Topic: Will government recognition kill cryptocurrency or boost! (Read 379 times)

The reality is that there are way too many people who are looking for a proper regulation whereas there aren't same amount of people who would be willing to completely pull out of crypto world if they do. I mean if you are the type of person, who hates government, would you just move to monero or something like that when that happens or would you just move to banks?

I mean banks are already bad, so you will be either pure cash or just crypto. Whereas there are so many people who want more and more regulations before they join. One of the reasons why ETF is being expected so much as well, because that will make things better. That has to be one of the most important parts of the crypto world, it only gets better and better.

Bitcoin If all the governments of the world get together and play a very aggressive role, then it is possible for the government to destroy Bitcoin, but not all the governments of the world will play an aggressive role to destroy Bitcoin in this way. Bitcoin will never be under the control of the government and central bank, so no government and central bank will recognize bitcoin easily. But the government has an important consideration on Bitcoin What will not give a negative view is that millions of investors of a country have already invested and held on Bitcoin, so if the government of a country has an aggressive negative impact on Bitcoin, then what will be the investment of millions of investors of that country. Governments do not give a negative view on Bitcoin without considering various issues and central banks too Not opposed to Bitcoin.

I think with the approval of no less that the US SEC with regards to Bitcoin Spot ETF, it will have a big effect on other countries too, at least it will be recognized as somewhat a "legal entity" now, as it's used to be in the gray area for US and many countries. Now it's very clear that maybe they didn't say by law that Bitcoin is now being recognized by them, but it's easy to read between the lines.

And with that, I think it's a big boost to us, as it could have domino effects to the financial watchdogs around the world. Although there are still countries that is going to opposed it, but there is a clear message that Bitcoin can't be stop and here to stay for good.

Over time - governments will eventually support bitcoin instead oppose it. Governments will certainly create competition with bitcoin as a currency - but governments are coming up with fully centralized CBDCs. Regulation will not kill bitcoin as long as the government still legalizes investment and trading - but if the government is united in banning everything related to bitcoin, then bitcoin's dominance will likely collapse.

Increased competition in the market will make bitcoin increasingly popular and widely adopted - but if governments insist on not legalizing it as a currency, then bitcoin will have no better growth than the volatility of its value being exploited. The technology built into bitcoin will be useful - the average user loves it, it's the financial privacy centralized banking customers should have had so far.

But somehow it does really give out that kind of effect on the time that institutional involvement had come through into this market on which it is really that making out that relevant effects on whatever
sentiments that could float around on which we know that it isnt really that something that we could really be able to stop and cant be able to deny that it could already give out those kind of effects
on which this is something that could really give out that significant relevance but somehow we do know that it cant be completely be able to dictate on how this market would really be moving on.

Come to think that we've been independently be able to move out with those government or institutional funds been getting involved with and now that they dive in
into this market doesnt mean that they would already have that kind of control on which we know that it cant really be just that possible i should say.
They can influence it out but controlling 100%? its impossible.

Remember what the word decentralization means, if you remember then you should know for sure that no authority can control bitcoin. I might have said that governments or centralized authorities can only control and regulate users, while they cannot control bitcoin. Governments can centralize bitcoin users, but they cannot make bitcoin centralized.

While governments don't like the idea behind decentralizing bitcoin, they also seem to realize that controlling bitcoin is a futile endeavor. Making all regulations for bitcoin users more realistic and will benefit them, the government can even earn more state revenue by taxing bitcoin users including companies, exchanges, traders and investors.



Yes, it is an acknowledgment from the government and bitcoin is considered profitable for them. So with the approval of the bitcoin spot ETF, it means that bitcoin has been recognized as a viable investment asset on the global and regulated market for any class of investor.

Bitcoin cannot be controlled by any party, meaning that even if Bitcoin is recognized and regulated, even though that is impossible considering that Bitcoin cannot be controlled by any party, Bitcoin will still run as a system.
Bitcoin spot ETF is one of the institutional recognition that can provide an answer to observe how Bitcoin is positioned.
Bitcoin is not a rebellion but a government that has rejected the Bitcoin system since it was created.

yeah. We know that bitcoin is a decentralized currency, and no government will fully accept it as their local currency or their alternative currency. Sometimes I think this is the way bitcoin is supposed to work, and I don't want the government to fully accept it because of how some countries fiat money is depreciating. I believe bitcoin will also have the same problem in those regions now that they will be in control of it, and we all know that we don't want any other person to be in charge of controlling the bitcoin price.

