Will government recognition kill cryptocurrency or boost!

[smelody]

Decentralize of Cryptocurrencies became popular and  the world's easiest exchangeable medium due to the absence of any official or institutionalized central regulatory authority. Many countries around the world allow the use of cryptocurrencies to varying degrees.Countries like USA, Canada, Japan, the United Kingdom, Switzerland and many others have legal frameworks in place to regulate cryptocurrencies and crypto-related activities.

Recently january-2024 the US Securities and Exchange Commission (SC) approved the world's most important decision for the first time in the history of the USA decision to approve the creation of an exchange traded funds (ETF) pool for investing in known cryptocurrencies, the move was considered auspicious.Investors get more confidence in investing. Surprisingly the price of Bitcoin did not rise even after receiving institutional permission.In the two weeks since this ETF was allowed to form the price of Bitcoin has fallen in reverse. And this matter has surprised the analysts of the financial sector. The question is why did this happen! Why is the price of Bitcoin falling! So people are actually losing interest in cryptocurrencies or digital currencies! or is there any other reason behind it! As Bitcoin's price rises modern proponents question its value as a real asset.

Therefore, as long as cryptocurrency is out of legal obligation in the era of hype its fans will continue to be attracted to it but from the day it enters the institutional.All things considered it would be better for Bitcoin or other cryptocurrencies rather than getting into mainstream or institutional investment structures.

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

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[Nothingtodo]

Bitcoin is fully decentralized currency whereas central bank and government currency (fiat) is fully centralized currency. The country's central bank and government never want its native currency and central bank to be replaced by a virtual currency. So the government is completely against bitcoin and never the government wants bitcoin to be more popular than the central bank. However, the government can certainly increase the popularity of Bitcoin to a large extent if it wants to, but the government never works to increase the acceptance and popularity of Bitcoin out of its own will.

[mk4]

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

Not necessarily. It's not like suddenly all bitcoin is under government/regulatory control if it gets regulated. There will be people that solely just wants price exposure(hence goes with Bitcoin ETFs), and there will be people who prefer having self-custody. It's not one or the other.

[EarnOnVictor]

I've always been sceptical of the government's acceptance of cryptocurrency, although they are welcome developments but there might be more to it. One thing about the advanced countries' governments is that they do not rush, and in most cases, they would have had their agendas but would just be initiating them one after the order. I am certain that Bitcoin is still a threat to the world's government, but they are bringing it closer to them with their approval and support so that they will have more say over it and strict oversight as much as they can. I've also always known that regulation is nonnegotiable over time, it is how the government would approach it that is not clear, and I know it will be very strict and tough at that time.

It might be worse to the extent that you might not be able to hold self-custody wallets again. Or do you think that is not possible? Well, it is highly possible as hard as it seems for people to believe. If the government starts clamping down on what they do not want, you would think it is the end of the world. Unless such a service is not being used by anyone, they can surely trace and block it which will result in the loss of assets.

Due to this, people will fear and start cooperating. So, I believe they embrace Bitcoin and others to keep them closer and not entirely disenfranchise people, but people should get ready for some partial oversight even as Bitcoin will continue to maintain its decentralised nature. But what you do with your Bitcoin might be accountable for in almost all cases.

That is my own view.

[Odohu]

Government recognition of Bitcoin will not kill Bitcoin, it will rather make Bitcoin more popular and acceptable across nations and add more legitimacy to it. The only challenge is that it could lead to Bitcoin losing some of its core properties such as privacy and anonymity.  Government will surely want to control the entire thing as that is their main purpose,control.

The first crime of Bitcoin was taking power away from the government,  we gave seen how they responded to that and they are still doing everything within their powers to change that. Chances are high that they will succeed because no one want to be in their bad book.

[moneystery]

Bitcoin is fully decentralized currency whereas central bank and government currency (fiat) is fully centralized currency. The country's central bank and government never want its native currency and central bank to be replaced by a virtual currency. So the government is completely against bitcoin and never the government wants bitcoin to be more popular than the central bank. However, the government can certainly increase the popularity of Bitcoin to a large extent if it wants to, but the government never works to increase the acceptance and popularity of Bitcoin out of its own will.

this is a strong reason why governments in many countries are creating cbdc, they don't want bitcoin's popularity to grow and replace their fiat currency, but it is impossible to stop bitcoin, many people are already using bitcoin and to date cryptocurrencies have been used by lots people for just transacting and also investing.

killing bitcoin and cryptocurrencies is impossible but utilizing them for the purpose of economic growth is currently the most sensible thing.

