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Why is the threshold set at "stomping out cryptocurrency"? The state as the resources to prosecute a lot of crimes. The US has a huge incarceration rate. Eve

Why is the threshold set at "stomping out cryptocurrency"? The state as the resources to prosecute a lot of crimes. The US has a huge incarceration rate. Even if cryptocurrencies weren't completely stomped out, shouting "Bitcoin lives!" from a prison cell wouldn't be that helpful to the person serving the sentence. The "many-headed hydra" isn't much use to the severed heads. Moreover I don't think the failure of the "War on Drugs" provides a relevant example. The inability of the government to stamp out illegal drugs doesn't indicate that it would be a reasonable risk for many (or most) people to maintain their wealth in cryptocurrencies, if cryptocurrencies were to become illegal.

RhodoGSA 5y ago
because unlike cannibis, bitcoin has a limited supply and cannot be created outside of the rules of the system. If the government banned crypto, prosecuted those who it could find and confiscated the crypto it would only succeed in tightening the supply and increasing it's price.
- mullingitover 5y ago
  > If the government banned crypto, prosecuted those who it could find and confiscated the crypto it would only succeed in tightening the supply and increasing it's price. This assumes that demand is going to remain the same while supply goes down. More likely the demand goes to near-zero when the legitimate investors exit the market.
  - RhodoGSA 5y ago
    Who knows to be honest. There's enough narcos, mafia and other random citizens with enough distain for the law to fight over the remaining (5% Who knows) of remaining bitcoin on the black market after a worldwide ban that maybe it will still have some sort of demand. Also, what classifys a crypto currency? This is one of the biggest problems with a blanket ban. If it is a POA chain run by a centralized entity for use within a video-game, but also has real world value for 'Items' a crypto? What happens if no one uses that currency for items, but instead trades it on an open exchange for USD and other FIAT. Is that banned too? It's too obscure a concept at this point for a real ban to every really work.
    - mullingitover 5y ago
      > There's enough narcos, mafia and other random citizens with enough distain for the law to fight over the remaining (5% Who knows) of remaining bitcoin on the black market after a worldwide ban that maybe it will still have some sort of demand. If 95% of the value is gone, and with it probably 95% of miners, the whole system is vulnerable to attacks and could easily go into a death spiral for the remaining 5% of the value.
dannyphantom 5y ago
Your comment made me question why crypto would ever be declared illegal. People can do what they want with their money; whether they should is debatable. This article highlights some interesting things. There is a link in the article to a more thorough article. https://law.stanford.edu/press/is-bitcoin-protected-as-speech-under-the-1st-amendment-experts-answer/ https://law.stanford.edu/press/is-bitcoin-protected-as-speec...

RhodoGSA 5y ago

because unlike cannibis, bitcoin has a limited supply and cannot be created outside of the rules of the system. If the government banned crypto, prosecuted those who it could find and confiscated the crypto it would only succeed in tightening the supply and increasing it's price.

mullingitover 5y ago
> If the government banned crypto, prosecuted those who it could find and confiscated the crypto it would only succeed in tightening the supply and increasing it's price. This assumes that demand is going to remain the same while supply goes down. More likely the demand goes to near-zero when the legitimate investors exit the market.
- RhodoGSA 5y ago
  Who knows to be honest. There's enough narcos, mafia and other random citizens with enough distain for the law to fight over the remaining (5% Who knows) of remaining bitcoin on the black market after a worldwide ban that maybe it will still have some sort of demand. Also, what classifys a crypto currency? This is one of the biggest problems with a blanket ban. If it is a POA chain run by a centralized entity for use within a video-game, but also has real world value for 'Items' a crypto? What happens if no one uses that currency for items, but instead trades it on an open exchange for USD and other FIAT. Is that banned too? It's too obscure a concept at this point for a real ban to every really work.
  - mullingitover 5y ago
    > There's enough narcos, mafia and other random citizens with enough distain for the law to fight over the remaining (5% Who knows) of remaining bitcoin on the black market after a worldwide ban that maybe it will still have some sort of demand. If 95% of the value is gone, and with it probably 95% of miners, the whole system is vulnerable to attacks and could easily go into a death spiral for the remaining 5% of the value.

dannyphantom 5y ago

Your comment made me question why crypto would ever be declared illegal. People can do what they want with their money; whether they should is debatable. This article highlights some interesting things. There is a link in the article to a more thorough article. https://law.stanford.edu/press/is-bitcoin-protected-as-speech-under-the-1st-amendment-experts-answer/ https://law.stanford.edu/press/is-bitcoin-protected-as-speec...