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Private Sector Bitcoin Regulation

Thursday 08th, August 2013 / 22:47
Private Sector Bitcoin Regulation

public private btcWhen we think of regulation, usually the first word that comes to mind is, “Government“. Though in the case of Bitcoin, BTC World News introduces the question of, “What steps is the Private Sector making to create a regulatory body for Bitcoin?

Glancing back at history for a moment, when America started, it was based on a Declaration of Independence. A set of rules assembled in effort to bring the country together and separate from foreign rule. To make a history lesson brief, America thereafter introduced a federal level currency to support it’s own cause.

300+ years later, we’ve evolved to a world wide unity which a new era of fixing the mistakes from the past, is consistently in progress.

With this progress comes new idea’s and new way’s to do things, with the rise of Bitcoin, it’s important to ask what steps are being put in place to ensure proper and adequate regulation governed by the Private sector?

Without doubt, both of the words just stated likley raise the hair on you’re arms, (govern and regulate), but the truth of the matter is with the ole phrase, “There’s a rotten apple in every bunch“. This said, we as a planet need to “forward think” how to ensure that there are means of handling all types of currency issue and enabling a body of resolution to be available when it comes to Bitcoin.

Even recently, there’s a wildfire of reports of how a Texas judge ruled that Bitcoin was a currency and nearly immediately, the doom and gloom reports started to surface with, “This is the end of Bitcoin” non-sense. Though if we look back on history again, America didn’t start with federal currency, the States themselves had their own forms of currency. Today, we can consider federal level currency the same as State based currency when it comes to the planet as a whole. Each country has it’s own currency, which has nearly the same hardships, State level currencies did all through time.

Lets look at what we’re referring to here,

US Dollar Rates Table

(Source X-Rates)
Top 10 Aug 08, 2013 23:57 UTC

US Dollar 1.00 USD inv. 1.00 USD
Euro 0.747446 1.337889
British Pound 0.643705 1.553507
Indian Rupee 60.731499 0.016466
Australian Dollar 1.097849 0.910872
Canadian Dollar 1.032883 0.968164
Emirati Dirham 3.672900 0.272264
Swiss Franc 0.920108 1.086829
Chinese Yuan Renminbi 6.121716 0.163353
Malaysian Ringgit 3.257050 0.307026
New Zealand Dollar 1.249622 0.800242

 

Consider each of these country’s shown above being similar to how America started, it didn’t have it’s own currency system in place when it started. At some point, a number of great minds came together and established a system that would accommodate the country as a whole unit. Today the problem is, no country can get inline and agree on a value for currency, which has ultimately lead the world into turmoil. It’s not much different than the States several hundred years ago and ultimately, what did America do, it created a currency that would work for the nation a whole, which is what Bitcoin is doing for the planet as a whole.

Now lets look at American history once again where in the early days of the nation, before and just after the revolution, Americans used English, Spanish, and French money. (Source Rons Currency)

  • 1690 Colonial Notes
  • 1775 Continental Currency
  • 1781 Nation’s First Bank
  • 1785 The Dollar
  • 1791 First U.S. Bank
  • 1792 Monetary System – First Federal Dollar
  • 1816 Second U.S. Bank
  • 1836 State Bank Notes
  • 1861 Civil War
  • 1862 Greenbacks
  • 1863 The Design
  • 1865 Gold Certificates
  • 1865 Secret Service
  • 1866 National Bank Notes
  • 1877 Bureau of Engraving and Printing
  • 1878 Silver Certificates
  • 1910 Currency Production Consolidated
  • 1913 Federal Reserve Act
  • 1929 Standardized Design
  • 1957 In God We Trust
  • 1990 Security Thread and Microprinting

 

As shown above, it took nearly 100 years just to establish a Federal currency system and ween off currency from other country’s and over the course of a few hundred more years, had a number of set backs and overall hardships to work for America alone.

