The future of Bitcoin is... regulated

[legiteum]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

I realize there are "Bitcoin OG" or "hardcores" here that feel that a centrally-regulated Bitcoin goes against everything it originally stood for, but if people are given a choice between that or their investment going down by 95%, they are going to... let the government do what it wants .

These days there are probably almost nobody is using Bitcoin to avoid their government, which is what it was originally designed to do: most just think of it as an investment that will yield them a profit. And they pay taxes on their gains, and/or report their holdings to their government just like they would if they bought stocks or commodities.

It's also worth noting that regulations in democracies mostly stem from some kind of crisis or emergency. When the US financial system had major problems in 2008--and millions of people lost their retirement savings--then Congress responded with lots of new regulations. The FTX scandal prompted a lot of regulations for the digital asset world, and I suspect that work isn't yet done.

And now that there are major companies buying US elections like they did in 2024, companies like Ripple, Coinbase, Binance etc. are working every day in Washington to create new regulations that benefit them and disadvantage their competitors. These companies have a financial interest in centralized control as well--even while they go on about the "anti-government" Bitcoin religion in their advertisements.

For me, this portends more and more regulation around Bitcoin and other digital currencies--and the era where criminals can successfully use these products coming to an end. This will be very good for the price of Bitcoin in the long run--which is another reason why it will happen.

[Don Pedro Dinero]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

Did you hit your head 10 years ago and just woke up now or what? Otherwise one can't understand why you come here to pontificate about a supposed future that has already been happening for years.

[Upgrade00]

These days there are probably almost nobody is using Bitcoin to avoid their government, which is what it was originally designed to do: most just think of it as an investment that will yield them a profit.

You'll need some stats to back this up. A good number of people still use decentralized wallets to store their bitcoins, that is retaining your custody and not giving agencies control of your assets. There's a lot of coins stored in exchange, I think more that there is in self custody, but there's still a good number that have retained their custody.

As long as there is still decentralized services, the privacy hardcores will have a way to hold and trade without using centralized exchanges. This could create a distinction in Bitcoin, between those under the radar and those duly accounted for.

For me, this portends more and more regulation around Bitcoin and other digital currencies--and the era where criminals can successfully use these products coming to an end.

Regulations =/= secure or safer. Criminals use a lot of regulated services today still.

[legiteum]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

Did you hit your head 10 years ago and just woke up now or what? Otherwise one can't understand why you come here to pontificate about a supposed future that has already been happening for years.

Well, I guess I could have written... "The past and future..." .

These days there are probably almost nobody is using Bitcoin to avoid their government, which is what it was originally designed to do: most just think of it as an investment that will yield them a profit.

You'll need some stats to back this up. A good number of people still use decentralized wallets to store their bitcoins, that is retaining your custody and not giving agencies control of your assets. There's a lot of coins stored in exchange, I think more that there is in self custody, but there's still a good number that have retained their custody.

I get that many still do self-custody (although I don't think it's a lot in terms of volume and I think it's rapidly evolving away from that in any case), but to actually obtain the Bitcoin in the first place these days usually requires KYC, and I suspect it will get harder and harder (and more and more illegal) to get Bitcoin any other way, or to spend it.

I could imagine, for instance, a similar law that the US currently has around physical cash deposits, wherein if the amount is >$10k the receiver must report the transaction to the government.

Imagine that, in reaction to some bad thing that happened using Bitcoin and money laundering, Congress proposed such a law. Who would oppose it? Not the giant crypto companies that just bought the 2024 election, that's for sure. In fact, I suspect it would be those companies that would actually write the law.

As long as there is still decentralized services, the privacy hardcores will have a way to hold and trade without using centralized exchanges. This could create a distinction in Bitcoin, between those under the radar and those duly accounted for.

I get that--although I suspect most criminals* these days use something like Monero and not Bitcoin. But again, I suspect that from a volume perspective, this is a tiny portion of the total Bitcoin investment, and thus a tiny portion of Bitcoin's $2T market cap.

(* I'm using the word "criminals" here to mean anybody who has a specific need to evade their government--in some countries and situations this is not necessarily a bad thing).

