What would happen if US government made Bitcoin illegal?

creeps

full member

Activity: 742

Merit: 144

Quote from: robresno on June 14, 2019, 10:45:45 PM

Let's say tomorrow there's a US law that any US person who gets caught with bitcoin server goes automatically to jail for lifetime.
And the 2400 US bitcoin nodes would go offline.
What would happen to price?
What would happen to hash power?
How long would it take to recover?
Let's speculate!

US has the big impact in cryptomarket, and the price of bitcoin will dumped for sure its a total disaster and many hodlers will panic, and we can see the real bottom of bitcoin even if its being backed up by many countries. The price can recover in indefinite time and no one can say when, but hoping for this not to happen because bitcoin deserve a better nation to stay for.

oseikuf44

member

Activity: 490

Merit: 10

Most ICOs, STO and other crypto projects don't accept US residents, yet we had a lot of coins that has been successful without US residents. The same thing applies if the government make Bitcoin illegal in US. However, the Investors will panic sell and will make the price of Bitcoins drop due to the oversupply than demand .

pixie85

hero member

Activity: 2184

Merit: 531

It's impossible because this is not how a judicial system works. Nothing happens overnight and you can't expect a bill to be passed and executed tomorrow. A normal ban would take months of voting and a controversial bill of a lifetime imprisonment for possession of some illegal goods would meet heavy resistance and take much more.

Even if it would pass all traders would have months if not years to get out of the country and take their coins with them.

thesmallgod

full member

Activity: 1498

Merit: 129

It amazing how people imagination works. you didn't speculate on how btc will rise if it gain adoption by the giant US companies and to make matter worse, people having to go to jail for holding bitcoin. Do you really think such thing can work like that. Just binance alone announced that they want to remove all USA users and there are already tons of noize everywhere about binance wanna block every US citizen attempting to use the platform. Bitcoin already got massive adoption by many big US own business. They can not ban but rather continue to impose regulations. you can stop dreaming Grin

BitHodler

legendary

Activity: 1526

Merit: 1179

Quote from: BrewMaster on June 15, 2019, 09:57:06 AM

instead of focusing on what may or may not happen with some government that doesn't even concern you, it is better if you start learning more about bitcoin and its mission for decentralization and cutting off the hands of the middlemen who are always intruding in our financial matters and have their hand in our pockets.
then you will slowly realize that the answer to your question doesn't even matter.

OP probably doesn't care one bit because most newbies are fully invested in shitcoins they don't bother to withdraw from exchanges such as Binance. It's not for nothing that Binance holds over $10 billion in user funds.

I do like it that newbies ask questions similar to these because that's what average joes think about when it concerns Bitcoin. How and what if governments start banning it? I noticed this around me as well.

There are various phases people have to go through in order to appreciate what Bitcoin is.

# buying altcoins and realizing they're shit.
# investing in ICO/IEOs and lose a lot of money.
# get trolled by their bank or government.

Maybe I'm missing another phase, but you get the point.

Dontme

sr. member

Activity: 798

Merit: 255

Quote from: robresno on June 14, 2019, 10:45:45 PM

Let's say tomorrow there's a US law that any US person who gets caught with bitcoin server goes automatically to jail for lifetime.
And the 2400 US bitcoin nodes would go offline.
What would happen to price?
What would happen to hash power?
How long would it take to recover?
Let's speculate!

If the US will make bitcoin illegal then obviously bitcoin`s price will get low, as we know US have the most users of bitcoin. You can`t expect that bitcoin could recover easily if US people can`t use bitcoin maybe it would take 20 years or more.

carlfebz2

hero member

Activity: 2926

Merit: 722

DGbet.fun - Crypto Sportsbook

Quote from: BrewMaster on June 15, 2019, 09:57:06 AM

instead of focusing on what may or may not happen with some government that doesn't even concern you, it is better if you start learning more about bitcoin and its mission for decentralization and cutting off the hands of the middlemen who are always intruding in our financial matters and have their hand in our pockets.
then you will slowly realize that the answer to your question doesn't even matter.

Nah! You cant really stop people on making those kind of what if situations which we can really able to see up the answer into this question if we do know thoroughly about bitcoins existence.Just to answer on topic,If US gov't make bitcoin as an illegal thing then it do really make some affects but not into the point that BTC will really crash hard.
It might decline its price but nothing can really stop into this innovative tech.

Genkotsu

member

Activity: 308

Merit: 10

US is the main country of this world and if Bitcoin illegal in there it means Bitcoin will have a big impact with price and reputation in the world.
let's we say if US is made Bitcoin illegal:
1. Price will have a drop so deep
2. Holder BTC on US sell all BTC
3. Reputation of BTC and cryptocurrency in the world is bad image
4. cryptocurrency slowly will die
i think that will happen if it true.

hatshepsut93

legendary

Activity: 3024

Merit: 2148

Quote from: CryptoBry on June 15, 2019, 01:38:56 AM

Now, using the scenario above, can we then conclude that the "life" of bitcoin is at the fingertips of the government? Though, of course, I don't expect the USA government to do what China did in 2017.

Yes, this is because Bitcoin is too small right now, it has very little users, so if the US would ban it, it will become a one more major reason to not adopt it in the first place. Bitcoin already has many flaws, like requirements to manage crypto keys, occasionally high fees, complicated interface, price instability - these things are preventing mass adoption, and a harsh ban would prevent it even more.
And currently the biggest use case for Bitcoin has always been trading, so being outlawed will effectively kill this use case.