Therefore, if the government accepts it, they will want to be the ones controlling it, which will ruin the decentralization of the currency, and investors may start paying for some tasks, which will reduce their buying power unless they invest a huge amount of money.


Actually, if the government accepts bitcoin, they will want to be the ones controlling it, and that is not the main reason why bitcoin was created. So in my opinion, bitcoin will be sweeter if we continue using it this way because they will do everything and see that they will be the ones controlling the currency.

Will definitely boost but it will kill the retail investors or even the possibility of the prices going back to cheaper prices, with a lot of government adopting crypto, there's a high chance that they're going to inject a lot of money on it to make sure that they're investment are going to worth it and they would make sure to pump it continuously for as long as they can because they want to make sure that they're not going to be affected by the volatility thus ends up with the crypto that's going to be adopted by the country to not go lower at such a drastic level.

I do not think that government feels that much against bitcoin, I am checking the world governments and most of the nations are fine with it. There is this talk about bitcoin in all the bitcoin communities about how "we are decentralized, we are governmentless and because of that governments hate us!!!" and then I check the laws, and governments are fine with it and legalized it in many big countries. That is why I do not think that this childish situation is as true as people think about it.

I mean we are talking about something that would be quite strong to change. I do agree however that we should not be really considering governments to change anytime soon, we are going to end up with them accepting it as much as possible.

Exactly!
To be more precise, government recognition towards cryptocurrency or Bitcoin will kill it's very purpose why it was created. We all know that Satoshi created bitcoin to have a currency which is totally decentralised where people can make transactions directly from each other without the need of any 3rd party facilities.
Everyone knows government doesn't like something which is out of their control, so that only means one thing, when they are starting to recognize and accept bitcoin, they will eventually fully regulate it and they will start with the local and international crypto exchanges. Regulation defeats the very purpose of bitcoin.

In my opinion, government recognition will kill cryptocurrency, because the government does not want to recognize Bitcoin or cryptocurrencies in their current state, but as governments want them to be.

In other words, the government wants to transform cryptocurrencies from decentralization to centralization and from out of control to full control, so we see all the regulatory laws issued by governments focusing on the issue of full submission to the KYC, AML, and anti-terrorism regulations through which the government can completely subject cryptocurrencies to its authority.

The question raised by OP is whether cryptocurrency gets killed or boosted if the government recognizes it. This is a hypothetical question. Why should we consider a different situation that is off topic? When governments oppose Bitcoin, it must be a different scenario for the technology but we are discussing the possibility of governments recognizing it. Will it kill cryptocurrency or boost it instead? I think it will give a boost if we are talking about Bitcoin but those shitcoins will remain to be shitcoins.

Bitcoin is a decentralized currency and I don't see the government having any chance of controlling it, but the government is still very likely to control and regulate users. Even though bitcoin's decentralization gives users independent choices to manage their money, bitcoin is essentially subject to government regulation. I mean, if you are in a country where bitcoin is illegal to use as currency, then you should not break it even if the government does not track your transactions directly.

Bitcoin does not have the status of rebelling against government regulations and whatever image the haters have about it seems to be absurd. The error is not in bitcoin, but the error comes from irresponsible users. If you really do a survey and research, then fiat currency is the currency that is most often abused instead of bitcoin.

this issue was raised before but its not for us to decide about it. the government will do whatever it wants unless it doesn't serve its purpose. ETF serves and even when they are saying there is a custodial exchange, i don't think they count when the government itself does the crimes.

it will boost the cryptocurrency market, given the right time, especially after halving. things still rely on the government and its controlled media.
they could also kill crypto after all they can buy up all and the institutions they put up now owns miners.

