What Would Happen If Bitcoin Were Declared Illegal in the USA?

[sportis]

I don't live in USA and may be I am wrong with my thought. Are there any restrictions a US citizen to open bank account in a bank which is located in a European country or in a country belongs to Asia continent? If the answer is negative the American bitcoin holders can move their coins to a European exchange say bitstamp or an Asian exchange in Japan or Singapore and convert to local fiat from these exchanges to local banks. After that they can wire transfer to their American bank accounts. Another one choice to use a debit card from a bank outside USA which is loaded with bitcoin and can be used as fiat.

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[lionheart78]

I don't think it's likely to happen, but if it does then initially there obviously would a huge reaction to it and thus make bitcoin price to drop but since China is the major center of bitcoin, it won't affect too much. And it's not like all of sudden all the Americans will stop using bitcoin, they will still use but would be stealthy 

After experiencing benefits and good advantages together with the profit out of using bitcoin, no way that majority of people living in the US will just let go the idea of using bitcoin if will declared as illegal. If for a country that has a status of low bitcoin users then it's not that big impact if the government there will declare bitcoin as illegal since majority of people there are being used to it. But for the country of US, which we knows having some numerous bitcoin users here, it will really having a hard time to just make themselves stay away from this cryptocurrency since they already feel what bitcoin can really do.

Literally speaking, it will be give big impact in bitcoin price since I think a major dump will happen. Just didn't know what will be now the based fiat currency price of bitcoin.

Prepare for unforeseen consequences

If Bitcoin is made illegal in the US, why do you think people (US citizens, of course) will necessarily dump it? I'd rather say they would hide their bitcoins deeper, so that no one could find them since dumping their coins will obviously give the dumpers away. In this manner, we could see the supply squeeze and likely a short expansion in demand because American users will quickly convert their fiat money held in exchange accounts to bitcoins and then withdraw the bitcoins to their personal wallets hidden deep under the mattress

[img ]http://s013.radikal.ru/i325/1701/ff/38eac02c8969.jpg[/img]

No money, no honey

People are known for being stubborn so more likely what you have said will happen.  If the government declares not to do this, people will do it secretly LOL.  Aside from that, those country that is in econimic competition with US will probably declare otherwise and take the opportunity to take advantage of the Bitcoin market and flourish with it.

[RussiaIsBest]

That will not happent for sure but if happent then I will hate Donald Trump but I like Donald Trump and I know that he knows what to do with bitcoin and he will provably create bitcoin price kaboom.

[Snorek]

Most countries like to have control over the money used within their borders. Bitcoin and other crypto-currencies challenge this authority. What Would Happen If Bitcoin Were Declared Illegal in the USA?

But there are still foreign currencies, right? You can exchange them freely, we have exchanges for that, it is completely legal and serious business.
No one is penalizing you for having Euros, Pounds or Yens. So why US government should treat digital currencies any different than foreign fiat money is?

[deisik]

Most countries like to have control over the money used within their borders. Bitcoin and other crypto-currencies challenge this authority. What Would Happen If Bitcoin Were Declared Illegal in the USA?

But there are still foreign currencies, right? You can exchange them freely, we have exchanges for that, it is completely legal and serious business.
No one is penalizing you for having Euros, Pounds or Yens. So why US government should treat digital currencies any different than foreign fiat money is?

The answer should be pretty evident and straightforward

To pay with all these foreign currencies you would still have to use a commercial bank, i.e. the same bank that you would use to pay with the US dollars (if you live in the US of course). But Bitcoin is a payment system in and of itself, and the government obviously can in no way control your payments (or even know about them). And this system allows you to transfer virtually unlimited amount of wealth in a matter of minutes which seems to be most frustrating and disappointing to the government



Indeed, you could deal in cash, but how many people use cash in the amounts worth millions of dollars?

