How Governments Seizing Cryptos Are Helping the Market Grow
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Times look bleak for Bitcoin fans, yet these moves and the all-out war on cryptocurrencies in recent times are helping the market grow. Officially recognizing digital assets might be a very small step, but it’s still a step in a positive direction.
Valuable Source of State Revenue
The recent developments with all the cryptocurrency assets seizure from governments around the world are giving Bitcoin and other cryptos the wind they need in their sails. While it’s negative PR for sure, it’s still a step forward in the right direction.
Countries around the world are yet to define cryptocurrency legally. However, they are still faced with addressing financial activity that involves decentralized digital assets. Without regulations, though, many governments deal with the issue ad-hoc. For example, the Latvian tax authority recently seized BTC from a convict for the first time in the European country’s history. However, reports said that due to lack of regulations, they couldn’t do anything with it, letting the BTC sit in the convict’s wallet even after seizing it officially.
That’s the problem with governments around the world – they are hellbent on banning Bitcoin, but they truly can’t do anything. Many countries have seen the benefits of cryptocurrencies during the COVID-19 pandemic and have made steps toward officially recognizing Bitcoin and cryptocurrencies. However, not all of them are taking the same route. Russia, for example, is planning to ban crypto trading and possession, and India may be going down that road too.
Bitcoin and cryptocurrencies have a lot of bad reputation after governments have tracked them to terrorist organizations. The biggest US crypto funds bust happened this August, when the Justice Department seized millions of dollars worth of cryptocurrencies from over 300 Al Qaeda accounts. While it’s great that they have cut out such a supply, all of that money will eventually land in the state treasury.
Governments have been inventing new ways to seize crypto assets and claim them as their own. In the USA, for example, law enforcement agencies regularly auction off huge BTC amounts and of course, claim the money themselves.
Helping the Market Grow
Seizing crypto funds has a positive effect on the market. Government activity against Bitcoin and cryptos doesn’t have a significant negative impact on the world’s leading cryptocurrencies or other digital assets. As a matter of fact, it helps the crypto myth grow and enables many industries such as Bitcoin online gambling to thrive.
All the fearmongering and connecting cryptocurrencies to terrorist organizations isn’t going to make people back down. Cryptocurrencies have many advantages and the world is starting to realize their potential. All that negative PR is eventually turning to great marketing for Bitcoin and other cryptos and helps the market thrive in these uncertain times.
