Is government the most influential factor that affects Bitcoin price?

[stuffokator]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

[HandsomePeople]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

bitcoin as technology can survive of course, but the price of bitcoin is a different story, it will definitely decrease dramatically in value if the government declared all cryptocurrencies forbidden. So yes, the most influential factor that affects Bitcoin price is government and it could make bitcoin go back to $10 if that scenario takes place.

[Birb]

The government definitely can affect Bitcoin's price with either bad or good news. Just imagine if CoinBase ceases to exist along with Kraken and many of the top and most trusted exchanges.  Prices would bottom for sure.

[amstern]

The price would definitely drop. The use of btc would never end though.

[nur rochid]

I think the existence of legalization from the government will certainly give confidence to investors, so they are more confident to enter the market. so that it is expected to increase the price

[figmentofmyass]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

the price of bitcoin and all cryptocurrencies would severely crash, based on the assumption that most USA investors will stop investing and sell their coins.

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

a ban on crypto obviously isn't enforceable---users can transact p2p and with encryption. so it definitely wouldn't kill bitcoin. there will always be a market for decentralized and censorship-resistant transactions.

but it would cut the investment market down in size. prohibition never kills markets, but black markets are much smaller than white markets since most consumers/investors don't want to touch them.

overall, i don't see a broad ban on crypto happening in places like the USA. most governments have too much to lose in terms of economic growth and prosperity if they shun crypto. if they ban it, then growth will simply move to crypto-friendly countries.

[qwerty6274]

I think yes. In any case, the government has a very strong influence on Bitcoin, on its behavior. It is possible that this price drop was made specifically with the help of state economic structures. It seems to me that in the future, this influence of the state will be even stronger. Because what you do not control, controls you.

[biskitop]

a little, suppose that the government gives a response to bitcoin, positive or negative, then investors will be interested in the government's decision regarding bitcoin investment. and that could trigger the price of bitcoin to rise or fall depending on the government's statement.

[Kakmakr]

Political decisions does have an affect on Crypto currency prices, because it determines how easy it will be for people to use it legally and for adoption to increase. Legitimate businesses wants to operate their businesses within the legal requirements of their government, so these businesses and citizens will want their government to declare Crypto currencies legal and they want it properly defined for them to adopt it.

The illegal operations does not care about governments and their regulations and they will continue as normal, until they get caught.  

Bitcoin will continue, with or without government acceptance, because people will just adapt to the environment that are forced onto them. <Make it illegal in their country and they shift to a country where it is legal or they use Black markets and the DarkNet.>

[arpon11]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

If Donald Trump will open his mouth and say " all cryptocurrencies is forbidden" bitcoin and others altcoins are going to crash down but there are not going to go into extension.  The reason is that this market is decentralized and it cannot die at worst it will go to black market.  However,  governments banning and speaking against bitcoin was the reason why the market has been down and we should recognize this in analyzing the market.  South Korea and Indian banning of icos market in January 2018 was the major reason why the market fall in 2018 and I pray governments are careful on how there treat cryptocurrencies market.

[vv181]

The reason Bitcoin could grow because people find an utility within Bitcoin to getting away from the banking matrix. Government banning cryptocurrency or strict regulations won't make a true Bitcoin user giving up. The purpose of Bitcoin is to make us don't depend on centralized entities and gain the freedom of our financial and privacy. It is surely BItcoin capable and beyond of that.

[Peashooter]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

Government has a big impact on bitcoin , government either allow or banned cryptocurrencies in their country. No one knows , but in the past few years bitcoin has faced a lot of challenges so it will be difficult for government to drop it down for sure bitcoin will survive. If the government finally accepts bitcoin then it can give a positive impact on bitcoin because it can attract more people to invest and that will definitely affects the price.

[timerland]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

Good question.

