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Say Monero gets big in COUNTRY_X.

Say COUNTRY_X doesn't like that for whatever reason and decides to stop it from both being mined and propagating throughout their country.

Say COUNTRY_X cranks up their firewall specifically targeting Monero.

What happens then? Do we have any options at all?

China is already able to block tor for example.

And the tor project hasn't even made a post about China in over 2 years which seems to say that they are currently defeated and without any hope or suggestions as to how they might move forward.

Does this mean that a hostile state actor could effectively block any cryptocurrency of their choosing from being transmitted either outside of or within their own borders?

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I suppose, given the nature of the internet, especially privacy enhancing tools like TOR or I2P networks that even if a government would try to block a specific service - users would always find one way or another to use it anyway. (See TOR bridges for example: https://www.torproject.org/docs/bridges)

Consider firewalling for example - how would a 'anti-crypto' state block you from using it? - blocking the crypto's RPC port? -> One could proxy it through ports 80 or 443 (http/https) so the blocking party could not easily determine whether its legit and simple web-traffic or being used for crypto transactions. (That's what TOR relay operators often do, they advertise their TOR-Port as 80/443 so when users connect to it - their ISP/Government/Employer would need to do way more than fire-walling).

So the only thing I see happening if a government would outlaw a crypto is, that the users who are really determined will almost always be able to use it - users however would need to compromise on comfortability, ease of use and sadly (let's hope not) risk prosecution by such (imho) stupid laws.

  • Tor bridges are not effective inside China, however. "Generally, once a bridge is detected and blocked by the GFW, it remains blocked." is a quote from my link in the OP. – randy Jan 12 '18 at 6:44

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