Government Ban On Bitcoin Would Fail Miserably

Government Ban On Bitcoin Would Fail Miserably | Jon Matonis | FINANCIAL SENSE

Government Ban On Bitcoin Would Fail Miserably

In a blog post last week at Unqualified Reservations , the author described a fictitious account of how bitcoin dies because a "DOJ indictment is unsealed" naming any and all BTC exchange operators as criminal defendants and the "BTC/USD price falls to zero and remains there." While this U.S.-centric plot would seem more plausible in a cryptographic flaw scenario, it does bring to light some interesting game theory strategies for both regulators and free market monetary proponents. Aside from the impact on price, would a government ban on bitcoin, including a direct ban for law-abiding merchants, shrink the available size of the so-called bitcoin market? Is an officially "illegitimate" bitcoin a useless thing? I maintain that a government ban on bitcoin would be about as effective as alcohol prohibition was in the 1920s. Government prohibition doesn't even do a good job of...

Full article: http://www.financialsense.com/contributors/jon-matonis/go...

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Government Ban On Bitcoin Would Fail Miserably [link]