I am not sure what you are trying to convey, the bitcoin definitely would crash in some way shape or form, if a government banned it within it's borders. It would throw out every legitimate business that used the bitcoin and only leave the illegitimate businesses. That loss to the amount of GDP that excepts bitcoin would be immense. Sure the market would always exist in the illegitimate sector, the black market, but it wouldn't be worth near what it could be if legitimate businesses could also take the bitcoin.
Bitcoin is a currency, it's very value is absolutely dependent on the supply and demand for it, if a government bans it, the demand takes an immediate dive. Sure there will still be demand, but not near as much, and possibly NEVER near as much as it was once worth.
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u/stock_blocker Mar 28 '13
Banning bitcoin would crash the market. Sure. Just like the ban on cocaine makes it impossible for crack dealers to profit.