"or that it will be made illegal and no one will be able to use it."
"While it has been legalized in California for use, it still isnt legal tender, and it has been outright banned in Russia."
It says it can't be made illegal well how did Russia do it?
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"For the sake of arguement, lets say that the government has decided that they will stamp out all Cryptocurrency use altogether. Do they even have the ability to do that?"
"Cryptocoins are based on peer to peer network connections as each mining node broadcasts transactions and block discoveries to the rest of the network. These connections are anonymous, can use any communication port, and can easily run through a proxy server to hide their origins."
First off proxies may have worked back then but they are the worse method to hide your IP Address with today's protocols. Let's say you know this and use a VPN or something similar instead... did we all forget at least in the U.S. our ISP's provide our internet and everything is monitored through them? If you use a proxy or VPN you still need to communicate through your ISP first so similar methods will be useless for a Government who has access to your ISP and logs any time they would like them.
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"This means that as long as there is an open internet, its not really possible to stop Cryptocoin mining without using incredibly invasive (and illegal) surveillance or vastly increasing control of the internet."
We here in the U.S. will not have an open internet for long. We already have laws passed that allow your ISP to block any type of protocol, communication or websites they want to. Along with SOPA and other related bills they have been trying sneaky ways to do so and they will succeed eventually.
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The article is just nonsense this type of garbage is what gives crypto a bad name. I'm not wishing or hoping for crypto to be banned or be just a short or long "fad" but please for the sake of crypto future please come up with relevant content and not a bunch of smoke to blow up peoples asses that know nothing about the internet. Not OP's fault but just calling it how I see it.