What will cause a government to ban bitcoin in the country? In what circumstances will that be justified by the government?
And how can government actually ban bitcoin? I mean they can ban people selling or buying stuff with bitcoin in the country, can they actually ban people from holding bitcoin?
I believe that none government will ban bitcoin but if has any decide to do something like that will do for the following reasons:
1. The cental bank of this country will be fear that citizens will stop to support local fiat currency
2. Government will loose the control because there is no way to control btc
Imo, there is no country who cannot actually ban btc but she can create many barriers if anyone wants to use it, like as:
1. Very strict policies to local exchanges
2. Unnecessary bureaucracy and procedures to anyone businessman wishes to transact with bitcoin
3. Information campaigns against bitcoin
Well, i think that some of your points are actually right, however I have to say that i cannot agree with some of them.
First, I dont have idea what influence of bitcoin being banned could have on fiat currency, it is really unlikely to see that the locals would boycott the fiat currency usage because of harmful cryptocurrency rights.
Secondly, losing control about what?
The government control printing paper money, also the law however bitcoin is totally separate from regular fiat money, it is totally a different thing.
Bitcoin will live even when it is going to be banned in every country in the world ( which is pretty much impossible )
But I agree with you about the barriers that government can build on the way of cryptocurrency, imagine just forbidding crypto exchanges.
That would be a huge strike into crypto trading in specific country, the only way would be to trade it face-to-face, and you can't even know if the guy you make the trade with, isn't from police right?
They can try to block bitcoin, but they cannot erase it no matter what.