Bitcoin Forum

Hi everybody,
Bitcoin has some marketcap, but if it gains traction it will compete with the all-powerful state with it's fiat currency?
If countries (usa, canada,) and group of countries (EU) ban the usage of BTC, what will be the effect in price?
Thanks!

Of course Bitcoin is a threat for fiat currencies, because it is a much better form of money. It is also probable that governments will try to destroy it, because it bereaves them from their power that stems from the fiat system. The question is, if governments will outright ban Bitcoin, or try to go a different route. Currently there are multiple initiatives to establish central bank-controlled altcoins as competitors of Bitcoin to suck off the potential user base. However these will likely fail.

A ban of Bitcoin is only partially enforceable, because full enforcement would require governments to control the decentralized network which is extremely difficult to accomplish. What they can relatively easily prevent is the conversion of Bitcoin to fiat currency. But in a native Bitcoin economy with direct BTC payments without intermediary fiat conversion this will not have a strong negative impact for Bitcoin.

In my opinion, the attempt to ban Bitcoin in the way described (fiat conversion), will lead to a significant drop in fiat price for sure. But I think the effect will be short-lived. In fact a ban might make Bitcoin appear even more attractive and trade could move and prosper in black/gray markets. It could even lead to accelerated capital flight away from fiat currencies.

ya.ya.yo!

probably none... the users right dont care about the state. So, if the countries decide to adopt bitcoin we will see a big pump, if dont.. well, it will stay as it is today.

this has been answered many times.
summary
countries have laws (minimum wage, tax, court fines, licences, mortgages, debt) that keep fiat LEGALLY binding to have usefulness in a country.

you can happily work from home in america working for a european company who pays you in euros which you then spend on european retailers websites. but you still end up having to convert some euros to dollars to pay taxes. which in short means that they still get their taxes.
EG america does not care about its residents using the euro because of the LAWS that keep dollars in default usage in america.
even if everyone in america started trading euros, those euros need to be converted to dollars to pay taxes, court fines and licences.
so most countries do not care because they will still receive fiat tax, even if people are personally using something else.

but lets say they did try..
governments prohibiting alcohol last century didnt stop the moonshine and private drinking clubs business
governments prohibiting drugs hasnt stopped anything
governments prohibiting guns in schools hasnt stopped anything.

they can try, but i dont presume they want to stop bitcoin out of feat of fiat value dropping*.. but even if they did prohibit it. people will still use bitcoin. and the price (just like moonshine, guns and drugs) will just go up the more its prohibited, due to peoples perceptions of how much supply is being restricted.

*because due to government debt, governments love fiat losing value because they can pay off fixed debt amounts faster. its why they went for a inflationary model in the first place. (research Zimbabwe dropping from 147% GDP debt to 75% GDP debt in one year2008-2009 thanks to the drop in "value" of their currency to make debt repayments easier)

As bitcoin can't be banned completely by any government or states in sense that they can't stop people from transacting bitcoin from one user to another but they can banned the bitcoin exchanging services as well as in some extend limit the withdraw amount that can be withdrawn using bitcoin debit cards from the ATM. However i don't think they are thinking about banning bitcoin rather than they are trying to capitalize on bitcoin price manipulation.

op's statement clearly says one thing that is bitcoin will loose a huge price and fall suddently but there are two things which will never stop one is compition between opponents and developing yourself more and more because many is always a social animal and it have always a demand which is increased by time

Once Bitcoin is banned, it would attract a lot more attention from Anti-government groups. A ban just makes it the forbidden fruit, and you

know how this draw people in... Example : Smoking & Drinking & Sex for under age kids. Most kids just smoke, because it's the forbidden

fruit, not just because it is addictive. Bitcoin will go under ground and people would trade person to person, or they will collect it, cross

the border into a country where it is not banned, and spend like crazy. { Bitcoin Holiday }  ;D ;D ;D 

Governments can't ban bitcoin, an example of government trying to ban bitcoin is Russia. Russian government has been trying to ban bitcoin for ages and trying to make people scared of using bitcoin, but if you look at the localbitcoins marketcap from the rubble to btc volume you will see that the btc volume to rubble has indeed increased in the last years, this proves scaremongering from the government doesn't work.

