Why are banks and governments scared of Bitcoin?

[maxreish]

What do you mean that they fear? Do you have strong evidences?  Have you ever thought that bank are such big companies? This means that all of thim will learn before they do something especially when the money is involved, in the case of the government, they are studying what will really impact their economy or whether it will really help with their economic growth and will not affect the party, they are learning how to make this impact on the future, but they are not afraid as you say.

[Boomerang Capital]

Because Bitcoin will disrupt money and our entire socio-economic framework. Everything from real estate transactions and insurance markets to remittances that workers overseas send their families at home to corner store purchases all over the globe will be disintermediated and
reframed outside of third party financial institutions.

Rather, they’ll be made through a peer to peer network that has all the promise of Satoshi’s vision.
Bitcoin payments are instantaneous, permissionless, and censorship resistant, and the record of them is immutable on the Bitcoin blockchain.
Bitcoin ownership could ultimately complete the holy quartet of civil rights, joining the right to vote, the right to own firearms and the right to free speech, rights that have been steadily eroded over the last century by governments and corporations.

It is a powerful weapon that not only slows the erosion, but may even shift some of that power from those entities back to the individual.

Twitter: @BoomerCapital
Web: boomerangcapital.org

[maerose_sun]

I think Banks and Government scared of Bitcoin because they will gradually lost their usage in our nation. Government lost their power, they cannot gain profit from us. Banks will eventually closed because there will be no transaction anymore. People will be the one who will manage their own assets and liabilities, no third parties involve.

[socksserver3]

Banking innovations in the sphere of financial services as a result of the influence of bitcoins will occur, most likely. The processes of changes in the banking industry are extremely slow and balanced. All this is connected with the risks in relation to the possible profit.

[PaulMittin]

One of the reasons why cryptocurrencies are feared by banks and governments is that of the issue of privacy and anonymity. Generally, the creation of a crypto-wallet (some sort of cryptocurrency bank account) requires little or no personal and/or bank account information. It is possible for a user of cryptocurrencies to perform his/her financial transactions without any need to enter personal information. Now, what does this mean to banks and governments who use such information to keep an eye on their citizens? Lack of access to information; banks and governments can block someone’s account if they have no access to information regarding transactions.
Banks and governments fear cryptocurrencies – there is no doubt about that. With the constant research on and development of new cryptocurrencies which seek to solve new financial problems in today’s global economy, it is possible for banks and governments to give way to a more decentralized system of performing transactions. Cryptocurrencies are not only secure but are also fast, anonymous, transparent and non-susceptible to government or central bank interference. There is no reason why banks and governments should not be afraid of them.

[KelvinE]

Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. That lack of central authority is the primary reason governments are afraid of the cryptocurrency..

Bitcoin users don’t need the existing banking system. The currency is created in cyberspace, when so called "miners" use the power of their computers to solve complex algorithms that serve as verification for Bitcoin transactions. Their reward is payment with cyber currency, which is stored digitally and passed between buyers and sellers without the need for an intermediary. On a smaller scale, airlines reward miles function in a similar way, enabling travelers to purchase plane tickets, hotel rooms, and other items using airline miles as virtual currency.

If bitcoin or another cryptocurrency become widely adopted, the entire banking system could become irrelevant. While this may sound like a wonderful concept in light of the recent behavior of the banking industry, there are two sides to every story. Without banks, who will you call when your mortgage payment gets hacked? How will you earn interest on your savings? Who will provide assistance when a transfer of assets fails or a technical glitch occurs? While the financial crisis gave bankers an even worse reputation than they already had, there is something to be said for institutions that oversee timely, effective, and trustworthy asset transfers and their associated recordkeeping.

 There’s also the issue of the fees banks earn for the services they provide. Those fees generate a lot of revenue and a lot of jobs across the global banking industry. Without banks, those jobs disappear, as does the tax revenue those banks and their employees’ paychecks generate. Money transfer business would also disappear in a virtual world. Nobody needs Western Union or its competitors if everybody is using bitcoin.
It is against the above reasons that governments don’t support the globalization of digital currencies because if care is not taken everything will be in chaos but nonetheless I wish we use it but don’t globalize it.

[0t3p0t]

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?

Governments are afraid of losing their tax revenues as they would not be able to trace the bitcoin transactions.So they are keen to ban cryptos.Banks have started to suffer losses in revenues which they got from transactions and remittances.Also they fear that in future people would totally avoid depositing in banks and would just buy bitcoins which would be a huge loss for them.So they ban the accounts elated to crypto trading.

