4 ms·

Since the value of bitcoin is based on fiat, it's relatively easy for the government to debase it. By banning the conversion of fiat to bitcoin, it removes the

Since the value of bitcoin is based on fiat, it's relatively easy for the government to debase it. By banning the conversion of fiat to bitcoin, it removes the value. You can still pass coins around on the bitcoin network, but if no one accepts them, and you can't turn them into usable currency, then what's the value?

lowkey 5y ago
Governments have banned alcohol, heroine, cocaine, and other illicit drugs yet somehow a market always continues to exist despite being banned. In the case of the above banned substances, the market value of the contraband ended up being higher than it would have been if it were legal due to constrained supply relative to demand. Also, unlike cryptocurrencies, none of the other contraband could be stored on a password that could be memorized or transmitted to anyone anywhere in the world. If governments banned Bitcoin, the market price of Bitcoin could very well go up over time not down after the initial shock.
- ryan_lane 5y ago
  Markets for those exist because people use those things. Bitcoin is used as a speculation device, that's converted back into fiat, not as a thing by itself. The government won't ban the use of bitcoin, it'll ban the legal on-ramps and off-ramps for converting between cryptocurrencies and fiat. The value of cryptocurrencies is based on hype. When most people can't legally invest, the liquidity will dry up and the price will plummet. That'll lead to less hype, which will lead to lower interest, and so on. Most likely, the bubble will burst, normal people will lose lots of money, the rich will make a lot of money, and the government will regulate cryptocurrency.
csomar 5y ago
It's already semi-banned for bank-to-crypto and crypto-to-bank transactions. P2P transactions are unstoppable. You are confusing the government to god.

4 ms·

Since the value of bitcoin is based on fiat, it's relatively easy for the government to debase it. By banning the conversion of fiat to bitcoin, it removes the

by ryan_lane 5y ago

lowkey 5y ago
Governments have banned alcohol, heroine, cocaine, and other illicit drugs yet somehow a market always continues to exist despite being banned. In the case of the above banned substances, the market value of the contraband ended up being higher than it would have been if it were legal due to constrained supply relative to demand. Also, unlike cryptocurrencies, none of the other contraband could be stored on a password that could be memorized or transmitted to anyone anywhere in the world. If governments banned Bitcoin, the market price of Bitcoin could very well go up over time not down after the initial shock.
- ryan_lane 5y ago
  Markets for those exist because people use those things. Bitcoin is used as a speculation device, that's converted back into fiat, not as a thing by itself. The government won't ban the use of bitcoin, it'll ban the legal on-ramps and off-ramps for converting between cryptocurrencies and fiat. The value of cryptocurrencies is based on hype. When most people can't legally invest, the liquidity will dry up and the price will plummet. That'll lead to less hype, which will lead to lower interest, and so on. Most likely, the bubble will burst, normal people will lose lots of money, the rich will make a lot of money, and the government will regulate cryptocurrency.
csomar 5y ago
It's already semi-banned for bank-to-crypto and crypto-to-bank transactions. P2P transactions are unstoppable. You are confusing the government to god.