Since entering the cryptocurrency space a few years back, one of the things that always bothered me was the way many people react to cryptocurrency regulation or even the concept of outlawing it all together. The usual response to regulation is good luck with that, and most people claim that cryptocurrency is unstoppable so therefore outlawing it would just be an exercise in futility!
Cryptocurrency regulation has been the subject of much debate recently. Indonesia & China have declared an outright ban, while other countries like South Korea have turned towards some form of regulation. Regardless of how you or I feel about regulation, I think some form of cryptocurrency regulation will be inevitable in the not so distant future. So regulation aside, what would happen in the event of a full ban or the complete outlawing of cryptocurrency?
The first reaction I usually get from people is, "You can't stop crypto! Good luck with that! I'd love to see them try!"
Hey, I can totally respect that. The Dood's about as anti conformist and non-statist as they come! Before I even get started on this let me just say that technically these people and this mind set is basically correct. It would be really hard for governments to ban or outlaw cryptocurrency completely. The Genie is indeed out of the bottle and Pandora's box has been opened. In the greater scheme of things not only would it be extremely difficult for any government to stop cryptocurrency, it would probably be down right close to impossible.
Now lets be realistic about this for a second. We've seen how governments react to things they can't control in the past. Lets take a look at the drug war. Regardless of how you may or may not feel about drug use, the truth of the matter is most governments aren't friendly towards drugs they deem illegal. Marijuana, cocaine, and heroin have been illegal for as long as I can remember. A perfect example of you can't stop what you can't control! You can pass all the laws you want, yet if someone wants something bad enough, they're going to figure out a way to get it. OK, fair enough, lets chalk another one up to the "Government can't stop this" camp. The drug war proves that all the regulation in the world will prove ineffectual when people really want something.
I think another thing the War On Drugs teaches us, is how governments react when they can't control something. Innocent, non-violent, non-compliant people are locked up and incarcerated for a simple lifestyle choice. They've committed no other crime other than ingesting a compound or substance the government deems illegal. Other people are incarcerated for supplying said compounds and substances. Task forces are created, assets seized and forfeited, families destroyed, and violence committed by those who aren't going out without a fight!
I think you see where I'm going with all this. Yes, I agree they can't stop cryptocurrency, but they can make it extremely uncomfortable for those who wish to use it if they want to.
Now lets take this a step further. Cryptocurrency has moved past what many would call the "fringe" elements of the dark web. Steemit is a perfect example of the new growing cryptocurrency user. People from all walks of life, from mothers & fathers to the average guy on the street, people young & old, 90% of whom are probably good, decent law abiding citizens use cryptocurrency in the growing Steemit community. We're now seeing Wall St. enter the cryptocurrency space. Musicoin makes it possible for music industry artists to reap the rewards of cryptocurrency. My point here is that cryptocurrency is no longer for the outlaw fringe, another reason prices continue to rise as the crypto ecosystem continues to grow and flourish.
All these new users add to the cryptocurrency ecosystem. Their trade volume adding to the overall trade volume of speculators, traders,outlaws, investors and everyone else who regularly uses the various exchanges as a means to cash out into fiat so they can spend their earnings in the real world.
So we've seen how governments react to people who use drugs, run illegal gambling operations, or supply services to people that they may deem illegal or inappropriate. Watching the nightly news it's not unreasonable to say that the powers that be have no problem kicking in doors, shooting the family pets, and incarcerating people they feel are involved in illegal activities. Do you honestly believe, that the average person, Mom, Dad, your grandmother, neighbor, aunt etc are going to risk having this happen to them or their family in the event of a full ban on cryptocurrency?
The only reason I bring this up, is because it's something that's bothered me since my first day of getting involved in this space. Anytime it's brought up, the standard reply is, "Can't happen here!", "Good luck with that!", "Just try and stop me!" Well chances are someday somebody just may "Try and stop you" and when they do the penalties will be severe, and much harsher than they probably should be. Somewhere along the way, they'll probably wrap it up in a blanket of "Drug War / Terrorism / We must protect society & the children! Dear god the poor, sweet, innocent children, do it for the children!" Unfortunately, once the propaganda machine gets turning, it's pretty hard to shut off and eventually they'll get their way.
