Why do countries forbid cryptocurrencies
Is a Bitcoin ban realistic?
No supervision, no regulation, no central bank, but still an unprecedented mass influx: Bitcoin, as a digital crypto currency, is attracting more and more adventurers.
The digital currency was worth US $ 10 in 2012 and recently skyrocketed to over US $ 15,000. Since then, not only has star investor Warren Buffet been warning of a crash, and Nobel Prize winner Stieglitz has campaigned for a ban on trade.
Bitcoin hardly threatens the real economy
Is there a threat of a Bitcoin ban after the party? The US wants to curb the massive speculation, China and South Korea are already preparing a ban on Bitcoins and the ECB is also considering such a measure. The Bundesbank, in turn, sees high hurdles for this.
What would happen if the freely growing currency, which is based purely on gigantic computing power, crashed? According to insiders, any control mechanisms would fail in this case because no one could escape the system due to the completely overloaded network. In principle, this means that the total loss is programmed. The problem would primarily be limited to network participants and speculators.
A Bitcoin ban is more obvious if there is a threat to the real economy. But initially there are hardly any ties with it. However, there will soon be a direct reference to the real currency elsewhere: Losses that arise with the newly approved Bitcoin futures and possible other derivatives in dollars can hit the financial sector in the billions.
The threat potential depends on the extent of a hype with corresponding derivatives. In this respect, the decision of the US Securities and Exchange Commission was quite courageous. But Bitcoin is slowly becoming less attractive. These days Visa blocked prepaid cards that can be loaded with Bitcoin and other cryptocurrencies. Reason: Many credit cards could be issued in someone else's name and were therefore suitable for converting money obtained through criminals into cash.
Bitcoin ban via detours
Apart from the loss of image and measures taken by private providers, the question arises as to how a Bitcoin ban on the part of the authorities could even be enforced. The generation and gold mining in the network by encrypting blocks, which are then attached to the chain (block chain) that has already been formed, is anonymous and can hardly be prevented.
There is no stopping anyone who gets hold of Bitcoins in the network. The situation is different with the trading platforms, where Bitcoins are offered to everyone. Restrictions and new regulations would put pressure on the course and drain the system from the outside. The same applies to other blockchain currencies that are based on the same principle.
And that is exactly what can be assumed. Bitcoin is too anarchic and uncontrolled for most states. China in particular, where it is extremely popular, will take massive action against crypto currencies. But restrictions can also be expected in Europe. Even cash is increasingly coming under fire.
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