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Drugs are illegal almost everywhere in the world and they are one of the largest consumer markets. Something similar happens to US dollars in Venezuela. So I do
by josu 9y ago
Drugs are illegal almost everywhere in the world and they are one of the largest consumer markets. Something similar happens to US dollars in Venezuela. So I don't know if making bitcoin illegal will really hurt its value in the long run.
- csallen 9y agoYour conclusion doesn't follow your observation. It's one thing to say that the government can't stop something, and quite another to say the government can't hurt it. Who knows how much bigger the drug trade would be without anti-drug laws.
- JetSpiegel 9y ago> Who knows how much bigger the drug trade would be without anti-drug laws. Look at the legitimate drug companies for comparison.
- SomeStupidPoint 9y ago> Who knows how much bigger the drug trade would be without anti-drug laws. In a few years we'll have a good idea based on marijuana in several US states. We will have to sift out the tourists though, because there do seem to be a lot of those. At least, here. We could also look at alcohol prohibition for a historic example.
- coralreef 9y agoConsumers demand drugs because they like the way it makes them feel, and they derive utility from that. In a country where Bitcoin is banned, a consumer derives almost no utility from Bitcoin because they can no longer immediately exchange it for fiat currency or goods unless they leave their country. Thus the demand for bitcoin falls, and if less people use it, it becomes less valuable (network effects). That directly hurts its value in the long run. If you were to imagine a world where Bitcoin is banned by all governments, then no one would desire to own it or trade it, and it has virtually no value.