Why it is not “possible” to ban Bitcoin?

Since its creation in 2009, the adoption of Bitcoin around the world has continued to grow. Due to its decentralized nature, Bitcoin does not have a central entity that can control it. Thus, no central bank or government authority governs the network. All the players in the Bitcoin ecosystem (miners, developers, users, etc.) manage the network collectively.

So, it may naturally come to mind to ask the question of the possibility of stopping and banning Bitcoin. Is this even possible? Should investors who own bitcoin fear that it will all end one day?

The whole point of this article is to know if Bitcoin can ultimately disappear.

A legal ban cannot prevent the use of Bitcoin

You have undoubtedly learned in the news that some countries have not allowed use and possession of cryptocurrencies. Ecuador, Algeria, Morocco, Nepal, Pakistan and Egypt are among these countries, for example. Others like Taiwan and Saudi Arabia have instead opted for a partial ban. In other words, depending on the country, governments decide the degree of use of cryptocurrencies.

However, what you need to understand is that this is a “legal” ban only. Even if governments prohibit access to certain sites such as those on centralized platforms, nothing prevents users from using VPNs for example.

In truth, the governments are unable to ban bitcoin, because bitcoin is not only available on centralized exchange platforms. It is entirely possible (and recommended) to use decentralized wallets that are not hosted by companies. It is therefore perfectly possible to obtain bitcoin on peer-to-peer (P2P) platforms as Noons, thus escaping prohibitive jurisdictions.

In the absence of a central authority such as a bank, the use of Bitcoin cannot be affected. This crypto is self-sustaining thanks to its peer-to-peer electronic system that allows people to send and receive money freely around the world.

In other words, bitcoin transactions do not require intermediaries, unlike more established money transfer methods like banks. The sender and receiver are the only parties involved in the transactions that take place on the blockchain. This means that, even with the best intentions, no institution or government can compromise transactions.

Therefore, since no government controls their ownership or use, bitcoins cannot be seized. Additionally, users can exchange anonymously, which makes their confiscation by public authorities difficult. THE bitcoin is not governed by any regulatory agency or government entity, since it is a decentralized financial instrument. Therefore, enforcing a ban would be pure utopia.

A ban would be "difficult" to implement

Although it is obvious that a government can issue a decree banning Bitcoin, many countries would find it difficult, if not impossible, to effectively enforce such a ban. It is almost certain that people will be able to download a bitcoin wallet software, operate a node and carry out transactions without much effort. Thus, for an authority to achieve a restriction, it will have to impose strict control of the internet.

For example, a significant part of Bitcoin users are still present in the majority of countries where it has already been banned. For example, CoinMarketCap, a company that tracks the cryptocurrency market, has classified Pakistan as one of its fastest growing user demographics in Q1 2020. This is also the same observation with Morocco, which despite the ban on bitcoin remains the country in Africa with the highest adoption in 2022.

Furthermore, today there are various tools that can be used to bypass restrictions access to the internet. Furthermore, a ban on bitcoin is almost impossible when we think about Blockstream satellite. With the latter, almost anyone can access the Bitcoin blockchain using a reasonably priced SDR (software-defined radio) dongle and an antenna. Also, the hypothesis of the creation of a black market for bitcoin cannot be ruled out.

The risk of the emergence of a decentralized black market

The Chinese government has banned bitcoin mining in summer 2021, citing the usual fears about negative environmental consequences and money laundering.

Following this decision, the ban temporarily had the desired effect. At the end of June 2021, the hash rate of the Bitcoin network had decreased by a few multiples to reach 57,47 exahashes per second (EH/s). But in December 2021, the hash rate rose again to 193,64 EH/s and in February 2022, it reached the all-time high of 248,11 EH/s.

This unexpected increase raised many questions, because nothing could explain why the hash rate increased at such a speed. But in fact, the reality was that the miners who had moved to China had simply migrated toother so-called “eco-friendly” countries.

However, this great migration may not be the only unintended result of the Chinese ban. A year ago, Chinese miners represented 22% of global hash rate. It must be recognized that even if this percentage is no longer as high as before, it is still a significant part of the market.

The most plausible explanation is that it is possible that China currently has a significant black market for bitcoin mining. A phenomenon which proves that even one of the most totalitarian governments on the planet cannot prevent its population from mine bitcoins, regardless of his efforts. 

What you must remember

In recent years, the bitcoin continues to gain ground despite all the obstacles he faces. Although governments have the power to ban the use of cryptocurrencies outright, this remains a facade ban. It is then a preconceived idea which is still circulating today that it is good to reconsider.

Individuals will continue to have easy access to bitcoin, unless the authorities do not censor also Internet. Beyond the complexity of the matter, such an initiative would call into question the very principles of fundamental freedom men.

The best solution would be to find an appropriate legal framework, which will allow protect freedom individuals. To recall a strong slogan from May 68, "it is forbidden to forbid" and Bitcoin is a perfect representation of an "object" censorship resistant.

It is certainly also the paradox to consider that the simple fact that we cannot ban Bitcoin is what makes it so crucial for monetary exchanges between men…