Topic: Will Bitcoin collapse by a global government crackdown? - page 6. (Read 1610 times)

The government will not do that because if they cannot even stop corruption mhow can bitcoin be?Each governments has been fighting corruption for long time but yet theres always here.

But if this happens surely bitcoin will collapse in face of the legalization then after the illegal adoption will happen ,if they cant stop drugs in physical form,then what more bitcoin in virtual ?

I do not think so, being a decentralized currency and censorship-resistant, it is able to withstand even attacks by governments and continue its development.

Bitcoin network can't be destroyed. It doesn't even need to use the Internet to function. https://bitcointalksearch.org/topic/m.49574549

Yes they will be a major breakdown in bitcoin which will lead to losing interest in blockchain. But I don't think such will happen because governmental bodies are beginning to see the importance of bitcoin and Cryptocurrency generally.

An entire collapse due to a government crackdown? No! Just as there are some governments against Bitcoin, there also some governments in supports of Bitcoin. One of the advantages of decentralization is that no single body owns absolute control over the market, hence governments can only cause damage to Bitcoin to some extent but not entirely destroying it.

Government can stop bitcoin. The thing that can make bitcoin stop is community. If community think bitcoin is not secure anymore as store of value, people will leave bitcoin and not use it anymore. People always looking for security and government only can regulating

if the crypto transaction was banned in the whole world, of course, many people would withdraw and not continue their journey. because their journey has been difficult. so they sometimes backed away. but I think that every difficulty is a solution.

Well, if you look at the infrastructure of most popular Blockchain projects (like BTC, ETH, DOGE, ...), you'll notice that they're still alive and running with numerous nodes and miners supporting them. I was referring that cryptocurrencies are too big to fail based on these facts. Of course, if we base ourselves on transaction activity, Dogecoin and Litecoin are widely used in the mainstream world. Even Dogecoin is being more used than Bitcoin Cash itself.

While I agree that there's not a lot of application yet for cryptocurrencies, I believe that's bound to change in the future as they become widely regulated by governments worldwide, and the hype of Blockchain tech comes to an end. If I were to name a few cryptocurrencies that will last for a lifetime, those would be Bitcoin, Litecoin, Dogecoin, and Ethereum. The rest may lose support in the future if there's no real uses for them. Mainstream adoption is key here for any crypto to become successful.

As for a global government crackdown, it seems very unlikely right now. But who knows? Anything could happen in the future

I can't quite agree that cryptocurrencies are too big to fail now

As we already see them failing whether you like it or not. It doesn't mean that Bitcoin is necessarily going to fail (though who knows), but I definitely can't say the same in regard to the rest of cryptocurrencies, with probably only two exceptions, those being Litecoin and Dogecoin which seem to have real use. Further, it's been a decade since Bitcoin appeared but we don't see a lot of application yet. So how big will it be if we remove the speculative component from it?

The problem is that the government cannot understand how crypto will work, they misunderstand it. They only know that crypto can be used as a tool for money laundering, even though it can be more than that and certainly later we can solve this problem. Their prohibition is truly the party that understands crypto becomes overwhelmed

Yes. That's true. Governments cannot agree in many things nowadays, which makes it practically impossible for them to destroy Bitcoin in the future. Bitcoin and other cryptocurrencies are too big to fail these days. I believe that if governments would've wanted to put an end to Blockchain technology, they should've done so within the early days of Bitcoin back in 2009.

Now, it's been a decade since Bitcoin has emerged. Blockchain technology has improved so much, that there's now privacy coins with unique anonymity features which makes them harder to trace. Even if the development of Blockchain and cryptocurrencies will be put to an end by governments around the world, crypto will survive due to its open sourced and decentralized nature. That means that anyone can run a full node to support a specific cryptocurrency's Blockchain without limitations. With the available technologies today (like Tor, i2p, etc) Bitcoin and crypto is here to stay.




Governments have seen this new trend of cryptocurrencies and Blockchain technology, very beneficial to them. If governments continue to tax cryptocurrencies, then they'll be here to stay for a long time. This is because, taxing crypto makes them a legitimate medium of exchange. They've been extremely beneficial for governments (like the US) mainly for taxing purposes. It's very unlikely that at some point, governments would turn against cryptocurrencies like Bitcoin and Ethereum (unless they become a threat to national security).

Despite this, time will tell what lies with the future of Bitcoin and other cryptocurrencies' stance among worldwide governments.

Of course one of the main reason why bitcoin is decentralized and use blockchain technology is to withstand attacks from centralized organizations and also bitcoin cannot collapse entirely or in a large scale due to a single government crackdown and that is the main advantage of a decentralized system but with a significant restriction it can definitely do a big damage to the entire bitcoin system and its price because investors, traders and holders are very concern about government view towards bitcoin specially when comes to make decisions to sell, hold or buy so it won't collapse but there can be a huge damage

At first, there may be a very strong collapse in prices. But then the price will rise, because the use of bitcoin will be difficult. I don't think many people who are serious about crypto will be able to just leave it.

To be honest I doubt it, but it will decrease the interest in bitcoin in general. I would still probably see bitcoin being used illegally like how drugs are used illegally.
It isn't going to happen anyways, if they wanted to stop bitcoin from growing, why didn't they regulate it when bitcoin was $20,000?
Most people also know about it now and know how to use it for the most part, so I don't think bitcoin isn't going anywhere.

It is no more than your thoughts (as you said yourself)

Governments can't agree on a lot of more important things and now they should be all of a sudden "banning cryptocurrencies and introducing a single global currency of their own". Why should they necessarily ban cryptocurrencies to introduce a global currency? Bitcoin and other cryptocurrencies are a small aberration in the grand scheme of things, objectively and financially. And that leads us to the inevitable conclusion that the lack of a global currency is a proof that there is no agreement among governments, and thus no chance of banning cryptocurrencies universally. Pretty simple, isn't it?

