No supervision, no regulation, no central bank, but Bitcoin is still attracting more and more investors. The digital currency was worth $10 in 2012 and then skyrocketed to over $47,000.
Since then, not only the star investor Warren Buffet has been warning of a BTC crash, but also Nobel laureate Stiglitz has advocated a ban on crypto trading. How has the situation changed? Let’s figure it out!
Does Bitcoin Threaten the Real Economy?
Is there a threat of a Bitcoin ban? What would happen if the growing currency, which is based purely on gigantic computing power, crashed? According to insiders, any control mechanisms would fail in this case because no one could log out of the system due to a completely overloaded network. In principle, this means that the network crash is programmed.
A Bitcoin ban may take place if there is a threat to the real economy. Some economists consider Bitcoin as a store of value along with gold and don’t exclude the possibility that one day BTC can serve as the gold standard.
In this regard, it’s possible that in order to regulate this process, Bitcoin may be officially banned in most countries that value the status of their currency.
Will Bitcoin Be Banned: Final Thoughts
So, what can the authorities do to ban Bitcoin? BTC mining in the network by encrypting blocks, which are then attached to the blockchain, is anonymous and can hardly be prevented.
It’s impossible to prohibit the purchase of Bitcoin on the network. The situation is different with trading platforms, where bitcoins can be purchased by everyone. Thus, restrictions and new regulations would put pressure on the rate. The same applies to other digital currencies that are based on the same principle.
And that is exactly what can be predicted. Bitcoin is too anarchic and uncontrolled for most states. However, China, where cryptocurrency is extremely popular, has already taken measures against BTC mining. But restrictions can also be expected in Europe, where even cash is coming increasingly under fire.
Will Bitcoin be banned sooner or later? What do you guys think? Feel free to share your thoughts in the comments!