Government policies help to grow the price of bitcoin

[Alert31]

Government policies actually "boost" Bitcoin adoption in some countries. It works like this.... A government will start to clamp down on Bitcoin (Crypto) use, by implementing strict regulations or even banning it. Now, this is the trigger for developers to innovate... because they immediately start to develop decentralized (Peer2Peer) markets for Crypto to enable people to use the currency on the "Underground" markets.

This is very similar to what happened with "Prohibition" in the United States when they implemented a ban on the production, importation, transportation, and sale of alcoholic. People just started smuggling alcohol on a underground network and the USA government lost millions of Dollars in taxes! 

Yeah, you're right! People are really amazing in terms of being so smart and easy to think of ways just to pursue their goal and avoid government rules and regulations. That is why, the stricter government policies, the more people become rebellious. On the other hand, bitcoin will continue to grow more and adoption will continue to increase despite government policies and regulations or prohibitions.

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[sapnu]

At some point, we can somehow say that the government is playing dirty when it comes to bitcoin. They make sure to buid a facade that would make people believe that they are against the use of it and would never support it when in fact, they secretely storing the country's money because they are aware of the potential that bitcoin has. Though not all the government in a global scale has this kind of strategy since as we can all see, there are countries that are really against the use of bitcoin as they see it as an economic threat. On the other hand, maybe some of their policies are a part of their routine on how they can gain more benefits from bitcoin in the future.

[mrongoz22]

In my opinion bitcoin will continue to grow in its market, although without government intervention, bitcoin will continue to be sought and used as an investment for people who already understand bitcoin, government policies want to help grow the price of bitcoin, which is good for driving growth in business. and builds trust among its users ..

[Gheka]

In my opinion bitcoin will continue to grow in its market, although without government intervention, bitcoin will continue to be sought and used as an investment for people who already understand bitcoin, government policies want to help grow the price of bitcoin, which is good for driving growth in business. and builds trust among its users ..

Hard to say that the policies of the government are helping Bitcoin, most of the policies I see are trying to limit the size of bitcoin and increase the collection of user information for a major government purpose, for each such policy, this is always an opportunity for whales to destroy the market according to their wishes, the government is probably also more vandalizing than helping bitcoin. On the other hand, without the need for government policies, Bitcoin grew more evenly on a user base that was rapidly expanding in the face of government silence

[iv4n]

In my opinion bitcoin will continue to grow in its market, although without government intervention, bitcoin will continue to be sought and used as an investment for people who already understand bitcoin, government policies want to help grow the price of bitcoin, which is good for driving growth in business. and builds trust among its users ..

Hard to say that the policies of the government are helping Bitcoin, most of the policies I see are trying to limit the size of bitcoin and increase the collection of user information for a major government purpose, for each such policy, this is always an opportunity for whales to destroy the market according to their wishes, the government is probably also more vandalizing than helping bitcoin. On the other hand, without the need for government policies, Bitcoin grew more evenly on a user base that was rapidly expanding in the face of government silence

A bigger picture... governments are doing things that people don't like, people will look for alternatives, for example, decentralized systems, such as Bitcoin (for example).

It's how I saw this headline and where it's heading, and I can agree with this! Governments with their policies are helping people to decide what to choose, and I am guessing (I have reasons for that) people are choosing crypto over fiat, at least people who are introduced with crypto, and what is offered by crypto!
In some way, governments are pushing people into crypto, probably unintentionally, but when they figure it out it will be probably late! Crypto future is what is coming!

[tbterryboy]

Crypto currency round the world has come to stay, to foster growth in business and build trust among its users but most world leaders are head bent on tackling bitcoin by making difficult policies to affect its stability, but little do they know that this policies of theirs make bitcoin to become more influential among other crypto ,making it scarce and the most sought after crypto currency thereby making the few people that have it to hod and inflate the price to which ever amount they wish to sale on peer to peer bases...what do you think

I do get what you’re trying to say here, that when government bans bitcoin that a lot of people who owns then starts selling to for a higher price. Well, I won’t really say that applies much to what the market price of bitcoin and other cryptocurrencies are going to be. Whether the government is doing what they are doing or not, the cryptocurrency market will always be growing as it has been doing for a very long time.

So, I don’t think the actions that the government is taking is going to be affecting the market that much. It’s even going to make people to be a lot wiser in how they’re trading their cryptocurrency.

[sheenshane]

In this case, IMO, policies and regulations for Bitcoin by the government can make or break it.  As per your example, I don’t see any reason that it would benefit Bitcoin to go high.  It actually has a negative effect on the Nigerian user on which they had to transact peer to peer and be considered as illegal traders well in fact that it’s not.

