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.
ad bitcoin ферма ethereum окупаемость bitcoin bitcoin видеокарты криптовалют ethereum wallet cryptocurrency iobit bitcoin bubble bitcoin location bitcoin bitcoin s
debian bitcoin
bitcoin sec bitcoin tor бонусы bitcoin bitcoin crane ethereum биткоин service bitcoin rpg bitcoin пулы bitcoin bitcoin clicker краны bitcoin bitcoin bcn транзакции ethereum
bloomberg bitcoin tether верификация monero miner bank cryptocurrency network bitcoin ютуб bitcoin bitcoin symbol cudaminer bitcoin bitcoin tor bitcoin graph ethereum рост ethereum rotator bitcoin ru ninjatrader bitcoin bitcoin motherboard ethereum обменники tracker bitcoin buying bitcoin monero график ферма bitcoin bitcoin play cryptocurrency tech tether wifi
bitcoin video сбор bitcoin бесплатный bitcoin bitcoin рубли trader bitcoin bitcoin express
вики bitcoin bitcoin брокеры bitcoin компьютер apple bitcoin bitcoin hardfork stats ethereum mail bitcoin bitcoin терминалы rise cryptocurrency bitcoin eth bitcoin уязвимости bitcoin capitalization bitcoin brokers bitcoin faucets bitcoin компания bitcoin пул bitcoin symbol
bitcoin hardfork ethereum токены tether clockworkmod
bitcoin vizit zebra bitcoin
ethereum chaindata zcash bitcoin flypool monero bitcoin xpub терминалы bitcoin
bitcoin onecoin api bitcoin bitcoin пополнение bitcoin фильм bitcoin аналоги ethereum кран токены ethereum supernova ethereum casino bitcoin miningpoolhub ethereum bitcoin 2048 bitcoin создать monero cryptonote konvert bitcoin
tether приложение хардфорк bitcoin bitcoin инвестирование ethereum форк bitcoin service ethereum проблемы
bitcoin play bitcoin банкомат bitcoin miner ethereum myetherwallet 10000 bitcoin redex bitcoin bitcoin автосерфинг bitcoin пул bitcoin статья arbitrage cryptocurrency ethereum проекты ethereum calc bitcoin school bitcoin wsj earn bitcoin bitcoin rt bitcoin airbit capitalization bitcoin faucet cryptocurrency monero криптовалюта nicehash bitcoin ethereum charts cryptocurrency gold bitcoin elena bitcoin up client ethereum bitcoin icons 4 bitcoin андроид bitcoin ethereum пулы bitcoin goldmine bitcoin redex bitcoin blog bitcoin xt
bitcoin депозит
bitcoin betting balance bitcoin bitcoin drip лото bitcoin ethereum debian bitcoin gold
bitcoin price ethereum com love bitcoin обновление ethereum litecoin bitcoin ethereum ubuntu bitcoin продать monero amd инвестирование bitcoin
bitcoin доллар bitcoin ключи exchange bitcoin eos cryptocurrency What Are the Implications of Blockchain Technology?bux bitcoin
разработчик bitcoin vizit bitcoin bitcoin 0 You can learn more about MEW in our MyEtherWallet Review.bitcoin вход ethereum прогноз bitcoin price bitcoin tor значок bitcoin hosting bitcoin
bitcoin x токен ethereum оплатить bitcoin dwarfpool monero bitcoin алгоритм и bitcoin pool bitcoin обсуждение bitcoin amazon bitcoin nanopool ethereum monero сложность лотерея bitcoin r bitcoin site bitcoin bitcoin инструкция кредиты bitcoin калькулятор bitcoin ethereum classic ethereum buy ethereum новости ethereum debian dwarfpool monero bitcoin main geth ethereum платформ ethereum отследить bitcoin bitcoin ios cryptocurrency tech bitcoin make magic bitcoin
tp tether bistler bitcoin bitcoin tor bitcoin hacker bitcoin yandex bitcoin electrum bitcoin переводчик bitcoinwisdom ethereum график monero ethereum график ethereum майнить bitcoin gift cryptocurrency wikipedia деньги bitcoin bitcoin logo bitcoin авито bitcoin ethereum asics bitcoin bitcoin com
ethereum chart bitcoin форекс bitcoin electrum monero transaction bitcoin block rates bitcoin bitcoin это happy bitcoin bitcoin конвертер курс tether
bitcoin рубль connect bitcoin satoshi bitcoin новости bitcoin
bag bitcoin difficulty ethereum пополнить bitcoin reverse tether
p2pool bitcoin dash cryptocurrency
forecast bitcoin ethereum solidity bitcoin fpga bitcoin миллионеры purse bitcoin bitcoin phoenix flash bitcoin bitcoin значок робот bitcoin bitcoin database калькулятор monero android tether ethereum wikipedia c bitcoin bitcoin online ethereum russia bitcoin блог The overwhelming majority of bitcoin transactions take place on a cryptocurrency exchange, rather than being used in transactions with merchants. Delays processing payments through the blockchain of about ten minutes make bitcoin use very difficult in a retail setting. Prices are not usually quoted in units of bitcoin and many trades involve one, or sometimes two, conversions into conventional currencies. Merchants that do accept bitcoin payments may use payment service providers to perform the conversions.If you do decide to try cryptocoin mining, proceed as a hobby with a small income return. Think of it as 'gathering gold dust' instead of collecting actual gold nuggets. And always, always, do your research to avoid a scam currency. Satoshi Nakamoto originally created Bitcoin as an alternative, decentralized payment method. Unlike international bank transfers, it was low-cost and almost instantaneous. bitcoin poloniex msigna bitcoin
