"Governments Will Shut Bitcoin Down" - Fact or Fud


Can Governments Destroy Bitcoin?

     At this point, it’s clear that it’s not as simple as people think. Countries like China that care most about controlling their population will try to ban it, but the thing is that not every country has the same incentives. Even the U.S. has different incentives than what most people think. Bitcoin is the double edged sword that is technological innovation and sound money.

     If every country in the world had the same incentives as China, their “solution” to Bitcoin would be extremely simple. They would just all simultaneously ban it, but there’s a reason that hasn’t happened and will never happen. Bitcoin will bring innovation, but it will also bring freedom, the nations/governments that don’t want the ladder will try to ban it, but this will only increase incentives for other nations to adopt it.

     This is the psychology behind Bitcoin “game theory.” We call Bitcoin a Trojan horse, but it isn’t even a great analogy because the benefits to the government are open to the public and real, it’s just not the kind most governments want.

     The United States knows that they need Bitcoin, not only for technological dominance, but it even strengthens the Dollar relative to other fiat currencies, at least in the foreseeable future. That’s the thing that even many Bitcoiners don’t understand. Most if not all other currencies will disappear, but the Dollar will be left standing for a while.