Why governments will not ban bitcoin

[jonald_fyookball]

Was just reading this article
http://www.coindesk.com/fear-russian-ban-bitcoin-moscow-conference-cancellation/

And it says "Russia did not legally ban bitcoin".

It seems few governments are willing to outright ban bitcoin.  Are they afraid that if they do, people will see how terrified they really are of bitcoin?  Do they not want to show their hand in this grand poker game?  Are they sensing that if they were to ban it, it would give it 10 times as much attention?  And have the masses clamorimg for it?  Are they wishing instead it would quietly go away, trying to brush it under the rug while engaging in misinformation and burdensome regulation?

[hello_good_sir]

I think that the answer is something simpler, at least for the US: regulators like having things to regulate.  It makes them feel important and it means that they get to hire more regulators, and promote the current regulators.  If something is banned the increased budget and prestige don't go to the regulatory agency; they go to an enforcement agency.  No regulator wants that.

[serenitys]

I think that the answer is something simpler, at least for the US: regulators like having things to regulate.  It makes them feel important and it means that they get to hire more regulators, and promote the current regulators.  If something is banned the increased budget and prestige don't go to the regulatory agency; they go to an enforcement agency.  No regulator wants that.

LOL

Sad...and pathetically true.

[Cryddit]

When you ban something people desire, you create a black market which is corrosive to respect for the law, as well as create the expense of prisons, judicial, etc.  Such treatment should be reserved for things that truly cause greater problems than the ban. 

When you regulate something, otoh, it can become a revenue source. 

Short answer; they're not banning it because they're too busy setting up to get a piece of it.

[jdun]

Definitely. They want to make money. And if bankers with a lot of money pay government officials to ban bitcoin, then they will pocket the cash with a smile and say byebye bitcoin. The real question is: How eager are the bankers to get rid of bitcoin, and how much are they willing to pay to see it buried? My guess is that they definitely want to kill it, but know that if bitcoin dies, then another coin will just take its place.

[jabo38]

It is better if a few small nasty governments ban it just to show that it is worth taking seriously.  Even if some of the bigger somewhat totalitarian regimes like China, Russia, Iran banned it, but the free world supported it, money would still flow in from those countries.  Maybe even more money would come in.  Sometimes illegal goods are just made more valuable like alcohol and prohibition. 

[Bit_Happy]

Last I checked, Iceland was the only place BTC is "banned"/illegal.

[twiifm]

I don't think govt wants to detroy crypto currencies.   But its their job to regulate these things.   One thing for sure,  it makes no sense to have more than 1 legal tender.   I doubt any crypto w be able to compete w USD or any sovereign fiat in this respect.

What is reasonable and probable is that banks will use the crypto concept to transfer money without a Clearing House.   Something like Ripple exceeds BTC in this function.

BTC will still exist for a niche.   But so will exist a bunch of alts each fulfilling some other niche.  Consumers will continue use sovereign fiats like USD.   But it'll be the institutions like big banks that build these services on top of a crypto network.  The bitcoin tech dream of digital cash will happen but most likely not using BTC.

The bitcoin Libertarian/ Anarchist dream aint gonna happen simply because people don't choose 'revolution' until life or death urgency.   Most want stability and progress/ evolution.   Central banks will continue to engage in monetary policies but probably another Bretton Woods type system will come along to address the instabilties of current system.  

[sosulon]

Banning it and recognize it is 2 different thing.

Some might not ban it but doesn't mean they recognize / accept it

[Bit_Happy]

I don't think govt wants to detroy crypto currencies.   But its their job to regulate these things.   One thing for sure,  it makes no sense to have more than 1 legal tender.   I doubt any crypto w be able to compete w USD or any sovereign fiat in this respect.

What is reasonable and probable is that banks will use the crypto concept to transfer money without a Clearing House.   Something like Ripple exceeds BTC in this function.

BTC will still exist for a niche.   But so will exist a bunch of alts each fulfilling some other niche.  Consumers will continue use sovereign fiats like USD.   But it'll be the institutions like big banks that build these services on top of a crypto network.  The bitcoin tech dream of digital cash will happen but most likely not using BTC.

