Garzik discusses back ground of bitcoin, security, how bitcoin development works and more. Very interesting.
The IRS has recently released a set of guidelines that would treat “virtual currencies” and cryptocurrencies as convertible financial instruments like bonds. The IRS accepts that bitcoin and the like are often used as currencies but they can also be used as investment tools; again like bonds. The IRS then concludes that these convertible virtual currencies are not valid currencies but rather property that can be traded or used as tools for investment and as such when ever their is a transnational event that exchange can be taxed. This could have some huge implications for the growing virtual currency market and in the long run is most likely good for legitimate businesses in that while regulation might increase burdens on their business it seems to signal that Government is bowing to the inevitability of cryptocurrencies and other virtual financial instruments. For illegitimate businesses it now allows Law Enforcement to bring more tools to track and prosecute criminals who use virtual currencies since they are very unlikely to follow IRS rules around the currencies.
Another great way to destroy the trust and value of Bitcoin or other currencies. Attack important banks, organizations, or services around that currency.
“As bitcoin halved in value after several Chinese exchanges halted yuan deposits, China’s central bank was the target of a hacking attack on Wednesday, with state media suggesting angry bitcoin investors may be to blame.”
Very interesting article. One could see government actors, companies, or organizations using these techniques to sabotage Bitcoin. Of course the more immediate threat is criminals but since many states see Bitcoin as a threat its not unlikely state actors or proxies might attack it this way. One could even see a state actor introduction legislation while simultaneously attacking a crypto-currency. Thus making it illegal, delegitimizing it among users, and in a recursive manner calling for more legislation to protect people from such attacks through further legislation and again weakening crypto-currency adoption.