Does the US ban bitcoin? Senator: Will not succeed

If you have the habit of watching financial news, you will find that some influential people have long slammed bitcoin. They have a consensus: "One day, bitcoin will be banned by the government and then returned to zero."

This view is not only financial white, but also traditional industry amnesty. For example, Economist Dr. Doom, JPMorgan Chase CEO Jamie Dimon, bitcoin is a scam in their eyes, the sooner the better, the better.

But can Bitcoin really be completely banned? Today, even US lawmakers have realized they can't ban Bitcoin.

On Tuesday, at the US Congress hearing, Mike Crapo, chairman of the Senate Banking Committee, made a speech:

"If the United States decides to ban Bitcoin, I am very convinced that this will not succeed. "

The only way to ban Bitcoin

Crapo is a rare bitcoin rationality at this hearing. He also pointed out: "It is unwise to crack down on the industry because cryptocurrencies such as Bitcoin have many economic and social benefits."

I have to say that Crapo is telling the truth, Bitcoin can't be completely banned. As long as there is electricity and network, Bitcoin has the fundamentals to operate, and these two are also necessary conditions for maintaining a good order in today's world.

So if you say that the world is beginning to ban Bitcoin?

This is also very unrealistic. First of all, Germany, Israel, and Canada have already pushed bitcoin to legalization. Not all countries have this kind of leisure. Secondly, technically putting aside bitcoin is a impossible task.

In fact , there is only one way to really kill Bitcoin than to ban bitcoin trading and mining : the legal currency and monetary policy are more competitive.

When the advantage of Bitcoin disappears completely, it will naturally withdraw from the historical stage.

How does the country balance the relationship with Bitcoin?

Whether you like Bitcoin or not, there is no denying the fact that Bitcoin is now on the global political arena.

Facebook is one of the fuels, which forces politicians around the world to discuss the issue of cryptocurrencies. The US Congress specifically discusses Bitcoin. Trump violently criticizes Bitcoin on Twitter. The Treasury calls it a national threat. It is intended to completely ban Bitcoin…

Today's bitcoin has received enough attention, and each country has adopted a different attitude towards it. The weak country regards him as a beast, and the powerful country completely ignores its existence. But as bitcoin grows stronger, all countries will begin to face up to this new era.

Eric Voskuil, one of the Bitcoin developers, divides the relationship between the country and Bitcoin into three phases: the honeymoon period, the black market period, and the competition period.

Stage 1: Honeymoon period

At this stage, ZF does not completely ban Bitcoin, but they will exert regulatory pressure on related companies in the Bitcoin ecosystem because of currency controls.

The United States is now at this stage. It did not directly ban, but through various means to implement supervision, the regulatory incidents of the US Securities Regulatory Commission and the Financial Industry Regulatory Authority have more than doubled this month, and the Minister of Finance has indicated that it will “maintain the highest standards” for cryptocurrencies. .

Stage 2: Black market period

When the state realizes that the coinage rights are threatened, it will enter the black market stage, and ZF countries will completely ban bitcoin transactions and mining.

At this stage, Eric also predicts that each country will issue a legal digital currency with the goal of having a “safe” currency than Bitcoin, while retaining the advantages of coinage and regulation at the digital currency level.

In fact, Bitcoin has also been banned in many countries around the world, such as Nepal, Bangladesh, Ecuador and other countries, and India, the world's second largest population, has recently planned to ban Bitcoin.

However, while India is busy prohibiting Bitcoin, it is still considering launching its own digital currency “digital rupee”. Venezuela is prohibiting domestic people from digging bitcoin and promoting the official digital currency “coin”.

Stage 3: Competition period

In an effort to eliminate cryptocurrencies and protect the national currency, countries will participate in the competition as bitcoin miners in the future.

This is the worst situation. Bitcoin has no way to prevent these countries from participating, and when it enters the competition phase, the state will permanently attack 51% and finally enter the power struggle between individuals and the state. This battle will cost a lot of money until one party surrenders.

We are now in an overlapping phase of the honeymoon and black market, and the next few years will be critical to the development of Bitcoin. If Bitcoin is getting stronger and stronger, and countries realize that Bitcoin can't be permanently disappeared, will countries be able to set off a global encryption war when supervision is weak?

Conclusion

Fortunately, 11 years ago, when Nakamoto was establishing Bitcoin, he did not try to get the consent of the country. If Bitcoin was initially subject to Libra's regulatory treatment, it is estimated that it will end in arrears.

Recently, in the endless hearings in the United States, although negative voices outweigh rational knowledge, we are well aware that the United States is paving the way for future regulation. In terms of Bitcoin, this time it was completely pushed from behind the scenes into the spotlight, and no matter what the outcome, more people have begun to think about the value of the protagonist of Bitcoin.

Author: Ma Shaka

Source: Block wave