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Why Do Governments Fight Crypto?

02/02/2022
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And so pours Bitcoin, the fight with crypto is on. Will the regulatory bodies manage to ban digital currencies? And do they even need to be banned at all? Read a thorough review in a new crypto news article.

With crypto or on it? Will crypto industry stand the authorities' pressure?

With crypto or on it? Will crypto industry stand the authorities' pressure?

Despite the world being tired of USD as the world's main cryptocurrency and many people have big hopes for all of us to switch from fiat currencies to crypto, no one can say when it is going to happen and if it is going to happen at all. The problem is that most countries' governments want to regulate the crypto industry, the worst-case scenario is that they are strictly against crypto and are trying to ban it from circulation.

Even though the very existance of the cryptocurrency in the world's community regarding its legitimate status looks like the famous Schroedinger cat. It kinda exists and doesn't exist at the same time. Only in very few countries it is officially permitted to use crypto to pay for goods and services (Germany, Switzerland, Japan, Salvador, etc.), in other countries crypto is totally banned (China), and most of the countries are still indecisive about how to view crypto; and since there is no definition of crypto, there is no legislation concerning crypto.

However, crypto is practically everywhere. Everywhere with an Internet connection, the flow of transactions grow, and they are made in Bitcoins, Ethereums, and other currencies. Cryptocurrencies are very often used even in China, where the authorities are extremely strict about the very existence of cryptocurrencies for a very long time - back in 2013, the Middle Kingdom made a law about banning banks and other financial institutions from making any operations with Bitcoin until they fully banned any use of cryptocurrencies in 2021.

In fact, the very idea of a total ban and strict monitoring of crypto is pretty absurd. Any control over crypto is impossible due to its decentralisation. It is impossible to control, so the only way out is to totally ban it. This is probably what thought the authorities in China and some other countries where they are trying to stop their people from using crypto.

На крипте или с криптой? Выживет ли криптомир под давлением властей?

Among the arguments against crypto is that the unregulated crypto currents fuel terrorists and also are used to buy and sell drugs. This was an excuse that the main bank of Russia used to vote against crypto as well. But is it even possible?

  • Crypto is not tied down to any territory and has no nationality. So, wherever the payment is made, it is impossible to say which country hosted it. Any crypto is issued and transmitted in a space that knows no borders from the maps. And since it is impossible to say where the crypto was used for payment, it is impossible to regulate it as well. Let alone regulation, it is not that easy to describe that process either.
  • The next collision that the authorities are certain to face once they try to ban crypto is storing it. How to ban using Bitcoin or any other currency and define the minimum amount of forbidden substances allowed for storing if the number of its species is nearly endless and is always growing?
  • How does one prove that some amount of crypto belongs to a certain person? Gaining access to the wallet and saying if there is anything is only possible if the owner agrees to that. But who would agree, if crypto is banned?
  • How are the authorities going to seize the forbidden thing? Since it would be required to send the crypto to some other compatible wallet to take it from the perpetrator, and we remind you, crypto is totally banned. But let's say, the law will make an excuse for the authorities and will let certain institutions have a crypto wallet. But where are they going to send the forbidden currency if its turnover is totally banned? How are they going to make use of the confiscated for the sake of the government to pay off at least some of the expenses of the crypto fight?
  • Another important aspect that crypto ban fans forget about is that not only the crypto community will suffer, so will the energy providers. Miners have a very big impact on this industry. Mining requires great amounts of electricity, and for years, miners pay for it, therefore stimulating the growth and modernisation of energy companies. The plans of this process are made for years in advance, as the energy prices growth to pay for it, and if suddenly mining is completely banned, other users will have to pay for it.
На крипте или с криптой? Выживет ли криптомир под давлением властей?

Yes, cryptocurrencies are a tool. As any tool, they can be used for the good and for the bad. Cryptocurrencies may very well be used for fuelling terrorist organisations, the only problem is that crypto has been around for only 12 years, while terrorism is a much older thing, and so are drugs. So is it sensible to ban something that in fact can't be banned?

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