Bitcoin Q&A: Will governments ban cryptocurrencies?

[QUESTIONER:] According to what you said,
Bitcoin is possibly going to be banned .. in the next year, or very strictly controlled.
[ANDREAS:] In some places, yes. [QUESTIONER:] For instance, one of these
places could be China. [ANDREAS:] Unlikely, but yes. [QUESTIONER:] Because they are really having
a lot of problems, with many people converting .. their money from bitcoin. And I think
70% of the mining facilities are in China. So do you think they are going to try to control
the mining facilities? What are the possible outcomes? [ANDREAS:] That’s a great question. So do I
think mining will be controlled in China or do .. I think that Bitcoin might be banned in China?
I think it’s extremely unlikely that Bitcoin would .. be banned in China. Just because every time
there’s a little blip in the yuan and we see .. $.5 – 1 billion flow into bitcoin doesn’t mean that’s
a large amount of money. For China, that’s nothing. It’s like you’re facing the imminent collapse
of a giant hydro-electric dam; you’re not going to .. worry about that tiny, little trickle of water
in the side there. That’s bitcoin. You’re worrying .. about the gushing outflows of the things
they are worried about. Right now they’re passing .. a new law to restrict mergers and acquisitions.
I heard this fantastic story of how Chinese companies .. are exiting money from the economy even
though there are currency controls. It came about from a conversation with a
lawyer. This lawyer had been asked by .. a Chinese company to participate in an
arbitration hearing. They said, “We want to do .. this arbitration hearing. Would you be
interested in participating and representing us?” [The lawyer] said, “Yes, okay. Who is the
other party?” “Well, the other party doesn’t exist .. yet. We would like you to create the other
party, represent both us and the other party, and then we would like to lose an arbitration
award of about $5 million to the other party, which you will set up in another country.”
[Laughter] When the need is great, it becomes .. the mother of innovation. Legal innovation,
corruption innovation, et ceterea. They have much bigger problems.
Now, you will see bans in some countries. In the countries where they can arbitrarily
effect a ban, they can’t actually affect that ban, in practice, on the ground. Because where
the rule of law is weak enough that a single .. individual – without any recourse, due process,
or opposition – can simply ban a form of money, their ability to actually enforce that is probably
pretty weak too. Because everybody below them .. is going to be taking bribes. Just imagine,
for example, the ruling comes down that says, “You can’t do mining in China!” That goes
down to the districts, from the districts to .. the smaller districts, to the cities, to the
towns. Eventually, some official sends a fax .. to the local village where they’re running a
mining farm off [hydro-electricity] that represents .. 40-50% of the municipal income of the entire area.
And they say, “You must close your mine.” What does the local official say?
“… We have no mines here!” [Laughter] Or, “[whispers] Guys, close it down for 24 hours.”
“[yells] We have eradicated mining in China!” “Long live China and our great leader!”
“[whispers] Turn it back on.” Right? The ability to actually affect change on the
ground is mediated by layers and layers of .. bureaucracy, which are more and more corrupt.
The bigger the crisis, the easier they are to corrupt. You’ve got to realise that these mines are quite
decentralised within China, and in many cases .. they provide a stream of “corrupt money”
throughout every official in the area: the police works for them, the mayor works for them,
the electricity company works for them… Now the electricity companies are the ones
who are mining. Good luck shutting that down! Again, it’s not as easy to do. The higher the need,
the more corruption & invention you’re going to have. [QUESTIONER:] What happens in the future
when Bitcoin becomes mainstream, governments or inter-governmental
organisations realise this, like the U.N., IMF, U.S., or E.U.? [What if they] decide to implement
their own cryptocurrencies, say “UScoin” or “IMFcoin”? And they make it a rule that everyone has
to use that coin, and illegal to use any others? They set up their own nodes and put a lot
of budget in that. Could they cut out cryptocurrencies .. in that way? [ANDREAS:] They going to turn a
lot of people into criminals, because a lot of people .. will then ignore that rule and break that rule.
You have to worry… if your government is setting .. up a system where they’re not willing to
compete on an equal basis, on merits, but instead have to pass a law that forces
you to use that system and makes it illegal to .. use the competing system of open-market
economics, what the hell kind of government .. did you just elect?! At that point, you’re
beginning to wonder: what kind of government .. is this? Let’s go through the words:
Democracy? Eh, no. Republic democracy? No. Constitutional democracy? Police state?
Fascism? Totalitarianism! That’s the kind. Okay. That sounds like totalitarianism. I never
signed up for that. Great. If your government .. starts doing crazy things… The question is:
can governments do crazy things that violate the .. rights of billions of people? Sure they can!
They do it every day. We have to resist and make .. choices, not only about which governments
we elect, but also sometimes make choices about .. using other systems. People in Venezuela
are making that choice today, by breaking the law. Because the choice is between feeding their
family and not feeding their family! At that point, whether you’ve broken the law is a
small issue, right? Again, I don’t expect to see that. The reason I don’t expect to see that is because
most governments in the world, when they see the idea .. of people being able to use a free, electronic
commerce system that is efficient, creates .. growth, opportunities, and jobs… An innovation
that gives access to the world of commerce across .. borders – What’s not to like? That’s something
you should encourage. If your government .. does not encourage that, and does not believe
in those ideals (that people should be free .. to associate, free to express, free to make choices), then your government is not free. Which is a much bigger problem than Bitcoin,
at that point. I would be less worried about their .. power over cryptocurrencies than by the
fact that they have all the guns.

