CA legalizes Bitcoin

CA legalizes Bitcoin

BitcoinBitcoin is the controversial new “digital currency.” Although widely used, technically it was illegal in California until Gov. Jerry Brown signed a bill Saturday officially legalizing it. The Christian Science Monitor reported:

Democratic Assemblyman Roger Dickinson, the bill’s author, said earlier this week the bill reflects the popularity of forms of payment already in use in California like bitcoin and that even rewards points from businesses, such as Starbucks Stars, could technically be considered illegal without an update to currency law in the nation’s most populous state.

CNN described Bitcoin:

Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.

Bitcoin has had its ups and downs. A chart from Coindesk shows its value since Bitcoin was created in Jan. 2009:

Bitcoin coindesk, June 30, 2014

It reached a high of $979 last November and currently is valued at $621.

Critics say that Bitcon is just a gimmick that will end up being as worthless as Monopoly money. Supporters say that Bitcoin provides real value.

Although personally, for me, the only real money is gold and Long John Silver’s “Pieces of Eight” — which I can hold in my hand. Even the U.S. dollar, which I’m forced to use, is just funny money that someday will go the way of the Confederate dollar, the Zimbabwean dollar and Reichsmarks. Thanks to inflation, the U.S. dollar already has plunged from $20.67 an ounce of gold in 1932 to $1,319 today.

In any case, Bitcoin’s worth, if any, should be determined by the marketplace, not government. So it makes sense that California, still the center of the digital economy, should legalize it.

Now and then the state government does something right.

8 comments

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  1. Bill
    Bill 30 June, 2014, 13:25

    I still don’t get Bitcoin. Why would I want to use it instead of paying online the traditional way?

    Can someone explain this?

    Reply this comment
  2. Queeg
    Queeg 30 June, 2014, 22:11

    Very simple Billy.

    It’s like Cap and Trade. You make up some words, numbers, fees, regulations and have globalist bankers nod all is ok. Start trading!

    Reply this comment
  3. Steve Rider
    Steve Rider 2 July, 2014, 10:10

    Bitcoin has a learning curve to it, and plenty of intelligent people are skeptical of it, and rightfully so. It’s hard to explain it in one sentence or even a post. Here’s a great article that debunks a little of its criticism: http://bit.ly/1qylRO7.

    Here are a couple advantages of Bitcoin:
    – Once you receive bitcoins (securely on your local wallet), it is impossible for anyone to confiscate them from you. This includes the government which is more and more of a concern for folks (particularly OUTSIDE of the US).
    -Bitcoins cannot be counterfeited.
    -Bitcoins cannot be inflated — there are a set number that will be in existence.
    -Bitcoins can be used 100% anonymously.
    -Bitcoins can be transferred without a 3rd party via the internet.

    All of these are attributes that the US Dollar does not possess. While some argue that bitcoin is a scam because it’s not backed by anything, they seem to forget that neither is the US Dollar. The US Dollar is ONLY more stable because more people use it.

    My 2 cents on the subject, and I’ve read plenty on it, is that BitCoin is the Myspace of crypto currency. It is very interesting, but it is only the beginning of a peer to peer verification process that has truly limitless possibilities. There are several other services trying to do things better than Bitcoin. One that stands out is Ethereum, which comes online at the end of the year. The possibility for private crypto-currency backed by whatever folks want, opens the door for a completely new currency market.

    Good luck.

    Reply this comment
  4. Ulysses Uhaul
    Ulysses Uhaul 3 July, 2014, 08:37

    Bitcoin is indefensible. Misleading consumers is wrong. Do not listen to anyone……run……it’s a danger you do not need to flirt with-

    Reply this comment
  5. Steve Rider
    Steve Rider 3 July, 2014, 08:58

    What’s misleading about bitcoin? Why does it need defending (or put differently who is attacking it)? I just listed off 5 irrefutable attributes it possess that the US dollar does not. If those aren’t of interest to you, carry on with your dollar. But why condemn it and offer unsubstantiated commentary as if you have derived some de facto advice people should inscribe in their wallet.

    Everyone thinks they’re an expert on bitcoin while possessing little knowledge of the intricacies of it.

    If you want to talk about its volatile exchange rate, that’s a different discussion and involves market hysteria and other currencies. But from a technical perspective bitcoin does exactly what it says it will do so it doesn’t need defending and there is nothing misleading about it.

    Reply this comment
  6. Steve Rider
    Steve Rider 3 December, 2017, 22:05

    Is Bitcoin still “indefensible”?

    How’s that whole “ethereum” thing I mentioned doing?

    Just checking.

    Reply this comment
    • Richard Rider
      Richard Rider 4 December, 2017, 09:06

      Well, let’s see. If you bought a bitcoin in June 2014 for $621, today it would be worth roughly $11,279 — 12/4/17.

      Heck, that’s growing even faster than my FDIC insured savings account, paying maybe 5/100 of a percent annually.

      Reply this comment
      • Steve Rider
        Steve Rider 9 December, 2017, 14:32

        @RR your outdated analysis from last week doesn’t show the true price of bitcoin topping $16k as of today. Try to keep up!

        Don’t even try to do the math on Ethereum, you’ll think you’re off by a decimal or two. You aren’t.

        However, to be fair, the intent of my comment wasn’t that it’s a great investment. Indeed if bitcoin were to plummet 50% or go up another 50%, this would be meaningless from a technical perspective. Same with Ethereum.

        My point was that these technologies are not Ponzi schemes, nor do they need any defending. They are the future of the digital world both as a currency and on a much broader scale. Exciting times.

        Reply this comment

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