[jeraldskie11]

If the bitcoin is declared illegal in the USA, all people who used bitcoin is affected. We know that the powerful country is America so if they approve that all of his connected country will do the same. Then the bitcoin developers hard to adjust it because the main is convertion is $. They should make a lot of ways to recover the bitcoin to be the people who using bitcoin is feeling happy and free. But I think it didn't happens because the presidepresident of the USA is not care about bitcoin. So I think he considered the bitcoin to continue.

[Harlot]

It would simply be non-existent to your Country because the government can control everything the onvolves internet related stuff. One good example is torrent sites are being shutdown quickly and illegal doers pay the ultimate prize. Even if they create a dozen proxys of the torrent site a day or two than it will be gone again. Bitcoin will just be a legend in America after that.

[Gameroid]

It would simply be non-existent to your Country because the government can control everything the onvolves internet related stuff. One good example is torrent sites are being shutdown quickly and illegal doers pay the ultimate prize. Even if they create a dozen proxys of the torrent site a day or two than it will be gone again. Bitcoin will just be a legend in America after that.

but i think if USA still not turned bitcoin bane, we can hope that in future they are not going to take such step. hope that they will give full support to bitcoin in future, because they can understand the importance of bitcoin in future.

[tinus42]

Trump is being advised by Peter Thiel who is pro-Bitcoin. And his rumored FDA pick is the CEO of 21 inc. So wait till Hillary gets in in 4 years for the doom scenarios to take place.

http://www.coindesk.com/bitcoin-traders-believe-trump-win-trigger-price-boost/

[gabmen]

It would simply be non-existent to your Country because the government can control everything the onvolves internet related stuff. One good example is torrent sites are being shutdown quickly and illegal doers pay the ultimate prize. Even if they create a dozen proxys of the torrent site a day or two than it will be gone again. Bitcoin will just be a legend in America after that.

but i think if USA still not turned bitcoin bane, we can hope that in future they are not going to take such step. hope that they will give full support to bitcoin in future, because they can understand the importance of bitcoin in future.

Well can just all hopenfor the best here as you are correct, it would be very easy to make bitcoin obsolete by implementing those bans since its an online currency. Im not really sure how governments will take it but hopefully they'd be able to see how bitcoin can help people with all its features and benefits.

[rajasumi3]

if bitcoins were declared illegal in usa it would not affect at all in the whole world .and it is likely to happen in the near future as the coming of new president .then the main focus of bitcoins would be china and india.

[virasog]

I don't think it's likely to happen, but if it does then initially there obviously would a huge reaction to it and thus make bitcoin price to drop but since China is the major center of bitcoin, it won't affect too much. And it's not like all of sudden all the Americans will stop using bitcoin, they will still use but would be stealthy 

After experiencing benefits and good advantages together with the profit out of using bitcoin, no way that majority of people living in the US will just let go the idea of using bitcoin if will declared as illegal. If for a country that has a status of low bitcoin users then it's not that big impact if the government there will declare bitcoin as illegal since majority of people there are being used to it. But for the country of US, which we knows having some numerous bitcoin users here, it will really having a hard time to just make themselves stay away from this cryptocurrency since they already feel what bitcoin can really do.

Literally speaking, it will be give big impact in bitcoin price since I think a major dump will happen. Just didn't know what will be now the based fiat currency price of bitcoin.

Prepare for unforeseen consequences

If Bitcoin is made illegal in the US, why do you think people (US citizens, of course) will necessarily dump it? I'd rather say they would hide their bitcoins deeper, so that no one could find them since dumping their coins will obviously give the dumpers away. In this manner, we could see the supply squeeze and likely a short expansion in demand because American users will quickly convert their fiat money held in exchange accounts to bitcoins and then withdraw the bitcoins to their personal wallets hidden deep under the mattress

[img ]http://s013.radikal.ru/i325/1701/ff/38eac02c8969.jpg[/img]

No money, no honey

People are known for being stubborn so more likely what you have said will happen.  If the government declares not to do this, people will do it secretly LOL.  Aside from that, those country that is in econimic competition with US will probably declare otherwise and take the opportunity to take advantage of the Bitcoin market and flourish with it.

