Guest Post by Nick Giambruno
Recently, we’ve heard powerful bankers and politicians expressing their desire to ban Bitcoin.
The notion that the US government will ban Bitcoin is popular for a good reason.
Bitcoin threatens a significant source of the government’s power—the power to create fake money out of thin air and force everyone to use it.
That’s because Bitcoin can give monetary sovereignty to the individual and render central banks obsolete—along with their confetti currencies.
That’s no small accomplishment.
It’s a historical development that profoundly alters the status quo between the rulers and the ruled. It’s similar to the invention of gunpowder, the printing press, and the Internet.
There’s no question the US government would want to protect their racket from an encroaching monetary competitor in the same way the mafia does when a rival encroaches on their turf.
The $64,000 question is whether they’ll be successful.
Friedrich Hayek, the great free-market Austrian economist, once said:
“I don’t believe we shall ever have a good money again before we take the thing out of the hands of government, that is, we can’t take it violently out of the hands of government, all we can do is by some sly roundabout way introduce something that they can’t stop.”
Hayek is right.
By their very nature, governments never peacefully relinquish power. And if forcefully taking power out of their hands is out of the question, then the only way to do it is through “some sly, roundabout way introduce something they can’t stop.”
Is Bitcoin that solution?
Many people think the answer is “no” because the government will shut it down.
Can Anyone Shut Bitcoin Down?
Bitcoin has no central authority and no single point of failure.
Instead, it runs on a decentralized, voluntary, and growing worldwide network of over 17,300 computers in nearly 100 countries.
Any desktop, laptop, Raspberry Pi—and even some cell phones—have the potential to run the full Bitcoin software. Furthermore, as technology advances, running Bitcoin will become even more widespread.
Many of these computers are cleverly hidden with Tor, which stands for “The Onion Router.” It encrypts your internet traffic and then hides it by bouncing through a series of computers worldwide to obfuscate your IP address and physical location.
In any case, with Bitcoin, there’s no central location for a SWAT team to raid. There’s no CEO to arrest. The best that governments can do is play an endless game of global whack-a-mole.
Even if the US and Russia engaged in an all-out nuclear war, destroying most of the Northern Hemisphere, Bitcoin wouldn’t miss a beat in the Southern Hemisphere.
To even have a chance to stop Bitcoin, every government in the world would have to successfully coordinate simultaneously to shut down the entire Internet everywhere and then keep it off forever.
Even in that improbable scenario, the Bitcoin network can be communicated over radio signals and mesh networks. At the same time, small portable solar panels can power the computers running the network if the regular grid is unavailable.
Further, a network of satellites is constantly beaming the Bitcoin network down to Earth.
In short, all aspects of Bitcoin are genuinely decentralized and robust.
Barring an inescapable, global return to the Stone Age, Bitcoin appears unstoppable.
The cat is out of the bag. Bitcoin is bigger than any government.
If They Can’t Shut It Down, Won’t They Ban It?
Many countries have already tried to ban Bitcoin.
Algeria, Bangladesh, Bolivia, Ecuador, Egypt, India, Iran, Kyrgyzstan, Morocco, Nepal, Nigeria, Saudi Arabia, Thailand, Turkey, and numerous others have tried to ban Bitcoin. However, they all failed miserably as adoption in those countries kept rising.
Even the mighty Chinese government has banned Bitcoin numerous times with little to no long-term effects. Bitcoin didn’t just survive an attack by a global superpower but emerged stronger and more resilient than ever.
Despite all of this, could the US government still try to outlaw Bitcoin?
It is certainly possible that the US President could issue an Executive Order banning Bitcoin. Remember, Executive Order 6102 outlawed gold ownership for American citizens from 1933 until it was repealed in 1974.
Reason #1: Code Is Protected Speech
Bitcoin is simply open-source computer code that is available to anyone.
In the Bernstein v. the US Department of State case, US federal courts have ruled that computer code is equivalent to speech protected by the 1st Amendment of the US Constitution.
On the other hand, the Constitution is not a reliable protector of rights, as the Covid hysteria, the War on Terror, and the War on Drugs have all proven. So, I wouldn’t exclusively count on the US Constitution to protect Bitcoin.
Nonetheless, the previous strong precedents ruling code as equivalent to protected speech complicates any attempts to ban it.
Reason #2: Regulatory Clarity Already Exists
Given their statements, it’s clear that the Securities and Exchange Commission (SEC) views almost all cryptocurrencies as unregistered securities, making them vulnerable to enforcement actions.