Maurice Vega

100 Responses

  1. Didn't China just ban ICOs? This is so ironic, happening just a few days after you published this video. I've watched many of your videos and imo you are overly optimistic and emotional, which can be misleading to many. China just banned ICOs through and through – in a snap, over the weekend. what do you say to that?

  2. They actually banned all cryptos in China. But, who gives a shit about their decisions? We want to use the currency no matter what govts say what.

  3. I worry about the moral and ethical problems of adopting a new currency such as a cryptocurrency. Let's say a world exists with only 1 currency of 21 million units for all the people to buy all the things. A new currency is offered with 21 million units and several advantages over the old currency. The new currency gains traction as money and more and more people adopt it. Eventually everyone adopts the new currency and the old currency becomes worthless. There's the same amount of currency available as before but the distribution of the new currency has completely changed. Early adopters end up with wildly disproportional amounts of the new currency compared to late adopters. Early adopters could acquire massive amounts of the new currency while the old currency had great value in relation to units of the new currency. As the old currency rapidly depreciates to worthlessness, later adopters can buy only tiny amounts of the new currency and then finally none at all because it was all bought up by earlier adopters. Those whose money was tied up in annuities, pensions, social security or some other contract that distributes their money to them gradually in old currency units go broke. Imagine the society that that would create. It would make unbelievably huge winners and huge losers out of no other virtue than time of adoption of the new currency. Suppose someone offers yet another currency. This time everyone panics into the new currency in a day for fear of losing all their savings. Then yet another new currency is offered and everyone panics into it in 5 minutes…

  4. China could very easily ban BTC. When it becomes disruptive to the communist leadership, they will ban it. Simple. And if you think "people will just get around the ban", that's nonsense. China has a well-established firewall on their internet, and not allowing exchanges or any business to be conducted in BTC punishable by law, will make BTC a black market currency without any real use.

  5. Just banned it in china, 4 hours ago so I guess "extremely unlikely" happened. Check bbc news. The market is still fine

  6. Fuckin A dude. China banned ICOs AND all forms of crypto currency exchange. All of their crypto exchange platforms will be shutting down by the end of October. You/we can go on saying that this is nothing, and they will reverse the bans, etc. etc. but the reality is, they did it. IN A SNAP. None even dared to squeak about it over there.

    See how regulation CAN be enforced? Think what would happen if they turn Bitcoin into an underground only currency. Would you still trade, with all the drug cartels, perverts, criminals, and so on? – what a silly question!

