TechnologyWhat If Crypto Gets Banned? A Look at The...

What If Crypto Gets Banned? A Look at The Future Situation And What To Do

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What if crypto is banned? Are they likely to be soon? It can be used for many purposes and allows people to trade their favourite currencies for another currency or a specific value. There are many uses of cryptocurrency, such as online gaming, purchasing virtual items with your Bitcoin or Litecoin, or investing in cryptocurrency-related ventures. Let’s look at the current situation and what to do in case of a ban. Here we will list some consequences if crypto gets banned!

Crypto Investors Will Lose Money

The first and most obvious consequence is that cryptocurrency investors will lose money. As of September 2018, the market cap of all cryptocurrencies is over $200 billion. It is more than what Twitter makes in a year. Many investors have made a lot of money by investing in currency early. 

However, if cryptocurrency gets banned, the investors will lose money. Some people have invested millions into cryptocurrency, and if it gets banned, they will lose their investment overnight and may not be able to recover their losses at all.

Crypto-Based Businesses Will Lose Money And Shut Down

Another consequence of a crypto ban would be that businesses based on crypto will lose money and shut down. For example, many gaming companies allow users to buy virtual items using Bitcoin or other cryptocurrencies. 

Suppose this becomes impossible or illegal to do so. In that case, these companies will most likely go out of business because no one will want to buy virtual items with fiat currency anymore! The same goes for any other business that is based on crypto as well because no one will want to buy things with fiat currency anymore in this case since there is no point! 

Many businesses that use crypto as a form of payment may also suffer!

Governments Will Lose Money

Some countries use their national currency for online transactions. For example, in some countries, you can only use the local currency for online transactions.

If this becomes illegal, it will result in the government losing money and being out of control of the currency exchange rates. It could lead to many problems for governments and their economies since they won’t be able to control this anymore.

Photo By: Art Rachen / Unsplash

Countries With A Crypto Ban May Lose Their Influence In The World

Finally, if a country bans crypto trading and use, it may lose its reputation in the world as well as its influence. Many people worldwide follow what is going on with cryptocurrencies and are interested in trading them or using them as payment methods. 

If a country bans cryptocurrencies, people worldwide will probably think this is not good and not something they want to do themselves. It could lead to less tourism in that country which would be bad news for many businesses there!

Loss of Bitcoin and Other Crypto Users

If cryptocurrency gets banned, then many crypto users will lose their money. If this happens, it will lead to the loss of a lot of money and many individuals who have invested in Bitcoin or other cryptocurrencies.

Loss of Security for Online Transactions

The cryptocurrency system is secure, but if it gets banned, it might cause people to lose trust in online transactions and potentially lead them back to using cash for payments.

Bidding cryptocurrency may also make it more difficult for people involved in illegal activities because they would have to find another way to get around the bans on their accounts.

Photo By:
Kanchanara / Unsplash

People Will Lose Access to Many Different Services

Many online services require a fee for usage or access, such as subscriptions or games we can access by paying with Bitcoin or other cryptocurrencies. If these services are not available anymore because they were banned due to the use of cryptocurrencies, then many people would be left without access and would have no way of getting around this ban because they have no other option than using cryptocurrencies for these services. 

It could potentially end up losing them a lot of money because they would not be able to use these services anymore because they cannot pay with fiat currency anymore or because these services are no longer available to them.

If a government decides to ban cryptocurrencies and make them illegal, it could cause people to lose all of the money currently on their accounts or in their possession.

If they are left with no other way to access or use their cryptocurrencies, they will be unable to do anything with them, which would essentially become useless. It could potentially cause them a lot of financial harm because they would not be able to use it anymore.

Loss of Jobs

This ban would affect many people involved in the industry of cryptocurrencies and those who work at exchanges, cryptocurrency companies, and other jobs related to the industry. 

Because of this potential loss of jobs, many people could end up losing their jobs, and some may not have any other options for employment because these jobs were their only option for employment at this current time. 

It can end up causing major financial problems for these people because, most likely, they will not be able to find another job elsewhere. After all, there is no demand for these jobs anymore due to the government banning cryptocurrencies altogether. It can cause many people to lose their jobs and potentially become unemployed.

Loss of Money

Ban would affect many people involved in the cryptocurrency industry and those who work at exchanges, cryptocurrency companies, and other jobs related to the industry.