Price will be affected, but there are like 230 other countries without usa, canada and couple EU countries.
Bitcoin can't be banned, because even if banned people in these countries can still use it.

from the beginning of bitcoin out to the public the government has banned bitcoin by giving a warning a very dangerous that the investment in  bitcoin could suffer losses and also media reports bad news all related to bitcoin but bitcoin it grew rapidly even in the countries that prohibit bitcoin in hard way.

We should be happy with how Bitcoin is right now. If Bitcoin grows too large, then governments will more and more (which they already do) see Bitcoin as a threat to every aspect of their economy. That's when governments will come up with all kinds of ridiculous policies in an attempt to push Bitcoin back to it's smaller form, or perhaps (in their mind) for ever. If countries will put up a ban, then it will definitely affect the price, but people will continue to use it no matter what.

I posted somewhere else here on the forum a while back that BoA did something in a small area of their customer base that they now deny.  They forced verification on what they called "sin" purchases in 24 hour period that were above a set amount.  So, in other words, if you bought too much beer in a 24 hour period, you got declined and had to hit a link in an email to authorize further purchases. 
Same can be the case with bitcoin

They can TRY to ban the usage of BTC, but as has been mentioned before it will work as well as efforts like prohibition, the war on drugs, and the attempted ban on e-cigarettes did. There are just too many people that like me have realized that the state is just organized crime with enough force to call itself legitimate. The state can go fuck itself as far as I personally am concerned.

It would (and already does compete to an extent) compete with fiat currencies in a pretty big manner, and if groups of countries started to ban it chances are the value would go down due to people exiting the currency, however there would likely still be some sort of underground economies in the countries still using Bitcoin, in one way or another.

even if they start banning bitcoin we are going to still be using it and nobody can stop us. and the price can even go higher because it is the forbidden fruit effect on bitcoin.
besides let us ban it the rest of the world will enjoy bitcoin more.

a country will never use bitcoin...
maybe a country can create their own coin to have control on people ;)

I have similar opinion, there is higher possibility that countries will create their own coin then chances for some country to adopt it. But that is for strong countries, small ones will need to adopt bitcoin or to follow some bigger country.
On other hand when I see what New York did, and situation in states, Japan is very open toward bitcoin also, how many stores Brazil have that accept bitcoin? That tells me that there is a chance for btc to be adopted in all world one day.

They can ban it, the value can go down, and regardless of what they want to come out of this they would likely still end up not really achieving their desired result and would likely just end up creating an underground economy. Nothing like this ever works out how they want it to.

I heard that 150 stores in brazil has accepting bitcoin as payment.. but its not the case that there is a country that can make a coin for bitcoin to use locally we have already traditional coin we are using so its impossible.

But that's just your imagine and i think not a real fact. that is just useless decission for the state caused by everyone will always trying all of the way for using bitcoin because they're already feel convenient with it, and just the people brain can controlling the body and not for the state.

When the state ban Bitcoin, they effectively ban all Crypto currencies, and all these banks and other financial institutions working on Blockchain technologies, will be f$%ed too. The state or governments of the world rely on tax income, and the economy generate that income. Bitcoin is a new technology with lots of opportunities for new innovative job opportunities.

If they ban Bitcoin or any other Crypto currency, they will shut down a huge opportunity to create extra jobs and also to generate extra state taxes. ^hmmmmm^

it will be a very long time for bitcoin to reach a stage that it can even begin to threaten fiat currencies on a big scale so governments start to worry!
right now we have to conqure the internet first then move on to offline shops.

besides no one can prohibit us from using bitcoin ever!

try collect bitcoin as many as you can and cash it to your local currency
thats the way safer to use bitcoin if ur state will ban bitcoin in your country

Bitcoin is still too small to compete against the big fiat currencies.

