Will government recognition kill cryptocurrency or boost!

[jasonjm]

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.

I think you concluded it wrong. Not all the circulating bitcoin will go under the custody of governments after regularity checks. Government recognition will not kill Bitcoin but strengthen the trust of investors. Hence, Bitcoin adoption will increase in the coming future. It is beneficial for crypto in the long run. It is a much-needed booster for Bitcoin to go forward.   

[KingsDen]

Re: Will government recognition kill cryptocurrency or boost!

Government recognition will not kill cryptocurrency rather it will boost the imager of cryptocurrency in the large society. Talking about Bitcoin, whether the government officially endorse bitcoin or not, it does not change the fact that some government individuals and parastatals have a very good share of Bitcoin. Bitcoin is something you can own without announcing it to the world and no one would even know that you own Bitcoin. This is why it is very difficult to give a clear analysis about the people who owns Bitcoin. With the approval of the ETF we have nothing to worry about because bitcoin is a totally decentralized coin. No one or no government will force anyone to give at their bitcoin to the institutional traders. If you choose to hold your coin forever or in your private custody no one will sentence you for that and I believe that is the lane many people will toe.

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.

I do not quite understand you here. You trying to imply that the rebellious image of Bitcoin is the reason it is prospering. That if Bitcoin cease to have a rebellious image in the eyes of the government it will no longer be successful. I don't think this is correct.

[Solosanz]

Yes, the government will try to acquiring Bitcoin as much as they can, currently centralized exchanges already acquiring huge amount of coins, remember government can easily work together with centralized exchanges, if the CEX reject that, the government can easily shut down the CEX.

When almost all Bitcoins are owned by government and CEX, they will issues fake Bitcoin e.g. Bitcoin IOU and keep the real coins in their own wallet.

[bestcoins1]

From the point of view it seems that why Bitcoin price did not increase. After the US Securities and Exchange Commission (SC) decision.In the two weeks since this ETF was allowed to form the price of Bitcoin has fallen in reverse.How would you rate this downward trend?

It has to continue as it has been in recent times.This is how Bitcoin should be moving forward.

Bitcoin's movement this month still looks quite normal, regardless of any effects received by Bitcoin through the market, because as seen today Bitcoin can still increase after a small correction in the market. Now the Bitcoin price movement range is still in the $42K to $43K area, which is likely to continue to go well until the halving moment approaches this year. And in terms of market trends this month, it doesn't look like it will be much different from the market conditions that were running in the previous month, although the effects of the ETF and halving are still quite possible to make Bitcoin better.

[Woodie]

Government recognition was supposed to help Bitcoin grow to a much popular digital currency as it brings it mainstream resulting in more demand for cryptocurrencies...but unfortunately things have gone the opposite direction which is unexplainable!! Is this reaction of price saying Bitcoin regulation isn't a supported development or maybe actual frameworks to allow these to operate are still a work in progress despite the green light,  Otherwise I still feel we haven't seen the best of these guys (institutional investors)!

Btw, "Will government recognition kill cryptocurrency or boost" killing the markets I don't think so, crypto is still decentralized before anything..I think we all expect this to be a boost to cryptocurrency, what we have experienced is a slight disruption to the market as new market drivers are introduced which should show their influence sooner or later, for now we wait to see the power of institutional money in the crypto industry.

Yes, the government will try to acquiring Bitcoin as much as they can, currently centralized exchanges already acquiring huge amount of coins, remember government can easily work together with centralized exchanges, if the CEX reject that, the government can easily shut down the CEX.

When almost all Bitcoins are owned by government and CEX, they will issues fake Bitcoin e.g. Bitcoin IOU and keep the real coins in their own wallet.

sounding like an El Salvador move of acquiring Bitcoin..

Btw, this whole acquiring of bitcoin with the approved Spot ETFs, isn't this private hands doing this unlike the government themselves???

Afaik there role here is being regulator only not acting as BUyer and Seller at the same time!

[michellee]

If the government allows and legalizes Bitcoin and crypto, it should boost Bitcoin's growing popularity. People will see that the government legalizes the use of Bitcoin and crypto so they can use them freely. This also gives people the confidence to make Bitcoin their new investment.

But if after the government allows or legalizes Bitcoin, the price goes down, it could be caused by many factors. We don't know which factors caused the price to fall. The crypto market takes time to improve and you don't need to worry.

All you need to do is keep accumulating more Bitcoins and wait for the price to rise again. You should also understand that the crypto market is always changing. So it is not surprising that the current crypto market can not improve. It will increase in the right time.

[Rabata]

Most governments around the world do not support cryptocurrencies. But still Bitcoin retains its top position in popularity. The key point here is that governments don't support decentralised systems because they don't have control over them. They must also be held accountable if they support an unregulated system. But this decentralised system of Bitcoin has given freedom to every individual.

