Kinsella on Liberty Podcast, Episode 086.
Last weekend I gave a talk “The History, Meaning, and Future of Legal Tender,” at Jeff Tucker's Crypto-Currency Conference: Bitcoin and the Future of Money (Atlanta, Oct. 5, 2013). See KOL085 | The History, Meaning, and Future of Legal Tender; slides below. Video/professional audio to be released later. Pix here and here.
This is an interview I did with Kurt Wallace, of RARE radio, whom I met at the CCC. We discussed a variety of issues about bitcoin; the transcript is below.
Rare Conversation LISTEN: Why the U.S. will declare war on Bitcoin
PBS News Hour clip: The currency known as Bitcoin, which made headlines earlier this week when the FBI seized Silk Road, the popular online black marketplace for drugs and other contraband, payable by Bitcoin had done over a billion dollars worth of business in just the last two years.
Kurt Wallace for Rare: Bitcoin has made headlines on PBS News Hour, sparked by an online Bitcoin drug trafficking site. Mainstream companies are popping up all over the place, big time investors are getting involved in this emerging sector and there are crypto-currency conferences monthly and sometimes weekly all over the world. Even Canada has introduced their own government-backed digital currency called mint-chip. What is the future here in the United States regarding Bitcoin and digital currency? Here to help us out is registered patent attorney Stephan Kinsella, founder of Libertarian Papers and former adjunct professor at the South Texas College of Law. Good to have you on Stephan, thank you for joining us today.
Stephan Kinsella: Thank you very much glad to be here.
Rare: Silk Road is this online black-market that was shut down by the FBI last week. Should people be worried about using Bitcoin in the United States?
Kinsella: I don’t think using Bitcoin itself is a big concern. Silk Road itself might be a different issue. You have to consider your own risks in using Silk Road, but Bitcoin itself … no, you can use Bitcoin without being implicated with the Silk Road issues right now.
Rare: What’s happened with Silk Road, is that a benefit for Bitcoin or it that bad for Bitcoin?
Kinsella: I think it’s good and bad, if you think about. Everything that people accuse Bitcoin of being bad for is true of the U.S. dollar. People are saying that Bitcoin is used for drug transactions. Well the U.S. dollar is used for that too. All the bad things that people accuse Bitcoin of are being used by the U.S. dollar. It’s just an alternative currency that people use. As long as you are careful and as long as you don’t use it for illegal transactions you should be OK.
Rare: The U.S. government has the War on Drugs and the War on Poverty and the War on Terror and we were at this crypto-currency conference in Atlanta over the weekend, there were a lot of Libertarians there. A lot of people concerned about their freedoms and their ability to live their lives without government interference. Do we see a possibility of the United States government declaring a war on Bitcoin?
Kinsella: Yes, I think there is a concern there, and the concern is that if the U.S. government sees a significant threat to its hegemony over the currency of the U.S. dollar, or the world monetary system. They will try and crack down on it. But we have seen this in the internet as well. I don’t believe the U.S. government, if they had known in the early 1990s what the internet would evolve into, I don’t think they would have allowed it. But it’s a little too late for them to stop it, I hope. I’m puzzling the same is true of Bitcoin and similar currencies.
Rare: What part is Bitcoin going to play in the future of legal tender in the United States, with the rest of the world already embracing Bitcoin like in Europe and again Canada having their own digital currency?
Kinsella: The legal tender is just another tool in the toolbox at stake that they can resort t...
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