You are viewing a single comment's thread from:
RE: Bitcoin Macroeconomics
Churdtzu, Thank you for this reply! I think the form a government crackdown would take would probably be selective prosecutions. Govmts could simply start prosecuting large numbers of people involved in alt currency for crimes such as tax evasion. This is not to say that alt currency users are breaking the law more than others, it's just that every individual and business is subject to so many rules, and it's not uncommon for govmts to selectively enforce these rules towards particular ends.
I'm glad you're receptive to what I'm saying. I agree, governments probably will do that, and in fact they already have - Charlie Shrem, Ross Ulbricht, and going back, Bernard Von Nothaus for Liberty Dollars.
This definitely slows people down in digital currency, but it's unlikely to stop them. Many entrepreneurs will move to countries where there aren't relevant laws, or where the laws aren't likely to be enforced (sometimes you just gotta pay off the right people).
The US and other developed nations - especially English-speaking nations - tend to be the ones with the strictest financial regulations. (Well, not against big banks, but against new companies.) In these countries, the government is likely to get in the way a lot, and inhibit adoption.
Again, it's similar to prosecutions with file sharing. They prosecuted 12 year old girls for downloading 10,000 mp3s, and maybe a few people got scared... People in the US particularly don't like downloading without paying. But in literally almost every other country, people do it without fear of punishment. File sharing has been inhibited because of these prosecutions, but it certainly hasn't stopped. It's the same with digital currency.
Beyond that, one of the biggest fintech players right now is Citibank. Citibank has several fintech departments, one for consumers, one for business, and so on. It's possible that Citibank's fintech departments will be a target for prosecution, but I think you'll agree it's unlikely.