Government & Bitcoin

[n2004al]

Growth of Bitcoins is totally depends on the policy of the governments. If all the countries and their governments start regulating and recognizing bitcoins as a legal digital currency then there will be increase in the user of bitcoins and it will be more popular if accepted universally.

The meaning of this sentence, as it is written, is not correct. The growth of bitcoin depends from the technology which produce it. And is (for the moment) 25 bitcoins every about 10 minutes. So having nothing to do nor with Governments and nor with other things. It will be the correct one if it was written the growth of the known of the bitcoin is totally depends on the policy of the governments.

I agree with the explanations given following the above sentence (if written in the correct mode) but the word "totally" seems a little excessive. I agree that if the bitcoin will be regulated by The Government of one country would be a great day for bitcoin and its known and spreed in that country will be much more fast, but there are even other way in which it can be known. In my country bitcoin is not yet regulated and I know much about it. In the USA before the regulation existed to many people which knew and used regularly it before its regulation from the Authorities. The same in all the world. So the known of bitcoin is not totally  depend from the policy of Governments. There are to many others ways in which this thing can be make true.

[Dotakels]

Government regulations are so slowly implemented but they're trying to adopt to new financial markets. Everything is changing, regulations and taxes too. We need few years for mass adoption and official law in almost all countries.

We need to wait until the Government accepts the bitcoin.

But I don't think any governments will accept it so easily because the nature of bitcoin usage. As of now they can't trace out the transaction details very clearly.

Maybe they'll accept bitcoin, but i think they will add various rules such as :
1. Everyone must make bitcoin wallet which provided by government & they'll take tax from it
2. Every bitcoin company must have bitcoin license & report suspicious bitcoin activity
3. Bitcoiner should how they earn & use their bitcoin to government

I think something like that could happen in future & it would be very bad for bitcoin

they can only support and not totally control it, because no one will agree with those rules that they will make, like your examples, "Everyone must make bitcoin wallet which provided by government & they'll take tax from it" if they do that, the new comers will be outweigh by those fee win every transaction they will make, and we are lucky because our address is free and not control with government. So you will agree with  this?

Of course, no one would agree with that if it happened, bitcoin would be totally useless
So, of course i won't agree with this. I better use wallet which i like even government would send me to jail

I hope it won't happen to any country

yeah theres no users will agree to that, so the power is still in the users of bitcoin, even if government complain that bitcoin must have or put a tax in every transaction, they can not do anything because bitcoin growth are depend on users.

[jt byte]

Implementing a new currency for the government is hard.
It's really hard because there should be many changes.
Another problem is that the confirmation time is too much and some things needs to be verified instantly if it works or not.

[hangar18]

We all know the government is actively watching bitcoin emerge as a legitimate currency source. I'm sure they are in talks about it behind closed doors

[HarryKPeters]

Governments will never allow bitcoins as they cant tax it.

That is true, not only they can't tax on those transactions but also they can't trace out 100% who has done the transaction.

That's true but think about if we reserve it. Suppose 1 governement will use bitcoin to safe billions on fees, administration cost etc.

What would happen to the BTC price?

[Snorek]

Governments will never allow bitcoins as they cant tax it.

That is true, not only they can't tax on those transactions but also they can't trace out 100% who has done the transaction.

In bitcoin natural p2p enviroment when all transactions are done via bitcoin network alone it is really impossible to track. But we are not using bitcoin that way most of the time.
At our level of bitcoin 'acceptance' we are bound to bitcoin exchanges, second party online wallets/services etc. Using bitcoin that way is almost no different that using your credit card.

[Abiky]

It will be very difficult for a government to adopt Bitcoin as its own currency. Its reasons are obvious, including the fact that Bitcoin can't be regulated as it is decentralized, whereas with fiat, the government can regulate and impose taxes on it. Banks only interest is the blockchain technology itself, instead of Bitcoin due to the fact that they could create their own crypto currency in which they could manipulate to their own needs. Just my opinion. 

