Here’s Why Governments Will Not Ban Bitcoin Ownership!

The AEGIS Alliance Accepts Bitcoin Contributions at: 35fJFcE1xQPwt1KujXUrmKn9J8WEnm9BbM

(The AEGIS Alliance) – Those who view world governments are set on banning bitcoin ownership are ignoring the political power, along with the influence of those who grab up a majority of the bitcoin.

To truly understand an asset, we need to look into not only the asset itself but who owns it as well, and who’s able to afford to own it. Such attributes may illuminate the financial and political power belonging to the asset class owners.

Once we know what sort of financial or political power is in the hands of the asset class owners, we can make predictions about the political restriction limits that could be imposed onto that ownership.

For an example, consider ownership of a principal residence /  home ownership. Home ownership reached its peak in the year 2004, when more than 69% of all households were “owners” and not renters. (Owners is placed in quotes since a lot of these home owners actually had no equity in their home after the housing bubble had popped.)

The home ownership rate has fell to 63%, which is still roughly two-thirds of all households. Clearly, homeowners constitute a political force that is powerful. Any political power seeking to place restrictions or additional taxes on homeowners has to be careful not to rouse this super-majority into political action.

However, raw numbers of owners of an asset class are only one way of measuring political power. Because ours is based on a pay to play form of democracy that is representational in which monetary wealth can purchase political influence via contributions to campaigns, philanthro-capitalism, ever revolving doors between lucrative corporate positions and political office, etc., monetary wealth casts the voting that is counted.

It is amusing when essayists claim ‘the government’ will do whatever has benefits for the government the most. Even though this is mainly correct, this is ignoring the reality that wealthy corporations, citizens, and individuals, own the governing processes.

To be more accurate, we are able to say that government will do whatever will benefit whoever is controlling the levers of power the most, which is much different than the claims that government takes action only to increase its own various interests. To be more specific, it does more for what those in the top of the monetary wealth-power pyramid have set as the interests of the government.

This brings us an interesting question, would governments desire banning bitcoin for being a threat to their power? A great number of people who’ve been observing claim that yes, government would desire banning bitcoin because of the threat it represents to their controlling of the fiat currencies issued by them.

you can now literally turn your spare change into a bitcoin investment

Although, since governments are set to whatever will be most beneficial to those controlling the levers of power, then the question turns into, is bitcoin beneficial to those in possession of the levers of power? If this answer is a yes, then we are able to predict that governments won’t ban bitcoin (along with other crypto-currencies) since those with the final say will reject any proposals made for banning bitcoin.

We’re also able to predict that any restrictions imposed would likely be targeted at collecting capital gains tax on profits created with crypto-currencies instead of an outright ban on ownership.

Seeing as how the monetarily wealthy are already paying the lion’s share of the federal income tax (taxes for payroll are of course paid by employers and employees), their interests on override are capital appreciation and preserving wealth, along with lowering the burdens of their taxes by playing the third fiddle in this grand scheme for maintenance of their power and wealth.

Indeed, the paying of their taxes inoculates them to a degree, from political revolt and social disorder.

There was a striking quote from a Zero Hedge article named A Look Inside The Secret Swiss Bunker Where The Ultra Rich Hide Their Bitcoins:

Xapo was founded by Argentinian entrepreneur and current CEO Wences Casares, whom Quartz describes as “patient zero” of bitcoin among Silicon Valley’s elite. Cesares reportedly gave Bill Gates and Reed Hoffman their first bitcoins.

Their first initial bitcoins. This is suggesting the billionaires have added upon their initial gifts of BTC.bitcoin price soars above 5300 to new record high

The appeal of Bitcoin to the wealthy seems obvious: any investments denominated in fiat currencies are able to be devalued practically overnight by devaluations of the currency via currency crisis or a decree made without popular consent. Bitcoin holds the advantages of being independent of centrally-issued currencies and also decentralized

This leads me to believe that not only are the rich liekly bitcoin buyers for this reason, they’re the only group able to afford to purchase lots of bitcoin as a speculative investment or hedge. Real Investment Advice‘s  Lance Roberts recently made some charts which are based on the 2016 Federal Reserve’s Survey of Consumer Finances (SCF) report – Fed Admits The Failure Of Prosperity For The Bottom 90%.

