Why Cryptocurrency threatens governments

[realBitcoiner]

The government is trying to make everything under its control, the banks control all the money, and the government controls that banks.
Blocking or restricting is a feature of anything new, new things need time to accept.
The Internet has been a tool for freedom before, but now there are a lot of restrictions on its use, and this will happen to cryptocurrencies.
I do not know why people tend to be controlled? But this is a present trait.

Banks are the backbone of the economy for a country. If banks have huge money in accounts, the economy of the country will also improve, but if they have no money it means that governments have no money for their needs. Now they realize that people put their money in cryptocurrency and it is not good for a country. Their money is going out of the country and it is overall not good.

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[zhanyiguai261315]

Because cryptocurrency is an unregulated market and cryptocurrency is very unstable!
Moreover, cryptocurrency is difficult for the government. In order to ensure financial order, the government has to say no to the cryptocurrency!

[EllieBasti05]

Simply, because they cannot collect taxes through digital currency that's why they will do their best to shut it down though many of people uses bitcoin as part of their everyday living.

[rickadone]

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

Governments are not as little as you might think. Yes in places like Venezuela or Madagascar or whatever the politicians may not have the power of some people in USA but the people in USA do not have power of the USA government neither. Hence, in the end wherever you are living the crypto you use will not affect the government and won't affect or threaten the government at all, it is not that much powerful and it will never be that much powerful. Even the stock market that is trillions of dollars do not affect government enough to threaten it. I believe economy is the most important part of a country that governments care about but it is far from only thing.

[Hasbro27]

in my opinion, many governments in a country prohibit cryptocurrency because they think that bitcoin has no formal foundation and regulating authority, bitcoin is prone to being misused for illegal transactions, money laundering, and terrorism financing, I think that reason doesn't make sense, because there are countries that legalize it like Japan

[Reid]

The government is trying to make everything under its control, the banks control all the money, and the government controls that banks.
Blocking or restricting is a feature of anything new, new things need time to accept.
The Internet has been a tool for freedom before, but now there are a lot of restrictions on its use, and this will happen to cryptocurrencies.
I do not know why people tend to be controlled? But this is a present trait.

Tradition.
People seem to feel secured when someone is in control. I am not against it but there are times it goes overboard.
Bitcoin almost looked like "freedom" and governments will try to prevent that. Yes some countries just looks like they are in democracy but it is really not that type of government.
It is still the authority who will filter everything before being passed to the media to spread the news.
A news that is already cleaned up. Sad but true.

[Drobek]

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.

You just took the words right from my mouth. I see Tax evasion and Terrorism funding as a main point why governments find it difficult to fully endorse bitcoin. I for instance don't pay tax on my trading gains because my government haven't been able to come up with an efficient way to impose tax.

[xIIImaL]

Crypto currencies are not at all a threaten instead of that we need to understand government are really worst for their country own citizen mate. Always government doing bad for the people only.

So later than bitcoin value reaches to big value then government will come and pick the bitcoin's leg.

[torrihuff]

What if crypto currency was created by the government and was a threat to you?  Have you considered this?  Every one of your transactions on the public ledger.  That 5 you spotted your friend.  That's now can be made a taxable event as it's on the blockchain.  Once you have the blockchain and no paper cash they got you. I feel like there should be a huge discussion around this as its a potentially dangerous situation. 

[Irvinn]

Crypto currency does not threaten governments. This statement is generally wrong. If everything is correctly organized, the Crypto-currency will be beneficial for the economy of each country. An example of this is Japan, where in April of last year the crypto currency was recognized as a means of payment, and only last year the country's economy grew by 0.86 percent because of the crypto currency. The figures are not very large, but this is only the beginning.

[metalglowd]

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?

I think this is more about the nature of cryptocurrency that has a high risk and bubble. this may be proven with market history from the end of 2017 to the present. fluctuations and manipulations which are generally the topic of daily conversation

[budrabut]

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.

There are many reasons of banning Bitcoin and others currency, your opinion is probably one of the reasons. Most of country are questioning the security of Crypto currency due to the decentralized principle of it. Even it is claimed it has very high risk and use for finance terrorism. As crypto growth, there are some country that legalize the existence of bitcoin and other Crypto because they realize that it is not only about digital currency but it is more than it. It is to keep the improvement of technology whereas all are coming to digital.

So, it is very wrong if Crypto threatens governments. 

[spongegar]

Getting it on a government's point of view,  crypto currency is very unstable and unregulated in itself. It could be used for criminal activities like money laundering and could threaten the citizens with fraud. In my stand point, alot of other countries have already placed laws to prevent the misuse of crypto currency. Bottom line? Politics!

[vv181]

Governments don't like anything beyond their control, and Bitcoin fits it perfectly, they can't control the ecosystem of Bitcoin. It is the reason why some governments making a strict regulation, to make user away from the true decentralization.

[7Dyoknga5]

Another crypto-threat-to-government thread.

governments will never be threatened by cryptocurrencies as they could easily reject and prohibit their people from using it. Like what they do on middle eastern countries where they blocked porn sites.

If bitcoin can't be regulated, chances are it won't be accepted in the country because according to some politicians "it's not safe and secured"

[Renal]

fiat currency is certainly different from digital currency if the government will pass the crypto currency, it is necessary to regulate it if not, the government will be more difficult in handling digital currencies.

[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.

You just took the words right from my mouth. I see Tax evasion and Terrorism funding as a main point why governments find it difficult to fully endorse bitcoin. I for instance don't pay tax on my trading gains because my government haven't been able to come up with an efficient way to impose tax.

Well, just make sure that you keep some funds aside, when they do. In my country they did the same and we had a free for all for a while, but they quickly closed that loop-hole and implemented "Capital Gains" taxes on all Crypto currency trading income. Luckily for us, taxes for that income was only applicable from the time when the new stipulations were added to the tax regulations.

Most countries implement "Capital Gains" taxes on trading income and VAT on normal Crypto purchases. 

[andriw]

Maybe the presence of a cryptocurrency can threaten the existence of fiat, in my opinion, we take the example of US Dollar, almost all trade between countries using these currencies and the dollar circulates in almost the entire world, causing the dollar value is exceed almost all currencies in the world. Then, what happens when almost all trade between countries uses cryptocurrency, Bitcoin for example, then the circulation of Dollar in the world is drastically reduced because there is no demand, resulting in a drastically fall in the Dollar value. And surely many conglomerates will not want that to happen

[Linhkej]

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?

I think the first is the security issues. Crypto has good information security. Since then it has been exploited for illegal activities. Not many cases of money laundering or drug dealing with crypto has been exposed. This leaves the government feeling lost of control, despite the fact that there are no legitimate transactions.

[tonyvo2017]

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?

I think it makes the government feel limited about control. They can not manage transactions. Is it legal? And that has caused security concerns. In fact, there have been many cases of money laundering or illegal trafficking with Bitcoin being discovered and that fear is well founded.