Some of the largest countries in the world certainly have the power to inflict serious damage to BTC,only if they decide to do that.Take for example China,they ban cryptocurrency trading and this is not have almost no effect(maybe the price would be bigger if they operate) on BTC in general,but they also have option to ban mining, and this would seriously damage BTC at least for a short period of time.
When it comes to controlling finance,some government would be in the case of feeling threatened too much could join in a joint venture to "sink" BTC.In terms of value BTC is now around 200$ billion,and USA military budget for next year is something around 700$ billion.So they have enough money,power and necessary infrastructure if they want to go against BTC.
Topic: [2017-12-05] Threats That Can Sink Bitcoin - page 2. (Read 5963 times)
The reason for such fluctuations bitcoin is the regulation of the government. I mean the prohibition of bitcoin in different countries. This also reduces the rate of bitcoin. Imagine if the government did not prohibit, what would be the course, as though the price of bitcoin was growing. They themselves rocked the boat and say that it is not stable
Banning bitcoin is pretty easy even in democratic country, because Bitcoin users are just a tiny minority and a lot of people haven't even heard about it. Take for example weed - 52% of Americans over 18 have tried it at least once, yet the government wages war on it. And although it's impossible to kill Bitcoin, they can certainly hurt it - if they will go after miners, which is very easy to do with their giant power consumption, we will lose the hashpower that secures current value of transactions in blocks, and they can even turn that hashpower against us if they will use seized mines to attack the network. ISP's might try to block or slow down all Bitcoin-related traffic, so we will have to use Tor, which will have negative impact on block propagation speed. Buying at selling Bitcoin would also be pretty hard if it will be outlawed, meaning less liquidity. To sum it up, lets just hope that it won't be outlawed by any major government.
I second your concerns about what could be done regarding bitcoin in most democratic countries, although I think if a government behaved likt that it would anything but democratic. It seems to me Venezuela could do that in the near future, given the massive demand for bitcoin in the country and the plans to launch a state coin soon.
But overall, I think we're seeing a movement towards legitimization of the network (which could always have its downsides).
However, banning bitcoin in any democratic country will be extremely difficult. Bitcoin's decentralized approach to currency is very people-centric and as it becomes more mainstream, more people will understand its benefit. Any democratic government that bans something so beneficial for the people risks losing power.
Banning bitcoin is pretty easy even in democratic country, because Bitcoin users are just a tiny minority and a lot of people haven't even heard about it. Take for example weed - 52% of Americans over 18 have tried it at least once, yet the government wages war on it. And although it's impossible to kill Bitcoin, they can certainly hurt it - if they will go after miners, which is very easy to do with their giant power consumption, we will lose the hashpower that secures current value of transactions in blocks, and they can even turn that hashpower against us if they will use seized mines to attack the network. ISP's might try to block or slow down all Bitcoin-related traffic, so we will have to use Tor, which will have negative impact on block propagation speed. Buying at selling Bitcoin would also be pretty hard if it will be outlawed, meaning less liquidity. To sum it up, lets just hope that it won't be outlawed by any major government.
Quote
We believe that the greatest threat is regulation aimed to kill Bitcoin. Several governments across the world have clamped down on exchanges, some halting trading altogether. Others have gone on to outright ban the use of Bitcoin. Sudden government actions in major Bitcoin trading hubs stand to disrupt the market, with the potential to severely affect the utility of bitcoin and its value.
However, banning bitcoin in any democratic country will be extremely difficult. Bitcoin's decentralized approach to currency is very people-centric and as it becomes more mainstream, more people will understand its benefit. Any democratic government that bans something so beneficial for the people risks losing power.
Another threat is the community disagreements and conflicts that result from this -- such as too many hard forks -- also have the potential to create dangerous turbulence in the marketplace. While nothing severe has happened just yet, this possibility becomes greater as the market gains momentum and the stakes become higher.
"Bitcoin has found a way to overcome many obstacles in the past," said Pitti. "The industry learned from Mt. Gox and wallets and exchanges have dramatically stepped up their security game." But such a raid on the exchanges with hackers growing craftier and with those controlling the exchanges often operating without significant checks and balances in place. The price of Bitcoin has been climbing for quite some time now and any black swan event could make people, especially those who are new to the cryptocurrency space, quickly lose their confidence in it and make the price drop rapidly.
"The biggest issue that Bitcoin is currently facing is related to scalability," Karki said. "The price and delay in transactions are making it difficult to actually use. Some people seem to prefer this, it portrays Bitcoin as a good store of value in their minds, while others would like to see it have some utility."
This is a market used to double digit price swings both upwards and downwards and holding can mostly be considered the most effective action to take in turbulent times. Though some insist Bitcoin is a bubble ready to burst at any moment, some are ready to see Bitcoin soar to $40,000 and beyond, Chicken Littles be damned. Taken from this source...
However, banning bitcoin in any democratic country will be extremely difficult. Bitcoin's decentralized approach to currency is very people-centric and as it becomes more mainstream, more people will understand its benefit. Any democratic government that bans something so beneficial for the people risks losing power.
Another threat is the community disagreements and conflicts that result from this -- such as too many hard forks -- also have the potential to create dangerous turbulence in the marketplace. While nothing severe has happened just yet, this possibility becomes greater as the market gains momentum and the stakes become higher.
"Bitcoin has found a way to overcome many obstacles in the past," said Pitti. "The industry learned from Mt. Gox and wallets and exchanges have dramatically stepped up their security game." But such a raid on the exchanges with hackers growing craftier and with those controlling the exchanges often operating without significant checks and balances in place. The price of Bitcoin has been climbing for quite some time now and any black swan event could make people, especially those who are new to the cryptocurrency space, quickly lose their confidence in it and make the price drop rapidly.
"The biggest issue that Bitcoin is currently facing is related to scalability," Karki said. "The price and delay in transactions are making it difficult to actually use. Some people seem to prefer this, it portrays Bitcoin as a good store of value in their minds, while others would like to see it have some utility."
This is a market used to double digit price swings both upwards and downwards and holding can mostly be considered the most effective action to take in turbulent times. Though some insist Bitcoin is a bubble ready to burst at any moment, some are ready to see Bitcoin soar to $40,000 and beyond, Chicken Littles be damned. Taken from this source...
Bitcoin has been surging in value for weeks now but there remains to be big challenges that can soon be threats to it if not given appropriate solutions and remedies. I am now wondering if the decentralized nature of Bitcoin has not become a big hindrance for swift resolutions of the problems affecting it a long time. It is as if Bitcoin could not decide on what to do and what are the solutions that should be adopted because there is no single person who can decide for it. Well, as we realized now there are advantages and disadvantages with the decentralized nature of cryptocurrency but we know that at the end of the day the advantages will always win over.
Jump to: