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Economist Saifedean Ammous was recently interviewed on Stephan Livera's podcast. Ammous explained the best way the government can defeat Bitcoin and why its ban actually has the opposite effect.
According to the original podcast, Ammous was invited to comment on his latest research on potential strategies that governments could use to remove Bitcoin.
Ammous said that a government banning Bitcoin could actually be beneficial for the currency, stating:
If your bank tells you, you can not buy bitcoin with your bank account. It's really an advertisement for Bitcoin.
Saifédien Ammous
Government ban is good for Bitcoin
Ammous gave two reasons why such a ban could help, not end, the existence of Bitcoin. The first reason given by the economist is the fact that the risk factor and reward related to the use of the coin has been used. If the coin was illegal, it would mean a very high risk of use, which would justify the value of the coin.
The second reason given by Ammous is that such a restriction on the purchase of bitcoins would be an important step for the government in limiting people's freedoms. In both cases, the demand for Bitcoin and other pseudonymous currencies would increase due to critical public play and underground markets, resulting in a "Streisand effect".
Could governments kill Bitcoin?
Following these arguments by Ammous, Livera asked what viable strategies governments could use to compete with Bitcoin.
Ammous suggested that governments could compete with Bitcoin technology, thus making it obsolete in terms of practical utility. In addition to offering individuals more privacy and monetary freedoms, his other suggestion was to "go back to a classic gold standard".
Ammous was apparently inflexible about his reference approach, as he stated in the interview:
If you had that kind of monetary system and the whole world, I think that would seriously undermine the demand for bitcoins.
Bitcoinist recently reported that "Bitcoin has superior physical properties and commercial utility" to gold. This also includes the Winklevoss twins who estimate that Bitcoin will outpace the $ 7 trillion gold market.
Do not confiscate and save value at the best price, being one of the reasons.
#Dropgold
Meanwhile, a new campaign, launched by Grayscale Investments, commits itself by proclaiming that gold was an obsolete store of value. The firm launched a social media campaign using the #DropGold hashtag as a nickname.
Today, we have unveiled our #DropGold TV advertising. We think it's a #To watch
his ON! pic.twitter.com/SEGAmMItsE
– Grayscale (@GrayscaleInvest) May 1, 2019
Specifically, Greyscale Investments compares favorably with Bitcoin in terms of "verifiability, durability, portability, divisibility, fungibility, recognizability and rarity".
Do banks banning Bitcoin make it more attractive? Share your thoughts below!
Pictures via Shutterstock
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