Quote:
Originally Posted by ASAP17
To help explain a little better and no I don't pretend to be an expert on Bitcoin, just my opinion.... The US government has proven through their actions that even with the risks from bad actors they are ok with Bitcoin. If they really cared about that argument then they wouldn't be auctioning off the asset after all these busts on the dark web, they wouldn't be giving it legitimacy by allowing Bitcoin Futures, having guidelines for how to pay your taxes etc. In general, I'd argue most governments around the world have been pretty positive despite the hacks/accusations of manipulation etc.
This is like saying because the US government auctions off poker assets seized under UIGEA or because they have guidlines/rules for poker taxes, they're not going to regulate poker. That didn't end well.
Growing illegality, especially the nastier disruptive forms of illegality like ransomware, will lead to regulation, and given that bitcoin is a payment mechanism and not an activity, it is very easily crushed by regulation. Take away the on ramps (banks and exchanges) and Bitcoin is dead for 95+% of the population and mainstream use case. And most governments (US, China, Russia, Latin America) will view this similarly and lead a concerted effort. The US alone can crash bitcoin by its banks refusing to business with banks who transact with bitcoin vendors. And the more criminal activity bitcoin has, the more they can justify this.
They banned poker and poker has fewer powerful vested interests and does less social damage than Bitcoin does even today at bitcoin's small size. And poker was something they could only ban for US citizens as its an activity and not a financial product.
So the growth in the nastier forms of criminal activity enabled by bitcoin is very relevant. It is also bad for the mainstream use case if it is viewed as a dodgy shadow coin with hugely negative environmental and criminal externalities. Normal people stay away from that. Why do you think the bulls get so very upset when this is mentioned?