Cryptocurrency restrictions in some countries is a blessing in disguise.

[Kelward]

An example is in February, 2021, the CBN (central bank Nigeria) prohibited banks from engaging in any cryptocurrency transactions. At that time the restriction or ban affected the adoption of bitcoin, which was fast gaining ground as an alternative to fiat, for a while, people became afraid to be associated with bitcoin, because of the negative things that were attributed to it, like being a means of money laundering . Some were even thinking that the CBN ban meant that the country has banned cryptocurrencies. Despite the perception and challenges in some countries, the adoption of bitcoin keeps increasing everyday. Thanks to P2P which has widely gained ground as a decentralized means of transactions and reliable exchanges like Binance and Remitano, bitcoin users are increasing everyday.
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/cryptocurrency-usage-soars-in-nigeria-despite-bank-ban-70497781


These are some of the factors that can be responsible for the increase in the number of bitcoin adoptors in countries that have restrictions.
1; Curiosity, naturally people are inquisitive to know why they are restricted to do certain things, therefore the more they learn about bitcoin and it's advantages, they will engage in it and tell others.
2; Unemployment, where there is high rate of unemployed people, especially the youth, they will see bitcoin trading as a source of earning income.
3: Alternative source of income, they can trade and invest in bitcoin, without loosing their day job.
4; Convenience, they can stay in the comfort of their homes and engage in bitcoin speculation and earn money.
5: Innovation, using a globally accepted decentralized digital currency, that has no boundaries like centralized fiat, gives more freedom and privacy to the users.
With these and other related reasons makes bitcoin adoption to be increasing everyday, despite all odds. This is the reason why countries like Nigeria, has one of the fastest rising bitcoin adoption in the world today.

[Zaguru12]

We can say that the restriction actually increased the awareness of bitcoin entirely and also paved way for schemes like decentralized P2P to be explore by people but I doubt this advantages would have been more than the damages it caused.

Some investors lost most of their funds due to the freezing of their bank account, this rendered most of the early investors that have cryptocurrency affiliated with banks to be robbed off their hard earned money. Some of which are yet to find their feet. This also affected the adoption rate whereby people turn away from it because of government restrictions. So had the government embraced bitcoin instead of restricting it, it would have grown more adoption than it did when the other was passed

[Majestic-milf]

 A very keen observation you have made and to an extent, I'd agree with you. We all know that Bitcoin gaining prominence and recognition was like a threat to the government and the local fiat, especially as they saw that if nothing is done they will lose control and the fiat would continue to depreciate in value.
But there are countries whose Govt have banned the use of crypto use like Algeria. In such cases, knowing fully well that such is frowned upon can limit the usage and adoption.
 But since you used Nigeria as a case study, I feel using the instance of curiosity as a reason for dabbling doesn't just do it justice. People will like to get value for their money and storing up the local fiat, which is the naira isn't the best form of investment as on a daily basis, its value depreciates.
If you ask me, I feel crypto and bitcoin to be precise was more accepted by Nigerians simply because of its ability to ensure your privacy while you conduct transactions. Something the traditional fiat can't give.

[Ojima-ojo]

Since there is no hypothesis to check whether or not Bitcoin restrictions can or have led to Bitcoin adoption in those countries that have publicly made some negative pronouncement regarding Bitcoin, it is quite clear that ordinary the rate of internal growth and popularity of Bitcoin within such countries won't be as that of a country that made public legal adoption of bitcoin, such countries like El Salvador and the Central Africa Republic this countries are already innthe forefront of the whole thing, and by that, their counterpart who have hard some misperceptions about bitcoin will not be meeting up with the policy demands that will allow the integration of bitcoin into their internal economy.


What you listed above are all very correct but they can all be viewed as retrospect from previously kicked against technologies like the internet when it was still at its early stage of development but yet since people saw it as a great tool to better their lives m, they embrace and thereafter the government have no option but to also do the same.


So similar thing will happen with Bitcoin in the long run, when the world economy will not have any other option but to rely highly on alternatives which Bitcoin is one of such alternative to fiat.

[hatshepsut93]

Thanks to P2P which has widely gained ground as a decentralized means of transactions and reliable exchanges like Binance and Remitano, bitcoin users are increasing everyday.

