Bitcoin Forum

With the way things are going and most governments being against bitcoin and crypto because criminals are using it, how would it be if Government finds a way to regulate it and all or most countries adopts it as legal tender?.
How will it affect the market?
Have you ever thought about that?.

It's no news that governments wants to have control over bitcoin but it's very impossible but they can obviously regulate it's use through various means but the word "Control" is not compatible with bitcoin as they both deviate each other.

Did you just say bitcoin (crypto) is used for criminals? Is there any currency that is not used by criminals? Before there the introduction of cryptocurrency this said crimes that has is been attached to bitcoin and crypto at large has been in existence and transactions has been going on with the governments fiat. I can proudly say the statement that bitcoin and/or crypto is used by criminals is just an excuse by the governments as they do not have any reason for the hate of bitcoin rather than it's a decentralised currency that they do not have control over as they can print as much as fiat they want but bitcoin is 21million limited.

El Salvador has already made bitcoin a legal tender in their country and that had a good effect on the market (temporarily). That's the only country that has seen the best part of bitcoin and decides to adopt it. So if other governments decides to adopt it as a legal tender it's not going to be a surprise.

We have discussed related topics here over and over so if you must know a lot of people already thought of that.

Maybe your sentence is wrong because no country's government will ever have a chance to regulate bitcoin, we all know that bitcoin is an open-source crypto currency. Bitcoin is termed as a decentralized digital currency and even I know that no financial institution is required to transact this Bitcoin and Bitcoin is not a currency issued by the government of any country.
There are many countries where Bitcoin is not fully legal but there are various transactions that take place through Bitcoin. We all may have heard the name of a country called El Salvador which is a Latin American country. El Salvador is the first country in the world to accept Bitcoin as legal tender. Since then, citizens of El Salvador have been allowed to freely trade bitcoins in the country and pay with bitcoins after purchasing various goods.

Most likely Bitcoin isn't taboo anymore to be discussed and some old school investors might dare to invest in Bitcoin, that's. I doubt if people will choose Bitcoin over fiat for micro transactions, because people want free/cheaper choice instead of paying Bitcoin fees for every transactions.

Regulate isn't always about completely controlling something.

As small as the government consider Bitcoin is an asset and should be taxed, it's already a form of regulations. Other kind of regulations are: treat Bitcoin as a commodity or property, banks restrict Bitcoin transactions etc etc.
 
This means most of countries already regulate Bitcoin, if Bitcoin didn't regulated, it should be stand in "grey area".

The first country that adopted Bitcoin as a legal tender is El Salvador, before other countries began to involved themselves to use Bitcoin to eliminate delay in their transaction, because many citizens prefer to use Bitcoin to purchase any kind of goods and services to pay with Bitcoin which it has helped the government to improve many business men and women in their country. There is no currency criminals are not using to collect fund from citizens, I have seen many victims that was collected huge amount of fiat money from some citizens without a single tracy of the money, because they collected the fiat money physical from the owners, for you to know that criminals can use any currency for their criminality. If many countries find way to adopt Bitcoin as a legal tender, it will do good to such countries, because the decentralized currency is be created to use for good and it will create many opportunities for the countries that adopted it as a legal tender.

Criminals are using fiat currencies that are created and controlled by governments and central banks. Did they stop all money laundering and criminal activities through their bank systems and fiat currencies?

The answer is no, they failed to do that.

With time and more adoption, growth of Bitcoin and its increasing market cap, governments will have more regulations on Bitcoin and this market. Legal tender or not, they will enforce more laws and regulations.

Short term, when any stricter regulation is out, the market will react negatively and can crash too. Fortunately in long term, the market will reflect growth of value, not regulations from government so price will increase to reflect higher value of Bitcoin.

The bullish case for Bitcoin (https://vijayboyapati.medium.com/the-bullish-case-for-bitcoin-6ecc8bdecc1)

Your assumptions are wrong. Most governments are not against Bitcoin since it is legal in most countries of the world. They do want to regulate it, though.


Those are two separate things. I doubt that Bitcoin will ever become legal tender in all (or most) countries in the world, but it doesn't have to be legal tender to be accepted as a means of payment or an investment asset.
As for regulation, that is already happening in one form or another.

"Governments" are not against Bitcoin. Some governments are, some are very open to it and want to create an enabling environment for it. Also, those against it are not doing so because criminals are using it. Criminals are using their legal tenders way more but there's no campaign against it.

