Why Cryptocurrency threatens governments

[Renal]

The government will have a hard time controlling bitcoin because the price is very volatile unlike the case with fiat currencies circulating only in the real world so that many countries in the world strongly prohibit crypto if it is accepted as a digital currency.

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[1Referee]

Electronic money not subject to tax. Politicians say that would entail tax evasion from businesses, which would cost the state budget.

Firstly, even if it concerns a pair of dirty socks, you'll be subjected to taxation. Considering that Bitcoin ranks higher than a pair of dirty socks, you legally in no shape or form can avoid taxation. Another thing is that people believe just because their government hasn't regulated or legalized Bitcoin, that they don't have to pay tax, which is wrong. There is no way to get around it so don't count yourself lucky.

Secondly, the state doesn't lose anything if people don't pay tax over their crypto holdings and profits. If you don't hold Bitcoin or don't trade it in a profitable manner, the state wouldn't get anything from you in the first place, so what difference does it make that you don't pay any taxes if you do hold or profitably trade Bitcoin?

Bitcoin is power to the people. Why people still put that power to waste is what boggles my mind.

[carlisle1]

Over the years cryptocurrency  has evolved into a global currency but governments are trying to sweep it's relevancy under the carpet. We all know that the eyes of the community are now opened to the importance and blockchain technology.

What baffles me is why are the government making lives difficult by banning or limiting it's use? Is it because it threatens the political power or are they scared it will improve the global economy or force the traditional banks to reduce their ridiculous interests rate which we have been robbed of for decades now.

What is your take on this and what do you think will make governmental bodies to finally accept crypto?

Because corruption will be disabled when the cryptocurrency took over the market as payments and a currency.because of the decentralization of the cryptos they will have no access on getting money from individuals since they dont know who has tp collect because of anonymity

[LeGaulois]

Electronic money not subject to tax. Politicians say that would entail tax evasion from businesses, which would cost the state budget.

Good news for you. Cryptocurrencies are subject to taxes. If you don't report your income (and so, do not pay related taxes) it doesn't mean cryptos aren't subject to it. Any income is supposed to be reported accurately, no matter where the income comes from. It's how the system work but apparently a lot here have never paid a single penny for their tax

I am sure in a few months or years there are a lot of persons who will get serious problems with national taxes department. And the majority will say "But I didn't know!..."

[arpon11]

That is why governments will ever be against bitcoin and blockchain technology.  The fact that bitcoin is going to give freedom to the society governments will never like.  The politicians hate a decentralized system and that is what blockchain technology stand for.

[sheenshane]

That is why governments will ever be against bitcoin and blockchain technology.  The fact that bitcoin is going to give freedom to the society governments will never like.  The politicians hate a decentralized system and that is what blockchain technology stand for.

You have a point, the politicians and the governments hated cryptocurrency because it is a decentralized system that they did not able to control. One thing that for sure they are afraid of, they think that this system of blockchain technology will become a big competitor soon to the government when it comes to investment. No one deposit their assets in the bank due to regulated and your not the one holding your keys only a bank. Not just like cryptocurrency that you know everything when you have a savings fund a investment as well.

[Dreamchaser21]

That is why governments will ever be against bitcoin and blockchain technology.  The fact that bitcoin is going to give freedom to the society governments will never like.  The politicians hate a decentralized system and that is what blockchain technology stand for.

This is a revolution against fiat money, and since this market cannot be controlled by the government that is why they feel the threat. Blockchain technlogy is a game changer in this market, many businesses are now using it because they see big potential in this technology.

[kwabeedat]

In my opinion, governments banned cryptos because of our own behaviour. The technology was made for a good cause but we the adopters later developed bad intentions. People started to use it as an opportunity to scam others and so governments had no other option than to "protect" citizens by banning. That was what China did!

[beatzcoin123]

as we all know, the crypto space is decentralized, backed by blockchain technology,  now understanding the decentralized nature of blockchain and crypto, the government will do all it can to make sure crypto dont see the light of the day, as the adoption of crypto and blockchain may shine the light into their dark side, thereby limiting their fraudulent activities.