With all that said at this point I think it's safe to assume that no they can't stop cryptocurrency but if history has shown us anything they certainly can make it difficult and downright uncomfortable for anyone that thinks they still will after a ban. On top of that how many parents, grandparents, and decent law abiding citizens do you think are going to risk everything for cryptocurrency. They may not be able to stop us, but when they can no longer collect taxes, freeze assets, or control the money chances are they may try to ban cryptocurrency. It's a real threat & one that should be taken seriously !
So I ask you, what do you think would happen?
Is this an over reaction, and just not possible?
Would you still use cryptocurrency if it was illegal?
Would you fight for your right to privacy & use of cryptocurrency?
How far would you take it?
Would you risk going to jail for it?
Would you put your family at risk over it?
Would you still trade?
What about the exchanges, if you couldn't transfer to fiat would it still be of value to you?
They may not be able to stop it, but I have a hard time believing that the average person is going to risk going to jail over this. I hope you comment and share your thoughts. I'd love to here from as many people as possible from all different walks of life! Thanks for reading.
Images believed to be in the public domain & courtesy of openclipart.org
Upvoted Dood. Enjoyed the article. If, and it's a big IF, exchanges would complete the proper annual tax forms and send to exchange users it would remedy the bulk of Big Brother's concerns. It's ALL about taxation. As long as its getting its pockets lined Big Brother honestly could care less.
Not that I'm a huge fan of taxation but agree 100% with what you're saying. It would be nice for the exchanges to supply profit & loss and all the necessary documentation to comply with tax laws. I may not be a huge fan of taxes, but I do and try to comply to the best of my ability for obvious reasons. When big brother gets his cut it certainly does tame the beast if you will.
In no way am I a fan of taxation. That's the major problem with this country today. Take the money away and POOF the U.S. will pull out of a going-on-fifteen year military conflict we have no business in and local police departments wouldn't be funded like mini-army units. Just saying.
I couldn't agree with you more. Sometimes I wish there was a tax exemption for "conscientious objector".
I do not use any exchanges that use fiat, or actually, maybe they all do and I just wouldn't know because I use Coinbase only for that and I don't consider them an exchange though.
The value of cryptocurrency to me is because it is legal, if it were to flip illegal, while I support it's use and know for a fact blockchain technology will be around in some form because it being something that works, I can't see myself personally using it. I think this is the average person thought on this.
The drug argument is at least those things provide a service when bought, if I grabbed a fat sack of that illegal Dogecoin, it wouldn't make sense unless goods or services would still be available (or it got me crazy high).
I am more concerned at the hypothetical that would get us to the point that they would make it illegal. I see "governments" trying to band together and attempt to control things more so than stop it (with the ability to fork and altcoins a plenty, I think they know that wouldn't work).
Foto good))
I totally agree with all that. I think government control, and regulation will be the more likely outcome. South Korea has already asked for some sort of international coalition to try and figure things out. I'm sure the G8 and other international government groups will have crypto on the agenda soon as well.
I think the hypothetical scenario that would drive an outright ban would be having it tied into terrorism. We've already seen them try that one in France.
https://www.google.com/search?q=french+terror+attack+cryptocurrency&ie=utf-8&oe=utf-8
Never underestimate the power of the drug war either. Declaring it an instrument of crime or some other nonsense.
My guess will be that they'll somehow try to ban "privacy" coins, and figure out how to regulate the currencies they can keep track of.
