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Comment by ashraymalhotra | Hacker News Reader

Could you please explain why will the advance economies never fully outlaw it? As far as I can understand, till bitcoin is a niche miniscule part of the economy, they might not care. But if it starts to become mainstream, I don't see how being developed or undeveloped would make a difference? All governments want to have control over the currency...

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Due to the fact that most advance economies are also advance democracies. I agree with your point, that government's will certainly try to regulate it but I don't think they will outlaw it. They may regulate it enough, so it never becomes a medium of exchange, and therefore it doesn't turn into a threat to sovereign currencies.

But I don't think they will fully outlaw it, since there is no reason to restrict the options that citizens have to invest in. If people can invest in wood or orange juice futures, there is no reason, not to allow them to invest in cryptocurrencies.

Governments don't outlaw all speculation (which is what cryptocurrencies currently are), or for that matter actual investments for the most part. They regulate them to ensure that mostly people aren't being robbed blind, and they want their cut (i.e. taxes).

So long as you aren't hoping to use them as a tax fraud scheme I don't see why you would expect the government to want to shut it down. If you do hope to use it as a tax fraud or the like, you're likely in for an unpleasant time once the slow-but-steady process starts to focus on that.

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