I do not support the emergence of bitcoin ETFs, it is the same as making bitcoin worthless, just imagine how many bitcoins they can create, they are not real bitcoin.
real bitcoin is bitcoin that you buy on an exchange and then put it in your personal bitcoin wallet, while bitcoin ETF does not have a flow like that, bitcoin ETF will only make the price of bitcoin stagnant and not have a definite increase cmiiw.
We often hear about supply and demand, if the supply is large then the price will be small, that is what will happen to Bitcoin, if the quantity is large (more than 21 million)

Some countries also oppose it and what happens?
Bitcoin continues to thrive without those who oppose it, because Bitcoin does not need opponents. Bitcoin has many communities around the world.
Even some regulations provide for full adoption of Bitcoin use. The world is moving towards increasingly sophisticated technology and requires payment alternatives and platforms that support the future. If any government continues to oppose this development, then they will feel the impact eventually.

It depends, take a look with this picture, Fidelity to act as buyer and seller at the same time because they hold your coins, unlike the other institutions that let Coinbase to hold for them.


https://blockworks.co/bitcoin-etf

Only the red regions are prohibiting Bitcoin, while the rest except the grey regions are accepting Bitcoin even though not all of them are completely accepted.


https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory

Most governments around the world do not support cryptocurrencies. But still Bitcoin retains its top position in popularity. The key point here is that governments don't support decentralised systems because they don't have control over them. They must also be held accountable if they support an unregulated system. But this decentralised system of Bitcoin has given freedom to every individual.

Since it is decentralised the government will not support it in any way and I think it will not create any problem for Bitcoin. If governments are aware of decentralisation and can adopt it, Bitcoin's popularity may increase further. But their negative outlook will not affect Bitcoin in any way.

If the government allows and legalizes Bitcoin and crypto, it should boost Bitcoin's growing popularity. People will see that the government legalizes the use of Bitcoin and crypto so they can use them freely. This also gives people the confidence to make Bitcoin their new investment.

But if after the government allows or legalizes Bitcoin, the price goes down, it could be caused by many factors. We don't know which factors caused the price to fall. The crypto market takes time to improve and you don't need to worry.

All you need to do is keep accumulating more Bitcoins and wait for the price to rise again. You should also understand that the crypto market is always changing. So it is not surprising that the current crypto market can not improve. It will increase in the right time.

Government recognition was supposed to help Bitcoin grow to a much popular digital currency as it brings it mainstream resulting in more demand for cryptocurrencies...but unfortunately things have gone the opposite direction which is unexplainable!! Is this reaction of price saying Bitcoin regulation isn't a supported development or maybe actual frameworks to allow these to operate are still a work in progress despite the green light,  Otherwise I still feel we haven't seen the best of these guys (institutional investors)!

Btw, "Will government recognition kill cryptocurrency or boost" killing the markets I don't think so, crypto is still decentralized before anything..I think we all expect this to be a boost to cryptocurrency, what we have experienced is a slight disruption to the market as new market drivers are introduced which should show their influence sooner or later, for now we wait to see the power of institutional money in the crypto industry.

sounding like an El Salvador move of acquiring Bitcoin..

Btw, this whole acquiring of bitcoin with the approved Spot ETFs, isn't this private hands doing this unlike the government themselves???

Afaik there role here is being regulator only not acting as BUyer and Seller at the same time!

Bitcoin's movement this month still looks quite normal, regardless of any effects received by Bitcoin through the market, because as seen today Bitcoin can still increase after a small correction in the market. Now the Bitcoin price movement range is still in the $42K to $43K area, which is likely to continue to go well until the halving moment approaches this year. And in terms of market trends this month, it doesn't look like it will be much different from the market conditions that were running in the previous month, although the effects of the ETF and halving are still quite possible to make Bitcoin better.

Yes, the government will try to acquiring Bitcoin as much as they can, currently centralized exchanges already acquiring huge amount of coins, remember government can easily work together with centralized exchanges, if the CEX reject that, the government can easily shut down the CEX.

When almost all Bitcoins are owned by government and CEX, they will issues fake Bitcoin e.g. Bitcoin IOU and keep the real coins in their own wallet.

