Why are banks and governments scared of Bitcoin?

[fulled]

Because bank will lose their function as a middleman of financial transaction, for the goverment, they scare because bitcoin can used to money loundering and also to avoiding tax

[135cc]

its a cliche things if we say that many countries scared of bitcoin, but its true. and im pretty sure that the reason behind why banks and governments is scared of bitcoin is because they are afraid if the existing model of currency that already establish under their control is slowly replaced by the bitcoin as a new model of cryptocurrency.

[7Dyoknga5]

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?

Countries ban bitcoin because of security issues not because banks told them so. Central banks plays a big role in regulating fiat money within the economy.

Commercial banks does get affected by bitcoin though. Commercial banks earn when their services are used, such as credit cards, deposits and widrawals.

Since bitcoin offers the same service as credit cards, it affects a big part of their earning thus seeing crypto's as a threat.

[Static420]

Bitcoin claims that “It 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. To understand this fear, it is important to know a little bit about governments and conventional currencies.

[Ntaa]

I think now only some countries are banning bitcoins.
the reason a country forbids bitcoin is a feared state if bitcoin is used to commit a crime such as terrorism and money laundering.

[lisajung0990]

because it would mean less investments and less s money for them and they cannot control bitcoin. People can actually make decent money from bitcoin by trading and bounties.

[kmlkkl]

the event here affects everything that people can trade or pay for themselves. The banks do not look so warm because they won this way. The countries are going to ban because of economic and illegal affairs.

[taxli]

Bitcoins prevent banks from earning their interest from operations, and the state in general will earn money on corrupt and illegal affairs

[Cheerfulmule]

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 are scared of Bitcoin because it opposes their traditional banking system. A Decentralized system is a threat to them and people will eventually realized that its more convenient dealing and investing with cryptocurrency compared to them. On the other hand, what scares the government? I think its more of a lack of understanding on their part. Bitcoin's a bit complicated and governments might be clueless on how it really works. The issue on How to impose taxes on it and maybe how to control or regulate it. Anonimity is also one of the reason why some government prohibits the use of bitcoin from their country. The suspicion of illegal activities conducted through Bitcoin such as weapons buying, Drugs, dark web payment and access for live torture and child pornography.

[weeera317]

Without having read the rest of the thread, it’s simple capitalistic monopoly. Financial institutions see Bitcoin as a danger to their monopoly.

[charlenedave]

Banks and government are afraid of Bitcoin because they have no control over it, they are afraid that all people will choose Bitcoin than banks. Thus, they don't want Bitcoin to be on top when it comes to investment.

[Tiger Junk]

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 bitcoin is  decentralized and no individual could take full control of its power, capitalists and large bank reserves couldn't get profit from it. That is why they hate bitcoin and other decentralized cryptocurrency. Countries who ban cryptocurrencies are lacking knowledge about bitcoin's benefits to their economy. they think it will make their national currency obsolete if they left it operating in their country.

Bitcoin could be a threat to both banks and government. Bitcoin could be one of the competitive competitors of banks. Because it offers the same thing or even more that the banks does. While, the government do not have power to control bitcoin because of its decentralisation feature.

[Yatsan]

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 bitcoin is  decentralized and no individual could take full control of its power, capitalists and large bank reserves couldn't get profit from it. That is why they hate bitcoin and other decentralized cryptocurrency. Countries who ban cryptocurrencies are lacking knowledge about bitcoin's benefits to their economy. they think it will make their national currency obsolete if they left it operating in their country.

[jonaire99]

I don't think banks and governments are scared of Bitcoin. They are more of frustrated because they could not fully control Bitcoin or manipulate the way it operates. Bitcoin tends to pose a threat to their operation due to its use and value. I do not know how and when all of these fuzz will settle. But we can always hope for the best.

Their problem might soon be solved because some big banks are planning to issue their own cryptocurrency and other may adopt one of the top five in the coinmarketcap, the ripple. Many banks continues to find appropriate solutions to many issues brought by the virtual coins. Some banks here in my country allowed people to convert their bitcoins into local fiat and one bank are even set up some mining rigs for ethereum.

[Sword555]

The bitcoin's technology is quite advanced and can overcome the one that banks use when they offer their services so to me their fear is very understandable. They are worried they can lose their customers.

[buternasek]

Maybe Because According to Government and Bank cryptocurrency have a very big risk so they are afraid to use cryptocurrency to be a tool of bank traction in so they prohibit its citizens to use cryptocurrency.

[thom88]

Becuase it could mean the end of their reign in the financial sector. Banks are foreced into our lives. we don't want them. they make us need them.
bitcoin can remove this partially

[leostrong.mo]

Bitcoin decentralization is not controlled by the government and disrupts the government’s financial circulation rights.
It is BTC and cryptocurrency motive bank cheese!
The government and the banks are the products of a centralized, and Bitcoin represents decentralized. Both are hostile parties.

[stimliall]

BTC can not be effectively controlled and supervised. At the same time, there are factors that may bring about great negative impact. It will be a great hidden danger to a country's financial order.
The appearance of cryptocurrency does not have any credit as its guarantee, investment BTC is very risky!

[DominicEllis]

because they understand that it will be very difficult for them to control this coin. and bitcoin is used by criminals to trade and money laundering.