Why Bitcoin entrepreneurs are all suddenly voicing the "regulation is good" mantra

If you follow Bitcoin, you are probably aware that since a few weeks ago, entrepreneurs and venture capitalists in the Bitcoinsphere have all -- suddenly and in unison -- changed their tune, from the general view that Bitcoin exists to subvert the existing financial system, to defending the belief that people using Bitcoin must be forced to obey whatever orders ("regulations") are issued to them.

You might be inclined to believe that the events you are witnessing here -- subversive entrepreneurs all suddenly and inexplicably parroting "regulation is the future, k-k-choo" -- mean that people suddenly have realized how regulation is "beneficial" and "virtuous".

Nothing could be further from the truth.  In reality, these people have been commandeered.  Allow me to explain.

What you're witnessing is, rather, the modus operandi of the organized extortionists doing business as "government": a terror-fueled shakedown.  The initial stage of the shakedown was widespread negative media attention. intended to frame Bitcoin as "evil" (unless, of course, the Bitcoin economy can be fully commandeered by the racketeers).  This stage of the shakedown was signaled by the racketeers' little written threats ("subpoena"); this stage is intended to identify, sideline and ruin businessmen unwilling to obey, because these businessmen are threats to the extortionists' systems of total control.

Those businessmen and VCs who kowtow to the racketeers implicitly do a Faustian bargain with them:

1. The extortionists get to use these people as mouthpieces.  Faced with the prospect of losing their businesses, most of them will suddenly find it within their heart to rationalize to themselves and others that "regulation good, free market baaa-aa-a-d").
2. The extortionists also get to use the businessmen's ventures as global snitches, having them spy on everyone.  Of course, this snitching will ultimately be used to punish decent people who happen to be disobedient, or (worse) caught doing something perfectly innocent which just happens to look "suspicious" (see asset forfeiture).
3. The businessmen get temporary favorable treatment from the extortionists. They get not to have their businesses robbed or sabotaged by the extortionists. That is, until the next shakedown -- where the extortion victims will be more likely to obey unflinchingly, since they already capitulated before.

In contrast to them, anyone who doesn't take this "bargain" -- say, anyone who ignores the racketeers' threats -- simply loses everything in the process. If you disobey, the extortionists do you a von NotHaus or a Liberty Reserve:

1. The racketeers have armed men violently pluck you out of whatever hole you're living in.  They will do this with zero consideration to whatever "laws" might prohibit them from kidnapping you.
2. Then then throw you in a cage under pretexts of made-up sins.  Before or while you are in the cage, they extort everyone who controls your property, instructing them not to hand it over to you, thus leaving you utterly defenseless.
3. You will remain there until the cultists in black mumus declare that they will steal everything you own and keep you in the cage for good.  They'll write up a long rationalization about how this is supposed to be "justice".
4. Then you will be reduced to a living, caged example of what the racketeers can do to anyone who disobeys them.  Nearly anyone who mentions your name will do so to refer to you as "scum" or equivalents.

What a deal, huh?

Now you understand why the Bitcoin businessmen are all suddenly waddling in line, quacking the same tired old line of "obedience good, four legs bad".  You're simply witnessing the effects of the racketeers' shakedown.

The world is mad; you are catching a rare and historic glimpse of the method to the madness.

More

• Regulation and the future of Bitcoin
• Trust no U.S. companies with the future of Bitcoin