Let’s suppose someone has a wad of Bitcoins (not me 🙂 and now that the US government (and California it seems) are trying to be a wrench in the Bitcoin works, a wealthy Bitcoin investor starts looking for other ways to retrieve the value in their Bitcoin.
First, notice that the value in his Bitcoin is still there and didn’t just vanish. That’s because the value of Bitcoin is established in the WORLD marketplace. With the lack of reaction in the Bitcoin price after Mt Gox suspended accepting US dollars it appears the marketplace is saying to the US that, though important and invited, the US is free to abstain if they wish. The world market will continue on without it.
Anyone with Bitcoin has the whole world in which to find someone willing to take payment in Bitcoin and for whatever product or service that they might choose. Bitcoin was designed to be an Internet currency and it does that very, very well. So if a US resident decides they want a Volvo, and shipping is available, then the US resident simply buys his Volvo overseas and has it shipped in. The only effect of the US policy was to drive a US customer to markets outside his own jurisdiction.
This is just an example of course, and an automobile might be among the most difficult items to have shipped in but you get the point. Whether I want web hosting, a computer, a phone, T.V. or what ever I can order, have delivered and someone can still get it no matter what the US government wants. Let’s hope the US government doesn’t do a replay of the 30’s and make Bitcoin, (a harmless product) “illegal” like they did with gold in this, the “home of the free”. The U.S. is getting to be more and more Orwellian each passing day.