Regulations =/= secure or safer. Criminals use a lot of regulated services today still.

Sure, but human beings have laws to prevent crime, and it mostly works. There are laws against murder, but there are still murders--but that doesn't mean we should just make murder legal.

For average investors, regulations are a good thing because they can just invest without worrying they will get ripped off most of the time.

Indeed, regulated markets are bigger markets for that reason.

[Aanuoluwatofunmi]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

I disagree, Bitcoin is not like other centralized digital currencies which have conformed to the dictates of the centralized institutions and government policies, that is why you see that bitcoin is the only outstanding currency in cryptocurrency because it is not under the control or influence of anyone, including the government, some will also say that the whales are making it kind of being centralized, but it remains what it is.

I realize there are "Bitcoin OG" or "hardcores" here that feel that a centrally-regulated Bitcoin goes against everything it originally stood for, but if people are given a choice between that or their investment going down by 95%, they are going to... let the government do what it wants .

We have been hearing diverse narratives about bitcoin and we just have to continue by having a strong stand with what bitcoin is all about, no one can influence a change on a decentralized network, the more some are believing they are in charge, the lesser their effect becomes with the bitcoin network, be it whales or not.

[kotajikikox]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

Why would cryptocurrencies lose their investors without approval from the government when this has always been the case ever since but look at what happened to bitcoin. It soared and became successful enough that governments are changing their minds about it and now want to be part of that success.

There is no doubt that there will be some kind of regulation from the government over the next years but that would not be enough to control bitcoin. Nothing will ever be able to which is why it’ll never be under the government’ reigns completely.

[AmoreJaz]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

Did you hit your head 10 years ago and just woke up now or what? Otherwise one can't understand why you come here to pontificate about a supposed future that has already been happening for years.

Maybe he is not well-informed what's happening around him or did not do quick search over the net. Or maybe, he has not read any social media platforms tackling this subject. Sometimes it is the ignorance why people are saying such senseless things.

Why would cryptocurrencies lose their investors without approval from the government when this has always been the case ever since but look at what happened to bitcoin. It soared and became successful enough that governments are changing their minds about it and now want to be part of that success.

There is no doubt that there will be some kind of regulation from the government over the next years but that would not be enough to control bitcoin. Nothing will ever be able to which is why it’ll never be under the government’ reigns completely.

This is the good thing about this market. There's no need of government approval in order to invest or buy your coins. If you know your way in this market, you can trade anytime that you want. Sure, regulation is coming as this market is going mainstream. Hence, complying to the government is being expected already. People will also have more confidence dealing on this market if their government has specific mandate towards this market. It means, they are already recognizing the existence of this in the financial market.

[Richbased]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

What you should know is that whatever that involves money, be it in digital or physical form it will still undergo some kind of regulations by the government because regardless of how decentralized any system could be, if anything goes wrong the government will still be called out therefore bitcoin and other digital currencies are not exempted even with their decentralized nature. But i doubt if an asset like bitcoin can lose 95% of it's investors if there were to be no regulations. Bitcoin has been operating without government intervention for long, it is just because of the popularity and growth it is gaining that got more attention from the government.

[Stalker22]

I dont know where you get that from but Bitcoin wasnt just made to avoid the government.  Sure, some folks who got in early wanted a currency outside banks and watchful eyes.  But the main thing was inventing digital money that people could send straight to each other without middlemen taking fees.  Bitcoin works differently than regular cash and makes you your own money manager and  whether you care about controlling your money or not getting taxed, Bitcoin changes how we think of cash and whos in charge of it.  Of course some people just want to dodge taxes or laws, but Bitcoin is about much more than just that.  You are right that many, if not most, current Bitcoin holders treat it as an investment. But that doesnt negate Bitcoin's fundamental properties. The fact that people pay taxes on gains does not mean the underlying tech has changed. It simply means they are operating within the existing legal framework.

[Wakate]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

I realize there are "Bitcoin OG" or "hardcores" here that feel that a centrally-regulated Bitcoin goes against everything it originally stood for, but if people are given a choice between that or their investment going down by 95%, they are going to... let the government do what it wants .



