Topic: Will government recognition kill cryptocurrency or boost! - page 3. (Read 421 times)

Government recognition of Bitcoin will not kill Bitcoin, it will rather make Bitcoin more popular and acceptable across nations and add more legitimacy to it. The only challenge is that it could lead to Bitcoin losing some of its core properties such as privacy and anonymity.  Government will surely want to control the entire thing as that is their main purpose,control.

The first crime of Bitcoin was taking power away from the government,  we gave seen how they responded to that and they are still doing everything within their powers to change that. Chances are high that they will succeed because no one want to be in their bad book.

I've always been sceptical of the government's acceptance of cryptocurrency, although they are welcome developments but there might be more to it. One thing about the advanced countries' governments is that they do not rush, and in most cases, they would have had their agendas but would just be initiating them one after the order. I am certain that Bitcoin is still a threat to the world's government, but they are bringing it closer to them with their approval and support so that they will have more say over it and strict oversight as much as they can. I've also always known that regulation is nonnegotiable over time, it is how the government would approach it that is not clear, and I know it will be very strict and tough at that time.

It might be worse to the extent that you might not be able to hold self-custody wallets again. Or do you think that is not possible? Well, it is highly possible as hard as it seems for people to believe. If the government starts clamping down on what they do not want, you would think it is the end of the world. Unless such a service is not being used by anyone, they can surely trace and block it which will result in the loss of assets.

Due to this, people will fear and start cooperating. So, I believe they embrace Bitcoin and others to keep them closer and not entirely disenfranchise people, but people should get ready for some partial oversight even as Bitcoin will continue to maintain its decentralised nature. But what you do with your Bitcoin might be accountable for in almost all cases.

That is my own view.

Not necessarily. It's not like suddenly all bitcoin is under government/regulatory control if it gets regulated. There will be people that solely just wants price exposure(hence goes with Bitcoin ETFs), and there will be people who prefer having self-custody. It's not one or the other.

Bitcoin is fully decentralized currency whereas central bank and government currency (fiat) is fully centralized currency. The country's central bank and government never want its native currency and central bank to be replaced by a virtual currency. So the government is completely against bitcoin and never the government wants bitcoin to be more popular than the central bank. However, the government can certainly increase the popularity of Bitcoin to a large extent if it wants to, but the government never works to increase the acceptance and popularity of Bitcoin out of its own will.

Decentralize of Cryptocurrencies became popular and  the world's easiest exchangeable medium due to the absence of any official or institutionalized central regulatory authority. Many countries around the world allow the use of cryptocurrencies to varying degrees.Countries like USA, Canada, Japan, the United Kingdom, Switzerland and many others have legal frameworks in place to regulate cryptocurrencies and crypto-related activities.

Recently january-2024 the US Securities and Exchange Commission (SC) approved the world's most important decision for the first time in the history of the USA decision to approve the creation of an exchange traded funds (ETF) pool for investing in known cryptocurrencies, the move was considered auspicious.Investors get more confidence in investing. Surprisingly the price of Bitcoin did not rise even after receiving institutional permission.In the two weeks since this ETF was allowed to form the price of Bitcoin has fallen in reverse. And this matter has surprised the analysts of the financial sector. The question is why did this happen! Why is the price of Bitcoin falling! So people are actually losing interest in cryptocurrencies or digital currencies! or is there any other reason behind it! As Bitcoin's price rises modern proponents question its value as a real asset.

Therefore, as long as cryptocurrency is out of legal obligation in the era of hype its fans will continue to be attracted to it but from the day it enters the institutional.All things considered it would be better for Bitcoin or other cryptocurrencies rather than getting into mainstream or institutional investment structures.

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.