Why are banks and governments scared of Bitcoin?

[manny morgan]

Banks and governments are scared of bitcoin because, it is not a physical currency which can just shut down at any time with peoples money in it. 

[cryptostardom]

Blockchain Technology which is the technology for Bitcoin , makes it a decentralized distributed ledger to allow users or holders of the digital currency. This system is against the traditional Banking systems and governments because their systems are centralized.
So we could say Bitcoin is disrupting their systems.

[airdnasxela]

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 primary reason why banks and sometimes the government are scared of bitcoin is that they do not want to have a big competitor.  As what you have said,  many unemployed person and also those who wants sideline jobs do cryptocurrencies activities and for them it is a threat considering that it involves money.  They know the potential of bitcoin that is why they do their first steps for them to at least minimize the reach of people to bitcoin.

[PacePay]

Because the government does not want any currency that they can not control and banks do not want any rivals that will rival their business.

I think the governments do not understand it that is why they do not want it as Japan is also a country and they are dealing in crypto and they do not have any issue with this currency. the banks also do not understand this currency as the online wallets are also working as banks and they are earning a big income if banks will also create their own wallet then they will also earn a high profit.

[Helderio]

Because they can't do anything when there big amount of bitcoin transfer, they can't stop or cancel the transfer and they don't know how to take control of bitcoin, moreover the bitcoin use as crime purpose.

[tuturutmunding]

The bank's anxiety about cryptocurrency will diminish the bank's function as a financial institution because it is defeated by bitcoin which makes it easier to transact. While the government is concerned about the use of bitcoin in the absence of the authority responsible for this virtual money, it is very prone to be used as a means of money laundering and financing of terrorism

[brylle34]

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's Threat
The idea that bitcoin might be threat to established banking institutions was shared with CNBC by Rainer Michael Preiss, executive director, client investments, at Taurus Wealth Advisors, a Singapore-based family office. Preiss believes that cryptocurrencies such as bitcoin have a certain attractiveness given the lack of transparency in the banking system. For example, he says, the Federal Reserve has refused to allow an independent audit of its massive $4.5 billion balance sheet.

Potentially Disruptive to Banks
Possibly a more general fear among banks regarding bitcoin is "that it disrupts the need for a bank to intermediate transactions," writes Nick Bilton in Vanity Fair. Among its advantages versus banks, he says, is that "you don't need a driver's license" to open an account, and you don't pay account fees. Moreover, he adds, the blockchain technology behind bitcoin cannot be hacked, unlike bank accounts, making it a more secure store of value. Indeed, JPMorgan Chase is among the companies working on adopting blockchain technology for banking applications, per a report in Fortune.

Read more: Why Big U.S. Banks Are "Very Afraid" of Bitcoin | Investopedia https://www.investopedia.com/news/why-big-us-banks-are-very-afraid-bitcoin/#ixzz5HmpSmLyW

The government can't just regulate bitcoin because it has a unique and very anonymous transactions. what they really want is to earn and take control thats why they want to regulate bitcoin. bitcoin or other digital currency don't have TAX this is one of the main reasons.

[theyRmose]

I think they are not afraid, they just hate when they can not take advantage of bitcoin. If every bitcoin user pays taxes for free to the government, maybe the government will change their minds and say they want to work together.

[Yohr87]

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 they cannot control it and they will not get any profit from it.And if there is anything happen no one will blame or will shoulder the issue.In Bitcoin no one can control so that there's country banned it.

[gorbabtc]

Banks are afraid because they loose business because of crypto. There was  a recent news how LTC was used for a transaction of millions saving huge amount of bank fees.

[CherRic]

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 governments are threaten over Bitcoin's power especially in terms of decentralization, anonymousity, privacy and financial freedom in which banks and governments dont have. Banks also are losing many investors because people prefer to put their money in crypto. In crypto also, you can gain more profit than putting it in the bank.

[BTCedgar]

People are afraid or scared of Bitcoin. Because they have lack of knowledge and they don't think about the root of Bitcoin. They just see the price pumping and dumping. When price will start increase they say its pumping because it will be scam soon. Again when will start simple dump they say this is scam now. And when the price will recover they also think negative about Bitcoin. They don't think about the historical data of Bitcoin.

[powermagic]

banks and governments are afraid because bitcoin is not fully controlled by them, that's why many countries ban bitcoin because every transaction can not be loaded

[sham100899]

Yes banks and governments are afraid of bitcoin, one of the reason is that bitcoin is being controlled by no one, even the government can't control bitcoin and cryptocurrency market grows every second and the reason why the bank is also afraid of cryptos is the fact that exchanges earn more than what the banks have earned for more than a decade.

[missg23]

Banks are afraid because they loose business because of crypto. There was  a recent news how LTC was used for a transaction of millions saving huge amount of bank fees.

I agree. Banks are afraid to be replaced in the world of business. Crypto market is not controlled by anyone even the banks, more individuals are into crypto as a tool for exchange and uplifing lives. That's why other countries are banning cryptocurrencies.

[MarkDaniel5]

The government has not yet decided how best to regulate bitcoin on its territory, and banks without the permission of the government can not work with it. Therefore, there is such a stagnation in the adoption of bitcoin.

[MarkDaniel5]

maybe banks and government are afraid of bitcoin because they know that bitcoin is a big threat to their financial stability.
They can't control bitcoin.

[julielyn]

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 and government wants something that they have control over. Where there are people who manages its every transactions and if something goes wrong they have someone to blame or accounted for. But with bitcoin it will never happened because of its decentralized nature.

Yes bank and government scared of bitcoin a lot because bank afraid that no one will invest to their bank and the government afraid of bitcoin because it is digital crypto currencies their is no taxes in bitcoin that why government afraid of that and they not support of bitcoin and they say wrong or fake news about bitcoin.

[btsjungkook]

Many banks and governments today are scared of Bitcoin or not totally educated about bitcoin business. We can only help them by way of good explanations. Actually those people don't believe bitcoin are lack of knowledge about bitcoin, on how bitcoin really works by way of good contributions as an assets or financial contributions. But as long as we are here in bitcoin business, we try to do our best to become millionaire, so that people that don't believe bitcoin will change their mind and begin to access bitcoin, because they noticed that we are successful because of bitcoin.

[VayneAurelius]

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 it really scares them to the point they think that they will be useless in the future because of the implementation of cryptocurrencies in that country. Well there is a great chance that it will happen but they should not be scared if they know how to handle that kind of problem such as balancing the economy using bitcoin or other cryptocurrencies and others as well. It is all about the strategy that people will used. It depends but we can make sure that people will try to do things just to make bitcoin popular again.