Some people have started wondering if crypto will survive if more regulations are in place or if the regulations become very strict. Some governments think that regulations are very important because they create control but to what extent the regulation should be imposed also matters. Cryptocurrencies have been in existence for a little over a decade. When all these started, nobody believed that Bitcoin would do good. But today it is not even affordable for a common man to purchase and hold Bitcoin and there is a high chance that the value can increase and go up even further. This fact already proves the survival capabilities of cryptocurrencies.
Survival also depends on the coin we choose. Some coins might be a native one and it would be backed by a big company or a group of investors or otherwise, there will be some valid use cases in the real world backing up a few cryptocurrencies. If all that happens, the survival rate will also be high. Some projects also vanish in no time. This can happen for several reasons. In the last 10 years, many such things have happened.
P2P will always be there
Let's assume a case where there is no facility to trade cryptocurrencies or buy or sell cryptocurrencies because of some weird regulations. People are already doing trade without the visibility of the government and other regulatory bodies. These transactions happen through peer-to-peer. There would be someone interested in purchasing crypto and in another place, there would be someone who would be interested in selling their crypto. Some platforms connect them and trading or exchange happens. This is one of the best ways of moving crypto from one person to another person without any fees.
Node operators all over the world
Node operators play an important role in blockchains. To keep a blockchain live, a validator is important. They operate a node and with that node, all these activities happen. Internally the blockchain code handles how the node operators can handle legitimate transactions. When node operators are spread across the world, there is a high chance that even if one person stops operating a node, there will always be someone else who will be running a node making the blockchain keep going. It is doubtful for a blockchain to get halted unless there are any technical issues with the blockchain code itself. Otherwise, the blockchain will always be available.
People move to crypto-friendly countries
There are only a few countries these days that have a crypto ban. Some countries have introduced a regulation that is very good for the people. Some countries have also mentioned that there would be no tax on crypto and some countries have strict tax on crypto and it is also very high. I heard that India and Denmark are some of the countries that have very high taxation on crypto transactions. With these regulations, people find it hard to keep up and some people choose a crypto-friendly country and move there. One of my friends recently moved to Singapore to avoid regulatory concerns we have in India.
Regulations are important too
I wouldn't say that there should be no regulations at all. I would disagree if anyone says that. Some level of regulation is required for safety and especially for preventing abuse, money laundering, and also rug pulls. There is a huge risk in crypto that one person can easily get cheated by another person. To prevent these things to some extent regulations are important. But maybe the effect of these regulations should not be harmful. Hopefully, some countries will reconsider their stand on cryptocurrencies and start supporting them.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
Vote @balaz as a Hive Witness
Vote @kanibot as a Hive Engine Witness
