The War On Bitcoin Is Starting, And Embracing Real Struggles To Happen Is Smartest Thing To Do

The world of traditional finance has long been apprehensive about what Bitcoin and other cryptocurrencies could change. While some people believe that Bitcoin will wither away, it is clear that the rest of the market disagrees. Regulators around the world are struggling to maintain some type of control over these cryptocurrencies, but one expert weighed in on what future Bitcoin could potentially have now.

  • Bitcoin is growing in popularity around the world.
  • As regulators examine Bitcoin, stronger regulations could easily become strict bans on cryptocurrency.

Bitcoin has been working to expand its reach across the globe since it was originally launched, which it seems to be doing quite well. However, by placing itself in this position, it has now reached a point when it is a political subject in nearly every part of the world. From tweets by the President about it to discussions in Congress, Bitcoin is in the public’s sights.

As the Federal Reserve urges caution against the industry, and the Treasury Secretary expresses the belief that cryptocurrencies could ultimately be a threat to national security, investors don’t seem deterred. Some countries are trying to stop the use of cryptocurrency with a ban on Bitcoin (like India), while others try to create their own cryptocurrencies (like China).

According to a theory by Eric Voskuil, there’s four phases that Bitcoin will ultimately go through with the regulators and states, which are:

  1. Honeymoon
  2. Black Market
  3. Competition
  4. Surrender

Right now, it is clear that the United States is still in the honeymoon stage, which means that the governments aren’t fully outlawing Bitcoin yet. However, they are putting regulatory pressure on any companies that are presently involved in the crypto environment. As Voskuil states, this phase “is characterized by a desire of state agencies to retail regulatory control.” A perfect example of this process taking place is with the BitLicense in New York.

New, Bitcoin should enter the Black Market phase, during which time the governments will outlaw Bitcoin transactions and the mining of Bitcoin. In many countries of the world, this stage is already taking place, due to worries that the monopoly on fiat currency is being threatened in that stage. One of the latest countries to enter this stage is India, as the regulators have already proposed a complete ban that would criminalize the digital possession, mining, and transacting of Bitcoin.

Voskuil explained that, during this phase, it is possible that other states will end up issuing their own digital currency, which “may coincide with the adoption of official new money, i.e. Fedcoin.” An article by CCN points out how close this is to a proposal in India for a “digital rupee” to be the only available form of legal tender. China, Russia, Iran, and Venezuela have all come out with their own cryptocurrencies that they are trying out as well.

The stages, according to Voskuil, can overlap, and each region of the world is at a different place. However, if the states end up working together to eradicate cryptocurrency, the situation could get worse, creating a worldwide “war on Bitcoin.” While this would be a worst-case scenario, Bitcoin users should still take note.

As far as the reality of whether this “war” could happen, Nic Carter, co-founder of CoinMetrics.io and partner of Castle Island Ventures, explained that it is likely that the United States will implement stricter regulations, rather than a full ban.

The next few years will be a very big deal for Bitcoin’s future. Governments will soon realize that Bitcoin isn’t going anywhere, which leaves them with a decision – to fight back or regulate.

To read the full theory by Voskuil, visit Github.

Presently, a single Bitcoin is worth $9,494.12, dropping by over 6% in the last 24 hours.

Bitcoin (BTC) Live Price

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Avatar
Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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