Bitcoin Supporters Clash Over Idealogical, Practical Issues
Kristen Brown and SFGate report on a widening schism between Bitcoin enthusiasts calling for more regulation and those who want to protect the independent, libertarian spirit of the cryptocurrency.
Like U.S. dollars, Bitcoin works both inside and outside of a regulatory environment. Bitcoin enthusiasts need not choose one of the other, but they do have that option if desired. Bitcoin purchased with localbitcoins.com is private and out of the reach of governments. Bitcoin purchased with coinbase.com is regulated and presumably tracked by the U.S. government.
Bitcoin is inherently under less regulation than the U.S. dollar, and Bitcoin will always have that advantage. The U.S. government creates and destroys dollars at will. The U.S. government cannot do that with Bitcoin because, like the Internet, Bitcoin is decentralized, created by internet-based individuals across the globe. Currently, nobody has the technology to crack the cryptography of Bitcoin.
Corey Chambers, The Bitcoin Blogs