Do you think that the government can influence cryptocurrency?

Lens1000

Valued Contributor
The recent influx of some countries into the virtual currency ecosystem is gaining numbers by the day. First was Elsalvado, Tanzania is planning to adopted it too, Tunisa, South Africa, Nigeria are planning to follow suit. We need to wonder on some certain things due to this influx. My worries is that , the government will definitely influence the cryptocurrency, which will give rise to another pandemonium as it was witnessed when Elon Musk tweets.

The possible ways the government can influence the virtual currency are

  • bearish regulation
  • monetary policy like the interest rate set by the Federal Reserve (in the US) affects price of bitcoin
  • crypto / bitcoin can be banned like we have seen so many times over the years in China

The good thing is that, bitcoin can't be stopped by any regulations or banning, as it is seen over the past. Bitcoin will always thrive irrespective of the influence.

In the case of regulation, even though it might be bearish for bitcoin in the short-term, in longer term it may be a good thing as a regulated bitcoin will attract very large investors that are staying away at the moment from investing in bitcoin. As we all know, investors are running away from investing in bitcoin because of its decentralisation

Do you really think that the government can influence the cryptocurrency?
 
Last edited:

Mika

Valued Contributor
Government can also easily manipulate the market. Let say the government says you will have to pay 15 percent trading tax, the price will go down (this happened when Biden announced taxation for trading). If the government says it will accept bitcoin, the price will g up (this happened recently when El Salvador announced that it will accept bitcoin)
 
Comment

Lens1000

Valued Contributor
Government can also easily manipulate the market. Let say the government says you will have to pay 15 percent trading tax, the price will go down (this happened when Biden announced taxation for trading). If the government says it will accept bitcoin, the price will g up (this happened recently when El Salvador announced that it will accept bitcoin)
I totally agree with you mika. The government will always have their way into the crypto system, disrupting the major reason why the virtual currency was created. This will further increase the artificial market manipulation that we've always kicked against. The only way out is when the government does not persistently change the monetary policy
 
Comment

Alexandoy

VIP Contributor
If what you mean by this thread is if the government will allow and recognize crypto trading then I believe more on the opposite. The ban of China can influence other big countries because we are all learning from the Chinese. Although no one would admit but China has the biggest and strongest economy now because of their strong political will.
 
Comment

Lens1000

Valued Contributor
If what you mean by this thread is if the government will allow and recognize crypto trading then I believe more on the opposite. The ban of China can influence other big countries because we are all learning from the Chinese. Although no one would admit but China has the biggest and strongest economy now because of their strong political will.
The thread is all about the possible ways through which the government can influence cryptocurrency. What raises this concern is the influx of countries into the crypto ecosystem. Over time, we have seen how government of different countries have influenced the virtual currency in one way or the other causing a spike in the price of the digital currency.
More and more countries are adopting bitcoin now.
 
Comment

btaliat

VIP Contributor
The influx of government recently in cryptocurrency can either makes it stronger or weaken it. Government will try to influence crypto market with their polices in order to favour them. The only way govwnwment'a involvement can be of benefit to the crypto users is if govwnwment adopt it as her official currency. Anything aside that we surely affect crypto negatively.
 
Comment

Chibson

VIP Contributor
I believe the government can easily manipulate the market to their favour especially the first world countries. The recent interest of a lot of countries' government in cryptocurrency may definitely manipulate the market and a lot of individuals will lose out. My question is can this make a lot of people to lose interest in cryptocurrency since it can easily be manipulated?.
 
Comment

Lens1000

Valued Contributor
The influx of government recently in cryptocurrency can either makes it stronger or weaken it. Government will try to influence crypto market with their polices in order to favour them. The only way govwnwment'a involvement can be of benefit to the crypto users is if govwnwment adopt it as her official currency. Anything aside that we surely affect crypto negatively.
The positive impact of bitcoin on the economy can not be wavered. This is evident in Miami, when the the prince of Miami , Suarez used bitcoin to fight inflation in his state. He showed leadership by example when he buy bitcoin asset that is worth millions of dollars. Shortly after his statement , an estate property company based in Miami announced that bitcoin will be used as payment for his property
 
Comment

Lens1000

Valued Contributor
I believe the government can easily manipulate the market to their favour especially the first world countries. The recent interest of a lot of countries' government in cryptocurrency may definitely manipulate the market and a lot of individuals will lose out. My question is can this make a lot of people to lose interest in cryptocurrency since it can easily be manipulated?.
It all depends on the motive behind the adoption. But some countries have started on a positive note, making bitcoin a legal tender and even building bitcoin factory employing a green energy to power it. Some have used bitcoin to fight inflation like Miami. Quite a number of ways to use the bitcoin positively inorder to make cryptocurrency trading profitable to investors
 
Comment
Top