What I understand until now is that the government can only provide regulations, cannot fully control. This means that they know that the development of crypto is very rapid, the amount of money in circulation is also very large so they want to profit from this process. Therefore, today many countries legalize it as a commodity. They create supervisory institutions in accordance with state rules. They also made a decision to take taxes on state income. I didn't expect Bitcoin crypto to be a payment, making it a commodity already makes me happy.

Bitcoin must not necessarily be a legal tender in all countries before it is said to be legalized. Government have seen that bitcoin have come to stay and that is why they are embracing it, but at the same time they are trying to see how they can regulate it by taxing bitcoin transactions, and that can only be achieved through a centralized platform. Government cannot control bitcoin and is not against bitcoin. Fiat is used more for illicit activities than Bitcoin, but because they control it, they bury the news.

Government shares part of profits you makes from bitcoin, so they accept it, but they want to know the details of all transactions (to take a portion of them as taxes) and impose centralization on conducting transactions.
The first part began with the attack on privacy services, and if they succeed in that, they will move to mining pools. They will try to force them to adhere to the ban lists and blacklists.

Unfortunately, no, governments (almost all) are against bitcoin and if they could ban it, they would have done so already. Why should they give financial freedom to citizens?

More often than not, countries that are open to this have no other choice, because their financial and economic sectors are in very poor condition (El Salvador). For such countries, bitcoin is like a booster, allowing them to bypass other countries (anti-btc) in the economic race. In essence, they show loyalty to the bitcoin out of their own interests, and not out of the interests of citizens.

This is all a stupid story about criminals using bitcoin to demonize it in the eyes of ordinary people. Let them then ban cash if they talk about criminal money.


Get rid of these illusions. It is easier for governments to issue their CBDC and impose it on citizens than to accept BTC as legal tender.

Any government will legitimize only the money that it can unconditionally control (emission, turnover, etc.). Bitcoin is not subject to any country in the world, therefore, no country in the world will allow it to be made legal tender. National currencies (as before) will be used, probably digital versions rather than bitcoin.

A small digression:
In any country, legal tender is only the local national currency, that is, even in Turkey, it is illegal to pay for goods and services in euros or dollars. And you are talking about bitcoin.

If government finds bitcoin as illegal since this is been used by criminals then for sure they will ban it. They might really think that cutting the means of payment method of those guys can stop their illegal actions but they forget to realize that those criminals are so smart to find alternative to continue their activities. To awful for them to think and decide that way since they just projecting how bad their government the way handling some things since they only look for one side of the coin. But if they are open for sure they would find that bitcoin is not only used for illegal but also with those legal activities since there's a lot of industry rise by using bitcoin and other cryptocurrency.

Maybe they will adopt it as legal tender if they find something useful for it, but by looking what is rotating in their mind I guess they are not friendly for bitcoin as they only see those negative things happen and not counted the benefits also the bright side for adopting this coin.

Affect depends on what they announce for bitcoin since if they are for adoption then maybe this will result to a price pump but if they are for banning then for sure expect for a dump

government i think is already getting involved that is why some countries are banning bitcoins and also banning exchanges making things up to be able to get a grasp of crypto as a whole, bitcoin has a big impact and if they will not move, it will surely make things hard for them to control the people.

The only choices that the government have is to regulate every crypto marketplace, since the most liquidity belongs to centralized exchanges they need to get involved with every one of those exchanges, forget regulating Bitcoin, it is never going to work.

Bitcoin was created as a decentralized coin by default, it is too late to kill it now, and this is why some governments hate Bitcoin so much, the more they plan to bring war unto Bitcoin the more things will fall apart for them.

They should calm down and not behave like Elizabeth Warren, who can't sit back and learn what Bitcoin is really about, she doesn't even want to because she believes that the government should be in control of everything, although criminals are using crypto too but with the exchange regulations, they will be able to track down these criminals.

In fact, I will warn criminals to avoid Bitcoin, only a stupid crime lord will choose Bitcoin to move their dirty money, because Bitcoin can be traced easily, the wisest ones still use Fiat till date, it is more safer for them than Bitcoin.

The OP and many others live in the illusion that many governments of the world have not long ago started to "fight" against BTC precisely in the way that they constantly promote the story that BTC is something that is mostly used by criminals of all kinds, and that BTC mining causes great damage to the environment + consumes enormous amounts of energy.

