For better or worse, bitcoin is now on the global political stage.
It was discussed in Congress. Donald Trump slammed bitcoin on Twitter. The Treasury Secretary called cryptocurrencies a national security threat, and the chairman of the Federal Reserve urged caution.
What we’re seeing around the world is eerily similar to a theory put forward by Eric Voskuil. If the theory holds, we may see a “global war on bitcoin” emerge.
4 phases of bitcoin and government interaction
According to the thesis, bitcoin will go through four phases in its battle with states and regulators.
- Black Market
The US is arguably in the “honeymoon” phase right now. In this scenario, governments don’t outlaw bitcoin entirely, but they exert heavy regulatory pressure on companies operating in the bitcoin ecosystem.