[creeps]

The government will have a hard time controlling bitcoin because the price is very volatile unlike the case with fiat currencies circulating only in the real world so that many countries in the world strongly prohibit crypto if it is accepted as a digital currency.

Collection of taxes and the security that makes this market more like a threat from the government, they really have no control over this market and maybe government are still trying to control it. We also have no control over this, and if government make a decision about cryptocurrency we have to follow it.

[xuan87]

If all people using crypto,the government won't be able to to collect the taxes, the Fiat value will become disrupted, so it's kind of dangerous if all people using crypto, the way to make the government accept crypto is to make crypto like Fiat, the government will accept crypto if we make it into centralised

[MMysterious]

Over the years cryptocurrency  has evolved into a global currency but governments are trying to sweep it's relevancy under the carpet. We all know that the eyes of the community are now opened to the importance and blockchain technology.

What baffles me is why are the government making lives difficult by banning or limiting it's use? Is it because it threatens the political power or are they scared it will improve the global economy or force the traditional banks to reduce their ridiculous interests rate which we have been robbed of for decades now.

What is your take on this and what do you think will make governmental bodies to finally accept crypto?

Governments is threatens simply because they are not the one who prints or make cryptocurrency. The people are the one who control it right now. Fiat money on the other hand controls and prints by goverments and banks. Even if they saw the blockchain technology potential they still want to ban it cause they scared that they cant manipulate cryptocurrency. They just want us to follow the same financial system that we have from wayback. They dont want us to adapt to the system that blockchain will bring. Change is inevitable so do Cryptocurrency.

[Strufmbae]

It is not actually threatening the government itself but the corrupt officials who make their lives easy with tax paid.  they know that crypto currency's goal is to become a taxless community not to undergo some hassle papers which is need to be filled up everytime you have to open a new account, and become anonymously transacting peer to peer.  

[pandanaran]

I do not understand for sure but some articles that I read about baning or cryptocurrency problems that occur caused the government can't control the crypto because they are decentralized. Then also about crypto bans and ICOs in China as well, but their official reason is to protect their citizens to avoid ICOs scamming.

[Muspion]

I think because the nature of the crypto currency is still anonymous and the government cannot regulate the circulation of this crypto currency, so it might threaten from their country's currency, they are worried if the use of crypto currency is higher than their local currency

[aoihs00]

This has discussed millions times and all that I can take from the different views is that, government may face challenges in the later times with fiat and crypto currency exchanges and thats why they are taking their own time to regulate it. I mean they are not ready for it and unless and until they has a plan they will be making some limitations or bans over it for sure. For now they dont want the economical stress increase just because people are putting all their wealth into the crypto currency and thus diverting their assets from the real assets to virtual assets which are pseudo anonymous to get traced.

[Don Pedro Dinero]

They simply don’t want a deflationary currency being used worldwide. Governments through central banks use their inflationary currencies to support their increasing expenditure. As for bitcoin, they can’t control it. They can currently tax it but not control it, although they are trying to with regulations.

[Kakmakr]

Governments are not threatened by Bitcoin at all, because they still control most of the on-ramps and off-ramps for Bitcoin to Fiat conversion. They are in bed with the Banks and other financial institutions, so they still have control over a vast area of the financial system.

Bitcoin just makes certain things more easy, like :

~ Granting financial privacy and freedom to citizens. <No more snooping in on what people are using their money on>
~ Capital Flight
~ Tax evasion
~ Global crime and cross border transactions
~ Terrorism funding <Their perfect excuse to terrorize people>
~ Removing the 100% control over currency manipulation and creation.

So, until some kind of solution can be find to prove them wrong, we will have to accept that they will be hostile towards this technology.

[andika2018]

Government still believe cryptocurrency used for illegal activity like tax evation or money laundry. But i am believe in near future, government regulator body will accept bitcoin or cryptocurrency for payment because most advance country already regulate bitcoin and crypto

[Summation]

If the cryptocurrency is rapidly spreading globally, the government’s control over the economy will fall sharply. Their currencies will depreciate sharply. But all this is ok, they can invest in cryptocurrency.