Not all people would risk their lives to be sued because of using cryptocurrencies.  And peer-to-peer transactions are too risky, especially with greater numbers.  If not risky, it might also be very complex and you had to build a profound system in order to clean your cryptocurrency and that requires a lot of work, indeed.

[Oceat]

At some point, we can somehow say that the government is playing dirty when it comes to bitcoin. They make sure to buid a facade that would make people believe that they are against the use of it and would never support it when in fact, they secretely storing the country's money because they are aware of the potential that bitcoin has. Though not all the government in a global scale has this kind of strategy since as we can all see, there are countries that are really against the use of bitcoin as they see it as an economic threat. On the other hand, maybe some of their policies are a part of their routine on how they can gain more benefits from bitcoin in the future.

How can a government store money when in fact these money are from the taxes of all people they have collected. They may make lots of money but the aftereffect of that is they will suffer from the inflation in the end. And you know what disaster could bring with that inflation to their economy.

Let these government make their new rules and regulations it still can't touch Bitcoin since it's decentralized and I'm aware that they are after to those who used crypto to convert fiat and that was the exchanges. Without these exchanges people wouldn't be trading crypto to fiat but that's not the end since everyone can use crypto currency for buying stuff if these exchanges offer something and of course, they will offer something since they knew that fiat is losing its value soon due to inflation.

[Darker45]

The big problem when governments try to stop Bitcoin is that they cannot do it. They will always fail because Bitcoin is no company or organization or anything which they could just disintegrate. Moreover, the people are very much aware of this. And since they know that Bitcoin is here to stay, they will do their best to still have access to it despite their government's prohibition. This leads to Bitcoin being some sort of an illegal yet highly coveted precious asset or store of value. This leads to a rising premium.

Governments may not necessarily push the price of Bitcoin up, but if they will ban it they are simply making it more expensive to their own citizens. It is futile. After all, their citizens won't stop from having it.

[nicecrypto]

what do you think

You're going to have to offer some examples on this. I'm not sure what you're getting at, there are too many ambiguities. Perhaps you could link to some direct legislation and explain their effects?

For instance, Nigerian government made a recent policy that band  crypto currency and its usage in the country,they even went to the extent of blocking all accounts that have ever engaged in crypto transaction but what did that lead to,it made it to be scarce in the country and all those who had it inflated there prices by adding additional amount to it and it became the most sought after crypto and its only sold on peer to peer level now

Yes the government made that move to stop Banks and other financial institutions from dealing with cryptocurrencies but I wouldn't say that this lead to it been scarce and increase in the price. Firstly, most Nigerians deal their crypto in exchanges and I strongly believe Binance is one most Nigerian deal on and even had a local currency pair there so if all bitcoin and other Alts been traded on exchange how was there a scarcity of crypto? because I never read any thing relating to scarcity.

Secondly, I also didn't read or hear about increase in bitcoin price because of the Nigerian government policy. Even though the policy was in place, some people were already use to using p2p and just became the go to option since the announcement.

The only thing that the policy changed was just your ability to do a direct withdrawal to your back account from the exchange nothing more.

[LUCKMCFLY]

Crypto currency round the world has come to stay, to foster growth in business and build trust among its users but most world leaders are head bent on tackling bitcoin by making difficult policies to affect its stability, but little do they know that this policies of theirs make bitcoin to become more influential among other crypto ,making it scarce and the most sought after crypto currency thereby making the few people that have it to hod and inflate the price to which ever amount they wish to sale on peer to peer bases...what do you think

In the particular case of Venezuela, things are different, although the activity of cryptocurrencies and bitcoin is not regulated, there is a certain regulation in the mining of Bitcoin, since it makes them register in SUNACRIP (National Superintendency of Criptoactivos and Related Activities) to have a control data and those who do not, are in danger of suffering certain threats and intimidation by the State security forces. So far the trading activity is not regulated, the government manages Bitcoin because it is the only way to evade the different blocks that exist with respect to the economy with other countries.

It is normal for governments to try to take control, although for the business model that Bitcoin implements it turns out to be favorable for the government of Venezuela, which has a totally uncontrollable economy and a regulation for those who operate, it does not apply, in this case Venezuela is to be a tax haven for Bitcoin and cryptocurrencies, because their local currency is really worth nothing, that is why this type of exit is well seen so far.

[bitgolden]

Governments may not necessarily push the price of Bitcoin up, but if they will ban it they are simply making it more expensive to their own citizens. It is futile. After all, their citizens won't stop from having it.

Yes, by the scenario governments are indirectly helping bitcoin value appreciation on their own country. Moreover, governments must work on milking out of all crypto involved business rather than prohibiting it. Because, when something is completely out of their control then they must work on all the possibilities of finding methods to make use of.

