Why are banks and governments scared of Bitcoin?

[romero121]

Banks fear of the increasing usage of btc compared to their services. They never believe that banking system is a must and what they've lost is massive. To overcome the problem some banks have begun to create their own cryptocurrency. When it comes to government, they fear of the decentralized functioning which might affect their economic growth.

[1714824443]

1714824443

[1714824443]

1714824443

[1714824443]

1714824443

[1714824443]

1714824443

[Juliedarwin]

So many countries now were prohibiting the use of virtual cryptocurrencies. And to think that many unemployed individuals were beginning to uplift their way of living because of their dealings with cryptocurrencies. Banks doesn't expressly say why it is banning the use of Bitcoin.
What do you think is the reason behind this?

Maybe because they're prohibited cryptocurrencies to give people how to have an easy life, they don't want people to have a free easy life for getting a free opportunity to have a good profit in real life.

[arjanenako]

Because some who are using bitcoin is withdrawing money that are big, and their branch could be lack of budget. While some, are afraid because the tarnsaction is not using their services because of bitcoin transaction.

[hsyncl]

Because they do not really know what exactly the blockchain chain is. There are governments who still see it as a Ponzi. It seems easier to bend instead of improving.

[grabpopcorn536]

In it country, Bitcoin has been illegal when using whenkating the payment method or through banking. by activity is an cash and fuzzy. and no verify tax. all all the player Bitcoin are anonym of the account of your password, they will be lost.

[Odelkaleng]

Because bitcoin has a very high selling value beating other assets like gold, real-estate, or stock. It was a strange and dubious thing for the government and the bank.

[irenegaming]

They are scared cause bitcoin threatens their monopoly over money and that is something that the banks and governments can never accept. Since Bitcoin is a decentralized currency governments and banks aren't able to find a way to ban bitcoin without causing any uproar due to it. And day by day bitcoin is getting bigger and bigger.

[fivecoin.bd]

Actually there are many reason for banks and governments scared of Bitcoin. In my opinion, those are there is no central bank control bitcoin. There are many illegal transaction are doing through bitcoin. So government are not accept bitcoin.

[20_JeRRy_20]

Banks and the government are afraid of cryptocurrencies for the following reasons:
The state or Central Bank of the country regulates the amount and circulation of money (including the US dollar, Euro, and pound) with the help of banks. Currently, cryptocurrencies are not subject to intervention by the state or other Central authorities due to the fact that their rate depends only on the law of supply and demand, and they cannot be issued by the government or the Central Bank. All this inspires them fear, because they thus can not control the amount released into circulation.
Secondly, cryptocurrency (e.g. Bitcoin) is used to solve problems created by banks. This eliminates the role of the Bank and, at the same time, eliminates the need to pay a service fee. Another reason why cryptocurrencies scare governments and banks is data privacy and anonymity.

[zymcat]

I don't think that the banks and the other financial institutions are afraid of the cryptocurrencies. But it is reasonable to consider it as a challenge mainly due to its unregulated behavior as there is no specific regulatory body to control it in general. Apart from that, I don't see any other factor to reason out this statement.

[melekseverce]

one of the reasons the government is afraid of Bitcoin is that Bitcoin is the first decentralized peer-to-peer payment network supported by its users without central intermediaries, a lack of central authority that makes governments afraid of Bitcoin. If bitcoin widely adopted, so banking system will is not relevant.

[djmixen]

well, not all banks and governments are afraid on bitcoin, maybe in other countries. But i think the reason why is just because they think it will replace the paper money in the future or it will affect on the economy of the government. But if they know about bitcoin i am pretty sure that they will be one of the users of it.

[Rinzo]

cryptocurrency is a decentralised currency in digital form which gives it users absolute control. it is not in physical form therefore, it cannot be stored in the bank thereby not giving banks the ability to make policies as well as government. so, they do not have control over the movement of cryptocurrency transactions. cryptocurrency transactions are monitored and management by a technology called cryptography and the transactions recorded in a public distributed ledger called the blockchain which the banks and government do not have access to. the banks and government are simply scared of cryptocurrency just for the single fact of not having control over it

[taxmanmt5]

So many countries now were prohibiting the use of virtual cryptocurrencies. And to think that many unemployed individuals were beginning to uplift their way of living because of their dealings with cryptocurrencies. Banks doesn't expressly say why it is banning the use of Bitcoin.
What do you think is the reason behind this?

How bitcoin can be compared with banks ? how it belongs with it ? Since bitcoin has their own wallets where we store them. About end of government it might become true, Bitcoin user never pay tax while sending or receiving funds via wallets and government not like that, they want us to pay tax, so they can survive.

[oni4an]

They are afraid to miss the benefit and lose the market of finances if all go to the funds that are based on the blockchain, then we do not need banks.

[Gathel]

the government and bang are afraid of bitcoin, because bitcoin is scattered and owned by many people, so the government is afraid that all bitcoin users want bitcoin to be a legitimate currency, and bang afraid when bitcoin becomes an investment tool that defeats paper money

[Mr.ZODIAC]

the government and bang are afraid of bitcoin, because bitcoin is scattered and owned by many people, so the government is afraid that all bitcoin users want bitcoin to be a legitimate currency, and bang afraid when bitcoin becomes an investment tool that defeats paper money

I think that the government has nothing to fear from the crypto currency. Perhaps some officials do not want to legalize Bitcoin, because they will have to indicate the presence of Bitcoin in their tax returns. Therefore, they want to avoid taxing their income from the crypto currency. Perhaps it is because of this that many officials say that Bitcoin is a threat to their national security, but they do not give more details.

[Btcaivah1]

I think banks are not afraid of bitcoin. If they are open minded and want to see bitcoin as the future ahead then they will embrace change with btc. The government who wants to regulate BTC for them to gain money and to prevent elligal  use of BTC.

[dbangel1994]

The increase in bitcoin may be a factor in creating stability rather than destabilizing the current financial system.
But at the present time, some governments and big banks do not see things that way.

[shadyrifles]

So many countries now were prohibiting the use of virtual cryptocurrencies. And to think that many unemployed individuals were beginning to uplift their way of living because of their dealings with cryptocurrencies. Banks doesn't expressly say why it is banning the use of Bitcoin.
What do you think is the reason behind this?

Banks and government are really scared of Bitcoin and cryptocurrencies because they will lose the involvement as a middleman between the users. I think big US banks like JPMorgan Chase & Co. and Bank of America Corp. will top the list on most scared banks. The government also want to keep the eyes on their citizens and want to enjoy the role of middleman.