Governments can and will squash it if they want and there's no amount of arguing that will save it from becoming put under so much regulation that nobody will use it.
three things regulators can do..
tell bitcoin BUSINESSES (exchanges) to stop servicing BTC much like you see american exchanges like coinbase not list monero
if bitcoin was regulated by CFTC(commodity regulator) then extra regulations become applicable where environmental concerns are allowed to limit/prohibit things. such as asking power companies to not service large electric using industries if the power companies are fossil based. this cna impact mining farms.
corporations that employ the main bitcoin devs with merge/commit/maintainer privilieges of bitcoin core acn have their employers pushed to push their employees to develop new forks that are doing different algo/s features and functions that regulators want
but here is the thing. even if regulators push for a fork and make exchanges in america only list the fork as "btc". the community could rally around a camapign to just stop using those exchanges and delare those exchanges as fake bitcoin traders. losing exchanges money
yes it could make bitcoin take a few steps backwards in its growth and have to then popularise the exchanges that are not US regulated. much like when MTGox disapeared it took a while for people to trust other exchanges as the main price discovery sites.
but thats all just temporary dram of yet another fork yet another mining farm location shift and yet another change of the most popular exchanges to use as price discovery
but with al that said. there are many things to do before any of that happens to mitigate the drama, minimise the impact and even prevent the risk of there being any attempt/effort to push those regulators into doing anything
Store of value doesn't shed 40% of it's value... That's indicative of a ponzi scheme. How about lets talk about the trading bots that ultimately control the market, or am I a conspiracy theorist for pointing this out?
you are confusing value vs price
the store of value does not follow price. they are separate measures
SOV is a amount below the market bottom. its the no-mans land of trading where no one trades below. but its not a daily change figure. its a long term milestone amount.
so while the price jumps around daily the store of value amount sits below that healthily and slowly rises per quarter-year
al assets have a SoV amount. but like i just said non of the SoV amounts are the price..
lets use gold
the SoV amount is $900 and the market price is $1700
SoV is ~55% of price
ethereumPoS has a SoV of $35 and its market price is $1300
Sov is ~2.7% of price
bitcoin has a SoV of ~$15k and the price today is $19k
Sov is ~ 79%
..
no where in history has store of value ever meant that it stores all of price as value and locks in that value to never lose anyone any value
prices always change so SoV has never been the price amount
SoV is about have a non zero 'bottom' no one sells below thus protecting a certain % of peoples buy price
if the price is low and closer to its SoV then that is called GREAT VALUE
yep when the price goes down its good to then buy becasue the percentage of your buy is protected more due to being close to great value thus locking in more of your value
when the price is high.. thats the speculative bubble. and not a good time to buy
bitcoin. or any assets VALUE is NEVER i repeat NEVER sat at the ATH. value is ALWAYS sat at the LOW
when the price corrects after the bubble ATH the correction down is not "losing value" its infact the price returning to great value prices wher people can lock in and secure more of their wealth