[smelody]

The initiative to operate Bitcoin can be similar to the concept of traditional banking if government want. This may lead to loss of identity. So where will we get the old charm of Bitcoin!

[Sebas.tian]

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

Despite some governments has rebellious against crypto and Bitcoin in their countries, but that is not a challenge to decentralized currency because the government have no authority to stop the decentralized currency not to grow higher worldwide like the way Bitcoin and crypto are everywhere for people to invest their money and ensure their investment are safe very well. Anywhere you see any government rebellious against crypto and Bitcoin, just know that there is a something they have discovered that would have been giving them money assume is a centralized currency, which is the reason many government officials don't talk anything good about Bitcoin or crypto. If government take over Bitcoin in any country, it will never bring good thing because they will be using the opportunity to make money from their investors which you can use centralized currency as an example in some countries.

[kentrolla]

Government will never fully recognise crypto currency as they are against decentralisation as it's something which they cannot control and they are already trying to restrict users from indulging in Bitcoin and other crypto currencies. Even if we see any government recognising Bitcoin for example it would definitely have positive impact but if they try getting crypto under their legal framework they will fail and the only problem I see if government recognises crypto which will flood more investment to crypto and imagine there is a manipulation by whale or bearish market then government will get a valid reason to create more hurdles for crypto. We don't want government's recognition for crypto.

[davis196]

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

The "rebellious image" of Bitcoin seems kinda fake. I'm sure that at least 90% of all Bitcoiners would be totally OK with the governments accepting BTC as an asset and/or a currency. You can't be "rebellious" and against the system on one hand and waiting for the same system to recognize and adopt you on the other hand. This seems like hypocrisy to me. Privacy oriented coins like Monero are way more "rebellious" than Bitcoin. I'm sure that no big crypto company and no government around the world is going to adopt a privacy coin.

[Dr.Bitcoin_Strange]

There are prominent investors who invests a large sum of money Into Bitcoin and other altcoins too and because they invest huge money, some of them likes to remain private and doesn't want their identity known, it becomes possible for them to archive the privacy they want because of the decentralization of Bitcoin. If the recognition of Bitcoin by the government is going to create a problem for those investors that prioritize privacy, they might look for a solution to still continue their investment. It doesn't mean that the government recognition will kill cryptocurrency, and perhaps it's just in the countries that you have mentioned that the government is fully in control and trying to regulate every crypto user. Any huge investor can still travel out of the country to seal their crypto deals before returning. I think, I am yet to find out if the recognition of Bitcoin by the government will boost the crypto market. There is no convincing evidence yet.

[Nrcewker]

Government if wanted then it could have recognised Bitcoins earlier only. The reason for which government is not making Bitcoins legal is due to the decentralised nature of the coin. No government or ruling body can control Bitcoins, hence government won’t be able to impose tax on the coins. Hence in many countries, Bitcoins are still not legal. Now regarding the price, then I guess it won’t affect a lot on Government’s view regarding Bitcoins.

[tabas]

Bitcoin or other digital currencies have a rebellious image because they are outside of government control.

It is a yes if we're going to say that it was before but this time? Not anymore, this era is different where most of the governments have already accepted that Bitcoin is accepted and it doesn't hold the taboo anymore about having that bad image and a currency for illegal trades or underground markets.

But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

These governments do understand their stand about Bitcoin. They will never have a way to control it but they know that they can regulate the companies and exchanges that operates and accepts it. We've seen it dozen of times where they've pressured a lot of them. But still, no matter how and what kind of pressure they do, they'll never be able to control bitcoin. It's possible to regulate trades of it but they can't stop and control itself.

[el kaka22]

I am on the side that says boost. I get that many people used bitcoin because it is decentralized and back in the day mostly untracked, which makes it a lot better when government is far away from it and that is the initial start of bitcoin. But today, we have a lot more bigger companies joining, and having a regulatory framework set in place for it to work makes them invest a lot more. It allows them to actually have a legal basis on investing into bitcoin as well.

