One of my friends is always worried that some day the Governments all over the world one day ban all forms of cryptocurrencies and he will lose all the hard-earned money he has put in these virtual currencies.
I asked on Steemit, and people said that there is virtually no chance the governments will ban all these currencies, but I had always had a few questions.
With bitcoin transactions increasing many folds each day and people are not only investing in them but also mining different coins that cost nothing virtually to mine and store.
How can the Government regularize or control something that is as decentralized as a bitcoin or ETH?
But if the Govt does not ban these coins or does not find a way to control them, then they are going to lose a lot of revenue. Regarding taxes that would have been collected if a Dollar was spent at the coffee shop.
How will the Govt compensate this loss of taxes?
Today it might not be a big question, but soon we will have to answer this.
People who are in the administrative fields and those running the Govt will soon realize that the freedom that Bitcoin and the ilk are providing will soon turn into massive monetary losses for the Govt treasury.
A glance at Bitcoin trades will show us the value that the Govt is going to lose.
Do you still think the Govt will not ban or take control over Bitcoin and other currencies?
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I don't think governments can ban them even if they wanted to. They could attack them by taking out mining farms though - just cutting the power supply would be enough. Dan has spoken about this before. The fall in hash rate could create stalemate until the algorithm readjusts the difficulty.
I agree, they cannot ban even if the wanted to but then they will end up creating ways to tax us.
As of now, the Indian Government is sitting silently on this topic, but they had invited people and organizations to debate about Cryptocurrencies. I wonder what laws they are going to make. And I am yet to learn about what the US is doing about this.
You can't escape the Taxman!
Correct. Fear the TAXMAN!!!
O bitcoin and cryptos in general are either the future of economies worldwide, or are going to get squashed by the government.
In the instance of a ban, Im assuming all the government will end up doing is drive the prices to ridiculous amounts, crpytos will be used extensively in the underworld(as it already is in the dark and deep web). Due to its decentralized nature, governments wont be able to trace, or ban cryptos completely and it may actually have the opposite effect, more people may utilize it.
On another hand, governments could turn it into another form of currency, using their massive infrastructures and power to mine, control, acquire and distribute it, turning cryptos into something similar to fiat money. in this case, I believe countries will adopt a two money system, one for normal transactions, and a fluid, dynamic one( crypto) for digital transactions.
If countries adopt a two money system then it will be awesome.
lol, It would be a nightmare, all the work to get out of the goverments grip, only to end up working for them again.
Lol yeah.