Thanks for the objective outlook in regards to whether or not cryptocurrency can be stopped. Government regulations and other factors will surely increase as cryptocurrency becomes more popular but isn't it also the case that this will put cryptocurrency more in the public eye and support its further use? With the rise of platforms such as coinbase and gemini, cryptocurrencies are currently in a very comfortably legal status in the US. Countries such as Japan have embraced crypto greatly - it's going to be interesting to see the market effects of countries increasing regulation, but as of now I do agree with the notion that it can't be stopped. Thanks for the enlightening read - resteemed and followed :)
Thanks for the resteem and glad you enjoyed it. I think the more popular cryptocurrency becomes, and the more it becomes ingrained into our society the less we need to worry about over regulation, or a straight up ban. One of the great things about platforms like Steemit is it's introducing a lot of new people into the cryptocurrency ecosystem.
It's a thought that has crossed my mind after the situation with China and South Korea came into play.
It is definitely not something I would be willing to go to jail over but I would still like to think I'd use some of the tech that comes with certain crypto tokens if they are feasible.
People don't realise that for crypto to be a dead cert, we need to have no fiat system. Something that requires a global adoption, and a break down in our current system, this we won't see for years and years.
The other scenario being if the the powers that be decide that crypto is the new way and they continue to make announcements to manipulate the market so they can stock pile and generate enough to change the blockchain system in their favour, which would be great for us early adopters, but would cause poverty like we have never seen before.
It's a very big if and but situation and it's a great discussion. It's just a little too early to be thinking one way or the other, I think.
Hopefully it will grow more and there will be more great platforms like Steemit that show up to the party, this will help the adoption of it seem viable. Just always have to remember how much money there is in the world, and how much money some people will pay to make sure something doesn't happen. The greed in this world will always destroy the little guy.
Thanks for the post, I really enjoyed reading it. What are your thoughts? Would you still use crypto if it ended up getting banned?
I'd like to think that I'd adopt parts of it's technology, I'd also like to think that no matter what happens I think parts of its technology will inevitably be adopted into other technologies. If it was ever outright banned, I probably wouldn't use it. I tend to try and stay away from activities that could get me sent to jail. I do however really believe in the ethos of what many of us are trying to accomplish so I honestly can't say for sure. If we succeed this is some future changing stuff!
They can't stop it as long as there's miners or witnesses somewhere in the world, but if you can't use it then the value will fall and it won't be attractive. It's going to be interesting to see how this pans out in the next few years
From a legal stand point the next few years are going to be incredibly interesting to watch how they handle all this. I think it's becoming increasingly clear that cryptocurrency is here to stay, and about to change so much in finance, IoT, copyright, content distribution and the list goes on and on. All the more reasons that an all out ban is highly unlikely. The only way they really could stop it would be to make it worthless to the average user and taking away the ability to use it, would do just that.
When regulation comes into force, take note of that last word, force, force will be used to enforce it.
Secondly, because they know they can't stamp it out, the approach they will take is, if can't beat them, join them. Governments worldwide will introduce their own national cryptocurrencies, or, push a one world crypto, a'la, cashless NWO.
However, while you have given examples of the pushback that governments execute, a more relevant example is file sharing. Drug usage and dealing requires the exchange of physical substances. Crypto, like file sharing, is digital, virtual. While they may have taken down Piratebay and the like a number of times, Silk Road and jailed a few people, it still booms.
Look at Game of Thrones, the most pirated TV series ever. There is nothing they can do to stop it. As you said, when people want something, they'll get it. The fans of this show certainly fall into your average citizen class.
You have not fully addressed the point of demographic. You mention ma and pa with family along with the grandparents who still don't even have a clue about VCRs. But, you did not address the bulk of crypto users, 15 - 35 year olds. These people grew up with technology. The law makers are struggling to understand and control technology.
The law makers have already lost. It is not only technological r/evolution, but also a generational revolution. We're talking about the same demographic that doesn't give a damn about copyright and the illegality of downloads or other forbidden digital fruits. Once they have the taste of crypto and what it can do for them, there is no going back.
Certainly we are in for some hurly burly in the next few years as the banksters and goverments struggle to remain relevant. But just as the Catholic Church tried with force to stem the revolution of the printing press which fired up the reformation and failed trying, so too will governments and banks ultimately fail in regulation and enforcement thereof and also become sidelined.
The times are a changing.