Why are banks and governments scared of Bitcoin?

[Claudyah]

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?

Since banks in the country do not earn income from their citizens, in the cryptocurrency bank can not track transactions of sale, trade, or online purchases therefore the bank can not take tax advantage from it. The fear of the bank and its government will be bitcoin probably because the currency of the country is replaced then they at least forbid bitcoin to enter the country and to legalize

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[Larrycool]

One of the major reasons why government are scared of bitcoin is, they are afraid of losing their tax revenues as  bitcoin transactions are untraceable. therefore for such investor to pay tax will not be possible. and some government sees it as means of money laundery which could affect the economy of their nation.

[Fwale12]

Banks and government are scared of bitcoin because they have no control over it. Bitcoin works on a block chain technology so they have no control over it. Banks are scared cos many people may start investing in bitcoin instead of taking their money to banks

[Zabzab9]

Governments are in the cash business. They make fiat cash and can control to fill a wide range of needs.

When you propose to utilize an option that is other than fiat cash as a store of significant worth, the administration can't control or control it also. On the off chance that you could collaborate ordinary exclusively in Bitcoin and lived in the US, the US raising loan costs to control the cash supply wouldn't have much impact on you.

What's more, banks get all their cash by obtaining it from the administration, so being inconsistent with the legislature is an awful move for a bank

[brianross7]

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?

Personally, there are a lot of reasons behind that issue. Firstly, The country finance would depends on Crypto. They wouldn't control all of transaction under Crypto payment. Secondly, the bank would lose much their benefit from money exchange. Thirdly, this market is still very risky. it can bring more negative effect to the country.   

[uyenkt]

The only reason 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

[Purvik]

Because for the every transaction of people they did not want to pay taxs due to its decentralized nature which gives the loss in revenues to banks and government so they are knee to ban cryptos

[mojo2208]

Because in most countries of the world the crypto currency is not fixed at the legislative level and accordingly is not a taxable subject. And as for banks, everything is simple. Blocking creates a huge competition for banks, they lose a lot of money.

[mr.shaman]

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?

Everything is simple, with the advent of the crypto currency - ordinary banks will die out, and what kind of bank will want such a development of events, that's beating the alarm and set up categorically! I think so)

[buck1n.mish]

They are scared because a lot of investors are now invest with crypto rather than banks since they cannot earn more with their investment in banks.  Crypto investment is very profitable, even me will love to invest with it.

[Separate_Bass]

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 lack of centralized control over the processes is the main reason why governments and banks are afraid of crypto currency. Currencies have weight only because the government of the country said so. For most people in the world, these promises do not mean anything. In fact, fiat currencies are not backed by any tangible assets. The governments control the currency (for this they use central banks). But all this control is lost when non-governmental organizations devise their currency.
Here is the answer. Banks and governments are afraid of a decentralized system that can not be controlled.

[trangoccho]

Bitcoin is a decentralized digital currency, this means that your account is safe and secured, and it is not necessarily need your identity when you have a transactions and the fees are only minimal. So unlike banks they will collect a transaction fee, some banks the fees are high, they are very detailed the fact that sometimes we irritate because of lots of requirements

[jacksonhen]

Bitcoin - and other decentralised cryptocurrencies - allow people to trade directly with each other, cutting out the need for a middleman which, in traditional commerce, is a bank. Banks generally charge fees for doing anything with money, even just holding on to it. That's because the banks have created a level of trust that transactions pass smoothly and everything is recorded and accounted for correctly.


The key to its success is something called the blockchain. The blockchain is a means of solving the double-spending problem: which is that because the currency is digital it is open to being copied and spent more than once - something banks stop with physical currency.

However, the blockchain acts as a digital ledger, whereby every single transaction (called a block) is securely linked together using cryptography and encryption. It's verifiable, available to everyone who owns Bitcoin and is immune to fraud and hacking - unlike centralised banks. It enables one digital wallet (that can be stored on a phone) to directly connect with another securely and process a transaction. As such, it removes the need for any kind of traditional bank or regulator.


This makes sense bitcoin will be a rival to banks and the government Read more https://www.mirror.co.uk/

[frey_oh]

basically bitcoin is a threat or competitor for banks and the government. Bitcoin brings fair opportunities for common individuals. Anyone can join and invest as long as he is interested and he has capital. This is the reason why bitcoin has become popular and is widely used by many people around the world. with that banks and governments see bitcoin as a threat and competitor, especially because they cannot control or take advantage of bitcoin

[iotarocket]

Banks and governments are scared of bitcoin because bitcoin removes the power from intermediaries and central authorities. But I think once the elites figure out a way to use blockchain to their advantage, they will ease up on bitcoin and embrace it.

[Walionn]

First, banks and the government are afraid of Bitcoins, because Bitcoin is a competitor to them, secondly, no one can control Bitcoin, and the bank is under the control of the government; third, they lose their tax.

[shawn995]

As we as a whole realize that Bitcoin and cryptographic money is depend on the blockchain innovation which depends on the standard of decentralization. It's tied in with taking endlessly control from the incorporated controlling experts and exchanging it to the clients. Then again, governments are voracious for control, they need to control each and everything in your life, blockchain based monetary forms won't enable governments to manage it so you will be the genuine proprietor and holder of your riches and nobody can meddle in it without your consent. That is the motivation behind why the banks and governments are terrified of Bitcoin.

[agiskasep]

I'm not sure the government is afraid of bitcoin. I don't see how bitcoin can threaten the stability of government and banks. It is foolish to think that bitcoin will destroy the modern economic system.

[Jian_Liux]

The bitcoin price is so high that it promises a sizable profit on bitcoin users, thereby making some people who save their money in the bank will pull it and switch to bitcoin investments, this will be very detrimental to the bank, while the news about bitcoin misuse such as money laundering and terrorist activities will greatly disrupt the security and economic stability of the country, so the government prohibits the use of bitcoin.

[nicko122]

Banks are centralized schemes, and the cryptocurrencies is decentralized. Therefore, the governments of the countries do not want to contact them, because they do not know how to completely control them.