If we want to be honest, half of the world's population is in a subordinate position when it comes to BTC, because in addition to China, there are also some smaller countries that have a complete ban, and of course India, which is trying in every possible way to demotivate its citizens to stay away from cryptocurrencies.

In Turkey, Thailand and Vietnam (maybe elsewhere) owning and trading BTC is allowed, but using it as a payment currency is prohibited, which speaks volumes about what really bothers governments when it comes to cryptocurrencies. It therefore seems to me that much stricter measures will be imposed at the moment when it is estimated that Bitcoin is becoming a greater threat than it is today, and until then we will move in the direction of greater control.

Governments are already getting involved with Bitcoin. Some countries are making rules for Bitcoin. Other countries are using Bitcoin as real money.

More government involvement with Bitcoin could actually be a good thing. It could make more people and big companies want to use and invest in Bitcoin. This could make the price of Bitcoin go up.

But governments cannot fully control or stop the Bitcoin system itself because it is decentralized and not owned by anyone. So government rules on Bitcoin could help it grow while still keeping it free.

The truth remain on your statement as it speak more volume of what is happening in our nation over the system of policy and regulatory authority mostly on anything that has to do with cartel who has mortgage our nation with their political desire to occupy position, out fiat system has destroy the economy but government can't fight against the bad eggs involved because they are the bad eggs.

BTC is not take position of fiat because there both is not of the same operations trying to prove that or indiet crypto against failure of fiat or economy is misplaced priority.
Weather the government crave way to regulate crypto and make it a centralized system which can't be possible as it not it original purpose, crypto currency will strive.

Yes, you should include Nigeria on the list. Bitcoin is allowed in our country but the fight against it started sometime in February last year when the central bank issued a directive to all other banks to close down any account involved in cryptocurrency transactions. Recently, Binance was blamed for contributing to the devaluation of our currency. Which I find very ridiculous. This led to the arrest od some of the company's representative by the intelligence police and the Naira/BTC pair was delisted. And just some days ago, tech firms providing financial services cautioned their customers that any account caught transacting cryptocurrencies would be closed down and the customer will be arrested. My country's government is on a full-fledge anti-bitcoin campaign.

You ask so many questions and mixing up so many things. Government have already started using kyc to regulate cryptocurrency in so many countries. Centralized platforms are have to abide by the rules and regulations set by the government of a country before they are able to run their services. Kyc goes against the whole idea of Bitcoin been decentralized. But since some investors has an option to go for centralized platforms then they bear the risk of been exposed to the government. Thereby removing their privacy totally.

Bitcoin or cryptocurrency won't be accepted by all countries. Except maybe in the future, there's a way to prove to them on how it can help to improve and play a very important role in the world economy. Aside that, some countries are not ready to change their view towards cryptocurrency.

The situation would be the same as it currently is.  Some people would continue to use Bitcoin the Privacy way seeking alternative routes every time their Privacy is intruded while the rest of the people either stay away from Bitcoin or kneel to silly regulations.

Unfortunately, if the regulations are ridiculous and Privacy invasive, there will have to be an underground Market for Bitcoin.

Positively in a way if Bitcoin becomes legal tender.  But besides the Money inflow and out flow, I do not think there would be positive sides to the story for us who want Privacy.  Maybe at that point we would have more liquidity on Decentralized Exchanges since so many more people are going to use them compared to now.

I have.  The Government WILL get involved whether we like it or not.  What we will do remains a question to be answered.  I am saying this only because you never know what the future holds for us and how things can change in years.  Maybe it will become so hard for us, the Privacy users of Bitcoin, that we will have to resort to using Monero solely and underground.  I do not know.  All of this has yet to be seen.

Government wants to partake in the amount/volume of bitcoin been circulated, they want their hands in all things. I think the fact that they can’t fully control it is why most is against it.
Right now some countries have placed bans on cryptocurrency. Government see the opportunity and profits in it, so they use concerns for financial stability prevention of money laundering and consumer protection rights to find a way to tax individuals and create organizations to oversee the affairs. I believe even now they’re looking for ways to have more control over Bitcoin and other cryptos.

It will affect the market to some extent but not a lot, because most of the times the growth in market comes from exchanges and those are mostly centralized ones. If most of the volume in market is coming from exchanges and if those exchanges are allowed to operate even if government gets involved in BTC then that would not impact the market in anyway.

