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The ‘War on Bitcoin’ Is Almost Here – And It Will Get Ugly

Ben Brown
For better or worse, bitcoin is now on the global stage, and the cryptocurrency could face a war for its very survival. | Source: Shutterstock

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.

Meanwhile, India just proposed an all-out ban on bitcoin while China scrambles to create its own cryptocurrency.

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.

  1. Honeymoon
  2. Black Market
  3. Competition
  4. Surrender

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.

Read the full story on CCN.com.