Bitcoin 101

Seven Reasons Why Trump Won’t ban Bitcoin

The united states president Donald Trump recently weighed on cryptocurrencies by bashing out Bitcoin. According to tweets posted on his twitter timeline on the 12th of this month, Trump stated that he was not a fan to any cryptocurrency terming them as volatile and unregulated assets that can be used in unlawful activities.


Trump also went on to add that if any cryptocurrency were to
be allowed to operate legally, it would have to pass regulation and act as a
bank under the laws of the united states.

Following his remarks, many investors are not sure if Trump would ban Bitcoin in the US or not. A Bitcoin Ban in the US would inevitably cause the coin’s price to crash. According to the remarks made by Trump, it’s clear enough that were it up to him he would have banned Bitcoin from the word go. So, what’s preventing him from banning Bitcoin? Below are some of the reasons why Trump won’t ban Bitcoin.

1.Bitcoin is protected by the first amendment

why Trump won't Ban Bitcoin

Source: zimmytws / iStock / Getty

Bitcoin’s code can be printed into text, which means it’s
categorized as published works. Nodes in a bitcoin network communicate through messages
that are transmitted as text and verified by cryptographic procedures. These
texts can be read by people and can be printed.

 The First Amendment
of the constitution of the united states limits the government’s oversight over
publishing media. This therefore means that the first amendment offers
protection to Bitcoin users that store their coins as text on paper or in
wallets.

The first amendment gives American citizens the right to
publish and share anything that they want to without any restrictions from any
authority. A part of the amendment reads, “Congress shall make no law
respecting an establishment of religion, or prohibiting the free exercise
thereof; or abridging the freedom of speech, or of the press; or the right of
the people peaceably to assemble, and to petition the Government for a redress
of grievances.”

2. It is impossible to ban open-source software

Unlike the internet which can be banned by governments that
have control over centralized servers used by ISPs, it is impossible to ban
Bitcoin because it works through a network of decentralized nodes.
Additionally, its network has grown very large across the globe, which makes it
impossible to ban it. 

Even in an extreme scenario where all Bitcoin core
developers are assassinated, and their access took over by a financial
regulatory body, current Bitcoin users will continue to run the existing
software and avoid any new version that’s generated after the hijacking.

3. Satellites can be used to broadcast Bitcoins

Even if the US government decides to shut down the internet for Bitcoin users, investors can still use Satellites to communicate.  In December 2018, Blockstream successfully launched a new satellite which streams the Bitcoin blockchain from space. The primary objective of launching the project was to reduce Bitcoin’s dependency on the internet and make it a more robust network.

4. It is possible to send Bitcoin via SMS

Even if the US shuts down the internet or puts in place
bottleneck measures for banks to service exchanges, Bitcoin investors can still
transfer Bitcoins through SMS carriers that do not require internet connection.
Countries like Venezuela already make use of Bitcoin SMS payments, and if the
US shuts down the internet for its citizens, they will easily migrate to the
use of SMS.

5. Banning Bitcoin would be fruitless

The war against Bitcoin in the US would be similar to the
war against drugs. Even if Trump managed to ban Bitcoin, investors in the
country would continue to use it through other unscrupulous means. The costs
incurred in fighting Bitcoin would be high compared to the results they will
achieve.

6. Trump’s egocentric nature is a bonus for Bitcoin and other cryptocurrencies

why Trump won't ban Bitcoin

According to Don Tapscott, there is little chance that Trump
would ban Bitcoin in the US because then he would have allowed China to
overtake the united states in becoming the world’s innovation leader.
Considering that every country is now keen on this disruptive technology, there
is no way that the US would sideline itself; the best they can do is to closely
monitor how the currency is used to avert any use for illegal activities.

7.It is impossible to switch off a nation’s power grid

One sure way of shutting down Bitcoin is by closing down the
power grid. However, this move would be impossible to make in the United States
with electricity being used in almost all sectors; healthcare, transport,
manufacturing, etc.

This move would cause an uproar among citizens and possibly
instigate massive destruction of property. It is with no doubt that no leader
would like to take that path only to hinder a single project from progressing.

It is also important to understand that the United States’
power grid is a public domain, which means the government has no authority to
shut it. 

Over the years since the mining of the first Bitcoin by Satoshi Nakamoto, Bitcoin has grown exponentially and it is the only currency free from political interference and whose owners are not known. It is therefore not logical for a country that’s keen on developments like the US, to ban it altogether. Therefore, it is just to conclude that Bitcoin is here to stay.

You might also Be interested in:

  1. UK’s Royal Mint to provide custodial services for New Cryptocurrency
  2. Is Bitcoin Bigger than Trump?

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coinmag

Daniel is an experienced writer with a keen eye on emerging technologies. He aims at educating the crypto community on the developments within the space.

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