I believe most governments will go for studying on the consequence of banning bitcoin and other cryptocurrencies and then they will either stay positive against cryptocurrencies or at least neutral.

[Darker45]

Governments may not necessarily push the price of Bitcoin up, but if they will ban it they are simply making it more expensive to their own citizens. It is futile. After all, their citizens won't stop from having it.

Yes, by the scenario governments are indirectly helping bitcoin value appreciation on their own country. Moreover, governments must work on milking out of all crypto involved business rather than prohibiting it. Because, when something is completely out of their control then they must work on all the possibilities of finding methods to make use of.

I believe most governments will go for studying on the consequence of banning bitcoin and other cryptocurrencies and then they will either stay positive against cryptocurrencies or at least neutral.

By seriously studying Bitcoin, governments will eventually realize that it is futile to even attempt to control it. And you don't exert effort against an innovation you cannot stop.

Just recently, Commissioner Hester Peirce of SEC was asked if there is a step taken or a plan by the fresh Biden administration to put a ban on Bitcoin. And she responded, "It's really difficult to ban a technology that's peer-to-peer."^[1]

I agree, they better try to milk Bitcoin by way of putting up tax regulations however elusive it may of full taxation.

[1] https://video.foxbusiness.com/v/6249902610001

[jaberwock]

when something is completely out of their control then they must work on all the possibilities of finding methods to make use of.

There are only 50% chances as everything could be done under P2P which means governments and their central bank will lose all the control because P2P may evolve like decentralized exchanges and decentralized  marketplace. Still in marketplace, I guess governments may innovate new ideas to monitor and control for taxation hence if they ban then no benefits and if they stay neutral or positive then there are possibilities for generating revenues.

they better try to milk Bitcoin by way of putting up tax regulations

Overall, it seems governments left only with that option against cryptocurrencies. It would be "accept or die" kind of situation for governments.

[Vatimins]

     The scope of this post is quite wide but the point is easy to see. What I may add is that no matter what happens, bitcoin flourishes. Whether it is being bullied by banks, governments and influencial people or being raised up by some of them, bitcoin never went extinct and has become, what it is today making the people who called it ponzi or scam eat their own words and invest on the very thing that they have talked trash about.

[Koro-Sensei]

These policies makes bitcoin known for other who doesn't. These setbacks by governments are just precautions that cryptocurrency is volatile and you might lost some of your hard earned money but those who have experience will not hesitate.

[Similificator]

Indeed it does. But that still depends widely on which country you currently are located. Because even if the price of bitcoin is global, not all countries have the same culture. Hence, all have different backgrounds, perspectives and ways of reacting to various things. And if it so happened that most of these people had closed minds, then bitcoin wouldn't have been the way it is today.

[oHnK]

There are only 50% chances as everything could be done under P2P which means governments and their central bank will lose all the control because P2P may evolve like decentralized exchanges and decentralized  marketplace. Still in marketplace, I guess governments may innovate new ideas to monitor and control for taxation hence if they ban then no benefits and if they stay neutral or positive then there are possibilities for generating revenues.

Yap, that's why my government didn't forbid the crypto investment in my country because they get the benefit of every transactions that happen in the exchangers. Tax that is collected from the exchangers can be used for many programs of government. Even my president said that learning about crypto is important for millenials. I really appreciate my president talks about freedom in investment.

[Rengga Jati]

Perhaps this has to do with how "media" keeps Bitcoin from being a hot topic, both in terms of negatives and positives. As we know that whatever method is used, however, the news is, sometimes we don't need to see negative or positive news. However, it is more to the effect of the news. Doesn't the more news that raises a country's opposition to Bitcoin makes BTC even more famous? So that more and more people, institutions, and public figures are curious and interested in exploring it.

[Argoo]

what do you think

You're going to have to offer some examples on this. I'm not sure what you're getting at, there are too many ambiguities. Perhaps you could link to some direct legislation and explain their effects?

For instance, Nigerian government made a recent policy that band  crypto currency and its usage in the country,they even went to the extent of blocking all accounts that have ever engaged in crypto transaction but what did that lead to,it made it to be scarce in the country and all those who had it inflated there prices by adding additional amount to it and it became the most sought after crypto and its only sold on peer to peer level now

You can also add that the Turkish government recently banned the use of cryptocurrency as a means of payment. Russia is doing the same and India intends to do the same. So it's not so simple with the circulation of cryptocurrency as money.
Governments are now taking a closer look at Bitcoin and cryptocurrency in general. It is possible that if the cryptocurrency will have an impact on the global financial system in the future, then the governments will unite in order to regulate it more stringently. Some high officials are already calling for this.