Is It Possible to Ban Bitcoin?

By Aleksandra Wilson
2 min read October 7, 2021

Since the inception of Bitcoin, there has been an opinion that countries around the globe would ban the cryptocurrency, and it is only a matter of time. First of all, Bitcoin is often considered a threat to fiat currencies, with the capacity to affect the control of financial institutions over the monetary supply. As this cryptocurrency has an anonymous nature, there is a concern that Bitcoin facilitates money laundering, drug trafficking, and ransomware. However, it depends on a country whether it is possible to ban Bitcoin. 

It is worth noting that the use of Bitcoin has already been prohibited in different regions. At the moment, some countries place a complete blanket ban on Bitcoin. They restrict the ownership and use of cryptocurrency. Among these countries are Egypt, Nepal, Ecuador, Algeria, and Pakistan. Also, Taiwan and Saudi Arabia implemented a partial ban on the use of cryptocurrency; the governments of these countries prohibit financial institutions from dealing in Bitcoin and carrying out Bitcoin transactions. 

In 2021, China has been the most aggressive towards the use of Bitcoin of all countries that expressed their negative attitude towards cryptocurrency. China has introduced restrictions on Bitcoin mining; the country forced miners to cease their activities. The People’s Bank of China introduced an edict to transaction platforms and banks that ordered them to stop all the operations with the cryptocurrency. 

Prior to mining restriction, China was in control of almost two-thirds of the worldwide Bitcoin mining industry. This restriction resulted in a mass exodus of miners, and crypto exchanges stopped servicing Chinese customers. Also, all crypto-related accounts were terminated by the Chinese social media network Weibo. Nevertheless, some people in China can still access foreign crypto exchanges by means of using VPNs. 

Meanwhile, in spite of the slump following China’s ban on mining, Bitcoin’s mining hash rate has recovered. While Bitcoin’s pre-ban height of price is still recovering, it has noticeably increased since August 2021. 

Even though governments can issue edicts that prohibit Bitcoin, the enforcement of such a ban would be quite complicated. Unless the government controls the use of the Internet, people would be able to use Bitcoin wallets, complete transactions, or run a node. It is certain, as there many Bitcoin users in the countries that have already prohibited its use.

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