If governments block Bitcoin, does Bitcoin have no value?

[Naficopa]

In Bitcoin-based transactions, about 76 billion US dollars of transactions are involved in illegal activities each year, accounting for about 46% of the total Bitcoin transactions. Almost a quarter of bitcoin users, and nearly half of bitcoin transactions, are illegal. Therefore, from a quantitative point of view, the use of Bitcoin is enough to become the target of attention of governments and international criminal police. If governments block Bitcoin, does Bitcoin have no value?

Could you please provide sources for this information?
From what I read about the percentage of illegal operations in the cryptocurrency market and the fiat market, it is almost the same.
Using the argument that Bitcoin is mainly used for illegal transactions to ban it, is a very big manipulation.

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[perryxi2]

Where is the 46% and what is the source of it, the fact that BTC is embargoed by governments or countries is a lot, but BTC is still going strong, so what does that prove? There is only one thing I can say that BTC is a very valuable asset and people aspire to have it.

[cr1776]

In Bitcoin-based transactions, about 76 billion US dollars of transactions are involved in illegal activities each year, accounting for about 46% of the total Bitcoin transactions. Almost a quarter of bitcoin users, and nearly half of bitcoin transactions, are illegal. Therefore, from a quantitative point of view, the use of Bitcoin is enough to become the target of attention of governments and international criminal police. If governments block Bitcoin, does Bitcoin have no value?

In a statist, authoritarian society like you describe where bitcoin is illegal, bitcoin becomes MORE valuable in order to protect oneself and one's assets from these controlling tyrannical totalitarians.   At least it becomes more valuable to people who cherish liberty and the freedom to life one's life freely.

As far as nonsense like "Almost a quarter of bitcoin users , and nearly half of bitcoin transactions, are illegal." I don't believe that is remotely accurate.   Illegal where?  China?  Australia? Austria?  India? US?  Taiwan?  Hong Kong?  Mexico?  Brazil?  South Sudan?  Korea?  North Korea?  If you meant that half of all bitcoin transactions are illegal somewhere, I would agree, but the rest of the world shouldn't care what China, Cuba, North Korea or other totalitarian country thinks.  

So, yes, bitcoin, encryption (non-backdoored) and crypto will be even more important if countries turn towards a repressive, confiscatory, autocratic regimes.  Let's hope they don't go down this illiberal path, but with the rise of the authoritarian socialists/fascists in the US nothing is certain.  If the entire world adopts these despotic, oppressive rules like you describe, bitcoin will be a haven for the black market, free thinking individuals until liberty returns to the world.

[ShowOff]

I don't believe in the percentage of illegal bitcoin use that the OP mentioned in the thread because it's so inaccurate when there's no evidence from research done. Although bitcoin can also be used for illegal activities, the percentage may not be as large as stated in the OP's post. As currencies, bitcoin and fiat can also be used for things that are against the law and are considered reasonable because bitcoin is accepted as a mean of payment (currency).

Government can't block bitcoin and its network, but they can only force all citizens not to use bitcoin with extreme witness. Do you think the current government is really thinking about doing it with bitcoin? I'm pretty sure the government won't do it as long as they get lots of other benefit like taxes.

[Ucy]

In your World, illegal activity does not alway translate to evil/immoral activity otherwise we would have alots of things that are legal in your World easily qualify as evil/ immoral.
I think we should probably have a balanced forum where the immoral usage of both fiat and crypto can be transparent/fairly highlighted so that we can determine which one qualifies to exist.
A Just and reasonable security agencies would accept currency system that helps them fight crime easily without breaking the laws.


The value of Bitcoin is determined by its tech, ideals, uniqueness, security and usefulness. So as long as it continues to be useful, unique and secure it will remain valuable.  If tyrants join hands to ban humans from fetching water from the streams or using herbs, that won't stop herbs or water from streams from being valuable or used morally by people even though it's Illegal to use them or will it?

[ropyu1978]

bitcoin cannot be controlled by one person, so it is difficult for the government to stop bitcoin, even to block bitcoin, the new government has succeeded in blocking bitcoin, the government must block all internet, and cannot play on digital, we have to go back to the past, fight using reeds, and cooking using wood.. keep dreaming of blocking bitcoin..

[Artemis3]

Value is subjective, and is determined by you, not others. It will be valuable (or not) for you, no matter what the gov or anybody else says.

For some people it won't be worth hiding from the State, for others they will value it more because the State is not involved. The result is the price market.

Those who keep their bitcoins considers them more valuable than selling them. Its that simple really, the value of things is clearly explained by the Austrian School of Economy, and this includes bitcoin.

