A Tale Of Tyrannies & Bitcoin (2/2)

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In Part 1 of this article, we looked at bitcoin bans by authoritarian governments, the narrative behind them, and the reaction of the country’s crypto users in 2021.

Related reading | Crypto Regulations Newsletter: A Tale Of Tyrannies & Bitcoin (1/2)

Ban risky Bitcoin

Tyrannies, afraid of the power of decentralized crypto, often claim that it poses many risks to investors and the economy.

But, as we’ve seen, the bans don’t actually relate to crypto as a risk to people.

Some of these governments (China and India) have also taken steps to reduce liquidity, replacing transactions with a central bank digital alternative: more oversight.

Crypto also presents another real risk for regimes – it has been used to fund protest movements. Not “terrorist movements” as dictatorships like to call it, but “protests” against real systemic problems. Against police brutality, hunger and other types of violence.

Opposites tend to be persecuted in these countries by any means necessary. People’s funds are frozen if they protest. Banking systems help to silence revolutions and the struggle for respect for fundamental human rights.

But tyrannies cannot freeze protestors’ BTC. There is your real risk: no government oversight.

Can Bans Stop Crypto?

Minors and their equipment are in the physical realm, so they can be sent to prison. But digital assets like BTC, because of how its technology works, would require a high level of control over the internet, like China’s Great Firewall, to keep citizens away.

When faced with bans, major exchanges have to comply with restrictions, adjusting their policies accordingly. In the case of China, for example, Binance had to shut down the yuan trading function, and other exchanges like Huobi started pulling users from mainland China.

However, despite the crackdown, some of these countries have subsequently achieved the highest BTC adoption rates on the planet.

In May 2021, a report from CryptoRefills showed that “The top 3 countries with the most crypto-consumers are the United States (7.6%), Nigeria (6.6%) and India (6.2 %) ”.

Nigeria again ranked 6th in August, according to the 2021 Chainalysis Global Crypto Adoption Index, and the number of cryptocurrency transactions in Turkey has risen to more than one million per day, a Reuters reported.

Chinese cryptocurrency miners have had to migrate to cheaper and safer places for mining – which has benefited other countries, like the United States -, and some users have reportedly found ways to continue. to invest by registering companies abroad so that the customer knows (KYC) can’t stop them from doing business as a company.

In 2021, many investors, subjected to these tyrannies, have found ways to continue trading with P2P platforms, and some have claimed that the irresponsible restrictions have only increased cybercrime. The crooks will swindle.

But Venezuelan tyranny loves crypto

Venezuelans are suffering from a dictatorship and the worst economic crisis in their history.

As Time reported in 2018, when the regime made its first approach to creating digital currency, it tried to ‘mutate and centralize Bitcoin’s peer-to-peer digital currency concept to create cryptocurrencies. controlled by the state like the Petro ”in order to escape the United States. sanctions – and other less transparent objectives.

The country’s government-linked cryptocurrency exchange recently listed BTC and Litecoin, but nothing in the hands of dictatorships is as good as it looks. Even when it sounds bad, it gets worse.

The Venezuelan government is considered one of the largest anti-drug organizations in the world. This should give you an idea of ​​their degree of corruption. So imagine a drug cartel / corrupt politicians having their own digital currency. Sounds safe and trustworthy, doesn’t it?

As always, the project was never clear enough in explaining its details. First, they said it was backed by oil, but the claims were empty. The Conversation described it as “simply a digital form of debt from a country without financial credibility and poorly managing its economy.”

Unsurprisingly, the Petro didn’t solve any problems or keep its promises. Many users have claimed to have been scammed on the platform and it would be possible to get banned from it without any explanation as all funds are frozen with no hope of seeing them again.

The moral of the story is that tyrannies don’t face their plans and use trends and digital assets to make shady moves a little better – and possibly rip off other peers.

Don’t Believe In The Diets That Sell You [fake] crypto, don’t believe in [fake] crypto sold by regimes.

Related reading | Latin America Tipping Point: Axie Infinity + Petro Scholarships from Venezuela

Bitcoin is trading at $ 46,542 in the daily chart | Source: BTCUSD on TradingView.com

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