What Will Happen If All Countries Ban Cryptocurrencies?
After bitcoin and most of the cryptocurrencies have hit their life-time highs in December last year, different countries have adopted different stance. However, there is unanimity in tightening the regulations governing the overall digital currency market. Though some of the countries are eager to continue to encourage, they have never wanted a free run. Also, some of the countries like China has adopted a tough stance and banned initial coin offerings (ICOs) and even trading of bitcoin or any other virtual currencies. However, the moot question how effective the bans are.
Significantly, most of the bans or trading was treated like pure fear, uncertainty and doubt (FUD). Alternatively, such rulings were regarded as propaganda so that the country could maintain their supremacy and that the national fiat, as well as, banking system gets protected. However, if holders of any digital currency are treated like enemies or criminals within the country, what would be the situation for them? There might well be a situation that could drive the holders of virtual coins to either migrate or seek asylum in other countries. Crypto Globe has done an article with a focus on speculation and inductive on the future of digital currency holders.
The key point is whether the strict policies adhered by the establishments would create polarized opinion and even lead to a brain drain. In a speculative and imaginary one, the article pointed out that John McAfee was correct in his estimation of bitcoin surpassing the $1 million mark price in the year 2020. That leads the overall crypto market to dizzy heights. This also invited the attention of the regulators, who thinks that the market has gone out of control and should be stopped at any cost.
The article further sees the scope for clients resorting to closing of their accounts and manages their funds by themselves with a help of phone wallet app. On their part, the government is a worried lot since their fiat currency is used only to a limited extent for making payments. Therefore, the establishment felt that something should be done to save the financial system. That is because of a potential threat of an unpredictable innovation wave that could possibly crash the existing financial system.
As far as politicians and important economic personalities, they could lose their credibility as every warning issued by them has gone wrong in the long-term. As a result, there could a situation where citizens would feel increasing knowledgeable on their economic freedom apart from understanding their power.
Therefore, there will be a position of ideological bias whereby anarchist expressing their disdain and the facilitation of several crime-related activities in the crypto segment. That kind of a situation is a risk factor for early adopters of digital coin or coders and engineers apart from people associated with the work. That could also mean losing brightest minds and the most skilled people.
Alternatively, if a digital currency like bitcoin, which trades now a little more than $9,000 per coin, manages to witness significant gains in the next two years, there is a possibility that the holder could use the potential to migrate and enhance the quality of life.