The bitcoin Libertarian/ Anarchist dream aint gonna happen simply because people don't choose 'revolution' until life or death urgency.   Most want stability and progress/ evolution.   Central banks will continue to engage in monetary policies but probably another Bretton Woods type system will come along to address the instabilties of current system.  

I hope a major economic collapse can be avoided. Chances are getting high that a Global crash is coming.
Maybe the Libertarian dream can help in a major crisis?

[BitcoinTees]

Maybe Russia are leaving the door open just in-case things take a turn for the worst. With all the sanctions currently on Russia and recent memory of devaluation of the Russian Ruble in the 80's has made them more savy. China is no longer buying US treasuries and starting to dump their US bonds. The Chinese government encourages the public to buy and invest in gold. You would think that Russia and China would tag team over Bitcoin.

Maybe they know something we don't?....

Lets not forget that the FBI now has the biggest Bitcoin wallet.

I'm sure they would rather have their citizens purchase Bitcoin rather than US dollars right?

Russia and China have close ties and i'm sure if things continue to escalate in Ukraine. Russia will divert its oil and gas from Europe and send it to China instead. If only they did international trade in Bitcoin...

[mobile4ever]

Last I checked, Iceland was the only place BTC is "banned"/illegal.

Do you think that is because of Auroracoin?

[BitcoinTees]

Last I checked, Iceland was the only place BTC is "banned"/illegal.

Do you think that is because of Auroracoin?

Interesting, I did not know that. Thanks for sharing 

I really hope Auroracoin catches on in Iceland to serve as a successful working model to inspire other countries.

[waldox]

bitcoin is earth coin
as
auroracoin is to iceland coin

looking at the network effect, where each additional node increases the value of the whole network exponentially
which would you buy?

my bet is on bitcoin

[BitcoinTees]

bitcoin is earth coin

Well said sir.

[bitcoincal]

What's the Icelandic government thinking with making auroracoin?

[franky1]

What's the Icelandic government thinking with making auroracoin?

icelandic government dont endorse, know or care about aurora. much like indians dont know, care or indorse mazacoin.

but hullcoin looks interesting.. still not yet endorsed by the towns council, but looks more promising in comparison to the other 2 as the town council have more local powers to enable it in th town, and have atleast had some presentations and talks about the possibilities. unlike the other 2

[serenitys]

If governments were smart, they would adopt it in a hurry.

Watching the various videos on YT, there are some who are convinced bitcoin was created by the NSA to make us all use one world currency in a one world government - and apparently the end result of this is all the sweet technology like 3D printers, internet contacts, virtual reality glasses that actually do VR finally, stem cell applications, BMI and AI, etc. is to enslave us all for some such reason we can't stop.

The other camp still sees the government as a single beastly entity who'se driven us in debt on purpose so it CAN install a one world currency.

Given the stupidity, greed and short sightedness of governments who've destroyed or otherwise destabilized the world's economy, the best thing they could do at this point is invest heavily in the alternative currency as a back up...but they won't do that if they can't meddle in it and rip people off.

I think the smart ones who grasp the potential disruption of bitcoin would officially dismiss it while secretly investing the hell out of it.

[Beliathon]

Governments are now obsolete, the world just hasn't figured it out yet.



I am a citizen of the world. To me all towns are one, all people my kin.

"The world is my country, all mankind are my brethren and to do good is my religion"
-Thomas Paine

"Nationalism is an infantile disease. It is the measles of mankind."
-Albert Einstein

http://en.wikipedia.org/wiki/World_citizen

[The Bitcoin Institute]

It seems few governments are willing to outright ban bitcoin.  Are they afraid that if they do, people will see how terrified they really are of bitcoin?  Do they not want to show their hand in this grand poker game?  Are they sensing that if they were to ban it, it would give it 10 times as much attention?  And have the masses clamorimg for it?  Are they wishing instead it would quietly go away, trying to brush it under the rug while engaging in misinformation and burdensome regulation?

It's because the decision-makers are investing in Bitcoin themseves

Seriously though, there are no high profile government persons that dared to promote Bitcoin. I think they just want to appear responsible or just know too little to have an opinion.