What if governments make Bitcoin centralized?

[oHnK]

No amount of regulation can make it centralized.

Government can't control the bitcoin network, but they can still control you with regulation. See now, the government has managed to control the majority of bitcoin users by making regulation on KYC compliance on a centralized exchange for all users. Anyone who uses this exchange service then they must comply with the rule. They don't create a centralized bitcoin network like bank, but they can regulate bitcoin users living in their jurisdiction. This happen in most countries and mine is no exception.

But the funny thing is that the regulations they create are only for their own benefit.  For example, if they implement a KYC policy to find out who the user from the address on the exchange is, but on the other hand they forget to set policies such as an integrated complaint service for those who are exposed to scams.  So what is the use of KYC in the public interest?  just bullshit in the end right?

[Zanab247]

If government can make bitcoin centralized to the world, it will improve a lot of things in the world economy. But with 100% sure government cannot make bitcoin centralized because bitcoin is a digital currency which is not control by any government officials in the world. Even though it is accepted to be centralized in the world, which country will control it,other countries will not agree for one country to be the one controlling centralized price in the world.
Many countries are still avoiding bitcoin because is a decentralized currency which no body know when it will start pumping and when it will start dumping in the community. Some countries are still looking at bitcoin as a digital currency that will not last long in the world.

[whatthefrance]

BTC as One World Currency Why would they even think of that in the first place? Each country will always prioritize their own national interest and will continue to protect their own currency. Hard to think they will ever unite just to control Bitcoin when they cannot do it to fiat for decades/centuries. Of course, there is a slim chance but that would probably take an alien invasion.

put your tin hat on:
https://www.newswars.com/great-reset-klaus-schwab-offering-tyranny-courses-to-politicians/

[skarais]

But the funny thing is that the regulations they create are only for their own benefit.  For example, if they implement a KYC policy to find out who the user from the address on the exchange is, but on the other hand they forget to set policies such as an integrated complaint service for those who are exposed to scams.  So what is the use of KYC in the public interest?  just bullshit in the end right?

Yes, it is a bad side that seems to be hidden from the government all this time. The government will not be responsible for any cases involving users who suffer losses, but if it occurs on a listed exchange then there may be action from the relevant authorities to resolve it. Example it OJK.

[Lanatsa]

I do not see that happening in the future. Bitcoin can not be centralized. No amount of regulation can make it centralized.

Techinically speaking then this wont really be possible because structure of Bitcoin itself in talks of codes and other aspects then theres no way that it could be

centralized nor be altered or changed and they would already been trying to do this every since bitcoin had become bigger because anything decentralized
is really out of their preference or liking.

They can centralized platforms which is the only way for its users to comply on whats been asked due to regulation thing.

[Abiky]

Government can't control the bitcoin network, but they can still control you with regulation. See now, the government has managed to control the majority of bitcoin users by making regulation on KYC compliance on a centralized exchange for all users. Anyone who uses this exchange service then they must comply with the rule. They don't create a centralized bitcoin network like bank, but they can regulate bitcoin users living in their jurisdiction. This happen in most countries and mine is no exception.

That's certainly true, mate. Regulations can certainly limit Bitcoin's mainstream adoption. Governments might not be able to control the network in its entirety, but they can prevent people from using it. What's concerning is that big players (mainly exchanges) are amassing large amounts of Bitcoin. If this keeps up, only the wealthy will own most of the coins on the network, effectively leaving the "little guy" out of the system. The risk of centralization will always be there, but it's up to the community to keep Bitcoin as decentralized as possible.

Knowing that the code is open source, it's easy enough to create a new cryptocurrency in case the main Bitcoin blockchain becomes compromised. A change in the PoW algorithm will surely render centralization efforts futile. I'd be intrigued to know how Bitcoin will look like in the future as it continues to grow in popularity. Hopefully it'll remain as decentralized as it is right now, for people to enjoy true financial freedom. Just my thoughts

[temple]

Have you ever thought about Bitcoin becoming centralized someday? The ever-growing mainstream adoption of Bitcoin worldwide will only lead us closer to such scenario. To our surprise, El Salvador became the first country to adopt Bitcoin as legal tender. The more popular the cryptocurrency becomes, the more countries will be tempted to follow El Salvador's footsteps. Imagine governments making their own mining facilities, or even buying pre-established mining companies in order to gain a piece of the pie. If they manage to control more than 51% of Bitcoin's hashrate, the cryptocurrency will effectively become centralized. That, and the fact that they already control centralized exchanges is a very alarming situation for the future of Bitcoin.

Of course, the only way governments worldwide will be able to control 51% of Bitcoin's hashrate is if they unanimously agree on using Bitcoin is a "One World Currency". This may all sound crazy, but we cannot ignore it from happening in the future.

What are your thoughts? Will Bitcoin be able to remain decentralized for the foreseeable future? Or not? What do you think will happen if governments fully embrace Bitcoin as the replacement of Fiat? Your input will be greatly appreciated. Thanks.

