Bitcoin Forum

Governments run economies using budget deficit spending. This relies on being able to control the flow of value across borders.

From its genesis in 2009 Bitcoin has had four price bubbles, each one ending with Bitcoin gaining thousands of percent in price and an ever larger market capitalisation.

The third bubble ended when Bitcoin hit $1163 US dollars a coin. Prices then collapsed 87%.

Things went quiet on the surface for three years, but by the end of 2016 Bitcoin’s market cap had doubled to around $15 billion. To put this in perspective, this is equal in size to the 341st biggest company in the United States.

In 2017, things went sideways.

The driving force of international capitalism chasing Bitcoin for a share of the action pushed the price to just under $20,000 US dollars.

At this price, the total value of Bitcoin hit $315 billion US dollars. More than the mark to market value of all of the United States gold deposits.

And at this price Bitcoin could, in theory, be used to transfer massive amounts of value across international borders.

If the price of Bitcoin could not be contained, this would quickly put the system of capital that drives international commerce and the wealth and property of nations at risk.

The government of most countries simply fears cryptocurrency, although they respect technology blockchain. I think that very soon everything will become clear.

There are reasons for government to fear cryptocurrencies. Some are valid while some are absurd. The crypto community should also listen to the valid reasoning of the authorities and work for a solution that would be beneficial to both the authorities and crypto lovers. At current time, we can't imagine a world without governments.

All governments want to innovate in the financial sector of the country due to the fact that they will lose control of the funds. And this threatens to riots and wars.