Bringing this all back around and into perspective, Bitcoin has been in circulation for 4 years and had an adoption rate that’s unprecedented to anything in near modern time. The day is past where, “he who has the gold, makes the rules” and it became very relevant to us here at BTC World News, that we introduce the question of regulation. Some of you might ask why is this important and in response, here’s some very simple reason’s why.

  • A recent article detailed the opinion of a core developer of Bitcoin which reflected a statement, “We decide what to adopt into Bitcoin”.
  • BTC World News recently published an article discussing the price differences discovered between Mt.Gox and other Exchanges.
  • Another article reported Argentina marking up Bitcoin prices by 66%.
  • Texas Judge recently declared Bitcoin a currency.

 

Soap Box Moment:

We don’t often voice a direct opinion on topic’s, though just a short thought of a US Judge declaring that Bitcoin is a currency is absurd. No disrespect or ill will to the Texas Court’s, but it would seem that the Texas Court is meddling in something not clearly understood and casting judgement on a territory that is quite possibly outside of the Texas or US Court’s jurisdiction. As a Judge is a decider of fact, the only fact there is, is Bitcoin hasn’t been deemed anything to date. And for that matter, who gave America the right to decide if it’s a currency or not?

Let’s not loose perspective here, Bitcoin isn’t controlled by the Government therefore they have no right declaring it’s anything as it’s not their right to do so. With this said, Bitcoin will let the Governments know what it is, when that time comes. 

In our opinion, we suspect this will quickly become very messy and likely be dismissed and/or overturned, as the world has yet to decide what Bitcoin is. Though in hind-sight and for clarification, yes the facts presented indicate that wrongdoing has transpired in this case, though the State will eventually have to bark up another tree to dispense justice.

With act’s like this transpiring, these issues alone symbolize the need to have a centralized private sector authority in place to address global concern which further introduces our opinion on a Bitcoin Trade Commission or simply, Bitcoin Commission.

Now before you gawk with “shock and awe”, lets first understand the premise of a Commission. The Dictionary says,

Commission:

  • The act of granting certain powers or the authority to carry out a particular task or duty.
  • The authority so granted.
  • A group of people officially authorized to perform certain duties or functions.

 

The difference here with the statement, “He who has the gold, makes the rules”, doesn’t apply when it comes to Bitcoin. Granted gold has always had an established trade value and global worth, where indeed Bitcoin is still in early stages of determining it’s matured value and  it’s important to avoid, “He who has the Bitcoins, makes the rules” type scenario.

With a Bitcoin Commission established in the Private Sector, there’s grounds to govern a fair and equitable Bitcoin management system to handle the Commission and Regulation of Bitcoin. As an example of how this would work is similar to how country’s extradite prisoner’s from other country’s back to their home land for trial. This is because those country’s have rules for it’s citizens which other country’s have to abide too.

Bitcoin has no country and is not under any centralized authority. Therefore Bitcoin needs to take the steps to assemble a Commission which can provide delegation on issues and provide a set of guidelines to assist the proper resources. Whereas eliminating any country’s direct ability to take the law into it’s own hands when it comes to Bitcoin. Perhaps a United Nations for Bitcoin in order.

Considering clarity on the context we’ve used regarding Private Sector, let’s look briefly at what the definition of Private Sector is,

  • The part of the national economy that is not under direct government control.

 

In this case, a Bitcoin Commission operated by the Private Sector would in turn offer remedy to situations where jurisdiction is in question, where the needs of many out weigh the few and overall, introduces structure. Without a Bitcoin Commission, there will be more scrutiny and wrong doing occur and no avenue to provide centralized remedy.

As shown above, America didn’t happen over night and neither did the rest of the world. As confidence builds in Bitcoin’s future, we at BTC World News will continue to ask the important questions and report the answers found. For those doom and gloom expert’s out there, Bitcoin isn’t going away nor is the end near, in fact Bitcoin is just beginning and is clear that the world is onboard. Thus we’ll leave you with this cliche’, “If you’re not part of solution, you’re likely part of the problem“.

 

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