Bitcoin price has been fluctuating because of fears of government crackdowns since the value of the cryptocurrency skyrocketed before Christmas.
Mr Chiavarone said the US Federal Reserve could "kill" bitcoin unless more is done to further develop blockchain.
He said: "The currency itself isn’t a great medium of exchange, it’s not a great store of value. It has a fixed amount so the Fed would have to kill it at some point because they wouldn’t be able to engage in monetary policy.
"They can’t increase or decrease the supply of it. But blockchain behind it, we think is more real than people are giving it credit." The blockchain is a system that allows the transmission of digital information but blocks attempts to copy the data.
Mr Chiavarone said developing blockchain and finding new ways to employ it could potentially make cryptocurrency trading more transparent.
Making bitcoin trading more transparent could ease Governments' fears and possibly reduce value volatility in all other cryptocurrencies like Ripple and Ethereum. Mr Chiavarone continued: "If the first version of the Internet was an Internet of information, blockchain is an Internet of value. It allows for the digital transfer of files in a way that’s verifiable. It digitises trust. "That – forget about currencies – could be revolutionary for supply chains." He added: "Pets.com was the first real online commerce company – there was a lot of buying into that because people saw the value of online shopping – pets.com wasn’t the best version. "We think bitcoin is the pets.com of the blockchain." Bitcoin price decreased to $10,961.52 at 6.57am on Wednesday, January 24, according to CoinDesk. It saw its highest value before Christmas when it reached the monumental price of just under $20,000. Bitcoin's popularity has caused demand to skyrocket throughout 2017, pushing other cryptocurrencies like Ripple and ethereum to also reap the benefits of the cryptocurrency craze. Ripple also lost value, trading for $1.37 at 6.58 after peaking at $3.69 in early January. Ethereum was trading at $1,000.42 at 6.57am on January 23. There are fears that some of those who have invested in the crypto-currency will struggle to get their cash out after Bitcoin’s value plummeted by 40 percent in a single month. Billionaire business mogul Warren Buffett warned bitcoin and other cryptocurrencies are “certain” to end badly. Mr Buffet said he is unsure when the cryptocurrencies bubble will burst but he is “certain” it will happen.  Since Bitcoin was first mined in 2009, the virtual money has seen its value surge and it reached an all-time high of more than $17,000 (£12,000) in December 2017. The downward trend has caused for some investors to opt-out of the crypto-currency market and invest in gold instead.

You do have a point there, mate. Bitcoin and other cryptocurrencies have been active since their very beginnings. If governments would've wanted to prevent crypto from being adopted or used by people, they would've stopped it back in 2009. After 10 years of Bitcoin's inception, it seems very unlikely that a full government crackdown would take place in the future. Even Russia has decided to invest in Bitcoin due to US sanctions.

Which means, that more governments are embracing Bitcoin for their own benefit. If cryptocurrencies can be easily taxed by governments, then crypto will be here to stay for a very long time. As for country elections, you're right. Candidates are forced to listen to the opinion of their voters. Hence, if many people support cryptocurrencies, then such candidates would need to support them too in order to gain the necessary votes to get elected.

Of course, Bitcoin and other cryptocurrencies are not fully mainstream yet. But when they do, they will become a part of everyone's lives, where every government would be forced to accept them. With upcoming regulations and government acceptance (like India accepting cryptocurrencies, and most recently, Russia), Bitcoin will be here to stay for future generations.

However, one cannot deny the possibility of a full government crackdown in the future, in case things do not turn out to become positive as they should (like crypto becoming a threat to national security, money laundering, etc). Just my thoughts

It seems to me that the cryptocurrency is now at such a level of its introduction into our life that it is unlikely that the governments of all states can already agree and prohibit the circulation of cryptocurrency. Cryptocurrency for this has become too well known and popular. To no longer happen, and it will be used by citizens for financial settlements. We also already see that many large states have begun to use cryptocurrency and legalize it, and they are unlikely to be able to ban it now. They are forced to listen to the opinions of their voters.

That's true. However, there's nothing stopping governments from completely banning cryptocurrencies and introducing a single global currency of their own. Right now, most governments are friendly to crypto for taxing and experimental purposes. Once crypto becomes strong enough to handle worldwide payments, then governments can start devising their own digital currencies in the future. Then, they'll go against cryptocurrencies like Bitcoin and Ethereum to promote the use of their newly-issued digital fiat currency.

It wouldn't be surprising if all the world's governments come together in an agreement to establish a single currency operated within a private blockchain for the whole world to use. If that happens, then no matter which country you're at, you'll be using the same currency all over again. Banks will be responsible for running the full nodes of the private blockchain, while decentralized cryptos will be targeted by such institutions.

In the meantime, we could all enjoy Bitcoin and other decentralized cryptocurrencies while the government stance is friendly. The moment that everything turns upside down, will be such were governments see crypto as a threat to their economic infrastructure (even if they could tax crypto). Just my thoughts

That's more than sure, habits are humans second nature so people who already got used to cryptocurrency, will have a hard time forgetting about them.
But I don't think there ever going to be massive collapse, at least not in the near future. Simply because governments across the world would have to work together and we know how good they are with cooperation. This will result in situation where users from one country are selling crypto to the people in the next one and so on. Price should be still more or less stable.
Global crackdown in order to work, would have to be orchestrated by a global governance, such thing does not exist so far and I would like to leave it that way, not only because of crypto obviously.