And now that there are major companies buying US elections like they did in 2024, companies like Ripple, Coinbase, Binance etc. are working every day in Washington to create new regulations that benefit them and disadvantage their competitors. These companies have a financial interest in centralized control as well--even while they go on about the "anti-government" Bitcoin religion in their advertisements.

For me, this portends more and more regulation around Bitcoin and other digital currencies--and the era where criminals can successfully use these products coming to an end. This will be very good for the price of Bitcoin in the long run--which is another reason why it will happen.

The idea that Bitcoin is going to lose 95% of investors is a false assumption and I don't think you even have idea about what the crypto space is all about. Do you mean that things are going to turn sour because of trivial regulations? No! And I don't want you to bring your points from a perspective of more regulations, less adoption. Maybe you don't know that some investors even want Bitcoin to be regulated so that the reate of crime using Bitcoin could go minimal. The adoption is already increase and we are going to be seeing some strict regulations soon which does not mean that it will lose the adoption. The ETF is already part of the adoption we are going to see and more are yet to come.

[famososMuertos]

I think you have a fight of ideas or outdated thoughts, much of what you mention has been discussed, hence it is always something relative, which can even vary in the discussion with the nationality that is commented on users, therefore, regulation is part of adoption, and it is something that will have to be accepted, for now, so "regulation" does not necessarily mean giving up space in its initial premises (bitcoin).

[Cryptohygenic]

If only you can spare me that agitating proposal that the government would enhance and evaluate the concept of decentralizations of bitcoin when it finally get to their regulations.
A government that have not been able to regulate the physical commodities and could not evaluate the values of the fiats they created, how can they periodically outline unfading concepts to the regulations that would suit the bitcoin users and how can they contribute to the achievement of investors and traders in the crypto markets whe lb they are not done with their monopoly marketing policies such as in the physical commodities?
I know the government has a strong hold on bitcoin and other cryptocurrencies in as much users are in lign of using the centralized exchanges for a p2p feature.
They could paraventurely decide to cut off their fiats from every exchange and then it would become frustrating for exchange transactions.
But if you ask me. I will tell you that I don't give a damn fuck with the threats that one day the government will impose a regulatory order which may linger to lost of values when investors began flew away. You can always count me in as a strong hold of bitcoin enthusiasts who is alternatively executing my transactions with the non custodial wallets. Thereby I can also run my p2p transactions which I believe would turn out for enthusiasts a great option and fuck off the central exchanges with the governments regulatory policies

[goldkingcoiner]

Bitcoin cannot be regulated. That's part of what decentralized means.

You really need to educate yourself on how Bitcoin works because this topic shows your lack of knowledge.

Furthermore, by your red trust status I can see you are the promoter of pump and dump scam. So your opinion should be considered worthless anyway, based on the low value of your character.

[KingsDen]

If people are given opportunity for bitcoin to be centralized and their investment to rise 95%, people who actually knows what bitcoin stands for will not choose centralization because they know that bitcoin will surely give them 95% or more even being decentralization.

These days there are probably almost nobody is using Bitcoin to avoid their government, which is what it was originally designed to do:

Bitcoin wasn't designed as a hiding haven from the government, rather as an alternative to fiat currency.

[Stepstowealth]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

Bitcoin will of course need to have a common ground with the regulators and the government for it to be accepted fully but hope that the regulations and policies set up for its peaceful coexistence with the traditional government currency does not take away the special qualities and benefits that it has over normal traditional notes. The Crypto communities on the watch as the growth of bitcoin continues and it is slowly becoming a household name. Next year looks very good for Bitcoin so we may have an idea of some of the kind of regulations and policies that it will face in the future from next year.

[Churchillvv]

Let's not pretend that we do not know what OP is talking about, sincerely his quite in the right direction and knows what exactly his saying but what he forgot is the fact that his trying to claim a very smart guy to us main while we already passed that stage of pretence.

We all know that this current state of bitcoin is already in the hands of those who bitcoin Marxist are against. Statement concerning BSR now pump the market which shows how much we have lost it to them.