Government recognition will not kill cryptocurrency rather it will boost the imager of cryptocurrency in the large society. Talking about Bitcoin, whether the government officially endorse bitcoin or not, it does not change the fact that some government individuals and parastatals have a very good share of Bitcoin. Bitcoin is something you can own without announcing it to the world and no one would even know that you own Bitcoin. This is why it is very difficult to give a clear analysis about the people who owns Bitcoin. With the approval of the ETF we have nothing to worry about because bitcoin is a totally decentralized coin. No one or no government will force anyone to give at their bitcoin to the institutional traders. If you choose to hold your coin forever or in your private custody no one will sentence you for that and I believe that is the lane many people will toe.

I do not quite understand you here. You trying to imply that the rebellious image of Bitcoin is the reason it is prospering. That if Bitcoin cease to have a rebellious image in the eyes of the government it will no longer be successful. I don't think this is correct.

I think you concluded it wrong. Not all the circulating bitcoin will go under the custody of governments after regularity checks. Government recognition will not kill Bitcoin but strengthen the trust of investors. Hence, Bitcoin adoption will increase in the coming future. It is beneficial for crypto in the long run. It is a much-needed booster for Bitcoin to go forward.   

It boosts of course. However cryptocurrency is a broad word and it could refer to Bitcoin which, if the government recognizes, is going to be boosted, but it could also refer to so many other shitcoins which might die if the government desires so.

Bitcoin is completely decentralized so the government's only choice is either to recognize it or leave it growing as it is. It is never an option to kill Bitcoin because all efforts would only be futile. They will all end up in vain. They have tried and they have failed every time.

It's merely recognition, the government still doesn't really hold any control over crypto itself. The ETF itself even is simply a method for non-crypto enthusiasts to "hold" Bitcoin. In the long run as well this would most likely boost the price since more and more people can consider Bitcoin ETF as an alternative investment. Like this, it simply shows how this is mostly something similar to promotion and stuff, nothing more and nothing else.

Outside of government control yes, but they don't necessarily combat what the government controls. Well, I guess the government can consider it as rebellious but that's something one-sided on their part imo.

I also agree that government acceptance of bitcoin will boost the promotion of bitcoin but the fact that the government can now monitor all bitcoin activities and transactions, then it’s like it’s slowly becoming centralized until bitcoin is in full control with the government. Although this is indeed favorable for the government but seeing how anonymity and privacy have impacted the early bitcoin enthusiasts, I don’t think they will easily allow that to happen or fully submit to the government.

I don’t have issues on bitcoin’s government recognition but if that will only put bitcoin into at risk of losing its decentralization, then it’s better for bitcoin to be not recognized at all. But somehow, if legalization and acceptance are our main goal here, then probably the government might be the key for that.

Seriously there is nothing actually denying the fact that with government actually legalizing bitcoin it will increase the adoption but the price will still be dependent on how the currency is been used. But right now the main question the OP is actually asking is what will happen to the decentralization of bitcoin, we all know the reason why the government has failed to actually legalize bitcoin is the fact that they can’t seems to control it or manipulate. And anything that the government can not have control over they hardly ever allow its growth. So for me before government will actually legalize bitcoin mostly especially the developed countries is when they can manipulate it or at least reduce the anonymity associated with the use of bitcoin.

For me I think the government recognition wouldn’t actually kill bitcoin for those who have the required knowledge but my understanding is the anonymity or freedom associated with it will certainly reduce because governments will have enforce KYC platforms on gullible people and would have told them it protects them better which is not true. But entirely for someone who knows the principle of bitcoin, their intervention can not much change its position.

If the government admits to legalizing the use of crypto, it will obviously increase crypto users in the country. of course, with the increase in users who use and buy crypto, there will be many who will increase prices too, not lower them.

Bitcoin is decentralized so expect that those who will engage with bitcoin still aim to be free from the government control. They will prefer having self-custody over bitcoin which I think is the right thing. And if ever in the future the government will come to accept bitcoin, of course it might be possible for bitcoin to lessen its decentralization but it will never be that fast to see bitcoin under the control of the government.

