The Catch-22 Of Legal Enforcement of Crypto-Currency Hacking


The other day, I had been talking crypto-currencies with an acquaintance in our regional Starbucks, and he let me know he was working with two or three entrepreneurs who had previously been academic experts in IT Security. Obviously, for crypto-currencies it’s about secure transfer of the data, along with the trust in the inherent value of those individual’s and zero’s, or Q-bits. Maybe, I might take a look at their small business strategy, although these digital monies have experienced any bumps in the road to the future I am sure is going to be the upcoming norm – that’s how the world is headed it seems.

Does this mean we will have a distributive currency like distributive energy onto the smart grid, or distributive info like the Internet? Well, people usually do exactly what works and there’s both good and bad with centralization and using a distributive redundancy strategy sumokoin.

Now then, what is the latest you inquire? Well, there are two articles I read more than an hour after this meeting, because I was cruising through the advice, I had previously saved to write on this subject afterwards; Marginally Useful – Bitcoin itself may fail as a money, but the underlying technology is beginning to suggest valuable new applications,” by Paul Ford (February 18, 2014) and mind you this informative article was written just days ahead of the Bitcoin theft from among their best exchanges.

Another article was composed by Naette Byrnes the day after those findings hit the newswires on February 25, 2014″Bitcoin on the Hot Seat – A significant bitcoin exchange closes down, raising questions regarding the cybercurrency.” Are you amazed?

The second article went on to say “Tokyo-based Mt. Gox, after one of the largest exchanges of this bitcoin cybercurrency, stopped operating Tuesday amid rumors which countless might have been stolen in the company and rising concerns regarding the long-term prospects to the unregulated electronic currency. Other bitcoin exchanges immediately moved to distance themselves in Mt. Gox and assert that they were still open for business. The worth of the currency itself dropped sharply to just over $500 by mid-afternoon. It struck an all-time high of $1,100 in November.”

What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were suitable? Can they get the last laugh, or is that just an expected evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I had.

Let’s say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic currency. At this time, digital currency flies under the radar since it is not known even with the newest Too Big To Fail regulations banks, etc.. How do a digital currency have value? Difficult to say, how can a fancily printed piece of paper marked $20 be worth whatever, it’s not, but it’s worth what it signifies if we all agree to that and have trust in the currency. What’s the difference, it’s a matter of trust ?

Okay so, let us say that the regulators, FBI, or another branch of government complies and documents charges – should they file criminal charges that someone defrauded somebody else then how much defrauding was demanded? If the government enforcement and justice department put a dollar amount number to that, they are inadvertently agreeing that the digital currency is actual, and it has a value, so, acknowledging it. When they don’t get involved, then any fraud that may or may not have happened sets the whole concept back a ways, and the media may continue to push the trust of all digital or crypto-currencies.

Thus, it’s a catch-22 for your authorities, regulators, and enforcement people, and it is impossible for them to look the other way or deny that this trend any longer. Well, I despise law, but isn’t how it usually starts. Once it’s regulated credibility is given to the concept, but his electronic money theory could also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global market handle that degree of disturbance? Stay tuned, I guess we shall see.

Meanwhile, what happens next will either make or break this new shift in the way we view monetary value, riches, online transactions and the way the real world will mind-meld to our future blurred reality. I just don’t see many folks thinking here, but everybody needs to, one misstep and we could be in a world of hurt – all humankind who is. Please consider all this and think on it.

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