My guess on how governments will attack cryptocurrencies

[johnny5johnny5]

Step 1: Require KYC/AML compliance for all crytpocurrency exchanges, whether they accept the country's home currency or not
Step 2: Require all exchanges to issue 1099s or some other method that allows the government to track an individual's cryptocurrency trades
Step 3: Require businesses to only use the country's home currency (US Dollar for USA) for the sale of a business's products or services and ban the use of cryptocurrencies for point of sale transactions.

What do you guys think the chances of this all happening is and what do think the impact on cryptocurrency valuations would be?

[godzillarekt007]

1) Already happening, don't view this as an attack but rather for taxation
2) Probably will happen for reason listed above they want a piece of that pie!
3) Could possibly happen although because cryptos are worldwide that would be hurting their bottom line and exchanges wouldn't be happy. Governments are more powerful but I don't think they are more powerful than the world put together, they can't stop crypto.

I think there is an overall decent chance of all of it happening, but none of this will stop crypto from happening. They will tax it, regulate it, but they cannot and will not be able to stop cryptos from occurring. The invention can't be uninvented and we now know the power behind decentralized network systems there is no going back!

[mrcash02]

Step 3: Require businesses to only use the country's home currency (US Dollar for USA) for the sale of a business's products or services and ban the use of cryptocurrencies for point of sale transactions.

What do you guys think the chances of this all happening is and what do think the impact on cryptocurrency valuations would be?

I believe they won't ban all Crypto-Currencies, but they can force a whole country to use the Crypto-Currency owned by that government, a centralized Crypto-Currency by the government. It would be a smart way to say they accept Crypto-Currency world, but don't accept how people are dealing with this nowadays.

If everyone accepts a regulation like that, it would affect decentralized side of Crypto world very negatively, the demand would decrease, so the prices would fall hard and we wouldn't have access to profitable investments anymore.

[pitiflin]

It doesn't end here. There are apparently way too many ways for a government to just take down cryptocurrencies but they won't. Not all of them. Some may do it to prove a point you may take China for example.
Regulations on crypto is good, banning them - not so much.
The second option would screw over the whole of point of cryptocurrencies. This is why something called decentralized exchanges exist.. Thankfully.

[ladydark]

But I think that the Chinese government had already tried the first method to ban bitcoin and has failed since people just shifted to counter sales instead of using exchanges.Or else,they could even give imprisonment to people found using bitcoins just like in bangladesh.Some governments may even try to issue their own currencies against cryptos but that would not be useful since people would not be willing to once again buy centralized currency.