Neophyte question (I have plenty more): Advocates speak about cryptocurrencies being free from government control, that central authorities cannot prevent or influence transactions made by participants on a cryptocurrency blockchain. This idea seems to be part of the perceived value of cryptocurrency.
In reality governments will always have control: they can shut down the internet, they control electricity grids, and so on.
Is the bet that we’ll reach a tipping point where interfering with crypto networks would be harmful or fatal to governments?
I don’t think it works like that. Let’s say US wants to ban bitcoin because they feel it is a threat to their national currency. They can ban it on paper but still can’t really stop from people using it. You might say that doesn’t matter and I agree. A ban on paper is certainly a big thing. But if they ban it, all of the businesses from their country regarding the cryptocurrencies will flee to other smaller countries that will be PRO crypto. It is in the best interest of the country to not ban it in my opinion. They would have given money to the countries that would otherwise be theirs.
Shutting down the internet because people are using a digital currency won’t happen in my opinion. They would practicality go backwards to becoming a less efficient economy, not to mention people would go mad if something like that happened. Most of them would move out, leaving the country economy get crushed as they are no longer a part of the global word. I think if they ban bitcoin on paper they will cut the power to all known miners in the country. Still the same problem persists, miners will move out to a different country where they are respected. And there will always be someone that will accept them.
Its a business at the end of the day.
Probably. They might “accept cryptocurrencies” by pushing their digital dollar if this space goes out of control. In that way they would support the “revolution” but still maintain the control of money. They have to ditch the dollar, as it is getting out of control. Hyper inflation is bound to happen if they keep operating like this. They need a way out and creating their own digital currency that “supports cryptocurrencies” might just be the one they will take.
All of this is my personal opinion, I have no idea what will happen. Everything is possible.
Even if the Government were to shut down or somehow sensor the internet, transactions and the updated ledger can still be propagated and updated by other means:
