Thanks to George Gilder for pointing out that Bitcoin could never be a medium of exchange or form of money that competed with the U.S. dollar. That’s because it’s subject to a capital gains tax. Government currencies escape taxation. That’s an advantage that relegates cryptocurrencies to a minor role.
Furthermore, the government has ruled “Article I, section 8, clause 5 of the United States Constitution delegates to Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure a singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, Congress has the concurrent power to restrain the circulation of money which is not issued under its own authority in order to protect and preserve the constitutional currency for the benefit of all citizens of the nation. It is a violation of federal law for individuals to create private coin or currency systems to compete with the official coinage and currency of the United States.”
In a recent case the U.S. Attorney stipulated, “Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism. While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country.”