Bitcoin has been on the periphery of financial markets for almost a decade, gradually regaining the status of an alternative asset class. Can the government of any major country intervene and do the unthinkable - to ban bitcoin?.

Those who believe that no government (except the tint of dictatorships) will go to extremes by banning bitcoin, one should remember the history. Let us consider the possibility of implementing such a scenario using the example of several states.

US and the ban on the possession of gold Let's recall the time when the possession of gold bars was considered a crime in the United States, for which it was possible to pay freedom for 10 years. In 1933, US President Franklin Roosevelt issued a decree requiring Americans to transfer their savings in gold to the Federal Reserve Bank. The ban on possession of gold bullion has been in effect for over 40 years, while President Ford has not legalized gold assets. This became possible due to the US refusal from the gold standard shortly before and the lack of the need for physical possession of a large amount of precious metal to maintain the national currency.

China and the control of the Internet And here is another frequently encountered argument about the impossibility of prohibiting bitcoin. In the era of globalization of the Internet economy, individual governments of countries do not have enough power and power to effectively combat decentralized crypto currency. However, it is worth paying attention to how the Chinese authorities are trying to control the Internet. State government and the blocking of popular foreign websites by Chinese Internet providers, the government is trying to restrict citizens in the controlled Internet. Tools for monitoring Internet traffic are used by the government to suppress political dissent. Thus, the prohibition of bitcoin will not be a very unexpected step by the Chinese government.

India and demonetization The view that the money printed by the government and affirmed by the central bank is the last thing that can be banned is also wrong. Recall that in November 2016, the Indian government issued a decree to withdraw from circulation in the country's banknotes denominations of 500 and 1,000 rupees. Thus, their use became illegal immediately. Citizens of India were forced to stand in huge queues in banks to exchange the old currency. Get a new currency was not easy, because even longer queues appeared at ATMs. This demonetization was advertised as a means against evasion of income tax payment and a measure to solve most of the government's financial problems. But almost a year later it became obvious that demonetization failed and did not solve the tasks set by the government, but only increased demand for bitcoin.

Is it possible to prohibit bitcoin?.

If any government decides that the trade or possession of bitcoin is illegal, then the question immediately arises: how can this ban be implemented? After all, the government will not be able to confiscate the bitcoins from owners if they do not give private keys themselves.

However, most citizens and organizations will prefer to stay on the legal side and not violate the law. Thus, demand for bitcoin will fall when the government decides to ban it. Exchange offices and exchanges in such a country will also be closed, and the purchase / sale of bitcoin will turn into a difficult and risky operation. This can strangle bitcoin in this country, and the government's goals will only partially be achieved.