But, if government gets involved and make new laws and rules for Bitcoin investors and traders then that would impact the market. But, still it depends that to what extent government monitors Bitcoin users. If government gets involved only to make Bitcoin a legal tender then that would positively impact the value of Bitcoin because people of that country whose government makes Bitcoin a legal tender will learn about Bitcoin and they might invest in it.

OP, Your first question is how would it be if government finds ways to regulate bitcoin, first of all bitcoin is decentralized, it was not made for government to regulate or control. While you're second question is about a country adopting bitcoin as a legal tender and how it is going to affect the market. The adoption of bitcoin will certainly skyrocket the value of bitcoin because it will lead to more people within that country to adopt it which will lead a high surge in demand, this will in turn push up the price of bitcoin. More so,  it will also be the responsibility of that Government to adopt mechanism within its system that will easily make the function of bitcoin as a legal tender easy for her citizens.

I mean there are for sure some governments that is against Bitcoin because of its decentralization which is the complete opposite of what our fiat system is, which is centralization not to mention the huge inflation issue with it since the government could easily just print money whenever they wanted to increasing inflation and burning our hard earn money. With Bitcoin for sure that is going to be a completely different thing which is going to probably destroy their fiat system and banking how the money works. But I would say that Bitcoin is already adapted a lot in the whole world compared in the past years it surely have grown a lot, I could already see companies starting to adapt to the Cryptocurrency space and Bitcoin, there are already a lot of crypto projects out there that is already starting to adapt even here in my country. Even banking is starting to adapt crypto on their own platform, so I think at some point it might be possible that the government is probably gonna take advantage of crypto and Bitcoin, because they might not be able to stop it at all, for sure what they can do is to also adapt on it.

Considering the large number of members from Nigeria on the forum, I know that your authorities have a kind of warm/cold attitude towards cryptocurrencies, but also that your crypto community is perhaps the strongest in all of Africa. Considering that, it would be realistic to expect that so many young people would change something, of course assuming that they can participate in politics and in that way create some kind of regulatory framework within which everyone would be satisfied.

Cryptocurrencies can function quite normally next to any national currency and are no threat to the financial system, but obviously your policy wants to keep as much control over people as possible, trying to make them dependent on the system. Unfortunately, this only shows the level of democracy and the development of society, but such things should be fought in all legal ways.

You have already been told in this thread that most governments are not actually against bitcoin per se, that is why bitcoin is legal in most countries, what the government is against is privacy whilst using bitcoin and they also want to regulate its use. I don't really know what you mean by "Government wants to partake in the amount/volume been circulated", if they want to buy bitcoin, they would do so, just as El Salvador did, but not many governments would not consider owning bitcoin.

There will be must affect on the market if most of the countries adopt Bitcoin as a legal tender. And I want to say that there will be tap positive effect in the market. Some of will say that by accepting Bitcoin as a legal tender maybe Bitcoin can be controlled by the government but I will say that that can never be happened because the percentage of holding bitcoin of all government in the world is very low against the whole supply of bitcoin.

Correct. I will also agree with your opinion. Because if we see this report then we will find that only around 2.69% of total supply I mean 2001 million supply is held by the countries all over the world.  And the rest 97.31 among the others holders and miners. Maybe in future the percentage of holding by countries reserve Bitcoin will may increase some more percentage but it can't affect market that much which can control bitcoin. May be it can affect or impact for some certain time.

Fiat currency is the most used in aiding both online and offline criminal transactions, while Bitcoin is online (Blockchain), you can't compare in no way the amount of fiat that has used in criminal activities since the existence of fiat currency because Bitcoin is transactions is transparent, and you can see all the transactions their on Chain, it now looks like Bitcoin is the most talked or used form of money in aiding criminal activities, no way, think about the fact that you don’t even know the amount of fiat currency in circulation and how many they use each day for criminal activities. The government has been looking for a way to try to control Bitcoin. They've been finding difficult to do so, However, they can only regulate Bitcoin Because it is designed in such a way that no entity can control it.

I don’t think anything will happen to the market negatively. Governments regulations cannot make bitcoin become centralized but will forever be decentralized as it is designed. The extent they can go is to regularise its use but they can’t do any major changes to bitcoin that will be in their favour big time. With the way bitcoin adoption is going, a way for me and you to enjoy its use freely as legal tender will have to prompt the government to put rules down and impose tax on those using it. Till then, when it happens we can now be free of government interference on its use. About being used for criminal activities, it happens to even fiat currency, so it is okay and let’s disregard bitcoin as mainly the source of any criminal activities because it is not.