The destruction of Bitcoin's fungibility by way of "validating" coins that were already perfectly valid

published Nov 14, 2013, last modified Dec 21, 2020

How governments and their acolytes are colluding to institute a scheme of "coin invalidation".

Recent news has it that a number of infamous individuals (including Yifu Gio of Avalon infamy) have colluded with the government to create the ultimate Bitcoin destroyer plan, under the guise of "getting Bitcoin" into the mainstream.

Their plan -- and "business venture" -- is called CoinValidation (tragically ironic name), and it's about destroying the fungibility of Bitcoin by providing services to assess whether coins are "valid" (translation: their present and past owners are obedient subjects of government) or not.  So what do they do? They electronically divide us into nice and tidy piles of "dirty" and "clean", getting us to attack each other and generating a black market to "wash" perfectly good and usable coins.

At the beginning this racket will be optional. At the beginning. You know, to give people a chance to choose their sides and cultivate hate against the other side. Then, the moment you least expect it, if you chose the "wrong" side, you will be effectively broke. And you may very well be caged too, under the pretense of you having "attempted to launder illegal money" (or "invalid" coins, if you prefer).

As you can see, CoInvalidation is literally a service that is about coin invalidation -- about invalidating your money, your hard work, your future plans, and your possibilities, if you dare to disobey.

A five year old understands that their "service" is actually a disservice that need not exist at all, except in a world where psychopathic control freaks need to keep tabs on everyone else...

...and yes, of course, psychopathic control freaks are involved.  Yes, this disservice is actually a government scheme.  Conceived by no one else but the criminals who do business as government.  Of course, they want to pass this off falsely as a "voluntary venture" -- more of that in a minute -- because that's who they are, and that's how they operate: through subterfuge and underhandedness. 

No, they don't ever do these machinations directly, no. It would be too obvious. They need to get unscrupulous sellouts to do the dirty work for them. So that then these organized criminals d.b.a "government" underhandedly pass it off as a "voluntary scheme".

Fortunately for them -- and unfortunately for us -- there is no shortage of myopic crooks who think they're gonna make out like bandits by brown-nosing psychopaths and signing Faust on the dotted line.  Fools, they don't know they're dealing with the ultimate Mafia.

What is the worst part is the stupidity (or deliberate venality?) of these brown-nosing morons.  They say their disservice is "private and optional", and they say they're gonna make money.   It's like they didn't think of their business plan.  Think about it -- which businesses are going to pay for CoInvalidation, and simultaneously cut out the vast majority of their customer base paying in a nascent currency. unless they are forced to?  It is obvious that their oligopoly scheme cannot work or make any sense, unless it be so ordered by criminals like "FinCEN". 

Do you think this isn't possible?  That they would never do this?  Wake up.  It has been done before.  Look at how the Germans "confiscated" the stone coins of Yap to manipulate them:

A few officials went around the Island, spray-painting sizable black X’s on the biggest stone coins they could find. They then proclaimed, for all to hear, that these stones were now confiscated funds of the German government. [...] The Germans never took a thing away from the residents of the Island; they simply preyed on the peoples’ willingness to play by their rules.

This is exactly what these predators want to do to your money (and, by extension, to you and your family).  They want to place big meaningless marks on our coins which say "Invalid", to manipulate you into obeying their every whim and snitching on yourself.

And that is exactly the endgame.  That is how antisocial criminals, fearing for their "job security" as Bitcoin grows, manage to capture Bitcoin for their own purposes.

It is the perfect plan to destroy Bitcoin.  I want you to reflect for a minute about the machiavellian brilliance of this plan.  They cannot ban Bitcoin outright. They cannot let it operate freely. They cannot effectively regulate it.  But they can shell out a few bucks to a few morons up to do their dirty work of classifying decent people as criminals... and then, once this situation is normalized, ruin those people's lives, and the lives of anyone who refuses to use the morons' newfangled cattle tracking system.

Have you ever seen something so malevolently orchestrated to blindside and hurt so many decent people financially?

Now you have.  And now, a glimpse of the potential future heralded by the collusion of these useful idiots and their conspiratorial criminal partners in government:

Hi Xiao there is a problem with the bitcoins you sent for the widget protectors you've ordered from us.
Hi Bob 
What's the problem - the transaction has been in the blockchain since the weekend?
Hi Xiao
Well I'm afraid your bitcoins are blacklisted.
According to CoinValidation one of the coins ancestors has been identified as a known criminal.
That's terrible Bob - what did he do?
Well apparently he failed to pay for his medical bills then was arrested when the they tried to throw him and his family out of his house for rent arrears and he wouldn't leave on time.
What a sad story - why didn't he leave?
Oh well his illness made him quadraplegic so he was stuck in his bed. The police arrested him for 'non-cooperation'. 
Anyway that's another story - the point is I need some clean coins.
Ok well can you send your ones back as I can still use them.
Sorry Xiao I can't do that or I'll be charged with passing on stolen goods. 
So I'll need some more coins. You could try sending to a fresh escrow address and we can check them that way?
That's another few % Bob. And I've lost the coins I sent. 
I'm already doing you a favour as I've relatives in the US and I've seen the poverty and trouble you're having on the news.
But you're my last customer! All the others are using African suppliers!
Sorry Bob but I've got a family to feed here and bitcoins don't grow on trees.
Ok Xiao. 
They've bounced my visa application for Canada again.
But things are looking up for my Mexican application!
That son you didn't know you had been in contact again?
Yep, god bless that Fernando. 
Of course he wants some of my remaining bitcoins but hey, it's all family!
Good luck Bob
You too Xiao