A central value proposition of Bitcoin is its resistance to censorship attempts by central authorities such as governments, authorities or institutions. Even though possible attack vectors exist (the prohibition of Fiat crypto exchanges would be one), the decentralized nature of the network makes the prohibition of the crypto currency crucially difficult.
The example of Iran and Venezuela shows that Bitcoin’s resistance to censorship is more than just an old wives’ tale that is always tried to emphasize the advantages of the crypto currency in bad times. The reason why BTC-ECHO also regularly reports on developments in countries with dysfunctional currency systems is that these countries are suitable test cases for testing Bitcoin’s value proposition using real examples.
And see the news spy: the demand for BTC in Iran and Venezuela is actually increasing
Although the news spy and the Bitcoin government in both countries is not well-disposed towards Bitcoin, the citizens seek their salvation in mining and buying Bitcoin according to the news spy. In Venezuela even with the risk of being arrested.
In states whose currency is shaken by hyperinflation, BTC can be an exit strategy. Because “censorship resistance” means that the seizure of Bitcoin is complicated.
Even proof of Bitcoin secret is difficult to produce
Keyword: Bitcoin secret. At this point, however, it must be stated that Bitcoin secret is also difficult to ban. In practice, however, governments can make it much more difficult to acquire gold with the help of capital controls. The Indian Gold Control Act is an example of this. Undecided.
Gold has a millennia-long tradition as a means of payment. Since the dissolution of the gold standard in 1971, however, the use of gold as a means of payment has been a thing of the past. Since then, investors have largely used gold as a store of value and an object of speculation.
BTC, on the other hand, still has its future as a means of payment ahead of it. With second-layer solutions such as the Lightning Network, use as a means of payment is conceivable.
In practice, even in the gold standard, payment was usually not made with physical gold units but with gold-collateralised debt securities. Nevertheless, I rate Bitcoin’s liquidity higher at this point. Unlike gold, global payments can be booked within minutes – a value proposition with far-reaching implications for the financial sector.