It’s too late to stop Bitcoin
Governments can try but their window of opportunity is now welded shut
“ First they ignore you. Then they ridicule you. And then they attack you and want to burn you. And then they build monuments to you.” Nicholas Klein
Now that the Bitcoin network is securing over a trillion dollars in value many around the world are beginning to wake up to its proposition. This is only after many years of calling it a fraud, comparing it to the tulip bubble and saying without doubt that “it won’t work”. Just goes to show you can’t take the words of any single person with which to base your own truth on. In order to fully understand anything you must take a deep dive on the topic and consume sources of all biases in order to develop your own informed perspective. Although this takes time and effort which is why the majority don’t do this and only parrot the surface level thoughts of single “experts” with a notable bias.
2020 was a coming of age year for Bitcoin, the March market crash and subsequent rounds of historic stimulus coupled with negative interest rates and bond yields well below actual inflation levels led many to look for alternatives outside of the traditional markets. This turmoil is the main reason Michael Saylor of Microstrategy decided with certainty to convert the company’s entire cash reserve balance to bitcoin. No one wants to be the first mover yet Saylor normalized it to the point where several other major companies followed soon after namely Square and of course Tesla. This has also sparked the rise in bitcoin ETFs and other professional investment vehicles which were not possible in the years before even though there were many attempts.
Governments will likely if not already find it impossible to ban Bitcoin without shooting themselves and their economy in the head
Add to this the vast increases in retail volume and number of Bitcoin related services from Fold to Moon to Blockfi whether you like them or not Bitcoin is now snowballing to adoption at increasing speed. The Bitcoin industry is now worth trillions of dollars not including the bitcoin market cap itself, Coinbase alone is almost worth $100b. As this number continues to grow and so to the economic influence of its participants with it, western governments will likely if not already find it impossible to ban Bitcoin without shooting themselves and their economy in the head. Bitcoin is now too big to fail which we’ve seen in practice to be true with the banks however its fundamentally much stronger as a result of its global and decentralized network.
Even the act of governments looking into CBDCs are a sign we’re heading to further Bitcoinization of the world. Although central bankers would like you to believe their digital currencies will replace the need for bitcoin they are instead an advertisement for it. CBDCs will only be used as a tool for complete control of money, here’s the chief of the BIS telling you so without nuance.
This is not to say governments won’t try and ban bitcoin, this is nothing new and in practice it does very little to hinder the network in fact all it does is further advertise to those citizens why they need bitcoin. As Nic Carter put it “Countries don’t ban bitcoin. They only ban themselves from the bitcoin network”. When a government bans bitcoin like in Nigeria, India or Pakistan what we see is P2P trading rapidly increases, node counts increase, big money, startups and enterprise move overseas and the country is left behind the rest of the world. Similar to how exorbitant tax rates without offering value encourage all but those unable to do so to move their money and enterprise somewhere more favorable.
They haven’t even been able to effectively take down a centralized indexing website let alone the BitTorrent P2P network behind it
Bitcoin is not the first P2P network that’s come under fire from government, the BitTorrent file sharing network has been the aim of governments since the very beginning. While sharing files cannot effectively be made illegal sharing copyright material is yet there’s nothing governments can really do to stop it. Jason Deane made this point by referencing the elusive torrent indexing site The Pirate Bay and how it still operates to this day despite being targeted by governments around the world. This makes the case for successful government control over Bitcoin even less likely because they haven’t even been able to effectively take down a centralized indexing website let alone the BitTorrent P2P network behind it.
Sure the government can ban bitcoin at the banking level by forcing all banks to comply with draconian laws but they can’t ban it at the level of the individual as it’s fundamentally a peer to peer network. They could ban the internet itself or shut down the power grid but then again there goes their entire economy sent straight into the dark ages, Bitcoin can also be used over satellite or radio as a last resort and nodes can be powered by small portable solar panels. They could block certain IP addresses or internet services but as we’ve seen with China’s firewall it does nothing to stop people accessing Google, Facebook or bitcoin exchanges through a simple VPN or proxy.
If major countries decide to coordinate their ban there will be others who see an opportunity for industry to flourish in their own economy
Getting all the world’s governments to agree to ban Bitcoin together is impossible considering they’ve never been able to unanimously agree on anything in history, take the last decade’s climate agreements as a recent example. If major countries decide to coordinate their ban there will be others who see an opportunity for industry to flourish in their own economy. As history teaches us time and time again it is impossible to ban something that groups of people inherently see as good or valuable whether the majority think this the case or not. We also see that when governments try and impose total control over their citizens they eventually fail in spectacular fashion sooner or later. Parker Lewis from Unchained Capital wrote a fantastic article on why Bitcoin cannot be banned in which he used the Prisoner’s Dilemma to analyze possible consequences of a ban. In essence there is no possible outcome where Bitcoin loses as a result of a government ban.
The only arguable way governments can succeed over Bitcoin is to offer a better, freer and more open system with a money supply that doesn’t dilute into nothing thereby resulting in increased wealth disparity and poverty. This is unlikely to be the case considering central banks have dug themselves into a deep hole they can’t get out of without mass deleveraging which is something they won’t even consider. So instead they double down on more stimulus, negative rates, more bond and securities purchases to flood the banks with more capital in an attempt to stimulate borrowing and thereby spending and consumption on anything and everything in order to keep the fake economy afloat. Bitcoin is the way out of this rigged game.
The time for governments to successfully ban Bitcoin is well and truly gone, perhaps the only time they could have succeeded was in the early days when mining was done by a select few cypherpunks on their PCs or when Silk Road and by proxy Bitcoin was first getting the attention of the FBI. Back then the number of nodes, hashrate, volume and industry size were a fraction of its current size and an easy target for even a small government to gain control over. Now that Bitcoin consumes more energy than several countries and has a flourishing global industry valued in the trillions with millions of users this window is well and truly closed.
Join Coinmonks Telegram group and learn about crypto trading and investing
- What is Margin Trading
- The Best Crypto Trading Bot | Grid Trading
- 3Commas Review | Pionex Review | Coinrule review
- AAX Exchange Review | Deribit Review |FTX Exchange Review
- NGRAVE ZERO review | Phemex Review | PrimeXBT Review
- Bybit Exchange Review | Bityard Review | CoinSpot Review
- 3Commas vs Cryptohopper | Earn crypto interest
- The Best Bitcoin Hardware wallet | BitBox02 Review
- Ledger vs Ngrave | Ledger nano s vs x
- Crypto Copy Trading Platforms
- CoinLoan Review | YouHodler Review | BlockFi Review
- The Best Crypto Tax Software | CoinTracking Review
- Best Crypto Lending Platforms | Leveraged Token
- BlockFi vs Celsius | Hodlnaut Review
- Bitsgap review | Quadency Review | Bitbns Review
- Ellipal Titan Review | SecuX Stone Review
- LocalBitcoins Review | Cryptocurrency Savings Accounts
- Best Blockchain Analysis Tools | Earn Bitcoin
- Crypto arbitrage Guide | How to Short Bitcoin
- Best Crypto Charting Tool | Best Crypto Exchange
- How to buy Bitcoin in India? | WazirX Review
- Bitcoin exchange in India | Bitcoin Savings Account
- CoinDCX Review | Crypto Margin Trading Exchanges