Economist Says Restricting The Buying of Bitcoin (BTC) Is How Banks Promote It

Stephen Livera’s Podcast recently interviewed Economist Saifdean Ammous. Saifedean Ammous explained why banning Bitcoin helps the opposite and the best way Bitcoin can be defeated by the government.

Ammous was asked to talk about his most recent research on the possible strategies that the government could utilize to shut down Bitcoin.

According to the Economist, if a government can place a ban on Bitcoin, it could actually benefit the currency in the long run. He stated two reasons such a ban could be helpful, the first reason was the risk and reward factor of utilizing the coin. There would be a high risk of utilizing the coin if the coin were not legal, thereby justifying the value of the coin.

Secondly, such restriction on purchasing Bitcoin would be a way the government is restricting the freedom of the people. In such cases, Bitcoin’s demand would rise as a result of underground and public backlash, thus leading to a “Streisand effect.”

Bitcoin (BTC) News Today – Could governments shut down Bitcoin (BTC)?

In response to the question: What were some possible strategies that could be employed by governments to help them compete with Bitcoin? Ammous opined that governments could compete with the technology of Bitcoin, as a result making it outdated in terms of practical usefulness. Apart from providing individuals more freedoms and monetary privacy, his other opinion was to “return to a classical gold standard.”

The Economist was obviously adamant on his gold standard approach stating that if such kind of monetary system is in the world, it would actually undermine Bitcoin’s demand.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$8,051.00
0.75%
Ethereum (ETH)
$251.95
1.17%

It was recently reported that “Bitcoin has superior physical properties and market utility” when compared to gold. This also involves the Winklevoss twins who believe Bitcoin will exceed the $7 trillion gold market.

On the other hand, Grayscale Investments started a new campaign embracing this by declaring gold as an obsolete store of value.

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