Why are banks and governments scared of Bitcoin?

[Flatooss]

Of course they are. They are afraid of what they can not control. in the future, if you gradually introduce crypto-currencies into everyday life, you can squeeze out cash. But this is still too early. Banks all understand the risks and where they can be.

[prabowo499]

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 government and banks forbid bitcoin from circulating it is natural because bitcoin can threaten the value of selling or buying a country's currency. the country's currency will become extinct if bitcoin circulates widely. while in other countries confused about strengthening their own currency against other countries' currencies, for example in my country, namely Indonesia. our government is confused about how to strengthen the rupiah against the dollar. therefore there are still many countries that block the circulation of bitcoin in real terms

[xena2]

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?

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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.

i think banks and the government are scared of bitcoin because they don't have or are not capable of controlling it.  They don't have any access on how they will handle it.  They are scared because instead of them controlling bitcoin,  bitcoin becomes very inaccessible to them.

[Hagmonar]

No, i think the governments are not afraid or the banks are not afraid to bitcoin too they just dont like the idea of bitcoin for bieng discentralisations because they cant control the flow of bitcoin currency around the world.

[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?

I think there are some main reasons behind this circumstances follow as:
- The government are afraid the people would give up their job for doing in the crypto market. This thing would bring more negative effect to their country.
- If Crypto were considered as a currency in the transaction. They would not manage the flow of money.
- The banks would be reduced their client because the attraction of crypto market.

[wtbhitlv]

This is understandable, because Bitcoin is not controlled by the government, and the prosperity of Bitcoin is bound to hurt the interests of the government and banks.

[GeorgiyBilyk]

Visa and the master of cards has long declared war on the marketplace! a very large capitalization of money went into the crypto world! already very many people use crypto coins to buy goods or services! transactions are cheap, anonymous and fast - that's what attracts more and more people!

[stasiulman]

I would rather say that do not be afraid, but do not understand. At a basis of any cryptocurrency lying anonymity and decentralization, which means relative freedom for any user when disposing of his finances outside the state system while at a transboundary scale. Bitcoin and cryptocurrencies claim to replace the traditional financial system, and this is one of the main elements of state governance. It is this fact that worries politicians and bankers.

[tempebacem]

Maybe they are scared because many investors are now investing in crypto rather than banks because they cannot get more with their investment in the bank. Crypto investment is very profitable. More and more people are adopting it when it comes that cryptocurrency willspread throughout the world, the government has no source of income throughout the country.while the government is afraid of this because they cannot control or track transactions and save inside. They will not know whether the transaction is good or bad and can affect the economy of our country because it is not taxable .

[Ronyx]

Bitcoin is a decentralized digital currency, bitcoin also has benefits as a currency and also investment, and it can be an attraction to choose bitcoin. Banks are afraid because they will experience a decrease in profits if many people prefer to save their money in bitcoin.

[Yusuf_Jay]

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?

I think bitcoin offers an easier way to operate/transfer money from what has to offer by a bank. And the bank feels uncomfortable with the competition brought by bitcoin.

[kptn.sgt]

They are afraid that bitcoin would take over their currency.

[trauchot]

Visa and the master of cards has long declared war on the marketplace! a very large capitalization of money went into the crypto world! already very many people use crypto coins to buy goods or services! transactions are cheap, anonymous and fast - that's what attracts more and more people!

I totally agree. But I also think that people who use cryptocurrency make profit for banks, since many cryptocurrency users use bank cards for their purchases, but of course not all people. As for me for many governments, the only problem is anonymity, other disadvantages or utility do not completely concern them.

[Thefrolly]

Well it really comes down to them not having any control over Bitcoin. If they had any control over it than they would have already banned Bitcoin by now. Cause they cant let a decentralized currency like Bitcoin grow as it poses a threat to them and threatens their monopoly over money.

[adadaorlina]

Because banks and government want something that they have control over. 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. More people are engaging, having a deep understanding and knowing the true meaning of the Bitcoin as a great crypto currency for their financial transactions.

[Zelezinskyi]

I think, probably because banks and the government are afraid of Bitcoin, because the government can not regulate it, if Bitcoin continues to grow, and many use Bitcoin, then the state will not get anything in return because there is no tax on it

[Slayer21]

Banks and governments are scared of bitcoin in the fact that bitcoin is a hard competition for them, knowing the fact that it is decentralized they will not get taxes from it.

[tongkt1992]

Banks generally charge fees for doing absolutely anything that includes money, even when they just hold onto it. Banks have created a high level of trust that your transactions will pass smoothly. But, after the financial crisis in 2008, banks lost some of that trust.

Using blockchain as a digital network, where every single transaction (called a block) is securely linked together makes transactions verifiable, available to everyone and is more immune to hacking than centralized banks. This makes banks totally unnecessary for transactions. This is what motivates them to ban cryptocurrencies altogether.

Virtual currencies are self-governed, meaning they are not controlled by any government, person or a central authority. This makes monitoring almost impossible and poses a threat for government authorities (this was especially true for China).

Finally, using cryptocurrencies is posing a threat to the stability of the national currency in some countries (Indonesia).

It is important to stress that banning cryptocurrencies will only create black markets. They can be declared illegal but it will have no effect on the use of cryptocurrencies due to their decentralized nature. To kill cryptocurrencies altogether, all governments from all over the world would have to ban them.

[Satish147]

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?

In India also RBI put restrictions on banks to deal with any exchanges but they didn't mentioned any specified or threats for using cryptocurrencies. They are simply saying that it has been done for investors protection .

They are getting fear because of Cryptocurrencies can replace the fiat and eliminate their power on money circulation.

[Lovecrafter]

In that through the crypto currency people can shy away from paying taxes, as well as launder money. Personally, I think that it is very bad that it uses crypto currency, which was not created for this purpose