The most recent episode on Stephan Livera’s Podcast features an interview with economist Saifedean Ammous, who is known to be the author of the Bitcoin Standard: An Alternative Decentralized Solution for Central Bank.
In the opening part of the interview, Ammous was asked about a recent research newsletter that he has released, revolving around the topic of what will be needed to destroy Bitcoin, especially from the perspective of an interview. government attack.
The government could have several reasons for implementing a Bitcoin ban. Anything from the existence of a darknet market to the protection of a local fiat currency could be used as a justification for that decision. Despite saying that, it’s not clear if these actions are more effective than the War on Drugs.
In response to Hepa’s question, Ammous shared a view likely contrary to what most people expected.
The ban can be counterproductive
In Ammous’s view, the current discussion around how the government ban will affect Bitcoin is completely out of date.
“People thought that if the government passed a law banning Bitcoin, Bitcoin would disappear and they would have a chance to laugh at us, and then the story would end there,” Ammous said. “I think things will really be very different.”
Ammous went on to explain that governments that are controlling the use of BTC with strict regulations are likely to also have restrictions on what people are allowed to do with their finances in general. In Ammous’s view, a ban on Bitcoin would illustrate two things: (1) Bitcoin must be useful if people are willing to risk jail time to use it and (2) show that the government is dead financial freedom of all people.
“In the case of BTC, they are moving money around the world without having to report to your government,” Ammous said. So the more governments create restrictions like this, the more problems they create, [and] the worse their monetary policy “,
Ammous added that people were able to understand one thing better: they don’t control their money in the traditional banking system every time a new economic crisis emerges in different regions. In the world.
“If your bank tells you,‘ You can’t buy bitcoin with your bank account ’. It was really just a way to advertise for Bitcoin, ”said Ammous.
The way for governments to destroy Bitcoin is to compete with it
According to Ammous, the most effective way for governments to destroy Bitcoin would be to compete with it.
“The way for the government to destroy Bitcoin is that they need to create an economic incentive to use Bitcoin inappropriately – make the need to use Bitcoin disappear,” Ammous explained. “They need to provide a better technology than Bitcoin – possibly reducing demand for Bitcoin. Or, at least, they need to try it. ”
Ammous added that the best governments can do regarding competing with Bitcoin is to go back to a classic gold standard and allow for greater freedom and privacy in personal financial operations.
“If there exists one kind of currency system and if it is universal, I think that would seriously undermine demand for bitcoin,” Ammous said.
Ammous even said that there probably wouldn’t be much demand for Bitcoin in the first place if the world was still on the gold standard today.
It should be noted that application crypto advisor and former Bitcoin Core contributor Peter Todd recently shared a similar view on the possibility of a government-made cryptocurrency as the biggest potential rival to Bitcoin. .