Proposed Italian Rule Shows How Little Politicians Understand Bitcoin Tech

This is a poster child example of the disruptive quality of Bitcoin, and some of the nonsensical attempts governments may take to regulate it. Proposed Italian Amendment Could Block Bitcoin Transactions Exceeding €1,000 By Treating it Like Cash

Issuing a mandate to limit transactions of Bitcoin to 1,000 Euros is laughable. With ease a simple program can work on top of the blockchain to instantly divide transactions into several smaller amounts. For example, for a purchase of $100,000, a buyer can instantly generate generate 101 new BTC addresses, transferring $999 to each one (with the difference made up on the last address). The seller can do the same, generating 101 receiving addresses.

Bitcoin is, as Reggie Middleton from BoomBustBlog.com puts it in tech terms, “smart money,” and these Italian policy makers haven’t yet wrapped their heads around it, tackling this issue as they would for “dumb money.”

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