I am on the side that says boost. I get that many people used bitcoin because it is decentralized and back in the day mostly untracked, which makes it a lot better when government is far away from it and that is the initial start of bitcoin. But today, we have a lot more bigger companies joining, and having a regulatory framework set in place for it to work makes them invest a lot more. It allows them to actually have a legal basis on investing into bitcoin as well.

This is why I believe that while we may lose some of the early investors gradually, we will gain a lot of big companies willing to invest billions to make it go higher. This is why I think it is clear that we are going to end up with a lot of profit eventually.

It is a yes if we're going to say that it was before but this time? Not anymore, this era is different where most of the governments have already accepted that Bitcoin is accepted and it doesn't hold the taboo anymore about having that bad image and a currency for illegal trades or underground markets.

These governments do understand their stand about Bitcoin. They will never have a way to control it but they know that they can regulate the companies and exchanges that operates and accepts it. We've seen it dozen of times where they've pressured a lot of them. But still, no matter how and what kind of pressure they do, they'll never be able to control bitcoin. It's possible to regulate trades of it but they can't stop and control itself.

Government if wanted then it could have recognised Bitcoins earlier only. The reason for which government is not making Bitcoins legal is due to the decentralised nature of the coin. No government or ruling body can control Bitcoins, hence government won’t be able to impose tax on the coins. Hence in many countries, Bitcoins are still not legal. Now regarding the price, then I guess it won’t affect a lot on Government’s view regarding Bitcoins.

There are prominent investors who invests a large sum of money Into Bitcoin and other altcoins too and because they invest huge money, some of them likes to remain private and doesn't want their identity known, it becomes possible for them to archive the privacy they want because of the decentralization of Bitcoin. If the recognition of Bitcoin by the government is going to create a problem for those investors that prioritize privacy, they might look for a solution to still continue their investment. It doesn't mean that the government recognition will kill cryptocurrency, and perhaps it's just in the countries that you have mentioned that the government is fully in control and trying to regulate every crypto user. Any huge investor can still travel out of the country to seal their crypto deals before returning. I think, I am yet to find out if the recognition of Bitcoin by the government will boost the crypto market. There is no convincing evidence yet.

The "rebellious image" of Bitcoin seems kinda fake. I'm sure that at least 90% of all Bitcoiners would be totally OK with the governments accepting BTC as an asset and/or a currency. You can't be "rebellious" and against the system on one hand and waiting for the same system to recognize and adopt you on the other hand. This seems like hypocrisy to me. Privacy oriented coins like Monero are way more "rebellious" than Bitcoin. I'm sure that no big crypto company and no government around the world is going to adopt a privacy coin.

Government will never fully recognise crypto currency as they are against decentralisation as it's something which they cannot control and they are already trying to restrict users from indulging in Bitcoin and other crypto currencies. Even if we see any government recognising Bitcoin for example it would definitely have positive impact but if they try getting crypto under their legal framework they will fail and the only problem I see if government recognises crypto which will flood more investment to crypto and imagine there is a manipulation by whale or bearish market then government will get a valid reason to create more hurdles for crypto. We don't want government's recognition for crypto.

Despite some governments has rebellious against crypto and Bitcoin in their countries, but that is not a challenge to decentralized currency because the government have no authority to stop the decentralized currency not to grow higher worldwide like the way Bitcoin and crypto are everywhere for people to invest their money and ensure their investment are safe very well. Anywhere you see any government rebellious against crypto and Bitcoin, just know that there is a something they have discovered that would have been giving them money assume is a centralized currency, which is the reason many government officials don't talk anything good about Bitcoin or crypto. If government take over Bitcoin in any country, it will never bring good thing because they will be using the opportunity to make money from their investors which you can use centralized currency as an example in some countries.

The initiative to operate Bitcoin can be similar to the concept of traditional banking if government want. This may lead to loss of identity. So where will we get the old charm of Bitcoin!

this is a strong reason why governments in many countries are creating cbdc, they don't want bitcoin's popularity to grow and replace their fiat currency, but it is impossible to stop bitcoin, many people are already using bitcoin and to date cryptocurrencies have been used by lots people for just transacting and also investing.

killing bitcoin and cryptocurrencies is impossible but utilizing them for the purpose of economic growth is currently the most sensible thing.

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.