Why are banks and governments scared of Bitcoin?

[Arata]

I see that doing bitcoin transactions no longer requires third parties as intermediaries and seems to threaten the existence of third parties, such as banks and governments. With this possibility then some governments ban bitcoin.

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[ruhel khan]

Banks and governments has lots of rules and conditions in in any currency transection. But bitcoin is unable control and maintain. That's why banks and governments scared of bitcoin.

[Bitexpert2017]

Simply because they hate things they do not manage and can not be taxed bitcoin. The control will not be in the bank anymore and they hate it. Again, bitcoin is used by criminals to trade and money laundering.

[Suffoc8]

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?

Bitcoin and other cryptocurrency are very useful today in our generation but I think the government seeing a bitcoin and other cryptocurrency as a factor than can cause a much bigger problem to their country, bitcoin is being used in illegal transaction online, but bitcoin is just a money that used in a transaction, so I think there is much bigger issue why they ban bitcoin.

[crisnel26]

bitcoin basically doesn't have a central that manage all transaction like the central bank and i think government doesn't like this because they can monitoring and manage about the transaction in their country, which is they can't give tax to the user of bitcoin and anything else.

I agree with the statement. Banks do not like Bitcoin for the reason that it is something that they could not operate. They could not gain anything because Bitcoin is a separate currency which is not regulated by the World Bank or any other government branch.

[ekeh]

The present performance of bitcoin and other alt-coin has been a suprise to them, because bitcoin has been booming and acceptable across the globe, which takes government and Bank un aware,

[bitcoin31]

I think why the bank and the government scared to bitcoin because they influences people and they did not manipulate this.

Maybe they have other reason why the bank and the government are scared to bitcoin. No one can tell the true reason.

[ahmad21]

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?

Bitcoin and other cryptocurrency are very useful today in our generation but I think the government seeing a bitcoin and other cryptocurrency as a factor than can cause a much bigger problem to their country, bitcoin is being used in illegal transaction online, but bitcoin is just a money that used in a transaction, so I think there is much bigger issue why they ban bitcoin.

Banks and other financial institutions are the biggest gangsters in the town. Trust me! Banks are the greatest source of revenue generation in an economy. Using blockchain, where all the transactions are safely linked together and are verifiable, open or available to everyone which makes it more immune than centralized banks. So this makes banks and other financial institutions totally unnecessary. And the government will lose their control over the financial system of the country

[LKing]

Governments fear competition for power. Mayer Rothschild once famously said: "Give me control of a nation's money and I care not who makes it's laws"

Or perhaps you remember the golden rule “he who has the money makes the rules”.

In either case, the creation of a competing currency that was meant to be used in the place of the US Dollar, is not something they want to see.

It is difficult to separate the Federal Reserve from the US Government in this instance. Some conspiracy theorists have even suggested the Bitcoin is a US Government creation meant to replace the US Dollar. I have no evidence for or against that theory. But given the creator of Bitcoin has never been found, one has to think it’s a distant possibility.

Back to crypto currencies. Why would they be an issue for a Government?

For one, taxes. If you could earn money in something that has value but isn’t reported via the normal W2, that would mean the Government was losing out on income. Governments HATE to lose out on tax income. The same goes for buying and selling, such transactions would not be taxable or even traceable.

Another example is the ability to manipulate the currency. This is a famous one for the Fed. If they lose their control over money creation, then they lose the ability to tighten or loosen market conditions. They also loose the ability to provide liquidity for bail outs to banks and wall street.

The only other items I can think of that worry the Government so much is precious metal. They have gone to great lengths to keep the gold and silver price managed. While they could try the same thing with crypto, it would be far easier to simply outlaw the exchanges and any monetary transfers that don’t meet specific criteria.

[jefrihunter]

i think cryptos are empowering people. They are giving more control to users which government is not comfortable with. Using cryptos, the dependency of people on government's money is reducing and banks don't like tools that takes the control over people away from them. All banks are controlled by one bank and that one bank is owned by the wealthiest family in America. If you are wealthy and you see something could potentially jeopardise your source of income you will also go after it hard. That fact that those guys are so afraid of Bitcoin means that we are on the right track

[azisdoank]

well i think because some governments and banks are being scared of bitcoin because they think that the bitcoin is not a good quaternary for them. Some banks think that the bitcoin is a scam because of some news that the bitcoin is has been scam and why banks and governments are afraid of bitcoin is that they know that technology from blockchain is better than systems owned by deal-related banks so they are afraid of losing customers because if all the customers are aware of this they will start switching to bitcoin and blockchain technology. Banks and governments have worked together to boost the country's reconstruction and with government bitcoins feeling threatened because they can not control the movement of bitcoin prices so they do not benefit from every transaction

[nararifki]

Why is that? because banks and the government can not regulate the money that is in circulation. The character of decentralization that makes them worried.

[The_Dark_Knight]

There are government tries to regulate the use of cryptocurrencies.Because cryptos has a decentralized feature and the government and even the banks are scared because of these features.It was paper less and has no taxes,so there is no liabilities regarding to the crpytocurrencies.But some government and banks are tries to conduct safety features for these matter.

They are scared because they know that bitcoin is something they cannot control, they are trying to influence people to not adopt bitcoin by using scare tactics but to their dismay they are realizing their tactics are not very effective against people like us and this means that no matter what they do they cannot really kill bitcoin no matter what they do.

[RenatoVillarinJr]

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?

The Bank doesn't expressly say why it is banning the use of Bitcoin but rather highlights regular forms of payment: cheques, credit cards, etc as acceptable Bitcoin virtual currency and other similar is not lawful means of payment in Vietnam; The issuance, supply, use of BITCOIN and other similar Virtual Currency as a means of payment is prohibited in Vietnam,” Explains the Government-run Bank.

[marona.coro]

because banks are scared to be defeated by bitcoin.  Government can't devise a way to tax crypyocurrencies yet while banks will soon lose a lot its customers.

[Paul Pogba]

The banks and governments scared of bitcoin because bitcoin is more attractive and profitable, I'm sure when people actively transact and compare between banks & bitcoin then 99% will choose bitcoin which has proven to be faster and safer.

[Mikasa77]

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?

I think because they dko not have enough knowledge about bitcoin and they do not know how they use. I think they afraid to bitcoin because in bitcoin they are not asking interest in investing and because in bitcoin they can earn a lot of money in just a few months or a year and also because it is easy to grow money in investing bitcoin.

[ichai]

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 is a business so if investors pick bitcoin to use for a transaction, banks will lose its support and no money will enterin their pocket. On the other hand government wants to rule over bitcoin and wants to be the main blockchain and generate some tax according to the recorded transaction made. This only my opinion as what i analyzed in every news that i read about cryptocurrency.

Yes, since the widespread market of Crypto, especially BTC, was popular with many buyers, the banking system to this day is in decline as the number of investors in the bank decreases. The number of companies or large enterprises they choose to raise funds through the ICO program. not involved with the bank. So the bank did not have as much output as before. they fear that the banking system will collapse.

[maliclaire]

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?

I think that banks were afraid that bitcoin became more famous and many people switch to use bitcoin than bank.

[Rustandy]

They hate Bitcoin because of that inherent instability. Banks are afraid of losing control, Traditional banking services appreciate the control they have over their people and money and will do everything in their power not to let go of it.