Topic: What will happen to BTC if Government gets involved? - page 2. (Read 271 times)

Government shares part of profits you makes from bitcoin, so they accept it, but they want to know the details of all transactions (to take a portion of them as taxes) and impose centralization on conducting transactions.
The first part began with the attack on privacy services, and if they succeed in that, they will move to mining pools. They will try to force them to adhere to the ban lists and blacklists.

Bitcoin must not necessarily be a legal tender in all countries before it is said to be legalized. Government have seen that bitcoin have come to stay and that is why they are embracing it, but at the same time they are trying to see how they can regulate it by taxing bitcoin transactions, and that can only be achieved through a centralized platform. Government cannot control bitcoin and is not against bitcoin. Fiat is used more for illicit activities than Bitcoin, but because they control it, they bury the news.

What I understand until now is that the government can only provide regulations, cannot fully control. This means that they know that the development of crypto is very rapid, the amount of money in circulation is also very large so they want to profit from this process. Therefore, today many countries legalize it as a commodity. They create supervisory institutions in accordance with state rules. They also made a decision to take taxes on state income. I didn't expect Bitcoin crypto to be a payment, making it a commodity already makes me happy.

"Governments" are not against Bitcoin. Some governments are, some are very open to it and want to create an enabling environment for it. Also, those against it are not doing so because criminals are using it. Criminals are using their legal tenders way more but there's no campaign against it.

Your assumptions are wrong. Most governments are not against Bitcoin since it is legal in most countries of the world. They do want to regulate it, though.


Those are two separate things. I doubt that Bitcoin will ever become legal tender in all (or most) countries in the world, but it doesn't have to be legal tender to be accepted as a means of payment or an investment asset.
As for regulation, that is already happening in one form or another.

Criminals are using fiat currencies that are created and controlled by governments and central banks. Did they stop all money laundering and criminal activities through their bank systems and fiat currencies?

The answer is no, they failed to do that.

With time and more adoption, growth of Bitcoin and its increasing market cap, governments will have more regulations on Bitcoin and this market. Legal tender or not, they will enforce more laws and regulations.

Short term, when any stricter regulation is out, the market will react negatively and can crash too. Fortunately in long term, the market will reflect growth of value, not regulations from government so price will increase to reflect higher value of Bitcoin.

The bullish case for Bitcoin

The first country that adopted Bitcoin as a legal tender is El Salvador, before other countries began to involved themselves to use Bitcoin to eliminate delay in their transaction, because many citizens prefer to use Bitcoin to purchase any kind of goods and services to pay with Bitcoin which it has helped the government to improve many business men and women in their country. There is no currency criminals are not using to collect fund from citizens, I have seen many victims that was collected huge amount of fiat money from some citizens without a single tracy of the money, because they collected the fiat money physical from the owners, for you to know that criminals can use any currency for their criminality. If many countries find way to adopt Bitcoin as a legal tender, it will do good to such countries, because the decentralized currency is be created to use for good and it will create many opportunities for the countries that adopted it as a legal tender.

Most likely Bitcoin isn't taboo anymore to be discussed and some old school investors might dare to invest in Bitcoin, that's. I doubt if people will choose Bitcoin over fiat for micro transactions, because people want free/cheaper choice instead of paying Bitcoin fees for every transactions.

Regulate isn't always about completely controlling something.

As small as the government consider Bitcoin is an asset and should be taxed, it's already a form of regulations. Other kind of regulations are: treat Bitcoin as a commodity or property, banks restrict Bitcoin transactions etc etc.
 
This means most of countries already regulate Bitcoin, if Bitcoin didn't regulated, it should be stand in "grey area".

Maybe your sentence is wrong because no country's government will ever have a chance to regulate bitcoin, we all know that bitcoin is an open-source crypto currency. Bitcoin is termed as a decentralized digital currency and even I know that no financial institution is required to transact this Bitcoin and Bitcoin is not a currency issued by the government of any country.
There are many countries where Bitcoin is not fully legal but there are various transactions that take place through Bitcoin. We all may have heard the name of a country called El Salvador which is a Latin American country. El Salvador is the first country in the world to accept Bitcoin as legal tender. Since then, citizens of El Salvador have been allowed to freely trade bitcoins in the country and pay with bitcoins after purchasing various goods.

It's no news that governments wants to have control over bitcoin but it's very impossible but they can obviously regulate it's use through various means but the word "Control" is not compatible with bitcoin as they both deviate each other.

Did you just say bitcoin (crypto) is used for criminals? Is there any currency that is not used by criminals? Before there the introduction of cryptocurrency this said crimes that has is been attached to bitcoin and crypto at large has been in existence and transactions has been going on with the governments fiat. I can proudly say the statement that bitcoin and/or crypto is used by criminals is just an excuse by the governments as they do not have any reason for the hate of bitcoin rather than it's a decentralised currency that they do not have control over as they can print as much as fiat they want but bitcoin is 21million limited.

El Salvador has already made bitcoin a legal tender in their country and that had a good effect on the market (temporarily). That's the only country that has seen the best part of bitcoin and decides to adopt it. So if other governments decides to adopt it as a legal tender it's not going to be a surprise.

We have discussed related topics here over and over so if you must know a lot of people already thought of that.

With the way things are going and most governments being against bitcoin and crypto because criminals are using it, how would it be if Government finds a way to regulate it and all or most countries adopts it as legal tender?.
How will it affect the market?
Have you ever thought about that?.