  7. I've heard all about how btc will enable everyone everywhere to access currency. Sadly, none of this seems accurate at all as I live in Halifax, Nova Scotia, certainly not the middle of nowhere. This is indeed a hub of our developing modern world, but to purchase or earn bitcoin here, or any attempts to gain bitcoin here, in Halifax, are frustratingly improbable for at least two reasons: 1) Many exchanges demand a verification process which is never necessary when buying anything else online such as from Amazon, and the verification process for most sites is glitchy to the point that it doesn't even work. If bitcoin cannot be accessed s easily as any other online purchase, it hardly makes sense, and definitely can NOT be MISCONSTRUED as liberating. 2) You mislead people in speaking of eliminating middlemen and corporations, while everywhere, WITHOUT EXCEPTION that I try t enter into bitcoin, or purchase it has heavy (aprox 10%+) transaction fees – which I can't pay them, only because their ridiculous verification system fails, or once passed, a seller does not reply to a request to purchase, and with the inflated transaction fees. I might add that the only ATM for Btc in Halifax, was taken away, for lack of use. – Not only frustrating all this is, but infuriating.

  8. 0:35 He said unlikely that China would not ban bitcoin. China banned trading and new ICOs. But who cares, we know that Cryptocurrencies such as ETH and BTC have solid foundations, it is decentralized and no government can mess with it.

  9. In my opinion, bitcoin will be banned by every country in the future. It's very simple, every country need to control their own money, otherwise, the government will be failed.

  10. Has he said anything about this given current events and how they did end up banning it. What is his current take on it I wonder?

  11. impressive, i am learning daily…yes, the entire system is corrupt, all governments…thank you for confirming what i knew…lets see how this plays out

  12. Maybe it is naive to think that governments and banks will allow people to step outside their system and disrupt it completely.
    Besides that, 95% of the population has got no clue what is going on.
    They only here Wild West stories about Bitcoin and Co and they have no idea what is about.
    When the governments and central banks step in because they say there are a threat to the current money system and ban the crypto's because it is best for the people, 95% of the population will accept that explanation.

    Can crypto's been banned?
    If a government decides to make trading or possessing Bitcoins/crypto's illegal, questions will be raised about how exactly it will enforce such a ban.
    It is impossible for a government to seize your Bitcoins/crypto's, unless you decide to handover your private keys.
    However, the fast majority of citizens and institutions like to stay on the right side of the law.
    So the demand for Bitcoin/crypto's would plummet if the government decided to ban it.
    All exchanges in that country would also be shuttered and buying/selling Bitcoin/crypto's would be very difficult and risky without expert technical knowledge.
    This would suffocate Bitcoin/crypto's in that country and the government’s objectives might be achieved.
    Then central banks step in and offer their own crypto coin, how convenient for them.
    No more cash and everybody is locked up in traceable digital digits.
    Convert some of your crypto's in precious metals en hide them from your government.
    They will be very valuable once all the cash is removed from the system eventually.
    Just in case the scenario unfolds like described above.
    Some things to take into account.

  13. The government have spent billions of dollars trying to stop the drug trade, and look where it has got them. The drug trade is still worth billions of dollars, as long as there is a demand for something people will find a way to supply that demand, be it legally or illegally. The difference between Cryptos and the drug trade, is that Cryptos are going to be a lot harder to stop.

  14. Andreas has taught me more in the last year about the word and the economy and technology then the mainstream media news has taught me in the last ten years. For me personally, He's connected all the sporadic dots in my life. Amazing. Thank you Andreas!!! Hope to get to see you speak one day.

  15. What is sad are those (and there are many out there) who poo-poo bitcoin and crypto, but then a breath later they explain why they'd be excited about a digital currency that their nation's central bank may release in the near future. Sheeple!! So pathetic…

  16. The government can justify going after Bitcoin if they tie it to tax evasion, child porn, drugs and terrorism. Not to difficult to do.

  17. "I would be more worried about a government that holds all the guns." Did anybody else catch the last sentence in the video? Probably the most important when it comes to maintaining a decentralized currency.

  18. Andreas combines political activist with bitcoin expert. Or restated bitcoin expert must be a political activist by default.

  19. The way Bitcoin and other coins are designed makes them almost impossible to "ban" but some countries will problary still try to slow them down

  20. Stupidest thing I have seen all year. Governments don't need to ban bitcoin. Governments support their currency through taxation. This creates demand for the currency, only speculation supports BTC.

