Tucker Carlson had a story last night about Bitcoin.
The guest was in the Bitcoin business, the discussion was about how Bitcoin would benefit from the situation in Ukraine.
One of the questions Tucker asked was if the Federal Reserve created their own digital currency, what would happen to Bitcoin.
The guest stated that Bitcoin was entrenched now that it would be very hard if not impossible to eliminate it.
Tucker said, at one time gold was entrenched as a currency and it was outlawed from private ownership at one time.
Bottomline, Bitcoin can be outlawed if/when the Federal Reserve deems it a threat to it’s standing.
Bitcoin was designed to be virtually impossible to outlaw (or at least to enforce a ban) because as long as you have access the internet and one country in the world allows it to be mined you can access it, might have to end up using a proxy server or something to do it and avoid government detection, but they would have a very hard time shutting it down completely.
However, I could see them banning companies from accepting it, which would be almost as good as a ban (a currency is pretty worthless if nobody will accept it for goods or services). There would probably be work arounds even for that, such as some offshore third party service that converts bitcoin to dollars when a transaction is processed. But that would add extra layers and costs to every transaction. And at some point it would be so difficult and cumbersome to use, that most people wouldn't bother.
“Bottomline, Bitcoin can be outlawed if/when the Federal Reserve deems it a threat to it’s standing.”
Anyone who has watched Shark Tank for any length of time knows Kevin OLeary’s response to say a custom potato chip entrepreneur that’s trying to blow smoke up his butt how they will capture a good pecentage of market share in that space.
“You guys are tiny, like ants and that is why the big plsyers ignore you. But if you ever got big enough to give them any competition, they would crush you like cockroaches!”
And so it will be with any hobbyist crypto and the world’s central banks.
Ditigal currency can take the form of crypto but this is just government responding to a “Universal Store of Value” beyond Government’s control.
First, Crypto currency is based on blockchain in the crypto world. Government can mimic the model but will the Regional Federal Reserve banks each issued their own blockchain similar to Bitcoin with a limited 28M... or will the Government trick people into accepting a digital currency with none of the underlying technology of Crypto currencies in order to move citizens away from these new stores of value, speculation or innovattion.
Government will stall the crypto industry on the work/innovation side; it will also dry up the investment and kill many other coins.
The beauty of crypto startups today is that nothing is in stone. What dymanics (beyond greed) that each one has in common is different platforms or different solutions to the same problems across different types of blockchains and business models.
Crypto offers people a non-governmental store of value widely accepted across borders without Government-Setting-Valuations. Banking is Government. Stocks are Government. Government controls stocks and banking, and Government regulation will eventually destroy crypto. But that day is a long way off. Were crypto outlawed worldwide today, we will be reading about politicans from today being charged with illegal financial transactions 50 years from now, simply because it can be hidden from the public.
Bitcoin will be between 120-160K in 2022. Etherum will be 7-10K in 2022. Once it hits the first level of 120 or 7 I will sell 25%.