What will happen to BTC if Government gets involved?

[PrivacyG]

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?.

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.

How will it affect the market?

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.

Have you ever thought about that?.

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.

[IceLincoln]

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.

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.

[SamReomo]

How will it affect the market?

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.

[Spaceman1000$]

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?.

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.

[Asuspawer09]

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?.

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.

[Lucius]

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.

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.

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.

[Coyster]

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.

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.

[leonair]

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?.

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.

[|MINER|]

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.

[Franctoshi]

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?.

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.

[Ndabagi01]

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?.

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.