That has led many to incorrectly believe that the SEC will go after Bitcoin.
The reality is that Bitcoin is the only cryptocurrency that is unambiguously NOT a security.
The US government has been clear that it views Bitcoin as a commodity—a much more favorable designation—under the purview of the Commodity Futures Trading Commission (CFTC) and the Commodity Exchange Act.
Bitcoin is a commodity because it is an asset without an issuer.
Similarly, gold, silver, copper, wheat, corn, and other commodities have producers but do not have issuers.
Every other cryptocurrency other than Bitcoin has an issuer. They also have identifiable founders, central foundations, marketing teams, and insiders who can exercise undue control.
On the other hand, Bitcoin has none of these things—just as copper or nickel has no marketing department or founder.
The SEC couldn’t go after Bitcoin even if it wanted to because there’s nobody to go after. There’s no Bitcoin headquarters. Bitcoin has no CEO, no marketing department, and no employees.
But presuming the SEC could go after Bitcoin, they won’t because even they admit Bitcoin is not a security and thus not under their purview.
Here’s the bottom line.
The IRS, the SEC, the CFTC, and other federal agencies have already given Bitcoin clear regulatory and tax frameworks.
That’s helped many large US businesses, including many large financial institutions, get into Bitcoin. Reversing these guidelines, which have been established for many years, and banning Bitcoin would generate significant pushback and be challenging.
Reason #3: Banning Bitcoin Is Impractical
Government bans may restrict something, but they cannot make something valuable and desired by many people go away by passing a law.
Consider governments in Argentina, Venezuela, and numerous other countries with laws restricting citizens from accessing US dollars.
However, these laws have little effect on their citizens’ desire and ability to use them. Instead, these actions create a thriving black market or, more accurately, a free market.
Similarly, consider how successful governments have been in prohibiting cannabis over the decades. Despite their best efforts, cannabis has always been available in most big cities.
Trying to enforce a prohibition on something digital and borderless like Bitcoin is entirely impractical. Bitcoin would be far more challenging for governments to ban than US dollars or a plant.
Further, many popular Bitcoin wallets use a 12-word phrase as a way to recover your funds. If you can memorize the 12-word phrase, you can potentially store billions of dollars worth of value just in your head with nothing else.
Try banning that.
It’s like trying to ban mathematics.
Even if it were practical to ban Bitcoin, it’s already too late.
There’s a critical mass of Bitcoin advocates among large corporations, politicians, and regular people.
They bring all of their lawyers, lobbyists, and political connections to advocate for Bitcoin potentially. That’s a lot of political firepower. And their numbers are only growing.
According to a survey from NYDIG, 46 million Americans own Bitcoin. That’s around 22% of all adults in the US.
Supporting a ban on Bitcoin means going against tens of millions of Americans—many of whom are wealthy, powerful, and well-connected.
In short, outlawing Bitcoin will not help anyone win an election.
Bitcoin has already reached escape velocity. In other words, it’s too politically popular to outlaw, and every day, it gets stronger as adoption grows.
Reason #4: Banning Bitcoin Will Benefit US Rivals
If the US government was foolish enough to ban Bitcoin despite all of this, it would only give Russia, China, and its other rivals a golden opportunity to be at the forefront of a lucrative new industry and the future of money.
Banning Bitcoin would be a financial and geopolitical blunder of the highest order.
The Bottom Line
The US government doesn’t like Bitcoin.
Even though banning it would be politically unpopular and unconstitutional, it still might consider the move if it could do so effectively without giving an edge to its rivals.
But it can’t, so it won’t.
So, I think the US government will have to adapt to that reality, and it already has been by giving Bitcoin a clear regulatory framework for businesses and investors.
When you put it all together, you have an unstoppable superior form of money conquering the world.
It’s not hard to see where this trend is going. It’s a monetary revolution.
Yet, many people still believe the government will shut Bitcoin down or otherwise ban it.
That perception gap is a blessing, allowing us to capitalize on this information asymmetry with investments that tap into this powerful trend.
However, the opportunity could be gone soon.
Historically, Bitcoin’s biggest moves to the upside happen very quickly… especially amid a financial crisis.
With multiple crises unfolding right now, the next big move could happen imminently.
That’s why I just released an urgent PDF report, it’s called:
The Most Dangerous Economic Crisis in 100 Years… the Top 3 Strategies You Need Right Now
It details how it could all unfold soon… and what you can do about it. Click here to download the PDF now.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
What is meant by “Ban”? I am more than sure the government can shut down any business that takes Bitcoin as payment if they made it illegal to do so. Wouldn’t that accomplish the goal of “Banning” Bitcoin?