To put it another way: how many families are able to afford to purchase lots of bitcoin?

Here is a median value of family financial assets chart: note that this much lower than the year 2000 peak and the housing bubble of 2006 to 2007:

why governments will not ban bitcoin

Here is the mean value of family financial assets broken up by income category: note that pretty much all of the gains have accrued to the top 10% of income holders, whose net worth increased from $1.5 million in the year 2009 to over $2.2 million during 2016, a $700,000 gain.

1508858877 308 why governments will not ban bitcoin

The Fed’s 2016 Survey of Consumer Finances contains a treasure trove of insights into income inequality and wealth in the United States. These are the highlights: Changes in U.S. Family Finances from 2013 to 2016.

As one would expect, this report begins on a happy note: GDP rose by 2.2% a year, unemployment declined to 5%, and the median family income rose 10% between 2013 and 2016.

Meanwhile, over on page 10, it is revealing the top 1% receives 24% of all income, and the families between 90% and 99% receive 26.5%, for a total of 50.5% of all income flowing to the top 10%.

The top 1% owns 38.6% of all wealth, and the families between 90% and 99% own 38.5%, so the top 10% owns 77% of total wealth.

Then on page 13, it is found that the total median net worth of all families between 40% and 60% went from $57,000 to $88,000, a gain of $21,000, while the median net worth of families in the 60% to 80% bracket rose from $166,000 to $170,000, a grand total of $4,000.

Meanwhile, the median net worth of the top 10% increased by $468,000, from $1.16 million up to $1.62 million.

Which family is capable of buying lots of bitcoin at $5,000 give or take on the low end (Let alone each as a an investment or hedge, the $4,000 gained in net worth, the $21,000 gained in net worth or the ones that had gained $468,000?

You can see the point: the more likely purchasers of enough bitcoin to count are the politically powerful financial elites. If any political power was foolish enough to propose a ban on bitcoin, a bit of friendly phone calls from major financial backers would happen in order to impress upon the political power the importance of cryptocurrencies and blockchain technology to the United States economy.

The financial backer might even just make a suggestion that all future campaign contributions to the political power will be done in bitcoin to drive the point home.

The reality of existing crypto-currencies is that they’re probably being bought up for “buy-and-hold” storage by the rich. Those who view governments will ban the ownership of bitcoin ignore the political power and influence of those who are purchasing enough bitcoin to count.

The AEGIS Alliance Accepts Bitcoin Contributions at: 35fJFcE1xQPwt1KujXUrmKn9J8WEnm9BbM

Kyle James Lee – The AEGIS Alliance – This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Kyle James Leehttps://www.theaegisalliance.com
Majority Owner of The AEGIS Alliance. I studied in college for Media Arts, Game Development. Talents include Writer/Article Writer, Graphic Design, Photoshop, Web Design and Development, Video Production, Social Media, and eCommerce.

The AEGIS Newsletter sends out during reasonable U.S. hours after 8 articles are published. May also include occasional updates about our YouTube Channel. Signup Form:


Please make a monetary contribution toward raising awareness of important social and humans rights issues that don't show support for politicians via Crypto. We also accept PayPal and Checks by mail. 70% go toward these important projects. Click here to Donate.

  • Bitcoin
  • Ethereum
  • Xrp
  • Litecoin
  • Stellar
  • Bitcoin cash
  • Dogecoin
  • Usdcoin
  • Aave
  • Uniswap
  • Wrappedbitcoin
  • Eos
  • Cosmos
  • Tezos
  • Synthetix
  • Dash
  • Maker
  • Dai
  • Ethereum classic
  • Zcash
Scan to Donate Bitcoin to 35fJFcE1xQPwt1KujXUrmKn9J8WEnm9BbM

Contribute Bitcoin to this address

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0x2764fe441CB5EBd9919eDAD4b2Bf70Dc2dC399Da

Contribute Ethereum to this address

Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Xrp to rw2ciyaNshpHe7bCHo4bRWq6pqqynnWKQg:::ucl:::4125838298

Contribute Xrp to this address

Scan the QR code or copy the address below into your wallet to send some Xrp

Scan to Donate Litecoin to MKVu1osxKsRSBc7U2NdgdYnyjMPanMUxx9

Contribute Litecoin to this address

Scan the QR code or copy the address below into your wallet to send some Litecoin

