Warning of a Bitcoin price crash: A government crackdown may cause the cryptocurrency to ‘fall to zero.’
According to a top bitcoin specialist, BITCOIN is still “very vulnerable” to government censorship.
Billy Bambrough, a crypto expert who writes for Forbes on a regular basis, issued the warning.
Bitcoin’s value has risen dramatically over the last year, peaking at almost $60,000 per coin in April before plummeting to $31,000.
Mr Bambrough cautioned this website that if country states made a determined effort to ban the currency, its value might plummet substantially.
“I think quite vulnerable in a practical sense,” he said when asked if Bitcoin is sensitive to political pressure.
“The threat of incarceration or physical injury continues to be the source of state authority.
“If a government or state wanted to discourage individuals from using Bitcoin, they could warn that everyone who does so will be arrested, and people would cease using it.
“It would dissuade people from using Bitcoin if the danger from the government was serious enough.
“It’s possible that governments around the world will decide that Bitcoin should be phased out, and will collaborate to make running a Bitcoin node, which connects your computer to the Bitcoin network, mining Bitcoin, which directs processing power toward the Bitcoin network, or trading Bitcoin a highly punishable offense.
“If doing any of these three things resulted in significant jail time, people would simply stop using it, and the Bitcoin network’s distribution would shrink, shrink, shrink, and it wouldn’t be as decentralized, incorruptible, or unhackable, and it would eventually be hacked, and the value of Bitcoin would fall to zero.”
States all around the world have diverse policies when it comes to Bitcoin and other cryptocurrencies.
El Salvador, the first country to do so, recently announced that it will declare Bitcoin legal tender in September.
However, as China started a major crackdown on Bitcoin mining, the currency’s value plummeted.
Mr. Bambrough dismissed the possibility of a coordinated state-sponsored onslaught on Bitcoin.
“I believe there is a chance this might happen,” he said. Because different countries are interested in Bitcoin in different ways, the likelihood of it happening appears to be minimal.
“As we’ve seen, China doesn’t appreciate individuals doing things with Bitcoin that it can’t easily manage, control, or govern.
“Other countries, such as El Salvador, are keen to see Bitcoin thrive.
“So,” says the narrator, “Brinkwire Summary News.”