Slashdot Mirror
Online Gambling Site Bets On Bitcoin To Avoid U.S. Laws
SomePgmr writes with a story about an online gambling site planning to use Bitcoin to sidestep U.S. regulations that effectively ban online gambling. From the article: "Michael Hajduk had sunk one year and about $20,000 into developing his online poker site, Infiniti Poker, when the U.S. online gambling market imploded. On April 15, 2011, a day now known in the industry as Black Friday, the U.S. Department of Justice shut down the three biggest poker sites accessible to players in the U.S., indicting 11 people on charges of bank fraud, money laundering, and illegal gambling. ... Infiniti Poker ... plans to accept Bitcoin when it launches later this month. The online currency may allow American gamblers to avoid running afoul of complex U.S. laws that prevent businesses from knowingly accepting money transfers for Internet gambling purposes. 'Because we're using Bitcoin, we're not using U.S. banks — it's all peer-to-peer,' Hajduk says. 'I don't believe we'll be doing anything wrong.'"
The US has a vast supply of gold and land backing its currency, at least theoretically it has something backing it. I realize what a fiat currency is, i am just pointing out that it could pay creditors.
http://www.youtube.com/watch?v=SjxY9rZwNGU
Incorrect. Shocking to find an incorrect understand of an economic principle on slashdot~
Backing means that through the rule of law, a dollar bill is guaranteed to be exchangeable for one dollar's worth of goods and services. If it had no backing, other countries would lend up money.
bitcoins have value because they are backed by the dollar.
A fiat-money currency loses value once the issuing government refuses to further guarantee its value. That is also a form of backing money.
What the poster is talking about, although they don't know it, is Chartalism.
Read up and get back to me.
The Kruger Dunning explains most post on