Will Cryptocurrencies And Bitcoin Mining Be Banned By Governments: Experts Say No!
A lot of debate has taken place in recent years around the regulations surrounding Cryptocurrencies. Many have pointed out that governments and financial institutions in different countries are still exploring ways of banning them.
News is rife about how countries like India have instituted a special committee to study the impact of cryptocurrencies. With Bitcoin, Ethereum, and Dogecoin rising in value, is there a possibility that cryptocurrencies can be banned?
In this resource article, we try to look at probable answers to see whether there is any truth to these speculations. If you are an investor that is looking to invest in cryptocurrencies, stick around till the end of the article.
Top Reasons why Cryptocurrencies will not be Banned by Governments
In this section, we are going to look at some of the major reasons why cryptocurrencies will not be banned by governments-
● It is very Safe and Secure-
The Blockchain on which the Bitcoin technology and records run has never been hacked. This goes to show that this is one of the strongest networks of payments currently in the world. Many proponents point out that the foundation of a good payment solution is its technology. The safety around Bitcoin is such that it makes it impossible to get into the wrong hands.
● Major Corporations are Invested in Cryptocurrencies-
Wall Street is lining by the dozen and picking up cryptocurrencies. Whether it is Tesla, PayPal, or Microsoft, many Fortune 500 Companies have already invested big sums into cryptocurrencies. Any banning will come as a serious blow to the billions that have been pumped in by these corporations. Given their strong lobbies, this is not going to happen.
● Valuable Store of Asset during the Pandemic-
Successful investors like Ray Dalio have pointed out that Bitcoin and other cryptocurrencies have emerged as an exciting store of value. As compared to traditional investments like gold and real estate, the high growth margins of Bitcoin are what have attracted investors and speculators alike. Normal people have taken to cryptocurrencies during the pandemic.
● Generation of Surplus Money and Revenues for the Government-
What governments are carefully leaving out in their press briefings is the huge amount of capital gains they are collecting from crypto investors. The IRS has already issued proper documentation and has been collecting millions in terms of taxes from the last few years. This has added to a weakening economy and has allowed governments to improve their coffers.
● Big Boost to Tech Advancement and Developments-
It is important to look at Cryptocurrencies and Bitcoin Mining as a part of a larger ecosystem. The tech behind these new finances can be adopted by different industries to make the world a much better place. Governments are aware of that and are working with Blockchain technology to ensure that its application benefits other industries and parts of the economy.
Are National Digital Currencies a Threat to Cryptocurrencies?
While there has been a lot of speculation that different countries in the world are working on their own digital currencies, no concrete steps have been taken in this direction.
It is only China that has been able to experiment and roll out its Digital Yuan. Even the United States is very far behind in the entire race. As things stand at the moment, digital currencies have a long way to go before they can be rolled out.
Governments do not have the expertise or the technology to formulate and roll out digital currencies. Hiring new personnel, setting up their technologies, etc. will take a lot of time. They are far more preoccupied with providing support in times of the pandemic.
In such a scenario, it would be safe to say that cryptocurrencies are not going to leave us anytime soon. They have already established themselves as credible investment options for millions all over the world.
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