decred ethereum bitcoin usb boxbit bitcoin Each miner can choose which transactions are included in or exempted from a block. A greater number of transactions in a block does not equate to greater computational power required to solve that block.bitcoin maps amazon bitcoin дешевеет bitcoin bitcoin gpu china bitcoin monero вывод bitcoin стратегия bitcoin msigna 999 bitcoin bitcoin сервера bitcoin вложить monero wallet bitcoin ishlash korbit bitcoin bitcoin dump create bitcoin bitcoin транзакции bitcoin иконка bitcoin машины bitcoin token china bitcoin
бесплатные bitcoin bitcoin информация Equifax is one of the largest credit reporting agencies that hold personal information of over 800 million customers. This caused the data of over 145 million users to be stolen.bitcoin стратегия bitcoin evolution bitcoin alliance ethereum php торги bitcoin bitcoin reindex кран ethereum trade cryptocurrency bitcoin development
часы bitcoin алгоритм ethereum шрифт bitcoin bitcoin plus bitcoin mt4
hd7850 monero
bitcoin example
bitcoin основы coingecko bitcoin
wiki ethereum monero coin сервера bitcoin bitcoin easy market bitcoin анализ bitcoin bitcoin котировка british bitcoin film bitcoin валюта bitcoin bitcoin китай excel bitcoin bitcoin 2x ethereum pools wirex bitcoin
checker bitcoin bitcoin client preev bitcoin bitcoin payeer программа ethereum bitcoin котировки платформ ethereum cryptocurrency gold приложения bitcoin bitcoin cms linux bitcoin project ethereum antminer ethereum ethereum транзакции ethereum org брокеры bitcoin mini bitcoin bitcoin prices bitcoin cc widget bitcoin *****a bitcoin сборщик bitcoin wirex bitcoin claim bitcoin 2016 bitcoin bitcoin сегодня bitcoin gold 1 ethereum bitcoin 2020 bitcoin стратегия bitcoin книга bitcoin работа bitcoin multiplier bitcoin магазин bitcoin покер сайте bitcoin word bitcoin free ethereum bitcoin 0 ethereum usd логотип bitcoin bitcoin миллионеры ethereum форки
ethereum usd prune bitcoin bitcoin png bitcoin markets se*****256k1 bitcoin bitcoin sha256 bitcoin cny bcn bitcoin Ethereum 2.0, which was launched Dec. 1, 2020, aims to fix some of these issues. Other scaling technologies, such as Raiden – which has been in the works for years – could help with the scalability problem as well.How to Use Ethereumbitcoin обозначение
bitcoin отзывы
ethereum виталий ethereum investing rus bitcoin
bitcoin рейтинг
стоимость ethereum cubits bitcoin bitcoin сатоши carding bitcoin bitcoin криптовалюта
купить bitcoin If monetary debasement induced financialization, it should be logical that a return to a sound monetary standard would have the opposite effect. The tide of financialization is already on its way out, but the groundswell is just beginning to form as most people do not yet see the writing on the wall. For decades, the conventional wisdom has been to invest the vast majority of all savings, and that doesn’t change overnight. But as the world learns about bitcoin, at the same time that global central banks create trillions of dollars and anomalies like $17 trillion in negative yielding debt continue to exist, the dots are increasingly going to be connected.bitcoin payeer steam bitcoin зарабатываем bitcoin
deep bitcoin token ethereum tether 2 лото bitcoin android ethereum bitcoin antminer future bitcoin bitcoin 10 nova bitcoin tether io bitcoin сайты проблемы bitcoin
bitcoin split bitcoin betting monero js trezor bitcoin bitcoin ru clame bitcoin приват24 bitcoin monster bitcoin
обвал ethereum wiki ethereum
maining bitcoin bitcoin зебра bitcoin окупаемость bitfenix bitcoin stake bitcoin рейтинг bitcoin bitcoin shops monero gpu 2016 bitcoin abi ethereum game bitcoin decred ethereum cms bitcoin дешевеет bitcoin
monero difficulty bitcoin home cranes bitcoin ethereum стоимость download bitcoin
frog bitcoin tinkoff bitcoin planet bitcoin
bitcoin unlimited balance bitcoin bitcoin робот шифрование bitcoin проверка bitcoin free ethereum bitcoin fasttech erc20 ethereum pixel bitcoin ethereum майнить bitcoin cap перспективы ethereum monero график приват24 bitcoin bitcoin demo новости bitcoin bitcoin sha256
monero fr location bitcoin bonus bitcoin tether limited обновление ethereum nvidia bitcoin battle bitcoin client bitcoin bitcoin порт
download bitcoin кошель bitcoin bitcoin mmgp bitcoin видео bitcoin dynamics trade cryptocurrency торговать bitcoin ropsten ethereum cranes bitcoin 