Is it possible to suppress or regulate the use of Bitcoins under the influence of a Government? What is the future of Bitcoins, and would the government be able to come up with apt measures to control it? There may be many questions popping in your mind. After all, Bitcoins almost seem like an illegal digital currency for people to mine money out of nothingness. As long as you have a robust system, you may be able to earn decent bugs. But the recent market of cryptocurrency has been tough, and newer platforms are joining each day to dominate the industry. Several governments are also trying to put a leash on it, while others seek to control it. So what is the future?
First of all, let’s make it clear that Bitcoins or any cryptocurrency primarily uses a Blockchain methodology. It is an integration that makes its security so adamant that it would require very powerful systems to manipulate or hack the data of Bitcoins. The blockchain method is also decentralized. It means that it does not fall under any Bank or Government control and only increases according to the online platform. So any process like determining bitcoin price, or mining them does not fall under the dominion of any singular body. But it is based on several factors. But that is the issue we are trying to solve. So, how can it be made possible?
- From one of our renowned economists
According to Alex Kruger, one of the very renowned and wise scientists, while technocrats might invest a lot to control 51% of the network, governments can easily suppress the price of the bitcoin by lowering the price bar to below $1000, but only for their country. It is evident by the Chinese Government not supporting the bitcoin strategy and employing these methods.
Here is what he said.
It is a clever strategy. Because, if a government can suppress the price of a dominant crypto-currency, people will eventually lose interest in investing. Hence, slowly and steadily, it is likely to meet its end.
- Retail Investors
The entry of big players is always encouraging. If the government could offer powerful systems and enter itself into the world of cryptocurrency to mine them and change the game by dominating the market, it can be in their favor. However, the foundation is still formed by Retail Investors. There are approximately 804 crypto-currency funds, which stems 18.16 billion funds for market capitalization. It is going to be a resource-exhaustive task.
- Bitcoin and Google Searches
Many enthusiasts are fully aware of the fact that the price of bitcoin is correlated with Google searches with terms related to assets. The bone of contention here is the level and tenacity of the correlation between the two variables. A study revealed that a whopping 80.8 percent correlates bitcoin price to google related searches.
This correlation displays that retailers are highly susceptible to price fluctuations. The suppression of the bitcoin interest for the crypto-currency would eventually drop. A drop in interest would probably result in lower prices, making it easier for the government to keep the downward spiral ongoing, anderen Usern.
In conclusion, although it is difficult to eradicate the usage of bitcoin from society if the government plays its role in lowering the prices gradually, then subsequently, it shall lose its momentum, and with time people would forget or stop investing.
However, so it seems that the government is not interested in lowering the bar but only in regulating the bitcoin since it democratizes and reduces the role of the middlemen.