Bitcoin
Five Reasons Why Governments Won’t Ban Bitcoin And Can’t Stop Crypto
Tony Spilotro · @tonyspilotroBTC | Nov 12, 2020 | 15:00
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.
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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.
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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.
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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