[n2004al]

It will be very difficult for a government to adopt Bitcoin as its own currency. Its reasons are obvious, including the fact that Bitcoin can't be regulated as it is decentralized, whereas with fiat, the government can regulate and impose taxes on it. Banks only interest is the blockchain technology itself, instead of Bitcoin due to the fact that they could create their own crypto currency in which they could manipulate to their own needs. Just my opinion. 

According to me all the part in bold is big wrong. Bitcoin can and is already regulated or partially in to many countries (including important ones such United States or China). In these countries the people can use it, can mine it, can change in other real money (national or not) etc. So your opinion is not true.

Then as for the second part in bold that is totally absurd. Think that the the banks are interested about blockchain because they want to make their digital money have net even the minimum of sense.

First of all, any kind of the commercial cannot make/stamp currencies. Of any kind. Is not allowed by low. Only the Central Banks (or similar Authorities) can do that. The commercial banks use the money as a tool to have their money. To have profit from the use of it. Like every other common business. The difference between a bank and another, whatever can be, business, is only that the banks have as a tool to use to have profit the money itself. While the other businesses have as tool other things in accordance with their area of activity. Nothing else.

Then in world there are thousands and thousand commercial banks. Suggest that every of those can have their coin is to laugh. If true there will be thousands and thousands coins in circulation and all the banks will remain all the time of their existence to convince the other banks to use their coin. Then will happen that there will be accepted all those following the method "I know and use your coin and or if you do the same with mine". So thousand and thousand currencies and no one will use those because will not find portfolio where to put all that kind of money. Then must be changed if some merchants will not accept some and will accept some others.

But the main question to be answered it will be: Why must be this? Who win something? The banks not because will be obligated to use even those other thousand other coins of the other banks and will be a mess. The people less. To complicate. It will be enough to have only one currency by everyone. The national currency and everything is resolved.

[michietn94]

Well world is keep evolving and technology is keep advancing,

if the government cant catch the speed of technology the country will fall behind

First thing need to do is to convince the citizen that the evolving technology payment like bitcoin will make the citizen life more secure and easier

[thejaytiesto]

It will be very difficult for a government to adopt Bitcoin as its own currency. Its reasons are obvious, including the fact that Bitcoin can't be regulated as it is decentralized, whereas with fiat, the government can regulate and impose taxes on it. Banks only interest is the blockchain technology itself, instead of Bitcoin due to the fact that they could create their own crypto currency in which they could manipulate to their own needs. Just my opinion. 

According to me all the part in bold is big wrong. Bitcoin can and is already regulated or partially in to many countries (including important ones such United States or China). In these countries the people can use it, can mine it, can change in other real money (national or not) etc. So your opinion is not true.

Then as for the second part in bold that is totally absurd. Think that the the banks are interested about blockchain because they want to make their digital money have net even the minimum of sense.

First of all, any kind of the commercial cannot make/stamp currencies. Of any kind. Is not allowed by low. Only the Central Banks (or similar Authorities) can do that. The commercial banks use the money as a tool to have their money. To have profit from the use of it. Like every other common business. The difference between a bank and another, whatever can be, business, is only that the banks have as a tool to use to have profit the money itself. While the other businesses have as tool other things in accordance with their area of activity. Nothing else.

Then in world there are thousands and thousand commercial banks. Suggest that every of those can have their coin is to laugh. If true there will be thousands and thousands coins in circulation and all the banks will remain all the time of their existence to convince the other banks to use their coin. Then will happen that there will be accepted all those following the method "I know and use your coin and or if you do the same with mine". So thousand and thousand currencies and no one will use those because will not find portfolio where to put all that kind of money. Then must be changed if some merchants will not accept some and will accept some others.

But the main question to be answered it will be: Why must be this? Who win something? The banks not because will be obligated to use even those other thousand other coins of the other banks and will be a mess. The people less. To complicate. It will be enough to have only one currency by everyone. The national currency and everything is resolved.