Since it is decentralised the government will not support it in any way and I think it will not create any problem for Bitcoin. If governments are aware of decentralisation and can adopt it, Bitcoin's popularity may increase further. But their negative outlook will not affect Bitcoin in any way.

[Solosanz]

sounding like an El Salvador move of acquiring Bitcoin..

Btw, this whole acquiring of bitcoin with the approved Spot ETFs, isn't this private hands doing this unlike the government themselves???

Afaik there role here is being regulator only not acting as BUyer and Seller at the same time!

It depends, take a look with this picture, Fidelity to act as buyer and seller at the same time because they hold your coins, unlike the other institutions that let Coinbase to hold for them.


https://blockworks.co/bitcoin-etf

Most governments around the world do not support cryptocurrencies.

Only the red regions are prohibiting Bitcoin, while the rest except the grey regions are accepting Bitcoin even though not all of them are completely accepted.


https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory

[AakZaki]

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.

Some countries also oppose it and what happens?
Bitcoin continues to thrive without those who oppose it, because Bitcoin does not need opponents. Bitcoin has many communities around the world.
Even some regulations provide for full adoption of Bitcoin use. The world is moving towards increasingly sophisticated technology and requires payment alternatives and platforms that support the future. If any government continues to oppose this development, then they will feel the impact eventually.

[Renampun]

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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 investment framework the investor's attraction to it will decrease.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.

I do not support the emergence of bitcoin ETFs, it is the same as making bitcoin worthless, just imagine how many bitcoins they can create, they are not real bitcoin.
real bitcoin is bitcoin that you buy on an exchange and then put it in your personal bitcoin wallet, while bitcoin ETF does not have a flow like that, bitcoin ETF will only make the price of bitcoin stagnant and not have a definite increase cmiiw.
We often hear about supply and demand, if the supply is large then the price will be small, that is what will happen to Bitcoin, if the quantity is large (more than 21 million)

[electronicash]

...

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 investment framework the investor's attraction to it will decrease.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.

I do not support the emergence of bitcoin ETFs, it is the same as making bitcoin worthless, just imagine how many bitcoins they can create, they are not real bitcoin.
real bitcoin is bitcoin that you buy on an exchange and then put it in your personal bitcoin wallet, while bitcoin ETF does not have a flow like that, bitcoin ETF will only make the price of bitcoin stagnant and not have a definite increase cmiiw.
We often hear about supply and demand, if the supply is large then the price will be small, that is what will happen to Bitcoin, if the quantity is large (more than 21 million)

this issue was raised before but its not for us to decide about it. the government will do whatever it wants unless it doesn't serve its purpose. ETF serves and even when they are saying there is a custodial exchange, i don't think they count when the government itself does the crimes.

it will boost the cryptocurrency market, given the right time, especially after halving. things still rely on the government and its controlled media.
they could also kill crypto after all they can buy up all and the institutions they put up now owns miners.

[ShowOff]

Bitcoin is a decentralized currency and I don't see the government having any chance of controlling it, but the government is still very likely to control and regulate users. Even though bitcoin's decentralization gives users independent choices to manage their money, bitcoin is essentially subject to government regulation. I mean, if you are in a country where bitcoin is illegal to use as currency, then you should not break it even if the government does not track your transactions directly.

Bitcoin does not have the status of rebelling against government regulations and whatever image the haters have about it seems to be absurd. The error is not in bitcoin, but the error comes from irresponsible users. If you really do a survey and research, then fiat currency is the currency that is most often abused instead of bitcoin.

[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.

Some countries also oppose it and what happens?
Bitcoin continues to thrive without those who oppose it, because Bitcoin does not need opponents. Bitcoin has many communities around the world.
Even some regulations provide for full adoption of Bitcoin use. The world is moving towards increasingly sophisticated technology and requires payment alternatives and platforms that support the future. If any government continues to oppose this development, then they will feel the impact eventually.

The question raised by OP is whether cryptocurrency gets killed or boosted if the government recognizes it. This is a hypothetical question. Why should we consider a different situation that is off topic? When governments oppose Bitcoin, it must be a different scenario for the technology but we are discussing the possibility of governments recognizing it. Will it kill cryptocurrency or boost it instead? I think it will give a boost if we are talking about Bitcoin but those shitcoins will remain to be shitcoins.

[yhiaali3]

In my opinion, government recognition will kill cryptocurrency, because the government does not want to recognize Bitcoin or cryptocurrencies in their current state, but as governments want them to be.

In other words, the government wants to transform cryptocurrencies from decentralization to centralization and from out of control to full control, so we see all the regulatory laws issued by governments focusing on the issue of full submission to the KYC, AML, and anti-terrorism regulations through which the government can completely subject cryptocurrencies to its authority.

[Oasisman]

In my opinion, government recognition will kill cryptocurrency, because the government does not want to recognize Bitcoin or cryptocurrencies in their current state, but as governments want them to be.

