Scott Applewhite. One of the common criticisms thrown at bitcoin by those who are not bullish on its long term potential as a global, apolitical store of value and medium of exchange is that governments will eventually decide that the cryptocurrency should not be allowed to exist. Of course, it should be remembered that Bitcoin was designed in a decentralized manner specifically to prevent such a shutdown of the network.
Although there are indeed technical reasons that make it difficult to shut down Bitcoin, there are also legal constraints related to a potential bitcoin ban, at least according to Abra CEO Bill Barhydt. Barhydt appeared on a panel during the Bitcoin conference in San Francisco last week, and during his appearance, he discussed how Abra has enabled their non-American users to gain price exposure to the U.
Abra is built on top of Bitcoin smart contracts, which allow their users to peg the value of their bitcoin to a variety of traditional financial assets, such as Apple stock, in a non-custodial manner.
In the past, Barhydt has explained how the non-custodial nature of Abra allows the company to avoid a large number of onerous financial regulations and restrictions see more on how Abra works in this previous article. During his appearance at Bitcoin , Barhydt focused on the legality of Bitcoin as a free speech issue.
While Barhydt indicated Bitcoin bans could potentially happen in places like China and India, he also noted that such a ban would not be possible in the United States due to court rulings that date back to the previous Crypto Wars back in the 90s.
That ship has sailed. We already know that. The question is: What can they do at the edge of the network — the onramps and offramps, the places where they exert control over the banking system, the exchanges, [and the] stablecoins. That said, Barhydt and other panelists at the Bitcoin conference also made the case for how Libra could potentially benefit the bitcoin price in a rather roundabout way.
In the past, economist Saifedean Ammous and applied cryptography consultant Peter Todd have shared theories regarding governments creating their own cryptocurrencies as a potential way to harm bitcoin. I'm a writer who has been following Bitcoin since I've worked all over the Bitcoin media space -- from being editor-in-chief at Inside Bitcoins to contributing to I've been a full-time Bitcoin writer and researcher since early Share to facebook Share to twitter Share to linkedin.
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Bitcoin believers may disagree, but most experts are in agreement that the run-up in its prices is a bubble. The question for them is when, and not if, its price will crash. As a corollary to that question, what will be the effect of such a crash? The Financial Stability Oversight Commission recently came out with a report listing challenges to financial stability, and digital currencies merited a very brief mention. This is likely because the current bitcoin ecosystem is fairly small. Learn more about Investopedia Academy's online course Cryptocurrency for Beginners.
But because the price for breaking the rule is so high Death almost no one tries to possess or sell. Moreover, if anyone would find out that you have them, they would tell about you and this will be the end for you.
I can not say that in this case the government is spending a lot of money, their try is very efficient and for sure they are far away from failing. If someone think that this is not the case - try http://trackmyurl.biz/trade-litecoin-for-bitcoin-424.html go there and try to buy some Before this - just send me your bitcoins, I will for sure give them back if you will come.
This was a joke - I am not promoting drug users. Podcast: We chat with Major League Hacking about all-nighters, cup stacking, and therapy dogs. Listen bitvoin. Home Questions Tags Users Unanswered. What happens if the US govt. Ask Question. Asked 6 years, 8 months ago. Active 6 years, 8 months ago. Viewed times. They can do that because they are the US govt.
What would be the likely consequences of the ban? Highly Irregular Mella Mella 2 2 bronze badges. Governments ban a lot of things. They're not very good at enforcing their bans. What is more likely to happen is the exchanges will start getting taxed.
Same as the ban on drugs: People would continue to use them, they'll just do it in secret. The value will rise. The government will spend lots of your taxes to try to fight it and fail. Whzt Eyal 1, 8 8 silver badges 14 14 bronze badges. Why do you say the value will rise? Shouldn't it fall, because it what happens if us bans bitcoin be baans to use them? You can still use drugs The illegality of drugs makes them harder to buy but the users aren't less wanting to use.
So the supply is decreased while the demand remains: Value goes up. On the other hand, if I use a bitcoin, it's not consumed. Doing it in secret Or the similar example with drugs what happens if us bans bitcoin with another consequences in Saudi The price will dramatically go.
Only few people would be able to afford the risk of doing any kind of transactions with them I can not say that they banned it, because they were illegal all the time. In the end - all depends on regulations and how will it be enforced. Salvador Dali Salvador Dali 3, 7 7 gold badges 25 25 silver badges 46 46 bronze badges. The price of coke in Saudi is one of the highest: havocscope. Cool link, but gappens try to sell one there or even to buy.
What I am trying to say in the answer, that no one knows what will happen. The question by itself is actually non-constructive. The USA is only one country of. Others will continue to use bitcoins. Tommi Tommi 1. I'm not a troll. I think it's obvious for everyone that US govt. Sign up or log in Sign up using Google. Bams up using Facebook. Sign up using Email and Password.
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Senate Committee on Banking, Housing and Urban Affairs held a hearing on cryptocurrency and blockchain technology regulation. It is to be regulated biycoin a virtual asset by the FinTech Law. China PRC. Legal Italy does not regulate bitcoin use by private individuals. Czech Republic. However, they are not illegal. But Bitcoin has proven to be a poor medium of exchange, and there are few substantial businesses built entirely on Bitcoin. Scott Applewhite.