Payme21

jr. member

Activity: 252

Merit: 1

That indeed will be disastrous to the value of bitcoin but this coin has metamorphosed into something great which means it will take more than one country to halt its foreseeable growth

BrewMaster

legendary

Activity: 2128

Merit: 1293

There is trouble abrewing

instead of focusing on what may or may not happen with some government that doesn't even concern you, it is better if you start learning more about bitcoin and its mission for decentralization and cutting off the hands of the middlemen who are always intruding in our financial matters and have their hand in our pockets.
then you will slowly realize that the answer to your question doesn't even matter.

amrulshare

hero member

Activity: 1316

Merit: 546

Monday Hit Me Every week

that won't happen, for example China has banned some activities in the cryptocurrency space, but in reality there are still many people who own and act on Bitcoin. I think at this time cryptocurrency has had a great and potential view to make the general public more open to their own financial resources.

Reatim

sr. member

Activity: 2828

Merit: 357

Eloncoin.org - Mars, here we come!

If does?then China will surely adopt Bitcoin and will be the main area where we can trade and mine this currency,because everything that will envy by US will be open arms accepted in China lol 😂

Hope this will never happen since EU and other big countries that support Bitcoin May end up withdrawing the support

Quote from: omone1 on June 15, 2019, 07:20:23 AM

What will happen if US government chooses bitcoin as their reserve currency? And what will happen if US government advises all citizens to buy bitcoin and secure their future and that of their future? Well if what you say happens, I see many bitcoin either relocating from USA or adopting another country's citizenship. True, USA government will be pro bitcoin.

That is different thing to discuss since that’s not the topic asked by OP,the other way around

Shenzou

sr. member

Activity: 1400

Merit: 283

Quote from: robresno on June 14, 2019, 10:45:45 PM

Let's say tomorrow there's a US law that any US person who gets caught with bitcoin server goes automatically to jail for lifetime.
And the 2400 US bitcoin nodes would go offline.
What would happen to price?
What would happen to hash power?
How long would it take to recover?
Let's speculate!

Assuming that bitcoin gets banned from the US it won't happen in a day or tow, people will have a notice before it does, and therefore i believe that between the time when the ban is announced and leading to the start of taking it into measure there will be a mayhem in the network , as all those coins and bitcoin that are owned by US resident start being moved, imagine how much bitcoin will be available to buy and that would mean that the supply will increase and that will actually affect the price in a bad way and we will see a high drop in it.

acroman08

legendary

Activity: 2436

Merit: 1104

Quote from: robresno on June 14, 2019, 10:45:45 PM

Let's say tomorrow there's a US law that any US person who gets caught with bitcoin server goes automatically to jail for lifetime.
And the 2400 US bitcoin nodes would go offline.
What would happen to price?
What would happen to hash power?
How long would it take to recover?
Let's speculate!

Price of bitcoin would crash since US has a huge influence on bitcoin's market and people would be panic selling creating a massive dump that would worsen the crash.

The Blocks produced per day will decrease. Here is a link about a similar topic where what if the hash rate drops. :https://bitcointalk.org/index.php?topic=232325.0

It could take months for bitcoin to recover. but as long as there are miners to mine the blocks bitcoin will eventually recover.

xWolfx

member

Activity: 322

Merit: 20

Donating 10% to charity

Quote from: rosezionjohn on June 15, 2019, 12:52:18 AM

If that ever happens, I expect many to go underground. Some crypto enthusiasts might even migrate to other countries where bitcoin is legal. Traders will most likely dump their holdings also. I don't about hash power.

Of course that will happen, especially in the U.S.

It was already proven with the alcohol prohibition in the 20s-30s. However, it would definitely affect price, volume, data and everything.

This makes me think that a Cyberpunk like situation could happen any moment in the future. Sounds fun.

omone1

member

Activity: 845

Merit: 52

What will happen if US government chooses bitcoin as their reserve currency? And what will happen if US government advises all citizens to buy bitcoin and secure their future and that of their future? Well if what you say happens, I see many bitcoin either relocating from USA or adopting another country's citizenship. True, USA government will be pro bitcoin.

iamverybusyperson

newbie

Activity: 174

Merit: 0

Demand fluctuates, but supply cannot adapt. This is fundamentally laid instability course. The speculators are good, the business is bad. The result is pitiable.

stadus

legendary

Activity: 3080

Merit: 1292

Hhampuz for Campaign management

It would certainly create some panic, but that is just a temporary panic.
I really don't see they will make it illegal as I believe they are pro crypto and this technology could help the economy of a certain country.

Bitcoin has been banned by some countries, but it's still here, kicking and alive, it dump and almost died but it recovers.
I guess BTC is one of the strongest investment due to its capability to recover in time in terms of value.

Rufsilf

sr. member

Activity: 1778

Merit: 309

Quote from: rosezionjohn on June 15, 2019, 12:52:18 AM

If that ever happens, I expect many to go underground. Some crypto enthusiasts might even migrate to other countries where bitcoin is legal. Traders will most likely dump their holdings also. I don't about hash power.

Yes that's right, traders or crypto user may either go underground or go to a place where bitcoin is useful. I think the one's who will drop their holdings are those who have fewer coins in their wallet but for those who have many may not dump their holding besides it still money, they might opt to exchange it to the accepted currency instead. Regarding the price it might impact bitcoin badly since US has a lot of crypto investors or users.

Topic: What would happen if US government made Bitcoin illegal? (Read 379 times)