Megaphone
But Why Not Just Ban it and Get Rid of it Altogether?
Let’s look at the story first:
Most people do not know that Uncle Sam has banned and confisca-
ted gold in 1933 by presidential decree. Two things happen when a
particular good is forbidden:
- Governments and politicians have to deal with people’s anger.
- The forbidden good arouses people’s sympathy (and people tend
to accumulate it even more). This is what has happened to gold sin-
ce 1933. Forbidding a property is not the solution.
Price Suppression is a Better Option.
It works much better than a ban.
Most people reject the fact that there is something wrong with lower
prices (even if the fundamentals are strongly in favor of assets). In
fact, those who emphasize suppression are called „conspiracy the-
orists”. In addition, as the price keeps falling, people start to shun
away from the asset.
In the 21st century, the easiest option is to manipulate the price of
a good so that people themselves want to get rid of it without politi-
cians or governments having to deal with the consequences of that
ban. The big institutions have realized that it works much better
than prohibiting anything.
Therefore, in my opinion, Bitcoin will not be banned as long as it
can be controlled. But its price will continue to fall (with great vo-
latility) so that the average investor will begin to scorn Bitcoin and
sell it for the lowest price while the cartel will collect more at a lower
average cost. Bitcoin will be banned only if it remains out of their
control.