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Bitcoin’s Anonymity Dooms It..........Government will Curtail or Ban it, Industry Executive


Bitcoin owe its popularity to many things, one of which is large number of "Advocates" who daily grab media attention to talk about Bitcoin and why it should be banned or reduced to nothing.  These voluntary Bitcoin activists continues to swell by the day.  

They are the people in authority and position whose comments heat up the space for bitcoin and make the virtual currency more popular and demand soaring across all platforms.

The latest Bitcoin 'Advocate' is SocGen CEO, Federic Oudea, who feels who feels that Bitcoin has no future because of its anonymity.  He says "Governments will clamp down on it" 

According to him, the future of Bitcoin and other virtual currencies is dim, primarily because he expects governments and regulators to clamp down on them. The reason he gives  is the anonymity involved in these transactions, which might facilitate illegal activities ranging from money laundering to terrorist financing.

Speaking to CNBC at the Web Summit conference in Portugal, Fredric Oudea opined that  "The benefit so far is that  it provides anonymity to the people who are making the transactions". 

I can't see a future of this when I see the attention paid by all governments and regulators on anti-money laundering, on anti-tax evasion, on anti-terrorism financing. The anonymity of the transaction is a problem I think which would put pressure on Bitcoin.

While there are virtual currencies whose primary use case is privacy and processing anonymous transactions, Oudea may be off the mark when he calls Bitcoin transactions anonymous. Bitcoin addresses are pseudonymous, i.e. Bitcoin addresses are not directly linked to real world identities.

All Bitcoin transactions are recorded in the Blockchain and are publicly visible. While precautions may be taken by criminal to obfuscate the flow of transactions, Oudea has erred in calling Bitcoin transactions anonymous.

The views of Frederic Oudea echo those of Jamie Dimon, the CEO of JP Morgan, who called Bitcoin a fraud. The common underlying theme behind these views is that they believe that Bitcoin will fail not because the market will reject it, but because the Government will step in.

This by itself seems to be an admission of Bitcoin's strength and its ability to be adopted by the masses. The same people who criticise Bitcoin because of its unregulated and decentralized nature sing paeans about the Blockchain and its ability to improve efficiency and cut cost.

FIRE: - Bitcoin having operated for 10 years without government, and gaining in popularity and adoption makes it compete with fiat money.  In a world ready to move to the next level in everything, digital currency is it for finance.

I believe Government will in the future turn their fiat currencies to digital, and yet still find a way to regulate the digital currency space - the Cryptos, the Exchanges and ICO issuance.


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