The true holders know exactly why they are holding it, and are not lemmings followers without knowing why, Those won't change their minds overnight for no real reason.

[topbitcoin]

I think what governments do only made regulation like block access to bitcoin wallet, exchanges, etc. And nothing can disrupt people to use bitcoin freely although must bypass the internet connection to access it. So, bitcoin will still have it's value. As long there are internet still on.

[Jaered]

Bitcoin and indeed cryptocurrency generally are decentralized. I hope you know what it means. It means It has no central control. So the government cannot do anything against it

[sapnu]

Regardless of how much power the government may display, no matter how many times it tries to restrict its citizens from using bitcoin, people will always find a way to access it no matter what. The government does not have enough capability to block or completely shut down bitcoin. Also, bitcoin is a decentralized currency which means the government or any other organization does not have power nor control over it. Do not be too afraid of seeing countries banning bitcoin because it wouldn't last long and investors will still find a way on how they can access and earn profit from it.

[ultrloa]

Bitcoin will still have value, even if the government block bitcoin. But if only one government block bitcoin while the other government still allows people to use bitcoin, that will not have a big effect. But the important is as long as the internet still exists and people can use the internet and use bitcoin, bitcoin will have value.

Maybe the illegal activities using bitcoin have been exposed too big than the good activities using bitcoin, so people out there think that bitcoin is only for illegal activities. If they can see that bitcoin is only a tool and will depend on how people use bitcoin, they will not see the bad. Instead, they will use bitcoin for good things.

It cannot effect if only 1 government in some part of the world will ban it but if majority of them declare bitcoin as illegal asset and every citizens who caught using it will be sued then for sure it can affect the price since the demand will decrease then possibly this could be the destruction of bitcoin.

But we  are so morbid for thinking  this way since  for government see bitcoin already as valuable asset that's why its impossible for us to see this happening.

[nurilham]

In Bitcoin-based transactions, about 76 billion US dollars of transactions are involved in illegal activities each year, accounting for about 46% of the total Bitcoin transactions.

Where do you get this information?
If you just heard this from a rumor, please don't directly write it on the forum. Newbies may trust it although it is still debatable whether it is the fact or not. Personally, I don't believe this, how can someone know the transaction is legal or illegal. Even an institution announced it, I doubt if there is a political purpose to spread it.

[Kasabus]

Regardless of how much power the government may display, no matter how many times it tries to restrict its citizens from using bitcoin, people will always find a way to access it no matter what. The government does not have enough capability to block or completely shut down bitcoin. Also, bitcoin is a decentralized currency which means the government or any other organization does not have power nor control over it. Do nŕot be too afraid of seeing countries banning bitcoin bŕecause it wouldn't last long and investors will still find a way on how they can access and earn profit from it.

Seeing every news about banning is not new to us as most of the countries have to tried to ban bitcoin but never succeed. Bitcoin can never be controlled by any entity or group so it won't be possibly banned by any government as bitcoin users and investors will still find ways to access it no matter where they are as long as the internet connection is present.

And now that bitcoin has even gained more positive impact from its users so adoption might take place sooner and that banning will be very impossible now for government.

[temple]

You can't just use random numbers here, where is your proof of any of your claims for the percentages and amounts used in your claims?

And what's up with all these "what if" topics today from newbie accounts?

I think this is where he got these numbers https://www.finextra.com/blogposting/17706/what-is-the-actual-use-of-cryptocurrencies

The authorities can actually track down these transactions if they really wanted to arrest someone behind these illegal activities. Bitcoin is traceable and with the help of chainalysis, I'm sure they could get bad actors.

Blocking Bitcoin is not possible. It's worth fighting against BTC when gradually the world is adopting it, the country that will block or illegalize BTC will just be left. China will not be able to stop it too.

"Regardless, the good news is two-fold: Cryptocurrency-related crime is falling, and it still remains a small part of the overall cryptocurrency economy."

That is from a Chainalysis report. The transactions associated with illicit activity is so low compared to any other fiat currency in the world that that is almost negligible to be discussed at all. There are unbelievable reports about hidden fiat currency all around the world, corporate entities hiding dividends from taxation and so forth, Bitcoin is not the issue some believe it is.

[TangentC]

Blocking bitcoin, no ways guys and girls!

For starters how do you block something you don't control? But there is an indirect way that could have a negative impact on crypto like electricity and internet regulation, as these two are at the core of it and could have a temporal impact. But crypto (bitcoin) being decentralized counters these effects and prevents the network from breaking down.