Glock (hoping you are the genuine GNL) That was the very first observation critical thinkers made all those years ago when the Bitcoin sheep fleece started. I predict the sheep will see their Bitcoin vaporize at some point and that it will not be a competing medium of exchange. Time will tell.
Yes, it’s me. Hopefully the doppleganger will give up soon. Btw, in case you may be wondering what I meant by m comment to you on The Great Taking (“You sound like a real Christian”), it was not sarcastic. I have very clear memories as a child knowing that one day Christians will face the dilema of choosing life or death for our beliefs. The picture in my mind is that of an Earthly power (king or…) standing in front of a crowd and calling Christians 1 by 1 onto the stage to either stand up for God and be thrown into the fire or denounce our faith. That image has been burned into my mind for my whole life.
“I have very clear memories as a child knowing that one day Christians will face the dilema… be thrown into the fire or denounce our faith. That image has been burned into my mind for my whole life.”
As a child? Honestly that sounds like trauma to me. No kid should be thinking that kind of stuff.
He means making BTC illegal. Like they stopped people smoking weed and exceeding the speed limit by making them illegal…..
So they’re going to fine and harrass you, or steal your computers and your buttcoin under asset forfeiture, or throw you in a cage?
Yeah it won’t stop people, but they’ll be the ones profiting.
They would have to figure out who you were first, which would be no easy task if not completely clueless.
What percentage of people with bitcoin use Coinbase or something like it?
No idea, but that would fall under the clueless category if bitcoin was banned.
Pretty much everyone I know of still talking about bitcoin use non-private exchanges.
I always thought this: if it is not possible to REGULARLY buy food, clothing, fuel, housing, land, ammo, etc etc with Bitcoin then it’s essentially worthless. Right now a Rembrandt might be worth millions, but when the SHTF no one will give a rat’s ass because it won’t feed the kids.
And folks…Bitcoin is VALUED IN DOLLARS. OR FRANCS. OR MARKS.
Any fiat currency, including Bitcoin, only has value because we collectively say so. If governments collectively say it ain’t worth shit, and confidence falls to zero, then it’s worth zero.
Remember we live in a world of fake everything including fake money.
Why anyone would use bitcoin is beyond me. Every transaction the bitcoin was used for is traceable. Sounds a whole lot like the CBDC our governments want to force on us.
What happens to bitcoin when the power, the internet or communications networks go out? If elites get their way and somehow force their net-zero world on us, we can expect rolling backouts, and potentially long periods with no electricity. One can’t use bitcoins or any other online currency or payment method without electricity, internet and communications networks.
I recall on New Year’s Eve a few years ago, I stopped at a busy convenience store to pick up a few things and the clerk announced to many groans that their credit and debit systems were offline. I was the first person to emerge from the line to ask, ‘do you still take cash?’, paid for my purchases with cash and left.
Bitcoins and online payment methods are great for city dwellers that the elites want to herd us into anyway, but there is still good reason for people to keep cash on hand. Cash on hand always works and it’s a private exchange between two humans that government has no role in and cannot track.
Wrong, you sound like you still think the Fed is actually Federal. Your Fiat notes are in a far more dangerous place of becoming worthless than bitcoin is. But you are right about the power going out, it will be useless then until the power comes back up. The BRICS is causing major problems for the dollar. Banks are also failing all over the place, plus closing down branches, they are consolidating by removing the liquidity of cash, the actual supply in circulation. It will make shoving the CBDC down our throats easier. But that power outage will also effect that cash register the guy rang you up on, same for the ATM that gave you the cash. The bank it’s self will be closed as well, it’s all computer.
And the main point, Govt. has EVERYTHING to do with cash, It only has value because the Govt. says it does, it’s not backed by anything, if a SHTF type of scenario hits cash will be king for a short period, until hyper inflation makes it worthless.
Yeah, while I agree with you mostly, an argument could be made that the cash is backed by something (or even lots of somethings, in the more abstract), but most specifically in a non abstract way, the current coin, though just not enough of it (and the more abstract backings) to keep it from inflating (it doesn’t help the real money, etc., people are always talking about how the money is backed by nothing, instead of being truthful, just to sell gold, etc., though I’m sure like many of us have, many think it is true).
However, as I have argued many times in the past, there are many dollar markets, more or less separated by what we might think of as firewalls (borders being a major one).