In other words, the government wants to transform cryptocurrencies from decentralization to centralization and from out of control to full control, so we see all the regulatory laws issued by governments focusing on the issue of full submission to the KYC, AML, and anti-terrorism regulations through which the government can completely subject cryptocurrencies to its authority.

Exactly!
To be more precise, government recognition towards cryptocurrency or Bitcoin will kill it's very purpose why it was created. We all know that Satoshi created bitcoin to have a currency which is totally decentralised where people can make transactions directly from each other without the need of any 3rd party facilities.
Everyone knows government doesn't like something which is out of their control, so that only means one thing, when they are starting to recognize and accept bitcoin, they will eventually fully regulate it and they will start with the local and international crypto exchanges. Regulation defeats the very purpose of bitcoin.

[justdimin]

Most governments around the world do not support cryptocurrencies. But still Bitcoin retains its top position in popularity. The key point here is that governments don't support decentralised systems because they don't have control over them. They must also be held accountable if they support an unregulated system. But this decentralised system of Bitcoin has given freedom to every individual.

Since it is decentralised the government will not support it in any way and I think it will not create any problem for Bitcoin. If governments are aware of decentralisation and can adopt it, Bitcoin's popularity may increase further. But their negative outlook will not affect Bitcoin in any way.

I do not think that government feels that much against bitcoin, I am checking the world governments and most of the nations are fine with it. There is this talk about bitcoin in all the bitcoin communities about how "we are decentralized, we are governmentless and because of that governments hate us!!!" and then I check the laws, and governments are fine with it and legalized it in many big countries. That is why I do not think that this childish situation is as true as people think about it.

I mean we are talking about something that would be quite strong to change. I do agree however that we should not be really considering governments to change anytime soon, we are going to end up with them accepting it as much as possible.

[blckhawk]

Will definitely boost but it will kill the retail investors or even the possibility of the prices going back to cheaper prices, with a lot of government adopting crypto, there's a high chance that they're going to inject a lot of money on it to make sure that they're investment are going to worth it and they would make sure to pump it continuously for as long as they can because they want to make sure that they're not going to be affected by the volatility thus ends up with the crypto that's going to be adopted by the country to not go lower at such a drastic level.

[Dzwaafu11]

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.

yeah. We know that bitcoin is a decentralized currency, and no government will fully accept it as their local currency or their alternative currency. Sometimes I think this is the way bitcoin is supposed to work, and I don't want the government to fully accept it because of how some countries fiat money is depreciating. I believe bitcoin will also have the same problem in those regions now that they will be in control of it, and we all know that we don't want any other person to be in charge of controlling the bitcoin price.

Therefore, if the government accepts it, they will want to be the ones controlling it, which will ruin the decentralization of the currency, and investors may start paying for some tasks, which will reduce their buying power unless they invest a huge amount of money.

In other words, the government wants to transform cryptocurrencies from decentralization to centralization and from out of control to full control, so we see all the regulatory laws issued by governments focusing on the issue of full submission to the KYC, AML, and anti-terrorism regulations through which the government can completely subject cryptocurrencies to its authority.

Actually, if the government accepts bitcoin, they will want to be the ones controlling it, and that is not the main reason why bitcoin was created. So in my opinion, bitcoin will be sweeter if we continue using it this way because they will do everything and see that they will be the ones controlling the currency.

[yudi09]

-snip-

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.

Bitcoin cannot be controlled by any party, meaning that even if Bitcoin is recognized and regulated, even though that is impossible considering that Bitcoin cannot be controlled by any party, Bitcoin will still run as a system.
Bitcoin spot ETF is one of the institutional recognition that can provide an answer to observe how Bitcoin is positioned.
Bitcoin is not a rebellion but a government that has rejected the Bitcoin system since it was created.

[ShowOff]

-snip-

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.

Bitcoin cannot be controlled by any party, meaning that even if Bitcoin is recognized and regulated, even though that is impossible considering that Bitcoin cannot be controlled by any party, Bitcoin will still run as a system.

Remember what the word decentralization means, if you remember then you should know for sure that no authority can control bitcoin. I might have said that governments or centralized authorities can only control and regulate users, while they cannot control bitcoin. Governments can centralize bitcoin users, but they cannot make bitcoin centralized.

While governments don't like the idea behind decentralizing bitcoin, they also seem to realize that controlling bitcoin is a futile endeavor. Making all regulations for bitcoin users more realistic and will benefit them, the government can even earn more state revenue by taxing bitcoin users including companies, exchanges, traders and investors.

Bitcoin spot ETF is one of the institutional recognition that can provide an answer to observe how Bitcoin is positioned.
Bitcoin is not a rebellion but a government that has rejected the Bitcoin system since it was created.

Yes, it is an acknowledgment from the government and bitcoin is considered profitable for them. So with the approval of the bitcoin spot ETF, it means that bitcoin has been recognized as a viable investment asset on the global and regulated market for any class of investor.