Yes Way,

All the governments have to do is contact the companies that run the internet backbone.
https://en.wikipedia.org/wiki/Internet_backbone

The largest providers, known as Tier 1 providers, have such comprehensive networks that they do not purchase transit agreements from other providers.[1] As of 2019, there are six Tier 1 providers in the telecommunications industry: CenturyLink (Level 3), Telia Carrier, NTT, GTT, Tata Communications, and Telecom Italia.[2]

Have these companies use detection software to block all miners from connecting to mining pools.
This freezes bitcoin mining, no new transactions can be added, so the network is frozen.

They can also use detection software to block the bitcoin nodes from sharing block data,
this means no one can sync the blockchain.

Plus anyone that persists in trying to evade the above restrictions home address will be turned over so the police can imprison them.

* Tor or VPNs will be no  protection as if the governments went that far, they will also block and make illegal tor nodes and VPNs.*

I am not saying they ever go that far, but don't be stupid and think they can't if they really wanted to.
 

[anotherdayyyy]

The Chinese government's ban on ico has not caused excessive burdens on the global Bitcoin and blockchain communities. There are also many people who applaud for this. Participants in the blockchain industry are more standardized and transparent. Avoid repeating the mistakes of p2p frantically collecting money in previous years. This shows that many people know that no matter how great innovation Bitcoin and blockchain are, it is necessary to have a basic legal and moral bottom line. At the same time, the blockchain community has always maintained a very positive attitude towards innovation. Many start-up companies have received funding that is unimaginable in the fiat world, but the behavior of fishing in troubled waters needs to be controlled and restricted. Self-discipline, tolerance, mutual trust, and democracy will definitely highlight the value of the blockchain more fully, and as mentioned earlier, as long as there is value, it is difficult to be banned.

[Barry Mantle]

From the day Bitcoin was born, it was ready to deal with the joint ban by governments of various countries. This is why blockchain technology and the idea of decentralization are important. But no matter whether Bitcoin and DeFi will be accommodated by the mainstream financial world in the future, or excluded, I believe the world will become better because of this. In this world, the power of justice is still very strong. Even if a centralized organization wants to suppress the development of Bitcoin and DeFi with selfish purposes, it must have sufficient and justified reasons. Then, as the game with Bitcoin and DeFi unfolds, those for just reasons will inevitably become the self-discipline standard of centralized organizations, and the value of Bitcoin will become higher and higher.

[ipanks]

Bitcoin will still have value, even if the government block bitcoin. But if only one government block bitcoin while the other government still allows people to use bitcoin, that will not have a big effect. But the important is as long as the internet still exists and people can use the internet and use bitcoin, bitcoin will have value.

Maybe the illegal activities using bitcoin have been exposed too big than the good activities using bitcoin, so people out there think that bitcoin is only for illegal activities. If they can see that bitcoin is only a tool and will depend on how people use bitcoin, they will not see the bad. Instead, they will use bitcoin for good things.

It cannot effect if only 1 government in some part of the world will ban it but if majority of them declare bitcoin as illegal asset and every citizens who caught using it will be sued then for sure it can affect the price since the demand will decrease then possibly this could be the destruction of bitcoin.

But we  are so morbid for thinking  this way since  for government see bitcoin already as valuable asset that's why its impossible for us to see this happening.

Indeed. El Salvador and the other countries already allow bitcoin for their people, which will not stop bitcoin from adopting in many countries. If most countries allow bitcoin, the country that prohibits bitcoin will think they need to change their regulation and start accepting bitcoin like the other countries.

I guess the government is still learning deeper about bitcoin before they decide to allow bitcoin. Maybe they will apply some regulations for their people if they want to use bitcoin. I am sure bitcoin will have a high value in the future, especially if many countries can accept bitcoin for the payment system and the investment.

[slaman29]

Governments have tried to block Bitcoin before, and in fact on numerous occassions China has tried to do it, in various ways. Even India, also tried to ban it altogether.

That's 2 of the biggest countries on earth trying to block Bitcoin.

Did that affect Bitcoin's value?

[pinggoki]

Of course not. Bitcoin has been block for some countries and yet we are seeing that the bitcoin still have an value. Bitcoin is independent wherein if all the government block bitcoin or all of the country ban bitcoin there will be still an operating for it because there are exchangers that will still accept bitcoin and cryptocurrency and that exchangers will be the one who will be in front to make it become a fiat. The thing is that, no matter what happens bitcoin will increase and government will have nothing to do about it.