OP try not to sound too smart or as if you have enemies who do not want you to say your mind here.
you're only joking with yourself when you make those moves.

[Text]

It's really hard to argue when you see the point that regulations can provide the trust and safety needed to attract mainstream investors, making Bitcoin less intimidating to the general public if we want to see its price grow further in the long term.

But for me, Bitcoin wasn't created just as another investment vehicle but as an alternative to centralized financial systems. Decentralization is at the heart of its ethos, which is why I still value its original purpose.

[legiteum]

I believe that Bitcoin and other digital currencies will face a choice: become part of the system that cooperates with law enforcement or lose 95% of it's investors.

I disagree, Bitcoin is not like other centralized digital currencies which have conformed to the dictates of the centralized institutions and government policies, [...]

Governments can and do regulate the sale and ownership of Bitcoin today. The network itself is privately controlled, but everything you do with Bitcoin certainly is.

And it (say) the US made Bitcoin illegal to own, then yes, Bitcoin wouldn't "die", but it would lose 95% of its market value, so I think a lot of people would put up with a lot of inconvenience in order for that not to happen.

Why would cryptocurrencies lose their investors without approval from the government when this has always been the case ever since but look at what happened to bitcoin.

Bitcoin has always been perfectly legal to own in most countries in the world including the USA.

If Bitcoin were made illegal (for instance) then millions of today's Bitcoin investors would invest in something else.

Furthermore, by your red trust status I can see you are the promoter of pump and dump scam. So your opinion should be considered worthless anyway, based on the low value of your character.

LOL, like your friend who put that -1 on my account (because they disagreed with me in a politics discussion), you can't even articulate what you even mean by "promoter of pump and dump scam".

That said, is this topic really so emotional to you that you need to start using slander? I think regulation is a perfectly valid topic to discuss here...

It's really hard to argue when you see the point that regulations can provide the trust and safety needed to attract mainstream investors, making Bitcoin less intimidating to the general public if we want to see its price grow further in the long term.

But for me, Bitcoin wasn't created just as another investment vehicle but as an alternative to centralized financial systems. Decentralization is at the heart of its ethos, which is why I still value its original purpose.

I agree, but if only people like you invested in Bitcoin the market cap would still be in the millions, not the trillions .

[Zaguru12]

It's really hard to argue when you see the point that regulations can provide the trust and safety needed to attract mainstream investors, making Bitcoin less intimidating to the general public if we want to see its price grow further in the long term.

But for me, Bitcoin wasn't created just as another investment vehicle but as an alternative to centralized financial systems. Decentralization is at the heart of its ethos, which is why I still value its original purpose.

I still don’t believe that the regulations of bitcoin is what will bring about trust and safety it is a just an ideology by people who think decentralization wouldn’t work and by those (government) who think bitcoin regulation would give them a little control over it, we all say it been regulated will bring it trust but the real bitcoin holders today trusted it without regulations because they believe trust in it is won already by each individual (node runners) controlling it and not a centralized network doing that.

People say bitcoin can be more safe when regulated and I ask how safe is the fiat currency which is already under regulation and been controlled already, is it not same currency which is been looted by politicians or criminals without traces? This are just another reason by the government to make people believe in their schemes to regulate it, bitcoin doesn’t needs main stream investors through regulations it decentralized usage will definitely attract its users as it has done In the last 15 plus years

[Ambatman]

Governments can and do regulate the sale and ownership of Bitcoin today. The network itself is privately controlled, but everything you do with Bitcoin certainly is.

And it (say) the US made Bitcoin illegal to own, then yes, Bitcoin wouldn't "die", but it would lose 95% of its market value, so I think a lot of people would put up with a lot of inconvenience in order for that not to happen.

Even if it falls by 95%, how long can you think that's going to last.
The system is flawed already and wouldn't survive in years to come
And when it does, those that left the Boat would realise the reason and essence of Bitcoin.
Yeah some regulatory frameworks Would be created as well as policy
But nothing that would explicitly affect it's decentralization.