Good thing that bitcoin is decentralized already and there's no way they could make it centralized by cheating or hoarding coins, it would totally make no sense even if they wanted to, bitcoin had far started more a decade ago, government would take action at large as late as today.
Take for example China, we all knew that they're trying to control cryptocurrencies or atleast make them an overseer or middleman about the transactions, but look at China now, they have given up already and took a legal action to ban bitcoin across mainland China.

And I don't even trust that move by the Chinese government. Do you really think they don't possess any Bitcoin? I just can't believe that. China is a big player in literally any important game all around the world and just think about the idea that they gobbled up loads of Bitcoin when it was between $500 and $5000. 200k BTC at $5000 is just a billion USD. That's pocket money for them. Now think about the idea that they started way earlier than that. There is a real possibility that they own enough Bitcoin to certainly not miss out on the incredible potential it has financially and perhaps even geopolitically.

Lots doesnt have that trust on the government specially on banning something but they do actually possess something which it isnt really that surprising for that kind of behavior.
You couldnt really trust up on any decisions that they would make and of course they would do actions that they would benefit them out and wont really be tending to go
to the path on which they do seems that it will really be a disadvantage to them.
Making bitcoin centralized? We know it is technically impossible thats why they do focus on platforms that is attached to it.

The terms centralized/decentralized is also not either or. Could the government make Bitcoin more centralized than it is now? I guess so because governments could also acquire mining hardware and run specialized facilities, but I don't think they would do that. By now the best position a government could be in is if they already own a huge amount of Bitcoin. That is what I am saying about China. Even if they banned it, they are only in a bad position for now if they don't own any Bitcoin.

[phillipjackson]

No government will be interested in mining bitcoin and making it centralized. The prime reason behind that is almost 90% of bitcoin already has been mined. There is no point for diving in for the rest of the 10% for any government.

[leverageguy]

I don’t think anything such is happening anytime soon because people who trade and invest in cryptocurrencies won’t be okay with it. What I think is that the government might come up with its centralized currency just to compete with the ones that are doing good in the market.

[Abiky]

No government will be interested in mining bitcoin and making it centralized. The prime reason behind that is almost 90% of bitcoin already has been mined. There is no point for diving in for the rest of the 10% for any government.

We can never know the government's true intentions. If it wants to destroy Bitcoin, it can do everything in its power to do so. Maybe countries from around the world will unanimously control a large portion of Bitcoin's hashrate in order to shut it down for good? We cannot discard the possibility of Bitcoin becoming centralized in the future, as Blockchain tech is not immune to this. There are many ways to centralize Bitcoin limited to governments' own imagination. They already control centralized exchanges so there's that. If governments manage to either control a large portion of the mining hashrate or the circulating supply, the cryptocurrency will be doomed.

At least, the code is open source. If anything bad happens, the community can simply alter the code to make a new cryptocurrency with decentralization in mind. I hope Bitcoin remains decentralized and censorship-resistant for the foreseeable future. Just my thoughts

[teosanru]

Have you ever thought about Bitcoin becoming centralized someday? The ever-growing mainstream adoption of Bitcoin worldwide will only lead us closer to such scenario. To our surprise, El Salvador became the first country to adopt Bitcoin as legal tender. The more popular the cryptocurrency becomes, the more countries will be tempted to follow El Salvador's footsteps. Imagine governments making their own mining facilities, or even buying pre-established mining companies in order to gain a piece of the pie. If they manage to control more than 51% of Bitcoin's hashrate, the cryptocurrency will effectively become centralized. That, and the fact that they already control centralized exchanges is a very alarming situation for the future of Bitcoin.

Of course, the only way governments worldwide will be able to control 51% of Bitcoin's hashrate is if they unanimously agree on using Bitcoin is a "One World Currency". This may all sound crazy, but we cannot ignore it from happening in the future.

What are your thoughts? Will Bitcoin be able to remain decentralized for the foreseeable future? Or not? What do you think will happen if governments fully embrace Bitcoin as the replacement of Fiat? Your input will be greatly appreciated. Thanks.

If they were so united and so willing to use one world currency, there would never have been any need of bitcoin itself, the problem is for one single country it's going to be impossible to cover up the 51% hash rate alone, and eventually, if multiple countries began to do this they would face clashes with each others and will never be able to form any consensus, moreover, it's not at all financially wise for any country today to make such a heft investment, because the returns aren't going to be that exciting for them considering that not a lot of bitcoin are left to be mined now. If countries would really want one world currency they would simple legalize bitcoin as a legal tender and they will be easily successful in their mission.

[Lizzylove1]

This will never happen. The world government will never fight over mining and control, they will be occupied with military advancement, climate change and global vaccination and other controls not bitcoin that is very difficult to mine, more so, so many companies all over the world are doing the mining already.

[Abiky]

If they were so united and so willing to use one world currency, there would never have been any need of bitcoin itself, the problem is for one single country it's going to be impossible to cover up the 51% hash rate alone, and eventually, if multiple countries began to do this they would face clashes with each others and will never be able to form any consensus, moreover, it's not at all financially wise for any country today to make such a heft investment, because the returns aren't going to be that exciting for them considering that not a lot of bitcoin are left to be mined now. If countries would really want one world currency they would simple legalize bitcoin as a legal tender and they will be easily successful in their mission.