Scan to Donate Stellar to GDQP2KPQGKIHYJGXNUIYOMHARUARCA7DJT5FO2FFOOKY3B2WSQHG4W37:::ucl:::1372392101

Contribute Stellar to this address

Scan the QR code or copy the address below into your wallet to send some Stellar

Scan to Donate Bitcoin cash to qr9j84dx9736ultjr7ty2dcr5rl27z5m2vx0hjqw57

Contribute Bitcoin cash to this address

Scan the QR code or copy the address below into your wallet to send some Bitcoin cash

Scan to Donate Dogecoin to D6FCQDbi1cenyKAyg6pWLy6gnhdRra2tXG

Contribute Dogecoin to this address

Scan the QR code or copy the address below into your wallet to send some Dogecoin

Scan to Donate Usdcoin to 0x0D835EF9e29dDD73C380F0d6E191EABb1ff09948

Contribute Usdcoin to this address

Scan the QR code or copy the address below into your wallet to send some Usdcoin

Scan to Donate Aave to 0x8B0bCAc87797F076c79875B29b8Bd0B27600E653

Contribute Aave to this address

Scan the QR code or copy the address below into your wallet to send some Aave

Scan to Donate Uniswap to 0xdc3BCc8Fb024711a1a5EFA9AA03684A5eC7e1E53

Contribute Uniswap to this address

Scan the QR code or copy the address below into your wallet to send some Uniswap

Scan to Donate Wrappedbitcoin to 0x751EA7C46f2c2300dBB152A8AEa15d3635c28239

Contribute Wrappedbitcoin to this address

Scan the QR code or copy the address below into your wallet to send some Wrappedbitcoin

Scan to Donate Eos to coinbasebase:::ucl:::4148396760

Contribute Eos to this address

Scan the QR code or copy the address below into your wallet to send some Eos

Scan to Donate Cosmos to cosmos1jzsxgx8q9hcfrqj9rp5zcmwrg036mq3293kmgy

Contribute Cosmos to this address

Scan the QR code or copy the address below into your wallet to send some Cosmos

Scan to Donate Tezos to tz1iJcMLYSBH3jpMGQnmHMhhyHwYbjPtGxja

Contribute Tezos to this address

Scan the QR code or copy the address below into your wallet to send some Tezos

Scan to Donate Synthetix to 0xf698dbbeEa1643Ba38E96C36AB6Bb159b243EfF1

Contribute Synthetix to this address

Scan the QR code or copy the address below into your wallet to send some Synthetix

Scan to Donate Dash to XgCyxihABi2Aj9F9XEcfWuffm24jv7BXx7

Contribute Dash to this address

Scan the QR code or copy the address below into your wallet to send some Dash

Scan to Donate Maker to 0xE595297c54804A8Ab9D28B6BEaE8883593F687aE

Contribute Maker to this address

Scan the QR code or copy the address below into your wallet to send some Maker

Scan to Donate Dai to 0x1BB5235FDC23985AFf3DcEfB32de3272BD477669

Contribute Dai to this address

Scan the QR code or copy the address below into your wallet to send some Dai

Scan to Donate Ethereum classic to 0x445F9E3F78c66A571179f06A478ee6f912c2E3d1

Contribute Ethereum classic to this address

Scan the QR code or copy the address below into your wallet to send some Ethereum classic

Scan to Donate Zcash to t1VzosYBYkWFt4s91GupLZmPQLKPtwk67zq

Contribute Zcash to this address

Scan the QR code or copy the address below into your wallet to send some Zcash


Leave A Comment

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Please make a monetary contribution toward raising awareness of important social and humans rights issues that don't show support for politicians via Crypto. We also accept PayPal and Checks by mail. 70% go toward these important projects. Click here to Donate.

The AEGIS Newsletter sends out during reasonable U.S. hours after 8 articles are published. May also include occasional updates about our YouTube Channel. Signup Form:


Signup for The AEGIS Alliance Newsletter!
The newsletter sends out once after eight new articles are published, during reasonable U.S. hours. Newsletters may also contain occasional updates about what's new on our YouTube.
Submit
You can unsubscribe at any time!
close-link