  21. thank you andreas, you are a refreshingly intelligent, genuine and thoughtful speaker. So glad you are here to educate and inform about a complex but important subject. BTC to the moon!! also bush did 911

  22. Maybe this is why they disabled net neutrality. They will use the isps to throttle or disconnect people in their homes who are mining. You cannot mine if you cannot connect to the server

  23. It looks as if the development of such systems as the internet or the blockchain or generally the idea of ​​the decentralized system is a natural process of humanity. For me, very exciting and optimistic!

  24. President of CRYPTO :>) A true (un)polished multifaceted passionate Crypto diamond!
    Modern Robin Hood of Economy. Well educated, interested, experienced Metaphorical connecting our financial past and future from with passion!
    From Technical, Biological, Medical, Economical, Anthropological and IT perspective. Very enriching for navigating (financial) life! Greeting from Amsterdam

  25. I'm surprised this guy doesn't understand that communist governments like to control EVERYTHING about their economy and culture, including and especially their currency. Since this video aired China has banned both the trading and mining of Bitcoin. Over the past few years I have come to realize that business people, scientists, and professors don't realize how politics truly works, and why most politicians are usually lawyers. Outsiders just don't understand politics, public policy, and the art of government like lawyers do.

  26. Bitcoin exists strictly on the internet, basically "no mans land" and as such is not subject to any laws…how can you you legally stop something you can't see or touch?

  27. This makes total sense too..OF COURSE there's going to be corruption in higher up positions within the government, and what do these corrupt people want to do? make as much money as possible…do people REALLY believe that a politician with his hands in the cookie jar is going to tell his mom to stop baking cookies for him? No he's gonna want a glass of milk to go with the cookies…

  28. Yeah if you go up the chain of command to get something stopped… you have to pass through a number of people, and if person 3 of the chain of command is currently being bribed, he's not going pass along the order/information…this is probably why Donald Trump has never mentioned it, lol

  29. i think governments can not ban bitcoin but they can easly drop bitcoin price by ban and criminilize the bitcoin and most likly they will its matter of time and if big country like u.s or china did it the bitcoin will drop

  30. Exactly. Last year someone told me that govt will ban bitcoin mining in china. I told him that shutdown exchange is different thing and shutting down mining is different. My reasoning was govt officials are corrupt. They will be interested in banning things that can create mafia but not that destroys corrupt officials earning. Banning exchange creates Mafia while banning mining actually affects corrupt officials. So china can shutdown exchanges and not mining.

    Andreas explains this perfectly.

  31. Just keep calm people….Bitcoin transactions are equal to less than 1% of total fiat transactions in the world….when he said they aren't going to be worried about a trickle of water, he wasn't lying..

  32. So while the banking regulators in India were bashing bitcoin for being "unregulated", a $2 bn fraud ring was growing under their noses. One of their biggest banks (regulated) was doing all the money laundering.

    Honestly, it's almost as if money laundering is the job of banks

  33. If bitcoin is not a legal currency. How Bitpay can mediate and promote payment with bitcoin? Is it the same as advertising you can pay with gold or with share? My opinion is that bitcoin should be recognized as real currency. It is ridiculously that we must pay tax for payment instrument.

  34. BROSKI, Thank you SO MUCH for being such a cool mind in the world with us MUCH LOVE Dre, You are a BALLER Im f*ckin fanned up now dude lol Thanks & GREAT JOB !!! keep it coming email me man lets BUILD – clesrock (Pat DeFalco)

  35. Mining was shut down in that small town in the U.S. because mining was using too much of the town's energy from the hydroelectric dam. The reason they shut down the mining is because the city pays $0 for energy because they sell off energy to the Government. But the mining put them over their limit and that caused the city to start paying for energy. So this is a very unique situation. All the mining company would need to do is pay the city all the cost over the limit so it would be passed on to the residents. But that might not make it profitable??

  36. When people around the world have the power to see how there taxes are being spent, then and only then can I personally accept governments authority in demanding them! Transparency MUST be a two way street.

  37. Bitcoin and crypto will save us from the Rothschilds. There si a digital God. Crypto will save us from the moneylenders.

  38. Sir… I m from India… Plzz help me… In these time India is going to banned bitcoin cryptocurrecies, then how can I safe our crypto?

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