This is why I believe that while we may lose some of the early investors gradually, we will gain a lot of big companies willing to invest billions to make it go higher. This is why I think it is clear that we are going to end up with a lot of profit eventually.

[Sanitough]

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

Not necessarily. It's not like suddenly all bitcoin is under government/regulatory control if it gets regulated. There will be people that solely just wants price exposure(hence goes with Bitcoin ETFs), and there will be people who prefer having self-custody. It's not one or the other.

Bitcoin is decentralized so expect that those who will engage with bitcoin still aim to be free from the government control. They will prefer having self-custody over bitcoin which I think is the right thing. And if ever in the future the government will come to accept bitcoin, of course it might be possible for bitcoin to lessen its decentralization but it will never be that fast to see bitcoin under the control of the government.

[cakravothy]

If the government admits to legalizing the use of crypto, it will obviously increase crypto users in the country. of course, with the increase in users who use and buy crypto, there will be many who will increase prices too, not lower them.

[Zaguru12]

If the government admits to legalizing the use of crypto, it will obviously increase crypto users in the country. of course, with the increase in users who use and buy crypto, there will be many who will increase prices too, not lower them.

Seriously there is nothing actually denying the fact that with government actually legalizing bitcoin it will increase the adoption but the price will still be dependent on how the currency is been used. But right now the main question the OP is actually asking is what will happen to the decentralization of bitcoin, we all know the reason why the government has failed to actually legalize bitcoin is the fact that they can’t seems to control it or manipulate. And anything that the government can not have control over they hardly ever allow its growth. So for me before government will actually legalize bitcoin mostly especially the developed countries is when they can manipulate it or at least reduce the anonymity associated with the use of bitcoin.

For me I think the government recognition wouldn’t actually kill bitcoin for those who have the required knowledge but my understanding is the anonymity or freedom associated with it will certainly reduce because governments will have enforce KYC platforms on gullible people and would have told them it protects them better which is not true. But entirely for someone who knows the principle of bitcoin, their intervention can not much change its position.

[mirakal]

Government recognition of Bitcoin will not kill Bitcoin, it will rather make Bitcoin more popular and acceptable across nations and add more legitimacy to it. The only challenge is that it could lead to Bitcoin losing some of its core properties such as privacy and anonymity.  Government will surely want to control the entire thing as that is their main purpose,control.

The first crime of Bitcoin was taking power away from the government,  we gave seen how they responded to that and they are still doing everything within their powers to change that. Chances are high that they will succeed because no one want to be in their bad book.

I also agree that government acceptance of bitcoin will boost the promotion of bitcoin but the fact that the government can now monitor all bitcoin activities and transactions, then it’s like it’s slowly becoming centralized until bitcoin is in full control with the government. Although this is indeed favorable for the government but seeing how anonymity and privacy have impacted the early bitcoin enthusiasts, I don’t think they will easily allow that to happen or fully submit to the government.

I don’t have issues on bitcoin’s government recognition but if that will only put bitcoin into at risk of losing its decentralization, then it’s better for bitcoin to be not recognized at all. But somehow, if legalization and acceptance are our main goal here, then probably the government might be the key for that.

[Wexnident]

~

It's merely recognition, the government still doesn't really hold any control over crypto itself. The ETF itself even is simply a method for non-crypto enthusiasts to "hold" Bitcoin. In the long run as well this would most likely boost the price since more and more people can consider Bitcoin ETF as an alternative investment. Like this, it simply shows how this is mostly something similar to promotion and stuff, nothing more and nothing else.

Bitcoin or other digital currencies have a rebellious image because they are outside of government control. But when it comes under government regulatory agency, Bitcoin will no longer have that rebellious image. And will be counted as one of the ten institutional investment sector.

Outside of government control yes, but they don't necessarily combat what the government controls. Well, I guess the government can consider it as rebellious but that's something one-sided on their part imo.

[Fundamentals Of]

It boosts of course. However cryptocurrency is a broad word and it could refer to Bitcoin which, if the government recognizes, is going to be boosted, but it could also refer to so many other shitcoins which might die if the government desires so.

Bitcoin is completely decentralized so the government's only choice is either to recognize it or leave it growing as it is. It is never an option to kill Bitcoin because all efforts would only be futile. They will all end up in vain. They have tried and they have failed every time.