Home / ICO / Five Reasons Why Governments Wont Ban Bitcoin And Cant Stop Crypto

Five Reasons Why Governments Wont Ban Bitcoin And Cant Stop Crypto

The founder of the world’s largest hedge fund and macroeconomic genius Ray Dalio recently revealed his concerns over governments banning Bitcoin. In response, we’re outlining all the key reasons why this simply will not happen, and even if it did, it wouldn’t stop the cryptocurrency from continuing on.

Why Banning Bitcoin Won’t Happen, And Governments Can’t Stop It

Ray Dalio is the founder and co-chairman of Bridgewater Associates, the world’s most successful hedge fund. His latest work entitled “The Changing World Order: Why Nations Succeed and Fail” dives deep into the failing fiat monetary system and a future where the United States and the dollar fall out of power.

The topic has made Dalio a star within crypto circles, which is why his recent remarks about governments potentially banning Bitcoin, was especially jarring. Dalio clearly knows his stuff, and there is a precedence set already with gold.

RELATED READING | BITCOIN  REMAINS THE BEST PROTECTION AGAINST A DEVALUING DOLLAR

From 1933 to 1975, the US made it illegal for citizens to own over a certain amount of gold to prevent gold hoarding. It was done to push citizens increasingly toward paper dollars that were at the time losing purchasing power.

Back then, the law was difficult to enforce, and only a few cases where gold buyers were prosecuted exist. It also serves as an example as to why the situation won’t arise again, the dollar isn’t pegged to Bitcoin as it was to gold when the ban was put into place.

Next, the sheer cost in resources and time required to add Bitcoin to the ever-growing list of “banned” goods like weapons, drugs, and more would be large, and wasteful. And if the “war on Bitcoin” is as large of a failure as the “war on drugs” or “war on terrorism,” Bitcoin will become part of everyday society whether there are wars waged against it or not.

Another reason that would make a war on Bitcoin far more challenging, is because it lacks a physical form. The lack of a physical form and cryptography makes it difficult to confiscate.

bitcoin market cap btc

BTC market cap nears $300 billion, beyond $1 trillion it becomes unstoppable | Source: BTC Market Cap on TradingView.com

No one actually controls Bitcoin, so governments’ only chance at stopping the rapidly expanding cryptocurrency network is to ban citizens from owning it. But as gold has proven, it doesn’t work. Also, time is running out on any chance of that happening at all, the more major companies like Square, Inc, MicroStrategy, and billionaire hedge fund managers put their capital behind it.

RELATED READING | BITCOIN OVERTAKES PAYPAL MARKET CAP, SETS SIGHTS ON VISA, MASTERCARD, AND BIG BANKS NEXT

Billionaires, millionaires, and corporations, have considerably lobbying power. If companies continue to get behind Bitcoin in this way, and the market cap grows to $1 trillion or more, the impact of a government ban would be too considerable to warrant it.

The reasons could go on and on as to why governments won’t ban Bitcoin, and even if they do, there’s simply no stopping it.

Featured image from Deposit Photos, Chart from TradingView.com

Originally from Bitcoinist.com https://ift.tt/32FHWSS


Source link

Check Also

Analyst Who Predicted Bitcoins 2018 Lows Says Another Drop Is Likely

Bitcoin has undergone a strong drop since the highs of $19,500 seen last week A ...

Leave a Comment:

Your email address will not be published. Required fields are marked *