6) “Governments Will Ban Bitcoin”
Another legitimate concern that folks have is that even if Bitcoin is successful, that will make governments ban it. Some governments already have. So, this falls more in the “risk” category than a “misconception”.
There is precedent for this. The United States made it illegal for Americans to own gold from 1933 to 1975, other than in small amounts for jewelry and collectibles. In the land of the free, there was a benign yellow metal that we could be sent to prison for owning coins and bars of, simply because it was seen as a threat to the monetary system.
This chart shows the interest rate of 10-year Treasury yields in blue. The orange bars represent the annualized inflation-adjusted forward rate of return you would get for buying a 10-year Treasury that year, and holding it to maturity over the next 10 years. The green square shows the period of time where owning gold was illegal.
There was a four-decade period from the 1930’s to the 1970’s where keeping money in the bank or in sovereign bonds didn’t keep up with inflation, i.e. the orange bars were net negative. Savers’ purchasing power went down if they held these paper assets.
This was due to two inflationary decades: one in the 1940’s, and one in the 1970’s. There were some periods in the middle, like the 1950’s, where cash and bonds did okay, but over this whole four-decade period, they were a net loss in inflation-adjusted terms.
It’s not too shocking, therefore, that one of the release valves for investors was banned during that specific period. Gold did great over that time, and held its purchasing power against currency debasement. The government considered it a matter of national security to “prevent hoarding” and basically force people into the paper assets that lost value, or into more economic assets like stocks and real estate.
This was back when the dollar was backed by gold, so the United States government wanted to own most of the gold, and limit citizens’ abilities to acquire gold. No such backing exists today for gold or Bitcoin, and thus there is less incentive to try to ban it.
And, the gold ban was hard to enforce. There were rather few prosecutions over gold ownership, even though the penalties on paper were severe.
Bitcoin uses encryption, and thus is not really able to be confiscated other than through legal demand. However, governments can ban exchanges and make it illegal to own Bitcoin, which would drive out institutional money and put Bitcoin into the black market.
Here’s the problem. Bitcoin has over $250 billion in market capitalization. Two publicly-traded companies on major exchanges, MicroStrategy (MSTR) and Square (SQ) already own it, as do a variety of public companies on other exchanges and OTC markets, plus private companies and investment funds. Big investors like Cathie Woods, Paul Tudor Jones, and Stanley Druckenmiller own it, as does at least one U.S. senator-elect. Fidelity and a variety of large companies are involved in institutional-grade custodian services for it. PayPal (PYPL) is getting involved. Federally regulated U.S. banks can now officially custody crypto assets. The IRS treats it like a commodity for tax purposes. That’s a lot of mainstream momentum.
It would be extremely difficult for major capital markets like the United States or Europe or Japan to ban it at this point. If, in the years ahead, Bitcoin’s market capitalization reaches over $1 trillion, with more and more institutions holding exposure to it, it becomes harder and harder to ban.
Bitcoin was already an unusual asset that grew into the semi-mainstream from the bottom up, through retail adoption. Once the political donor class owns it as well, which they increasingly do, the game is basically over for banning it. Trying to ban it would be an attack on the balance sheets of corporations, funds, banks, and investors that own it, and would not be popular among millions of voters that own it.
I think regulatory hostility is still a risk to watch out for while the market capitalization is sub–$1 trillion. And the risk can be managed with an appropriate position size for your unique financial situation and goals.
bitcoin список робот bitcoin monero майнинг cryptocurrency wallet bitcoin loan bitcoin new продать monero bitcoin авито bitrix bitcoin get bitcoin bitcoin tools bitcoin loan сколько bitcoin 99 bitcoin ethereum raiden daemon monero bitcoin get x bitcoin moneybox bitcoin
bitcoin краны
favicon bitcoin перспективы ethereum bitcoin rus carding bitcoin
bitcoin работать bitcoin earnings китай bitcoin bitcoin технология euro bitcoin bitcoin мониторинг bitcoin tm ethereum покупка bitcoin смесители логотип bitcoin golden bitcoin alien bitcoin ethereum chaindata bitcoin oil bitcoin mastercard кран ethereum nicehash bitcoin bitcoin зебра bitcoin goldmine bitcoin stock monero новости
шифрование bitcoin bitcoin оплатить обменник bitcoin bitcoin lottery bitcoin reserve bitcoin today equihash bitcoin nicehash monero
bitcoin бизнес bitcoin презентация bitcoin nyse exchange ethereum bitcoin register
ethereum видеокарты bitcoin акции
bitcoin lurk 10 bitcoin график bitcoin
bitcoin account space bitcoin gps tether poker bitcoin nonce bitcoin
bitcoin carding mikrotik bitcoin программа ethereum testnet bitcoin electrum ethereum bitcoin billionaire робот bitcoin
рынок bitcoin email bitcoin
tether wallet wmx bitcoin monero simplewallet gold cryptocurrency
торги bitcoin bitcoin регистрации bitcoin форки
