Why are banks and governments scared of Bitcoin?

[ErlindaBit]

I believe there are several reasons, and this is the reason:
- they can not control Bitcoin as a currency.
- Bitcoin will beat the value of their currency if Bitcoin continues to grow.
- There is no profit they get with Bitcoin existence in their country.

[Tektesh]

Simply because it's a decentralised peer to peer payment method and it eliminates the need for a central authority to regulate its payments and transactions, because of this government's wont be able to control digital currencies the same way they do Fiat currencies currently. I found an article that explains in great detail why governments are afraid of allowing Cryptocurriencies to operate in their countries.

https://www.investopedia.com/articles/forex/042015/why-governments-are-afraid-bitcoin.asp

[LKingLion]

As what the others said government wants to control bitcoin that makes it more contradicting between banks and crypto. Mostly the reason behind is anonymous and none anonymous is very complicated to each other which bring to uninvited not united to each other. Bitcoin is decentralized while banks are centralized.

[zelda131292]

They are not scared of bitcoin and they will never be scared of it, this is just a theory created from the community only for hype purposes, but in fact, banks do not even care about bitcoin at all

[ashame]

Maybe, some countries wants to control bitcoin, they are trying everything to minimize the use of bitcoin by not allowing it in their country, when in reality bitcoin cannot be controlled by anyone or any company, bitcoin is a community no one owns it. the banks are not scared of bitcoin , only the governments holding them. they are scared of the development of the world, did you noticed that most of the projects in crypto is for the development of our society and the world itself?

[macartem]

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?

Because banks can not control the crypto currency. Therefore, they are against this. If banks will control the crypto currency, this will be a big problem.

[vividbery]

Because later the central bank can not monitor the circulation of national currency of a country. If the central bank and the government can not monitor and control the finances and economics of a country, this will certainly be very dangerous for the survival of a country.

[Sword555]

Most banks hate the cryptocurrencies because they see the competitors in this industry and they understand that a lot of people shifted to this market in order to keep their savings there.

[betnuci]

I've always believed that it's because they rely heavily on the banking program we live in. Perhaps they don't like bitcoin because it's not something they can really control like how they control the cashflow around the world.

[Ikbal Naiem]

Bitcoin is virtual coin . Day by day its popularity increasing at increasing rate .Government and bank see bitcoin as a competitor .At first ,government need abundant money for his country and want to control all kinds of economy activity within country. There is no system of tax in bitcoin, most of country's government fail to control the crypto because it is high technology. On the other hand bank fully think that it is compitor of bank.Any one can hold bitcoin in own choice and when any one want to invest ,he/she easily invest .So bank feel threat .

[astrong]

Bitcoin is virtual coin . Day by day its popularity increasing at increasing rate .Government and bank see bitcoin as a competitor .At first ,government need abundant money for his country and want to control all kinds of economy activity within country. There is no system of tax in bitcoin, most of country's government fail to control the crypto because it is high technology. On the other hand bank fully think that it is compitor of bank.Any one can hold bitcoin in own choice and when any one want to invest ,he/she easily invest .So bank feel threat .

In my opinion, the fee in bitcoin is the tax for me  What make it different is the tax (fee) not for the government, but for the miner. Of course the government afraid if all system use this blockchain, maybe the country will not growing. I guess what they (goverment) can do in this situation is to regulating the world of cryptocurrency, including bitcoin. I think it will not change the main purpose of bitcoin from decentralized to centralized. The one which will be realized now is bitcoin will be used for payments.   

[hammo]

i don't think they scared of bitcoin. i think they work and think about what will they do about that for years.

[osmo]

many banks and government of a country forbid and hate bitcoin, in my opinion they feel disturbed by the existence of bitcon, because bitcoin can not be in intervention like money. if more and more are using bitcoin then the bank will no longer in need

[coinhunt]

Banks and governments control fiat, but not cryptos. As they become widely-spread, they can make the existing banking systems inapplicable. And it was rightly noticed earlier, that financial and governmental organizations are afraid of what they can't control.

[pasti kaya]

In my opinion, governments and banks are afraid of bitcoin, they may feel that they have a new competitor in it.

[staradvincula]

It's obvious and not out of our knowledge that government would always want to manipulate everything and unfortunately banks are under its jurisdiction. Companies and business establishments as to be  in their authority. This is all about taxes. When Bitcoin or cryptocurrency arrived, that felt scared because people seen the advantage from it. No manipulation, no middlemen and most especially, no tax. They are afraid that people will turn to cryptocurrency and turn back against them. This are only some of the reason why banks and governments are scared of bitcoin existence.

[sakib12121012]

Bitcoin is a virtual cryptocurrency that we can not touch or see. The bank and government scared of him who does not exist. And , so that is the main reason why banks and government scared of Bitcoin.

[ThePogi]

I Think there are many case if banks did not accept bitcoin on their side its because they will lost control of their investors and they cant control the ICO market. Many investor in the bank will pullout of the bank and do investing on bitcoin because of their promising rate and earnings. Unlike in bank they will give you a 1% earning every in your invest.

[Mikhail_Shmurge]

The government always wants to control everything everywhere, whether human rights are violated or not, total control of all spheres of life! A crypto currency creates in this regard problems for the government.

[CryptoDavies]

Many governments, and banks, are embracing blockchain technology in order to make small advances in improving operational efficiency. Some governments are even planning to launch their own cryptocurrency, to make electronic transactions easier (and importantly for them, more traceable i.e. taxable). However, bitcoin is a huge competitor to banks because people are now investing more in bitcoin than buying TB or shares.