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Traceability in the real world banking institutions has its advantages. As a business owner I've once had a mistaken transactions that resulted in erroneous withdrawal of +10,000 from business bank account. A phone call to the bank and a bit of investigation fixed things and I don't think the bank was out any money either, it was just a wrong account number issue.

With bitcoin, things are not at all reversible.

Also I expect bitcoin to be shutdown because it could be a great way to fund terrorist activities. (There are major federal investments in anti-money laundering systems that monitor bank transactions, bitcoin transactions operate outside of this system and thus will be suspect.)



With bitcoin, things are not at all reversible.

True of plenty of payment methods, e.g. CHAPS in the UK:

Unlike other forms of payment such as cheques, CHAPS payments are irrevocable

http://www.ukpayments.org.uk/payment_options/chaps/


I think a better word is "traceable". Presumably with CHAPS one can find out who the money went to, and other mechanisms can come into play to get it back.

Bitcoin, though, is supposed to herald the awesome future of totally anonymous, totally untraceable transactions in which once your money's gone, you're fucked.


There are major federal investments in anti-money laundering systems that monitor bank transactions

That worked really well for Wachovia...

http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-d...


Also I expect bitcoin to be shutdown because it could be a great way to fund terrorist activities.

So is cash :)


It's pretty hard to move large quantities of cash around... it's pretty easy to move a flash drive with a bitcoin wallet around.


That is why people who try to bring into the US large amounts of cash through border control have it confiscated if they don't declare it.

http://www.ehow.com/about_5445167_laws-bringing-cash-america...


Even if it's not, that's the easy claim to make these days that will get them shut down.

Kind of like "it's for the children". That phrase alone can be used to justify so many actions.




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