What the ban on crypto exchanges in China tells all of us .... ? That for Liberty and Freedom to take hold, appropriate climate is needed. Which means all participants in the global economy need to be part of the success story. The participants includes common person, corporations and governments.
While it is in the benefit of the humanity that Crypto-currencies are nurtured through appropriate environment, which includes minimum regulation, balanced oversight and sustainable growth, there are many obstacles from few of the stakeholders in the global economy. It will be Frankenstein victory, if crypto-currencies exclude some of the major participants.
So how this is going to play out in the next 12 to 18 months. There are three possible scenarios
Best case scenarios: No interference from the sovereign governments and major institutions. Crypto-currencies are accepted by all participants in the economy - common person, corporations and governments.
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Worst case scenarios: Governments and regulatory institutions are determined to curtail the growth and identify ways to eliminate or at the least control the growth trough various policies, procedures and tools. While the proponents on crypto-currencies are confident of the independence of block-chain, large scale acceptance , is not possible without the support of governments. So what are the worst case scenarios?!
Ban crypto-currency and ICO exchanges (similar to China)
Enforce voluntary declaration by tax payers. Violations will result in criminal proceedings
Take down all websites relate to crypto-currencies from the global DNS servers
Disconnect or isolate all crypto-currency transactions by not allowing conversion to legal tenders (USD, CAD , CNY etc.)
Penalize businesses that does sales through crypto-currencies
and the list of options that government can use are numerous.
Realistic or pragmatic scenarios:
Crypto-currencies coexist with other legal tenders. Crypto communities allow government or regulatory institutions to have minimum oversight to common society is intact. Governments understand the need for digital currency , liberty and freedom. Governments all over the world respects the freedom of common man.
There is always a middle path in all aspects of life!!!