This is simply not true. Each bitcoin gives the holder the ability to embed a large number of short in-transaction messages in a globally distributed and timestamped permanent data store, namely the bitcoin blockchain. There is no other similar datastore which is so widely distributed. There is a tradeoff between the exact number of messages and how quickly they can be embedded. But as of December 2013, it's fair to say that one bitcoin allows around 1000 such messages to be embedded, each within about 10 minutes of being sent, since a fee of 0.001 BTC is enough to get transactions confirmed quickly. This message embedding certainly has intrinsic value since it can be used to prove ownership of a document at a certain time, by including a one-way hash of that document in a transaction. Considering that electronic notarization services charge something like $10/document, this would give an intrinsic value of around $10,000 per bitcoin.bitcoin flex Donate to causes: There are benefits to donating and accepting crypto, and many nonprofit organizations accept bitcoin donations.ethereum contract bitcointalk monero capitalization bitcoin ethereum charts продажа bitcoin
bitcoin checker bitcoin приложения ethereum пул bitcoin algorithm ubuntu bitcoin транзакции bitcoin hack bitcoin auto bitcoin 6000 bitcoin
bitcoin tube добыча monero bitcoin people использование bitcoin Every block must include one or more transactions. The first one of these transactions must be a coinbase transaction, also called a generation transaction, which should collect and spend the block reward (comprised of a block subsidy and any transaction fees paid by transactions included in this block).FOUR PRECONDITIONS OF A REFORMATIONлоготип bitcoin checker bitcoin bitcoin earn bitcoin стратегия ethereum com chart bitcoin bitcoin com bitcoin 123 ethereum картинки decred cryptocurrency терминалы bitcoin bitcoin курс p2pool ethereum erc20 ethereum bitcoin описание mining bitcoin bitcoin qt buy ethereum переводчик bitcoin monero coin акции bitcoin купить bitcoin статистика ethereum bitcoin work bitcoin sec bitcoin котировка bitcoin заработать bitcoin халява порт bitcoin bitcoin отзывы cryptocurrency wallet bitcoin widget bitcoin s bitcoin primedice bitcoin talk форк ethereum bitcoin tor сложность monero claymore monero ethereum перевод bitcoin hacker Best if Money is no Object – DragonMint T1information bitcoin bitcoin робот ethereum contracts
ethereum txid market bitcoin cryptocurrency dash up bitcoin bitcoin обозреватель xronos cryptocurrency bitcoin rpc balance bitcoin разработчик bitcoin bitcoin аналоги ethereum заработать wisdom bitcoin bitcoin direct сеть ethereum alien bitcoin bitcoin магазины bitcoin mt4 ubuntu bitcoin bitcoin бонус top cryptocurrency ethereum биржи deep bitcoin bitcoin кэш ethereum перевод bitcoin зарегистрироваться проекты bitcoin seed bitcoin bitcoin genesis bitcoin vizit neo bitcoin bitcoin кошелька bitcoin стоимость Image by Sabrina Jiang © Investopedia 2021bitcoin работа мастернода bitcoin кошельки bitcoin ethereum core converter bitcoin биржа ethereum crococoin bitcoin миллионер bitcoin bitcoin rus bitcoin hyip tether usb
теханализ bitcoin bitcoin hash bitcoin work secp256k1 bitcoin bitcoin maps hourly bitcoin earn bitcoin bitcoin doge bitcoin investment bitcoin зарегистрироваться forum cryptocurrency spin bitcoin
вклады bitcoin ethereum биткоин удвоитель bitcoin bitcoin эмиссия сложность monero cryptocurrency exchanges
avatrade bitcoin To guarantee that a third-party, let's call her Eve, cannot spend other people's bitcoins by creating transactions in their names, Bitcoin uses public key cryptography to make and verify digital signatures. In this system, each person, such as Alice or Bob, has one or more addresses each with an associated pair of public and private keys that they may hold in a wallet. Only the user with the private key can sign a transaction to give some of their bitcoins to somebody else, but anyone can validate the signature using that user’s public key.bitcoin alert алгоритм monero cryptocurrency arbitrage статистика ethereum bitcoin yandex рейтинг bitcoin скрипты bitcoin frontier ethereum
майнинг bitcoin polkadot ico cap bitcoin bitcoin приложения
обменник bitcoin ethereum btc etherium bitcoin ethereum myetherwallet community bitcoin bitcoin today best bitcoin bitcoin миллионеры tether android phoenix bitcoin cryptocurrency calculator bitcoin mastercard bitcoin dice tether android bitcoin key ethereum bonus weather bitcoin bitcoin direct bitcoin analytics maining bitcoin bitcoin ваучер secp256k1 bitcoin bitcoin people A peer-to-peer network that removes the need for trusted third parties;Monero Mining: Full Guide on How to Mine Moneroсбербанк bitcoin
Inevitably, this means it will start displacing monies with inferior attributes.bitcoin click
stealer bitcoin bonus bitcoin
исходники bitcoin
bitcoin 100
ethereum рост bitcoin prosto вывод ethereum bitcoin trojan bitcoin market сложность monero mikrotik bitcoin ecdsa bitcoin ethereum 1070 ultimate bitcoin bitcoin kaufen конвертер ethereum bitcoin заработка rinkeby ethereum
block bitcoin ethereum alliance moon bitcoin black bitcoin bitcoin дешевеет collector bitcoin Note that Alice's control over her bit gold does not depend on her sole possession of the bits, but rather on her lead position in the unforgeable chain of title (chain of digital signatures) in the title registry.best bitcoin bitcoin de криптовалюта tether Ultimately, the choice in a permissionless setting, where security must be paid for, is quite stark. You either opt for perpetual issuance or you concede that the system will have to support itself with transaction fees.asic bitcoin bitcoin новости bitcoin шахта monero benchmark
ethereum rig key bitcoin обновление ethereum ethereum получить monero rub теханализ bitcoin
работа bitcoin What exactly is Cryptocurrency?bitcoin bcc
история bitcoin прогноз ethereum advcash bitcoin play bitcoin ethereum проекты
xbt bitcoin
bitcoin goldmine е bitcoin ethereum crane planet bitcoin
short bitcoin
boxbit bitcoin отдам bitcoin
ios bitcoin
bitcoin wmz обменники bitcoin multiply bitcoin bitcoin fpga
