So, there have been certain moves and news regarding the crypto world and we all need some more information and clarification. This article today will be important to all of you that already have crypto or are planning to buy crypto so stick around.
The US Government is trying to get Bitcoin banned and you have all heard about that so far, but what you are all wondering is whether they can pull it off, and what will that mean for us that own any amount of this crypto coin?! To try and answer this we will remind you a bit about a fact from history that you might forget or not know about. Did you know that between 1934 and 1974 it was illegal to own any gold?! F.D.R nationalized all the gold and every American had to turn their gold to the national reserves. Anyone caught having or hoarding gold was prosecuted and faced hefty fines in up to 10 years in prison.
Now, let’s get back to today. From this brief history lesson, you can see that it happened already and that there is a possibility of it happening again, this time with Bitcoin. The fact that this will not be simple is a score in the books of everyone owning this crypto because gold was one thing while crypto is a whole other deal. Since it runs on the internet it is not normal to expect that the Government will shut it down to stop it.
The article today isn’t about scaring you, it is about reasons why it would be bad to ban Bitcoin in the U.S. That is where we will go from here and we made this article thanks to primebit-profit.com/ph/login.
Like any other irrational and sudden move, this will face a certain amount of backlash. Some people are in Bitcoin ever since it appeared, and they have dedicated a large portion of their life to this crypto in any possible way. Having someone tell you that it will be all over, having someone prosecute you for mining or collecting this crypto is something that the user will not take on just like that. There will be resistance, there will be a lot of dissatisfaction and the Government will face a lot of problems here. I think that they haven’t thought this all the way through and that they are trying to copy moves from other countries like China and India.
2. Loss of trust
When you are talking about banning something that has become a huge hit pretty fast and almost anywhere in the world, you are risking by pulling the moves that might end up in your people losing their faith in the government. Here there are 3 moves that the U.S. Government can pull to outright ban Bitcoin and all three of them will lead to only one thing – people losing their faith and feeling betrayed. The first and most crazy one is shutting down the internet which according to the SOP 303 U.S. Government can do in a state of national crisis. The second is the destabilisation of the price by buying the Bitcoin and then do whatever they can to drive the price and you away from this crypto. Third and the last thing they can do is impose anti-money laundering laws, where they can allow the transactions of this crypto but ban the conversion into cash.
If, and only if the U.S. Government goes with the ban of Bitcoin what will it mean for all of us to have this crypto in our wallets. Well, the first and most obvious thing is the price that will plummet like crazy. If you remember when China announced the ban of cryptocurrency the crypto market plummeted more than 20% in just a few hours since the announcement. It rebounded back since China didn’t do anything on that matter, but you can see what all of us can expect if this becomes reality in the US.
With drastic moves like these, it is hard to predict what is more likely to happen. There are two possible scenarios and neither one is that good, at least for one side. One scenario is that people start to develop animosity towards the Government and start to negate the ban. This leads to a lot of those that will hide, move, exchange and do pretty much anything in their power to resist the ban and the Government in total. The other scenario is that the U.S. Government wins, everyone decides that is not worth fighting against them and that this crypto is dead. Everyone would step off sell, exchange and whatnot and comply with the ban. In this case, the crypto market will suffer and it will suffer dearly. So, as you see this ban might either weaken the Bitcoin and the crypto market or make it even stronger than before.
5. The alternative
Banks can see that they are losing a lot with crypto and all of those decentralized coins. What they are trying to do is utilize the best aspects of cryptocurrency and trying to make them centralized. If they ban crypto and Bitcoin, for that matter, they will impose something like digitalized cash. With it they can utilize smart contracts to make you spend faster by imposing expiration dates on the digital cash in your wallet, they can limit the amount you can have in your wallet at any time and much more. As you can see, they are trying to pull themselves up and they are doing it with centralized currency with smart contracts that will ensure that banks achieve their desired velocity of money.
The previous point was there just to get us here. If the U.S. Government and banks have a task of upping the velocity of money and have a task of having us all transfer to the centralized currency that they can control, and with it control us, then what is their next logical step?! Well, it would be exactly the topic of this article – banning every other currency that can and will get in the way of this mission, and sadly it includes Bitcoin and every other crypto as well.