Summary: A look at one of the latest smears against Bitcoin, courtesy of Britain's Internet Watch Foundation (IWF)

WE DON'T OFTEN write about Bitcoin, but sometimes we do. Bitcoin is becoming a huge phenomenon and with its growth it gathers enemies. "Someone is really threatened by bitcoin that they have to disparage it so much and so often," writes iophk. "Use in nefarious activities could easily be said of other currencies I expect, yet bitcoin is consistently singled out in the media. And, unlike cash, bitcoin is not anonymous," he says in reference to this new smear. This strategy is not unusual; just ask Torrent sites, Craigslist, etc. how they suffered demonisation by association (copyright infringement, prostitution, drugs, etc.) just so that people can shut down down or at least marginalise them. Bitcoin has some other bad press [1], usually revolving around Mt Gox although it is only one of many players in the area of Bitcoin.

Most people, even in the Western world, are 'poor' in the sense that they have negative balance [2]. Young people are the most common victims [3,4]. The older generation often evades tax [5] and gets away with it. No wonder the young (future) generation is gradually turning to alternative currencies whose value cannot be rigged to the same degree commonly used currency is. A lot of people tend to forget that money derives its value from the belief/assumption that it will be honoured by merchants and be possible to swap for real goods; when hyperinflation kicks in, then money can become just paper, unlike Bitcoin, which some say it more resilient and resistant to abuse. Mt Gox may be having a crisis, but let's not forget how many of the banks out there (all around the world) reached virtual bankruptcy (like my bank at the time -- a bank that's heading there again) and then looted taxpayers for bailouts that devalue money, increase national debt, and generally show that the 'mainstream' currencies are no safe haven. ⬆

Related/contextual items from the news:

1. Mt Gox confirms 750,000 Bitcoin theft, opens call centre for concerned miners

   BITCOIN EXCHANGE Mt Gox has confirmed the loss of 750,000 Bitcoins, and opened a call centre for people who want to know more about that.





2. Three Of Every Four Americans Are Living Paycheck-To-Paycheck

   According to a new survey, more than three-quarters of Americans are living paycheck-to-paycheck in order to make ends meet.
   
   The study, conducted by Bankrate.com, found that 76 percent of citizens had less than six months’ worth of savings to their name. Half of Americans had less than three months emergency savings and more than a quarter had no savings at all.





3. Student Loans Are Ruining Your Life. Now They’re Ruining the Economy, Too

   American students are well over $1 trillion in debt, and it's starting to hurt everyone, economists say





4. Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime

   A sanction can mean having welfare payments cut off entirely for a minimum of a month and as much as three years for “repeat offenders”. The hardline system, which means people can end up cast adrift for accidentally missing an appointment, is thought to be one of the reasons behind the vast numbers turning to food banks.
   
   Experts say young people are being unfairly singled out by the strict new system of penalties. Despite making up only 27 per cent of Jobseeker’s Allowance claimants, 18- to 24-year-olds have accounted for 42 per cent of all sanctions handed out.





5. Credit Suisse 'cloak-and-dagger' tactics cost US taxpayers billions – senators

   John McCain and Carl Levin say offshore schemes operated by Swiss firm helped 22,000 Americans hide billions from taxman