This is good because if bitcoin becomes big enough, the governments and central banks might try

to destroy it.If the big countries ban bitcoin the price will go down.

well, if that happens surely there will be a lot of drama and price will also surely take a hit especially if bitcoin is banned all over the USA since there area lot of users from there but two things are here to be considered. bitcoin is being used all over the world and not all countries are going to ban it so it will continue being used and also no government can ban individuals from using bitcoin as they can always use it with their own wallets and cold storages.

I my country the state given pension funds will have (and probably a lot of states will be that way) critical problems around 2040-2050.
Private funds can also default and I have no trust in the state to guarantee those funds.
So i think putting away a part of my earnings in bitcoin is a wise thing. Is this sane or what? I mean planning for 2040 bitcoin...

I don't think that the controls that the state will place or try to place on Bitcoin and Crypto will be anywhere near the level of what is coming with other types of currencies, especially using things like Paypal, Google and iPay at the register.

It will depend on the height of the ban. If it is just usage in their country then there wont be much effect but if it is the exchange from bitcoin to fiat and vice versa then there would be some chaos. Imagine you living in that country who loves bitcoin so much you cant do a thing to join the society with the faster way of esrning money.

I don't think that there will be some kind of ban in the near future.
When you look at the market capitalization of bitcoin, it's not even 10 billions. And that in the whole world.
I am relatively sure the industry countries have bigger fish to fry than to worry about this, in their eyes small amount.
In a few years, if biton really goes mainstrem and the value multiplies as some here predict, the situation could be different.

As far as I know Europian union is not planing to ban the Bitcoin. On contrary there are some intentions to make some common regulations to determine Bitcoin status within the EU countries. USA and Canada are also to democratic and open minded states to make such ban. And they don't consider Bitcoin to be a threath to their own currencies.

Of course have an effect on prices, because in the USA, Canada and Europe had many bitcoin users if bitcoin banned on there, a lot of people sell BTC and it makes the price of Bitcoin dropped.
But I'm sure the government there was very wise in making decisions.

Price could be effected but it will be still hard to predict how much it will be effected. But as banning bitcoin is not easy task as well as now many millionaires from eu, usa etc are trading bitcoin actively which will even force governments to keep supporting bitcoin.

I think to regulate bitcoin is what the states or other countries are planning right now.

They cant stop bitcoin, only to regulate or tax it  or recognizing it as a money as  a way the government to get hold of this currency. I think other state already recognized bitcoin as cash some are not considering it as money :).

I Think the Link below can help.

Legality of bitcoin by country (https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country)

They are already tracking and watching everything. All that using Bitcoin can do is slow that and maybe prevent
some tracking.

If bitcoins growing up and there are many people who use it, it will become rival of fiat currencies because they can not control the bitcoin amount and if the countries ban the usage of bitcoin. The price will be going down, but doesn't mean bitcoin is dead, bitcoin be banned by countries, it has happened but the bitcoins was survive until right now.

i think it will not happened because some of these countries are official user of bitcoin . and if it would to retard the use of bitcoin in these bulk user bitvoin countries than the bitcoin price will fall diwn rapidly .

if a lot of people know bitcoin i think they will prefer to use bitcoin, and within the more user using bitcoin someday it can become a threat to fiat, but actually bitcoin will never beat fiat, but if the government want to take precaution maybe the government will bring down bitcoin, but i think even its being bring down bitcoin will still survive

I think when many countries prohibit the bitcoin prices will decline. but look at the fact that the current bitcoin prices continue to rise. bitcoin developments in various countries is very fast.

I'm sure that BTC will compete with government's currency at some point, just like it competes with fiat currency. Note that we may see a government-invented cryptocurrency some day, to compete with BTC.

But the PC's that you buy the Bitcoins on are being tracked too, so in the end, it is nothing more than us stepping up our end of the attack against controls and they will step things up and back and forth until the end of time.