How the government definition of Bitcoin, influence addoption.

[figmentofmyass]

if that were true wouldn't other hard assets (gold, real estate, etc) be rising at a similar rate? yet bitcoin's gains have blown every other asset class out of the water. there's no comparison. bitcoin is going to the moon a lot faster than fiat is collapsing.

You can't expect Gold and real estate to be rising at a similar rate as Bitcoin. Bitcoin is a 'brand new' asset that doesn't yield anything, can't be used for anything other than value transfers, etc, yet it has been increasing because there is something about it as decentralized sound money that people like.

if fiat inflation were the main driver, we would see people running for the exits into all hard assets. when you chart bitcoin against any other asset, it's very obvious that bitcoin's massive rise in value is based on speculation, not fiat inflation.

the correlation people draw between declining fiat value and increasing bitcoin value could be applied to a million other assets. the stock market is a prime example. if there is a causal relationship, it certainly doesn't only apply to bitcoin.

Gold and real estate have already inflated to a point that perfectly reflects how little trust there is in fiat, and how much of it is in circulation.

if people actually start losing faith in the USD, gold and real estate will skyrocket from here---to another universe. i don't think anyone has any conception of what that would look like.

[senin]

It should always be borne in mind that for the growth of the economy of any state, it is necessary that its government maintain and protect its national currency. For the purposes of such protection, the states are trying to define cryptocurrency not as money, but as goods from which it will also be possible to collect taxes. In addition, governments have not yet finally decided on the legal status of cryptocurrencies, this will still be clarified over time.

[barbara44]

It may be a little be hard for government to completely change their perspective view of the whole bitcoin as currency because of its anonymity which is the major barrier right now to supporting bitcoin. Government wants something that they can be able to control, they want power to remain with them, and they know that the use of bitcoin as currency will lower their power a little.

For power to really continue to stay with them, they need to protect the fiat and continue to enforce the physical cash, but no matter how much they continue to hold on tight, one day, the system will automatically adjust right before them, and they see that many people starts to use cryptocurrency even without their full approval or support which will break the power of fiat over their citizens.

[Kakmakr]

It may be a little be hard for government to completely change their perspective view of the whole bitcoin as currency because of its anonymity which is the major barrier right now to supporting bitcoin. Government wants something that they can be able to control, they want power to remain with them, and they know that the use of bitcoin as currency will lower their power a little.

For power to really continue to stay with them, they need to protect the fiat and continue to enforce the physical cash, but no matter how much they continue to hold on tight, one day, the system will automatically adjust right before them, and they see that many people starts to use cryptocurrency even without their full approval or support which will break the power of fiat over their citizens.

Well, actually they are not really protecting Fiat currencies to prevent anonymous transactions, it is more about "control" ...Yes, we know some governments are fixated on civilian surveillance and anonymous transactions is perceived as a threat, but most Cash transactions are anonymous too and that is why some of these governments are looking at technologies that would enable a transparent Cash-less society.

The future of Crypto currencies, would be a world where you have different ways in which people would use Crypto currencies, namely :

1. Regulated "Private" Blockchains - Where KYC/AML regulations are enforced.
2. Unregulated "Public" Blockchains - Where people would bypass regulations and would use direct transfers between two anonymous entities.
3. Formal GovCoins - This might be digitized versions of local Fiat currencies that use Blockchain tech to create centralized ledger systems to track and control all transactions.

We are moving in very strange times, where Blockchain technology can be used against normal citizens to invade their financial privacy and where governments takes control over people's wealth.