Personally, I think that it is pretty much impossible for all countries across the world to somehow come together and ban the use of BTC altogether. That would be the only way of remotely stopping bitcoin use, in my opinion. Not only is a ban it super hard to enforce, even if it's just on a scale of one country (just look at all the countries who has banned or have unofficially restricted BTC), it also means loss of tax revenue.

But if it does happen, especially if a ban occurs in a country like the US which has a lot of adopters, it could move the market a lot. Will it completely cripple the network and make it dysfunctional? Absolutely not. But short term, will people panic sell? Probably.

I wouldn't say that government attitude and regulation is the most influential thing regarding bitcoin price right now. It might have been 5-10 years back when the market was small, which led to big panic sells after China ousted some exchanges, but looking back it had no real effects in the long term. That could be similar to what would happen in the future if more countries pursue this line of policy as well, as the network itself is decentralized and doesn't need the support of one entity or party to keep it working.

[alyssa85]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

The United States is never going to ban bitcoin (they are a confident nation).

China did ban bitcoin, and that did curb demand for the coin as a mean to evade capital controls. But going forward, bitcoin will rise or fall based on whether people in western nations find a use for it or not.

[BitBustah]

The government has very little to do with the price movement of bitcoin.  It boils down to whales, exchanges, adoption and hype.   Bitcoin was already able to hit 20k without governments being involved much.  People like to over complicate the reasons for the recent market crash, regular  people simply lost interest in bitcoin and there is not enough buyingp ressure to absorb all the dumped coins by miners.

[Indrawan77]

Well the most influential factor is still supply and demand, but the government can affect the price heavily but it wont kill bitcoin, to become big and mass adopted we need the government permission, so it's impossible to become global currency if the government not allowed it, all of can see the effect when China banning bitcoin, the price of bitcoin falling down sharply at that time, but after a while it survive

[MarcusGates]

You have to understand one thing.

If you adopt BTC as a mean for payment/exchange of services and goods, you don't really need to peg it to US Dollar.

To answer your question, yes the price in USD will drop but... as long as people are willing to trade and accept BTC for goods and services it won't really matter price in USD because BTC has its own price.
In order for this to work, mass adoption has to take place.

Just to make it clear, you use $ to do what? buy goods and services. You use BTC to do what? same + buy $. If enough people starts accepting BTC the $ won't be needed.

[harizen]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

It depends on what goverment will impose. If something positive, expect some rise, if not, then its other way around.

In your example (although it has low chance to happened "for now"), I see that it will lead into price crash as we all know that U.S is one of the countries who have great involvement in crpyto plus the fact that they are really "influential". Other countries might follow resulting in more crash.

Bitcoin is still there if that will happened. It's just that the trading performance will not be the same as before due to traders or bagholders that stopped doing business with cryptos. They are now in doubt of the big adoption as US, one of supercountries, stopped their involvement.

Again, the price movement will depend on how "heavy" the action/s that government will do.

[xWolfx]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

Governments are a factor, pretty important one when it's about a developed country.

However, the most important factor is...Investors! - Those are the ones who will ultimately decide the outcome when it comes to Bitcoin's price. Of course i'm counting holders as investors since for practical terms they are doing the same thing but in a much more noble way from my point of view.

[Kemarit]

Sorry for the naïve question, but I'm just really curious. What would happen to Bitcoin price if, for example, Trump declared all cryptocurrencies forbidden?

Can Bitcoin survive because of decentralization or some other underlying tech concepts, or will it simply drop down into oblivion if the government decides to fight it for real?

Assuming that US is a big market for Bitcoin, then a Trump's declaration will severely affect the market price. Could be one of the darkest days in crypto history. But I'm on the side that the negative effect will be short lived and Bitcoin will still survived in the long run.

Well the governments have been fighting it by putting pressures on lots of trading platform today by enforcing KYC/AML. But Bitcoin is still standing, it will be a long battle though, I'm not going to say that we're going to win it, but we will continue to fight it out and crypto will still thrive under these continuous attempt to undermine the market.