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Over the years, a lot of governments have outlawed offshore online gambling. They mainly do so by proxy, by making it illegal for banks or credit card providers
by mvindahl 9y ago
Over the years, a lot of governments have outlawed offshore online gambling. They mainly do so by proxy, by making it illegal for banks or credit card providers to transfer money to unapproved gambling operations. In addition, to offer an alternative, most governments allow some kind of gambling to run in the country, but these are regulated and taxed.
I guess there are always ways to circumvent these government regulations and put your money in an online casino in Barbados or whereever but it takes a special kind of person to want to go through the hassle.
In very much the same way, governments could choke the flow of real money in and out of cryptocurrencies if they wanted to. They are probably planning to do so but it hasn't been on the top of their priorities just yet, the crypto bubble being more of an annoying mosquito than a threat to the economic stability. A government crackdown won't mean that crypto currencies will go away but it will be obvious to everyone that they'll forever be RPG play money, and only a small amount of enthusiasts will want to hold them. Prices will adjust accordingly.
- Vadoff 9y agoA country can outlaw cryptocurrencies from their country, but the rest of the world won't simply follow suit. With countries like Japan or Korea embracing cryptocurrencies, it's unrealistic to think they'll become "RPG play money".
- mvindahl 9y agoI don't think any "real" countries have any interest in cryptos becoming a competitor to their respective national currency. That would be giving away control over the economy, and why would any government want to do that? Thus I think we'll see both South Korea and Japan taking an increasingly hostile stance towards cryptos alongside all other developed countries. I could imagine, on the other hand, freeloader countries like the Cayman Islands adding cryptos as a supported way of stashing away money. Thus, they could become a gateway between the legit economy and the crypto economy in the same way that they are already a gateway between the legit economy and money raked in by tax evaders, drug lords, and dictators. Thing is, the crypto part doesn't really add any value to their offering. And the real question with respect to Cayman Islands etc. is why we don't simply outlaw bank transfers back and forth from these places.
- stuntkite 9y agoYour ideas about government control of slippy digital value fail to take into account that if it still retains value, sure the average dude might not be able to play, but that value can be extracted and moved quickly past municipalities.