For example, the domestic economy (which is backed more evenly with real coin) is somewhat separate from say a foreign economy that uses the dollar (I’m not sure what they use for coin), even more so perhaps, that of securities, etc., where for all practical purposes the $ is infinite compared to the assets (a good part abstract x infinite) backing it.
Does one effect the other? Yeah, somewhat, but you can have one area that is inflating, while another is deflating. The problems develops when an inflated market bleeds into one that is less so. A good example here is Spain, as it was affected by the surpluses of gold coming in from the new world.
Another example of separate economies based on the same medium of exchange, might be that of a local gold rush, where things may be going for 10 times higher or more than areas where money is in short supply (which has been the historical norm).
If we really wanted to help mitigate a complete monetary disaster in case the dollar abstract completely fails, we would be talking up not only current coin (mainly copper / nickel based), but copper too, not that other specie, etc., aren’t also part of the solution, but current coin and copper is the only things that is surplus enough to work as a viable system, because gold and silver has never been historically enough in surplus to afford a vibrant economy, and that is the reason we have historically had copper and other lesser coins, which were mainly used in daily exchange.
YMMV
Change the word ‘bitcoin’ for ‘credit card/debit card’ and the meaning is unchanged. Except bitcoin is not controlled by the government or the banking cartel
Volt- Funny, I have been in hundreds of stores/shops since Bitcoin started right up til today and NOT ONE of those stores had Bitcoin listed with Visa, MC, Amex etc. on the door as acceptable. So, NO it’s not the same as debit/credit cards.
I have to give him kudos on this one. He even tipped his hat to copper and nickel.
Poor little goat. SMH.
Devil money.
So you think the results of Kabalanomics is god’s money? Do you only use coin or barter?
Do you only use coin or barter?
Yes, I actually do. Imagine that, little goat. I get paid in cash only as well.
But wait, isn’t fiat devil money too?
Little goat…the POINT is that I stay away from electronic currency. Gee whiz…try to work on your inference skills, m’kay?
“Gee whiz…try to work on your inference skills, m’kay?.. ….. Cuz your interference skills are firing on all cylinders.”
Finished it for you.
Not this shit again…
Why do bitcoiners never mention the possibility of unlimited alternative cryptos? Why did the big banks open bitcoin trading desks, indicating its acceptance by the ruling banks?
What is so special about bitcoin, other than the fact that pumpers want you to push the price up? Why does the article finish with a reference to “price moves”?
Why does this article, like all bitcoin articles, show bitcoin as a physical, shiny golden coin?
Because….
👹👹👹👹
Answers….
1. BTC is about 55% of the entire crypto market. The return on new tokens keeps falling. The market is reaching saturation and will eventually consolidate, like all new industries. To successfully launch a new token costs millions and most fail.
2. There’s big $ to be made from trading and hodling BTC
3. BTC is supported by the largest computer network in the world, all voluntary. It works as a currency and a store of value. It enjoys first mover advantage. There can only ever be 21m coins issued
4. The potential upside in price is greater than any other asset class/investment product.
5. It has more in common with a gold coin than any other physical asset that can be pictured. What image do you suggest they use?
Just my two cents worth.
I don’t think they will otright ban it, as the process of banning it, is a visible step to the authoritarian road map we are currently on. Plenty of sheep would be awakened from their slumber.
So I think they will introduce a levy or a surcharge or whatever bullshit they want to call it on traders who accept bitcoin as payment. Then at financial year time, any trader or business that has accepted bitcoin as payment will get their “arse cheeks parted and told to touch their ankles” style audit from whichever parasite tax extortion agency your country has.
A few quite words from the parasite auditors to drop bitcoin as an accepted payment form and next year you probably wont be audited. After this style of financial warfare, I think the most popular sign will be ” Dear Customers we unfortunately no longer accept bitcoin as payment”.
See we didn’t ban bitcoin.
Hmm, I like your thinking but,
We will probably just run with the mass poisoning program we have been planning for over 100 years.
“Bitcoin is simply open-source computer code “, lol and its very rare
New Designer Scent:
Bitchcoin,
by Michael O.
Everyone can make $98 or more in a month. I am a full-time college student$$
Everybody copy & open now……..𝐆𝐞𝐭.𝐒𝐚𝐥𝐚𝐫𝐲𝟒𝟗.𝐜𝐨𝐦
who works 3 to 4 hours every day on this job and earns thousands of dollars per month
“By God, man! A whale can do ANYTHING!” – Stubbs, Moby Dick
Wag “Hey whale? Can you open up a can of beans?”
Whale “Eeeeerrrrrrrrhhh-kay”