You still gotta ask yourself how big the growth would be if there was no ban. Because bans can deter a lot of potential users who are scared to break the law. And also you gotta consider the possibility of crackdown on p2p exchange. The government might order banks to monitor for activity that looks like exchanging crypto and to ask their customers to explain the source of their money.

[nelson4lov]

Thanks to P2P which has widely gained ground as a decentralized means of transactions and reliable exchanges like Binance and Remitano, bitcoin users are increasing everyday.

You still gotta ask yourself how big the growth would be if there was no ban. Because bans can deter a lot of potential users who are scared to break the law. And also you gotta consider the possibility of crackdown on p2p exchange. The government might order banks to monitor for activity that looks like exchanging crypto and to ask their customers to explain the source of their money.

I think it's a two-way effect. The ban had it's negative effects but the positives actually superceded the negative because it was around that time that more people became aware of Bitcoin and other cryptocurrencies. It's just like PRs now, even a bad PR might good for long term growth and awareness.

Anyway, the ban was short lived at it wasn't implemented at the core level since currencies are fungible. There's no way to tag users who participate in P2P ans users who don't since anyone can just send money to a recipient for products and services.

Same government approved Blockchain and Blockchain related services for National Development.

[panganib999]

We can say that the restriction actually increased the awareness of bitcoin entirely and also paved way for schemes like decentralized P2P to be explore by people but I doubt this advantages would have been more than the damages it caused.

Some investors lost most of their funds due to the freezing of their bank account, this rendered most of the early investors that have cryptocurrency affiliated with banks to be robbed off their hard earned money. Some of which are yet to find their feet. This also affected the adoption rate whereby people turn away from it because of government restrictions. So had the government embraced bitcoin instead of restricting it, it would have grown more adoption than it did when the other was passed

Much like what happens in countries like bangladesh or something. People in there aren't particularly aware nor supportive of bitcoin in the first place, but the fear of the government lead them to inadvertently steer people into becoming curious of what bitcoin really is and in turn invest in it. Stupid if you think about it but sometimes governments really do this for some ulterior motive. Some of them are trying to fish out bad actors who are more likely to use bitcoins to transact in private, some countries I think are banning bitcoin and then holding the people curious about it, so they could use bitcoin to jumpstart their economy altogether when they lift the ban. It's all a meticulous game of cat and mouse if I do say so myself.

[Oilacris]

We know that this world isnt really just revolving around with 1 country on which means that even if they have decided to have a ban but doesnt mean that it would be completely be affecting out when
it comes into its citizens wasnt able to deal with Bitcoin but based up on whats been said that because of the current options and methods that we do have today then it wont really be completely be removed or eradicated on the possibility for someone to be able to make deal with it.Its always been part of human instinct that if ever there's something being prohibited then this is where interest and curiosity would comes next. Some might that be tending to obey those rules and regulations but there are ones who would really be tending to dig in depth.

Each corners of the world couldn't really be having that same decisions and jurisdictions that would be made out and this is why its not something new that there would be places who do allow
and accept out Bitcoin or crypto and there are ones who do ban. Its up on a certain individual on whether he would proceed on learning it or would really be going in line on what their government
been telling about.

[Smartvirus]

Bitcoin has been known to take every negativity towards it for some sort of publicity campaign and this isn’t solely about Nigeria but, the globe. In other to spread negativity, you’ve got to spread the word out on bitcoin and that’s just what the innovations need. Some means to let people know of its existence and you can trust on intellectual forks to go the length in finding out more about this innovation and just as they are met with the bad, surely they would establish truth at some point and the coin gets more investors.

In another scenario, it could create a panic sell situation for weak hands, there by creating a perfect buy condition with a slight change in price towards the bears and that’s very much a viable condition for those looking to invest too.

[mvdheuvel1983]

Thanks to P2P which has widely gained ground as a decentralized means of transactions and reliable exchanges like Binance and Remitano, bitcoin users are increasing everyday.

You still gotta ask yourself how big the growth would be if there was no ban. Because bans can deter a lot of potential users who are scared to break the law. And also you gotta consider the possibility of crackdown on p2p exchange. The government might order banks to monitor for activity that looks like exchanging crypto and to ask their customers to explain the source of their money.