You've said it yourself. If governments legalize Bitcoin as legal tender, then there should be nothing stopping them from centralizing the cryptocurrency in its entirety. El Salvador "broke the ice" and it should only be a matter of time before other countries do the same. Imagine if every country abandons their native currency (Fiat) for Bitcoin. It'll be the end of decentralization as we speak. We cannot discard this from happening in the future if adoption for Bitcoin continues to rise at an accelerated rate. Hopefully the community will be able to keep Bitcoin decentralized, for the sake of people's financial freedom. Just my opinion

[Ozero]

Control over bitcoin mining by states cannot centralize it. This has absolutely no effect on the decentralized nature of Bitcoin. Thus it is possible to influence its price, but not its nature. In addition, more than 18 million bitcoins have already been mined and the remaining 3 million, the mining of which will take more than a hundred years, practically does not solve anything. It is impossible to make Bitcoin centralized yet.

[Hypnosis00]

Control over bitcoin mining by states cannot centralize it. This has absolutely no effect on the decentralized nature of Bitcoin. Thus it is possible to influence its price, but not its nature. In addition, more than 18 million bitcoins have already been mined and the remaining 3 million, the mining of which will take more than a hundred years, practically does not solve anything. It is impossible to make Bitcoin centralized yet.

They can do it if they wanted but people don't like it. However, the situation sometimes shows that the market is started to get centralized, in fact, they're started to keep in touch with crypto, they are now urging exchanges to ask KYC for their users, that it means that they are moving in and trying to take control the market. I don't know, but can't assure that we keep the market being in decentralized state. As it comes that major countries will invest in crypto, that was the time we could think about it "centralized".

[rabs]

I believe if the government legalize the BTC it will be great revolution in the economy of the country,Young generation will be able to earn itself and bcome indendent which will decrease the unemployment rtaio.Government will also increaase the revenue from the transactions occurs on the government platform.Overall it will have positive impact on economy.

[witcher_sense]

If governments legalize Bitcoin as legal tender, then there should be nothing stopping them from centralizing the cryptocurrency in its entirety. It'll be the end of decentralization as we speak.

I don't understand what made you jump to that conclusion. If governments all over the world suddenly made bitcoin legal tender, that would force almost all population, that is, banks, businesses, individuals, merchants, etc., to switch to that new legal tender.  Not only would it result in a higher price and greater awareness of bitcoin, but also it would result in more people willing to mine bitcoin or run their own bitcoin full node, which would make the bitcoin network even more distributed and decentralized. It is pointless for governments, especially big ones, to promote bitcoin by making it a legal medium of exchange because once people learn about how to be their own banks, they will no longer need to rely on centralized government-controlled entities. Why would they shoot themselves in the foot?

[goldkingcoiner]

If governments legalize Bitcoin as legal tender, then there should be nothing stopping them from centralizing the cryptocurrency in its entirety. It'll be the end of decentralization as we speak.

I don't understand what made you jump to that conclusion. If governments all over the world suddenly made bitcoin legal tender, that would force almost all population, that is, banks, businesses, individuals, merchants, etc., to switch to that new legal tender.  Not only would it result in a higher price and greater awareness of bitcoin, but also it would result in more people willing to mine bitcoin or run their own bitcoin full node, which would make the bitcoin network even more distributed and decentralized. It is pointless for governments, especially big ones, to promote bitcoin by making it a legal medium of exchange because once people learn about how to be their own banks, they will no longer need to rely on centralized government-controlled entities. Why would they shoot themselves in the foot?

Exactly my sentiment as stated above. However I would also add the fact that if a government someday, somehow manages to centralise Bitcoin, then there will be other crypto's to take its place. Especially privacy coins. So trying to decentralise Bitcoin is not something that the government can do, I believe. And attempting it in the first place will only lead to a waste of money and time.

[Botnake]

I think that this is far from it. But I see that Bitcoin is already a very effective tool for influencing

This is definitely far from reality. Why would a government end up centralizing bitcoin? Knowing bitcoin is decentralized, so it can never be fully controlled by the government or any group or entity. But once its centralized, the government will all have the access on it. But take an example from China, they have created digital yuan which is definitely centralized in the first place, so they started banning bitcoin so that its citizens will stop using it and focus on their own digital currency. Maybe that will also be the case of other countries' government and they would not waste time on adopting bitcoin anymore.

[dark1234]

I think that this is far from it. But I see that Bitcoin is already a very effective tool for influencing

This is definitely far from reality. Why would a government end up centralizing bitcoin? Knowing bitcoin is decentralized, so it can never be fully controlled by the government or any group or entity. But once its centralized, the government will all have the access on it. But take an example from China, they have created digital yuan which is definitely centralized in the first place, so they started banning bitcoin so that its citizens will stop using it and focus on their own digital currency. Maybe that will also be the case of other countries' government and they would not waste time on adopting bitcoin anymore.

agree with you....
it is impossible for a country to centralize bitcoin and this will require large funds that will waste state money because bitcoin grows and is already in the hands of the world community which is very likely to issue crypto / digital money the country itself