I think he doesn't necessary mean 1 bank = 1 coin. Make no mistake, banks and goverment don't benefit from leaving Bitcoin as it is, they will want more regulation. Bitcoin will only get more easy to get anonymity out of it in the future (look at confidential transactions) therefore banks and goverments will demand more regulation, eventually there will be a fight between Bitcoin community and bank/goverment interest.

Goverment wants to get rid of physical cash in the future and they will either want a super regulated Bitcoin or make their own e-fiat sort of thing.

[virtualx]

The government always spies on you everyday, every single hour. They can check the sites you've accessed over the internet, the transactions you've made in the bank and probably even Bitcoin transactions if they manage to link the public address you are using to you. I think the only way that government can't interfere with your BTC transactions, is by using Tor and a Bitcoin Mixer. 

Tue but many people create a new address for every transaction. Such use is very confusing for anyone to track. Bitcoin transactions have inputs and outputs. Who knows if the address you own today, you will own tomorrow? It's easy to recreate a project and there are imposers (hacks, trojans, scams.. )

I think a VPN connection with bitcoin already causes confusion for foreign spies.

[bitcoin-hunter]

Those two are opposites and will never go hand in hand.
The governement wants to limit's people's freedom, while bitcoin is about giving people their freedom back. Financial freedom offcourse.
Most governements will resist till the end before endorsing bitcoin.

[BantamSystems]

Negative interest rates have already been rolled out in Denmark and Switzerland, which are both virtually cashless societies.

Some argue that this gives the government (banks) a higher degree of control since, without cash, bank runs are impossible

[bitsmichel]

Negative interest rates have already been rolled out in Denmark and Switzerland, which are both virtually cashless societies.

did I miss something? Is cash not used in Denmark or Switzerland?

Some argue that this gives the government (banks) a higher degree of control since, without cash, bank runs are impossible

True, it gives more power to these financial institutions who got us into this shit. I don't think this is a good situation.

[BantamSystems]

did I miss something? Is cash not used in Denmark or Switzerland?

Yes you did miss something, Switzerland and Denmark are both elitist testing grounds for the coming cashless society that crypto currencies will assist to usher in

Denmark close to becoming cashless society

[CoinBoerse.com]

The government is going to always try and get their hands in things that are worth alot. If they think they can bring in a boatload of tax money from bitcoin sure as anything they are going to aim for it.

[avw1982]

The government is going to always try and get their hands in things that are worth alot. If they think they can bring in a boatload of tax money from bitcoin sure as anything they are going to aim for it.

Its good king ruling countries but not suits for the where taxes are payable. If government adapt the bitcoin every money transaction will be transparent. So corrupted people will not allow bitcoin as International currency. This is a problem we have to pluck out

[Nameless Coin]

I am really surprise that government haven't ban bitcoin. I just think that bitcoin will just be accepted at the end.
Maybe in 50 years people will just use bitcoins daily life. Only the problem is the poor country won't have the technology about it so I don't know what will happen really with bitcoin in the future,

[pitham1]

The government is going to always try and get their hands in things that are worth alot. If they think they can bring in a boatload of tax money from bitcoin sure as anything they are going to aim for it.

That would ensure more employment for tax consultants, lawyers, etc.
Soon you will have bitcoin specialists in all these areas opening up. 

[EdenHazard]

The sharing economy is just going to continue to grow, and governments will be challenged to understand and manage its implications while embracing its benefits. However, governments will be at a significant disadvantage if they wait too long and newer technologies and markets will have already been developed that do not follow traditional models. Think of the following: Uber is the world’s largest taxi service and owns no cars. Airbnb provides lodging yet does not own real estate.

How will local governments adapt to these new ways of doing business that are disrupting traditional business models? All we know now is that governments are a long way from even contemplating and accepting this new reality.

the one that inhibits the growth of bitcoin now, the local government.
they will assume that they will find it difficult to adapt to the economic system of their new if you accept bitcoin raw, but I believe with the development of bitcoin today, at least there will be one or two local authorities were immediately accept bitcoin and legalize it as part of their economic system ,