We still need to ask how big the growth would be if the government permits mining and use of renewable resources. Bitcoin is growing in Oman and the middle East because it has been given wings to fly. True that the crackdown may be a blessing in disguise because of what the OP has mentioned but we should remember that it would have been even bigger in these countries if it was permitted. I recall miners in China moving out to Kazakhstan and other countries after then ban on bitcoin mining.

[Agbe]

After the ban and those who were not well grounded in bitcoin moved their bitcoin to dollar and keep it there. And those who understands bitcoin has a decentralized currency was not shaking and were calm to observe the next move of the government because they knew that the CBN or the federal government could not control their wallets. And immediately they diverted their attentions to p2p and used the international exchange platforms to sell their bitcoin and spend. Yes that reduced the adoption of bitcoin because people thought that since government did not support it, as for them bitcoin became illegal. So they became afraid to use the coin. But later in the years, those who thought bitcoin is illegal as the CBN banned it became interested to join the investment again and probably because the dividends from the old bitcoiners. Well to some extent those factors propelled the wide range of adoption of bitcoin in the country.

[Darker45]

I don't know how restrictions are indeed a blessing in disguise. I think you failed to expound on it. As far as adoption is concerned, it will certainly be faster without restrictions rather than with restrictions.

The factors that you mentioned don't answer why restriction is a blessing. The level of curiosity, for example, would be a lot higher without restrictions. And whether such curiosity would translate into another Bitcoin user would also be affected to a significant extent when there are restrictions in place.

Thanks to P2P which has widely gained ground as a decentralized means of transactions and reliable exchanges like Binance and Remitano, bitcoin users are increasing everyday.

You might want to reconsider your examples when speaking of P2P and decentralization.

[Gallar]

~Snip
1; Curiosity, naturally people are inquisitive to know why they are restricted to do certain things, therefore the more they learn about bitcoin and it's advantages, they will engage in it and tell others.

Yup, curiosity is often able to break through any rules, be it rules made by the government or those made by other communities. Because actually this is very humane, because when something is banned like bitcoin, people don't leave and stay away from bitcoin. But instead I'm wondering and want to know more clarity. So people's curiosity is indeed one of the things that makes bitcoin more and more known to many people in the world.

Because as the saying goes

"The path to innovation starts with curiosity." -Robert Iger

Source: https://www.bola.com/ragam/read/4957826/40-kata-kata-bijak-seputar-rasa-ingin-tahu-buatmu-moving-maju

So curiosity or curiosity, is indeed the beginning of everything, as well as people who are curious about bitcoin. Even though it has been banned and warned not to use it. But they still insist on using it, because these people are curious about the truth about bitcoin, the potential of bitcoin, and the reasons why bitcoin is banned.

~Snip

The last four points are clear, that bitcoin is attracting people because in general bitcoin is an asset that can make money. Apart from that there are several advantages that bitcoin has, such as decentralization and privacy which can indeed be maintained. So in essence, when it comes to profit and income, it seems like the majority of people will definitely pursue that source of profit. Because of this too, even though bitcoin is banned, from a user point of view and the popularity of bitcoin is rising to the top.

So in conclusion, the ban on Bitcoin issued by Nigerian bank, it seems like this is actually like Nigerian bank advertising Bitcoin. Because people who previously didn't know about Bitcoin, became aware of Bitcoin, and in the end everyone in Nigeria became curious about Bitcoin. Amazing reality.

[Despairo]

I disagree if Bitcoin restriction will increase Bitcoin adoption, if the government and the banks restrict anything involved with Bitcoin, it means Bitcoin is illegal in their country.

Imagine you're live in a country where drug is illegal, but you're a drug seller and only want to make money from selling it. You might be safe as long as the buyer is not get caught and quiet. If they get caught by police and they told you're the drug seller, you will going to jail.

[davis196]

Unemployment, where there is high rate of unemployed people, especially the youth, they will see bitcoin trading as a source of earning income.]

