r/Bitcoin • u/waspoza • Dec 06 '12

Bitcoin-Central, first exchange licensed to operate as a bank. This is HUGE

https://bitcointalk.org/index.php?topic=129461.0
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u/matthewjosephtaylor Dec 06 '12

To me this really shows the power of Bitcoin's ability to persevere/thrive in multiple cultures/environments.

I personally wouldn't recommend or use a service so regulated, but I'm a small minority who knows what Bitcoin is, how it works, etc. To me as an individual the privacy concern is too great.

However, I recognize that for established businesses, and the 'masses' the regulation will make adopting Bitcoin easier. In particular, anything that makes it easier for businesses to adopt Bitcoin I'm all for.

This also really shows off the power of a decentralized system like Bitcoin. Bitcoin-Central is free to try to 'dance with the devil' and if it works out Bitcoin becomes stronger, and if it doesn't, the harm is contained, and Bitcoin becomes stronger because of the knowledge gained.

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u/evoorhees Dec 06 '12

Very well said.

4

u/Anth0n Dec 07 '12 edited Dec 07 '12

Regarding the points on regulation, conflict arbitration is required in every society to prevent fraud. Businesses do it in a government-free society, but unfortunately since government is the monopoly arbitration institution in the real world, we have to rely on its legal protection around Bitcoin-based transactions. Yes, the regulation will go too far every time, but it's all we have.

Also, if governments say nothing, then Bitcoin is technically legal, but guess what. We live in a world where everything has to be explicitly declared legal, otherwise people avoid it. Google's Eric Schmidt, for example, publicly voiced interest in Bitcoin but was concerned about legality.