Bitcoin dies in two very simple steps.

The charge: money laundering.

On May 15, Under the headline US Government Begins BitCoin Crackdown, Zero Hedge reported that:

Many people use Dwolla, a PayPal-like payment network, to send dollars to their Mt. Gox accounts. They then use those dollars to buy Bitcoins. On Tuesday, Dwolla announced that it had frozen Mt. Gox’s account at the request of federal investigators. It’s the first federal action against the currency.

And, by the way:

Sen. Chuck Schumer (D-N.Y.) described Bitcoin as an “online form of money laundering”

Outside in doesn’t share Moldbug’s BTC prediction, but the projected narratives don’t diverge much for some time. By attempting to stamp out Bitcoin, USG rapidly converts it into an overtly subversive revolutionary currency*, used only by those in explicit (though covert) antagonism to the regnant global economic regime. The test then begins.

*Typically, reactionaries don’t like revolutions, but that’s because revolutions are typically democratizing. When the neoreaction gets to watch a spontaneous right-wing revolution unfolding, against the democratized or ‘political’ economy, I suspect that they’ll quickly recover their natural sympathy for it.

ADDED: The greatness of Peter Thiel on display (via, and as anticipated)