I totally agree. This is all about revenues, control and of course loss as the people may divert some of their centralized asset into decentralized assets. In terms of revenues and control, the economy will fall as they will get less revenues from us through tax because they cannot track every transactions we made everytime we trade. They also see Bitcoin as a threat because it can be used into like illegal activities. That is why here in my country our government implemented regulations to our local crypto exchanges to counter money laundering and any unlawful acts.

[Ingramtg]

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?

Well there is one reason why , one of the reason why government not implementing bitcoin is because it's decentralized they can't control the supply and demand of bitcoin.

And that's why i like bitcoin and also i like the anonymous transaction which is totally safe and on the other hand i have link that why governments scared of accepting bitcoin feel free to check it out.

This may improve your understanding and expand your perspective , https://medium.com/@blake.rsa/why-governments-are-afraid-of-bitcoin-and-what-they-can-do-about-it-dc1eb411fdb9 .

[CryptoCoin8487]

In the world of bitcoin, you are the controller of all things.. But Bank and government want to control how you use your money. Thats why they are afraid of bitcoin. its decentralized!!!

I dont think banks and governments afraid in bitcoin because we all know that governments can do almost everything in there countrys. 

[GeorgiyBilyk]

banks perfectly understand that now they will not be able to control most of the money! Vis and the master of cards are very much worried about their capitalization! on this they put the stick in the wheel! Bitcoin is a new payment system that competes with banks!

[veridical]

Banks and Governments are afraid of Bitcoin because they understand that it will be very difficult for them to control this coin, which means that many people have the opportunity to be more liberated from the power of the Government.

[BelieveInBTC]

Only a few small countries decided to ban Bitcoin because they considered it as a threat. Not to mention that they have problems with inflation. Bitcoin could help them but they decided to get rid of it without any particular reason. Thanks to bitcoin we can be our own banks which means we don't need large institutions to store or money and lend it to others. The fight between Bitcoin and authorities will continue.

[vickybitcoin]

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.

Quite right. No matter how goid bitcoin nad blockchain they can never appreciate it because it is a competiting factor to them that has big potential to make their system obsolete. That is why, as simple as that.

[yasong]

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?

虽然政府可以控制法币，但是他们通常无法控制加密货币，自然而然，政府就要出台各种政策来监管。在安全保障这一块，加密货币只会比银行做的更好。

[bitfocus]

Banks and Governments always fear anything that they can't control. So, in case of Bitcoin, no wonder they will oppose.

[shark69]

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?

bitcoins can not be controlled, and governments need to be controlled. Because the game of government is very dependent on it. Bitcoin I think is very fair for transaction terms. Bitcoin is a patent.

[sk700]

governments and banking systems scrared and fears bitcoin because governments and banking systems can't control bitcoin.

[Labay]

In the world of bitcoin, you are the controller of all things.. But Bank and government want to control how you use your money. Thats why they are afraid of bitcoin. its decentralized!!!

I dont think banks and governments afraid in bitcoin because we all know that governments can do almost everything in there countrys. 

Only in their country but they cannot control bitcoin because bitcoin is not from government.  They can control to depend their country to stop using bitcoin but they never stop bitcoin from using by person.

Actually in my opinion, they afraid of getting loss by money of their bank because they can get money from bank but what if the demand was getting loss and the banks doesn't helpful anymore, right? so they will choose bitcoin.  And the only solution of government was the banning bitcoin from their country to have a mandatory use of banks.

[Ivandub]

Initially, everyone says that they forbid crypto currency to avoid money laundering and various frauds (and they say they do everything for the well-being of people)). Of course, now a lot of money laundering and deception, but prohibiting bitcoin people will find a different approach to money laundering .. But to which state it is beneficial that everyone would have a good income))

[The_Dark_Knight]

One of the reasons why cryptocurrencies are feared by banks and governments is that of the issue of privacy and anonymity. Generally, the creation of a crypto-wallet (some sort of cryptocurrency bank account) requires little or no personal and/or bank account information. It is possible for a user of cryptocurrencies to perform his/her financial transactions without any need to enter personal information. Now, what does this mean to banks and governments who use such information to keep an eye on their citizens? Lack of access to information; banks and governments can block someone’s account if they have no access to information regarding transactions.
Banks and governments fear cryptocurrencies – there is no doubt about that. With the constant research on and development of new cryptocurrencies which seek to solve new financial problems in today’s global economy, it is possible for banks and governments to give way to a more decentralized system of performing transactions. Cryptocurrencies are not only secure but are also fast, anonymous, transparent and non-susceptible to government or central bank interference. There is no reason why banks and governments should not be afraid of them.

Banks and governments were very happy with the way things were they had all the power, they could freeze your money very easily with just a few clicks and everything that you have worked so hard in your life could be lost very easily, and now bitcoin allows people to rival their power by becoming their own banks, this was unheard of and they are not liking it one bit.