.

Currently, it's legal to create your own alternative currency. There are 100's already throughout the US. If it was possible to outlaw them, the government would have already.

Forex is not bitcoin, again, it relates specifically to "financial instruments" and "financial transactions" which bitcoin are neither, in fact, or legally considered. And they cannot ever be considered legally "financial instruments" or "financial transactions".

Bzzzttt..... wrong answer.

The fact something is legal now is irrelevant to the fact it could be made illegal later. As a small example, consider private ownership of gold. Now go read http://en.wikipedia.org/wiki/Executive_Order_6102 . If they were willing to make it illegal and seize all the gold in the county, they sure as heck would have no qualms about making currently legal alternative currencies illegal.

As for your second paragraph, it says nothing. It changes nothing about the fact that they can make any trading outside of approved denominations illegal.

So ... yeah, you predicated your response right from that start. It was total fail.