Unemployed people earning money by trading cryptocurrencies? Where they got their capital from? Have you heard the saying "only invest money that you can afford to lose"? If someone is unemployed, this means that he has no steady monthly income. This means that he(or she) can't afford to lose his/her savings. Cryptocurrency trading is very risky. You can't replace your job with crypto trading. I've always viewed cryptocurrency trading as a side income, that supplements the income from a 9/5 job.
Anyway, I agree that the people simply don't follow the rules and don't abide by the laws in many countries around the world.
"The forbidden fruit is sweeter". Maybe that's why imposing a crypto ban has the opposite effect and leads to bigger crypto adoption in most underdeveloped countries.

[Kakmakr]

One of the biggest advantages of Bitcoin is unrestricted cross border transfer of wealth, which is good in countries where there are conflict and where people might have to leave their country in emergencies.

You create an online account.... then you scramble your private keys and store it on there....  and once you relocated to another country, you access the site and you sell the coins to start a new life. (Many people get robbed, when they try to cross to other countries by raiders or even the corrupt government officials, so you cannot carry your cash or valuables with you) 

[Litzki1990]

There are still many countries in the world where bitcoin is outright banned, not just bitcoin but the entire cryptocurrency. Although cryptocurrency is banned, the government of that country cannot fully enforce this ban so that the people of that country cannot use Bitcoin or other cryptocurrencies. Despite the ban, many people continue to use Bitcoin from those countries and convert most of their money into Bitcoin. Observing the international news, it can be seen that many people scammed the bank and converted the money through Bitcoin, but Bitcoin is not allowed in those countries, and some people convert a significant amount of money into Bitcoin to avoid giving their share of money to their wives, that is, Bitcoin is a currency that is banned in various countries. Despite that, people in that country continue to use Bitcoin because Bitcoin is a very popular digital currency.

[Upgrade00]

These are some of the factors that can be responsible for the increase in the number of bitcoin adoptors in countries that have restrictions.
1; Curiosity,
2; Unemployment,
3: Alternative source of income,
4; Convenience,
5: Innovation,

Only the first reason is related to restrictions put in place in countries since the banning will have to be public and will put Bitcoin discussion in the national news.

The other four reasons happen all over whether there are restrictions in place or there are no such restrictions. The second point; unemployment actually restricts people from getting into Bitcoin wait is not a job and one needs money to be able to buy it and hodl.

[BRINIRHA]

One thing that is certain is that a prohibition always makes us more curious to find out more about why something is prohibited. And so it is when it comes to bitcoin. Even people who don't know about bitcoin at first and then hear that their government is banning bitcoin in their country will naturally start to wonder about what bitcoin is and why it is banned. And yes, in the end they will learn it themselves because they want to satisfy their curiosity and this will make curious people realize that Bitcoin is not a bad thing. And this will make bitcoin adoption grow even more rapidly. Yes, a ban sometimes makes people more curious. So the government would be better if they only monitored and made tax policies and the like for Crypto. So they can keep an eye on their citizens. But if they prohibit their citizens from getting involved in bitcoin then this will actually mean that citizens will continue to be involved in bitcoin in a clandestine manner.

[Kelward]

After the ban and those who were not well grounded in bitcoin moved their bitcoin to dollar and keep it there. And those who understands bitcoin has a decentralized currency was not shaking and were calm to observe the next move of the government because they knew that the CBN or the federal government could not control their wallets. And immediately they diverted their attentions to p2p and used the international exchange platforms to sell their bitcoin and spend. Yes that reduced the adoption of bitcoin because people thought that since government did not support it, as for them bitcoin became illegal. So they became afraid to use the coin. But later in the years, those who thought bitcoin is illegal as the CBN banned it became interested to join the investment again and probably because the dividends from the old bitcoiners. Well to some extent those factors propelled the wide range of adoption of bitcoin in the country.

This is another blessing caused by the restriction in Nigeria, after the CBN ban on banks to transact bitcoin. People lost interest, but when the few that continued in bitcoin, through P2P and exchanges, began to prosper, it propelled the interest of majority of the people to join bitcoin trading and investment. Factors like this helped greatly in creating the awareness and the very fast adoption of bitcoin, because due to the economic hardship, people were looking for alternative means of earning incomes.