These people may have invested a large amount of money into cryptocurrencies to be able to make it big with them. They would not be able to use them anymore because the government bans them. If the government bans all cryptocurrencies, these people will lose all that money they invested into them because all of their investments will become useless.

It could cause these people financial problems because they could potentially lose a large amount of money if they invest heavily into cryptocurrencies to make it big.

Photo By :
Pierre Borthiry
/ Unsplash

People Would Have To Go Back to Traditional Forms of Money

If cryptocurrency gets banned, people must rely on their bank accounts or credit cards once again. However, with all the recent issues with these traditional forms of payment (such as identity theft and fraud), it might not be that much better than using cryptocurrency! 

The only advantage is that you can see where your money is going with credit cards or bank transfers, but then again, you do not get all the benefits that crypto offers, such as anonymity!

There Will Be Less Innovation in This Area

Cryptocurrency has enabled people to create coins without going through banks or other financial institutions. It is a great innovation that allows new people who want to invest in blockchain technology a chance to do so without spending too much money on it. 

If crypto gets banned, there will be fewer innovations in this area since no one will have any incentive to create new coins.

Not Able Spend Money Anonymously

One of the biggest reasons people like cryptocurrency is that they can spend their money anonymously. However, if there is a ban on cryptocurrency, you won’t be able to do so anymore! 

It will make it harder for people who want to keep their identities private. There are also some countries where using crypto is illegal, and it could get you in trouble if you use it.

The Value of the Currency Will Go Down

Cryptocurrency has been able to change the way people do business. Most transactions are now done using crypto, making it possible for people to keep their money safe from banks. However, if cryptocurrency is banned, this will also mean that its value will go down since no one will want to use it anymore.

Since there is so much money in this area, a ban could significantly impact its value.

No One Will Be Able To Buy With Crypto 

One of the reasons why everyone likes crypto is because they can buy everything with them. Many shops only accept cryptocurrency and have benefited from this by making more profit! If there is a ban on cryptocurrency, no one will be able to buy anything with them anymore since most people won’t have any access to it! 

It could cause some problems in the economy as well as in our daily lives.

Photo By :
Art Rachen/ Unsplash

The Economy of the Country Could Collapse

If cryptocurrencies are banned in a country, people will no longer be able to pay their taxes, buy goods or services from retail shops, and do day-to-day transactions such as buying groceries from supermarkets or paying utility bills online. 

That country’s economy will surely collapse if this happens because people would not be able to purchase goods or services from retail shops, which would lead to a government revenue decrease and a loss of tax revenue for that government.

Banks Will Get Bankrupted From Crypto-Related Activities

Banks know how much money they make from charging high fees for processing customer transactions and keeping customer funds safe in various countries. Banks have lost billions of dollars due to hacking incidents and have failed to keep up with innovations like cryptocurrency, thus leading them to lose customers and lots of money through hacking incidents. 

If banks get bankrupt due to losing customers due to banning cryptocurrencies within their borders, they would need to go through significant restructuring, which would decrease their profit margins.

Government Will Lose Tax Revenue

The government has always been the primary beneficiary of tax revenue from the people of a country; if a country decides to ban cryptocurrencies and make it illegal for the people to use cryptocurrencies, then that country’s government would lose out on a lot of money. 

The government is already losing money due to hacking incidents, poor infrastructure, and poor management, so if they have to lose money from banning cryptocurrency usage, they will lose more than they already have.

High Fees for Processing Transactions in Fiat Currency

If banks are allowed to charge high fees for processing transactions in fiat currency, then customers would be forced to use cryptocurrencies which would increase the demand for cryptocurrencies and make them more expensive because their demand will increase, which will also cause their value to increase.

Criminals Will Use Cryptocurrencies in Criminal Activities

Suppose criminals can use cryptocurrencies in their criminal activities. In that case, the government will lose a lot of tax revenue, spending more on law enforcement and other crime prevention measures.

People Will Start Hoarding Cryptocurrencies

If people start hoarding cryptocurrencies because they think their value will continue to rise, then there will be a shortage of them, and they will become more expensive, making it easier for those people to get rich quickly.

Final Thoughts

Cryptocurrencies are still relatively new but have already become very popular worldwide. Banning them would probably be a terrible idea because it would damage economies even further than they already are today! As you can see from above, a crypto ban has many different consequences, including severe issues for countries worldwide, such as losing money or having their reputation ruined!

If you liked this article, check out: ‘What If 1 Dollar = Rs 1 Happened? The Real World Implications of This Economic Reality.’

 

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