You are right. Governments specially USA Govt. can never be so foolish to take such a decision. Governments only run good if they take decision for the benefit of their country. If  they impose such non nation friendly rules, it will just create the bad name for the government. The opposition may take advantage of it and people wont be stopped from using bitcoin from all such steps.

[marcoman22]

If bitcoin were banned in USA, all the legal usage of bitcoin would come to an end.Whether banned or not, illegal usage would continue.Demand for bitcoin would fall down and hence its price.It would be bought at much cheaper price through out other parts of the world. Legal usage of bitcoin would continue in other parts of world giving USA a big disadvantage.Bitcoin would have been banned early if it was possible.Even if it was banned, still another coin which is inside the legal frame work nof USA would come to that place.To ban bitcoin completely means to ban internet completely.

[X-ray]

if bitcoins were declared illegal in usa it would not affect at all in the whole world .and it is likely to happen in the near future as the coming of new president .then the main focus of bitcoins would be china and india.

the it'll not affect the whole world but may affect bitcoin, the users of bitcoin in USA is pretty decent and little or big may affect the cryptocurrencies environment especially bitcoin.
china and india is sure a big country whose bitcoin users is many but still USA have an affect to the bitcoin

[hase0278]

I guess if bitcoin were declared illegal in the USA, many users will dump their coin since they can't convert it to real money easily anymore if it were made illegal there. There are some users though that might hide huge amounts of bitcoin to exchange later on but most of the bitcoin users in the USA will probably dump the coin they have, causing a temporary dump and some pump in the long run if there are some users in USA that are willing to hide some bitcoin on their cold wallets.

[Anarchist]

I personnaly don't care if bitcoin is illegal in the usa. we don't need them

[Carlsen]

I think as well that declaring bitcoin to be illegal is going to bring the bitcoin price down for a longer period of time.
A lot of people would want to sell quickly, without coming back later.
And to me the chances of that scenario becoming realistic is getting more likely every day.
Somehow I can imagine that the new president wants his cityzens to use the us dollar.

[SmartIphone]

Most countries like to have control over the money used within their borders. Bitcoin and other crypto-currencies challenge this authority. What Would Happen If Bitcoin Were Declared Illegal in the USA?

If Bitcoin were considered contraband would its black market value increase like some illegal drugs or would the value fall? What economic principals would be at work in this scenario and what type of logical arguments make sense?

The first thing that could happen is a crash price, many businesses would be forced to remove bitcoin from their system.
Then many people have invested in bitcoin so they would start selling them or hold them illegaly.

Yes, this is logical. US is world leader and any move from the US against bitcoin will severely damage the reputation of bitcoin and trust of people in it. Once trust is gone it is very difficult to built it again.
If other countries join the band then situation will be difficult for bitcoin.

However this is not going to happen because there are people in Trump cabinet who like/love the bitcoin/blockchain technology. 

If there are people in Trump's cabinet that love bitcoin/blockchain technology then this is a good news from the crypo industry.
Let's hope that something good is gonna happen this year, the price is keeping rising, the block size probably will be increased...

[Hazir]

I personnaly don't care if bitcoin is illegal in the usa. we don't need them

It is not that simple. USA might have no real power to kill bitcoin network, their potential ban won't hinder network's potential and your bitcoin stored locally won't be in danger.
But every bitcoin satellite service base in the U.S. will be closed and bitcoin stored online - will be most likely snatched by IRS or some other cell.

Not to mention of global mass panic, bitcoin's price collapse... This action would put BTC back when it was in 2011-2012.

[shield132]

People here why do you think that if usa declare bitcoin as illegal? At first, china has main control on bitcoin and most datacenters are outside of usa. And as everyone knows, there are many illegal things but people are doing it and it's impossible to prevent everything.
At last to my mind, usa won't do that brcause this automatically means closing of poloniex and etc exchangers, so there will be need from their side to sell that bitcoin until they close and than chinese exchangers will buy all of them and bitcoin won't be decentralyzed.