Why Cryptocurrency threatens governments

[basyang]

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?

Well, I think the Government is not threaten but they analyze it carefully. Its hard to make a decide without a basis, Governments need to have a research first about it especially cryptocurrency is not centralized they can not control it. Before making decisions there is a lot of process possible it will going through, many people will discuss about it before they decide what to do.

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[Burogh]

Cryptocurrency like bitcoin threatens by government because its decentralized and can not controlled by any authorities. Government must be want to control the transaction data and it can not be done with bitcoin, thats why many government hate crypto like bitcoin because government can not track the transaction

[finlandais]

According to me government thinks that cryptocurrency will disturb the economy of their country that why they are afraid of cryptocurrency.They think that cryptocurrency will affect the economy upto that extent that ones it get disturbed it can never be recovered easily.Moreover  their is no central management to control the cryprocurrency when threatens the government more.

[bajigur894784]

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?

That's a deep question. There is an aspect of cryptocurrency that seems to weaken the power of the government to issue tender facilities or fiat currencies. On the other hand, Bitcoin and other cryptocurrency are implicated as a means of illegal trade etc. Even though that may be true, money always has the same goal and this is no different.

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

Bitcoin and other cryptocurrency aim to reconstruct the financial system by including transparency and eliminating the possibility of fraud.

The way I see it (in my personal opinion) transparency, security, and a financial system without trust are things that should be accepted and understood by the government for the good of humanity. This democratization of money may be the biggest revolution for our generation.

[syaripudin]

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?

some of the income that can be obtained include some of the income budget of a country and one of them is taxation, but it is very regrettable that the taxation system that should be included for budgets that are on the growth of the economy of the community, but most are misused by some government officials who wants to take advantage. and if the crypto system is implemented for the financial system in government, it might be that there will be no opportunity for the government to take advantage of the benefits that will be obtained, maybe that is one reason why the government thinks crypto will be a threat.

[icecream sandwich]

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 is because of the fact that the tax on the government might be gone because of the cryptocurrency if it will become implemented as the main currency.

[squog]

I guess you can read it in this forum that some people made a nice point. Basically, people invest on crypto currency from a national currency then once the user exchanges it back to fiat in a much higher value, the government doesn't get any tax from it but losses a great deal of fiat in the process accross alot of users.

[Angna27]

Its a threat because they cannot control it, since bitcoin is decentralized, usually people and government control bank's in and out of money but with bitcoin they cannot simple even see the exact amount of it and cannot interfere with it.

[MAJICOIN]

if a government is not allowing crypto and they threatens there should be some reason behind that like in few months i have seen a report in which one country have criticized bitcoin because for it's virtual nature and many says that it is used in terrorism but on the other side if we look it is the development of technology and those who are used to it they are accepting these.

[el kaka22]

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.

No it won't. If they fail to control bittorent they will definitely fail to control Cryptocurrency.. Cryptocurrency is more decentralized than BitTorrent.
Internet is not a good example. It is very centralized Cryptocurrency isn't.

 We should be very worried Howevery . We should be worried because they could totally control/regulate the Internet in order to capture Crypto World. The desperation is there already.

That is another way to look at it . Torrent has always been like the first decentralized way of sharing files and that is one thing they have tried to want to get rid of, but as long as things remain decentralized, that would always be a hard thing to achieve.

Moreover, I do not see any reason why we need to be worried if they feel threatened; as I believe the ability to control the internet would be something that could not be that very much possible, unless there is something I am missing. Highest we would see is regulation and that would be subject to fiat conversion most of the time.

[maxreish]

You probably answered already what you are asking for. Governments tend to prevent cryptocurrency because they are afraid that it can replace banks or fiats. Bitcoin is anonymous and cannot controlled even the government. They will not gonna legalized bitcoin because inflations are always associated with it and it may just boost up some government issues.

[Bitcotalk]

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

Yeah, but at the same time we also have to understand that in reality, to see everyone globally making use of cryptocurrency may not be that easy. Nevertheless, I understand that with this in play, this would make the need for USD for international transactions dropped rapidly and then we see a lot of people who understand the benefit the crypto world brings, hopping into it.

Can this be allowed by the government, probably with regulation, but we all know governments will never want to give up control and that threatens them a lot.

[jostorres]

the government wants everything under their control
whereas cryptocurrency is economic freedom
and of course that is not in line with the government's vision

Everything has always been in their control right from the onset, and I am sure they would not want that to change for anything. It is more like you being in control of something and they you see something that wants to take the control away from you, won't you feel threatened?

However, there are certain times when you will just need to understand that the world is evolving, things are changing, and the best is just to accept in a way whatever it brings and I hope the governments all over the world can realize this.

[BaraxLo]

Simply because governments like to have complete control over everything in our daily lives.

This is one reason among many reasons why the advent of cryptocurrency is a threat to majority of the developing countries. If we see the trend of growth of cryptocurrencies in the developed countries, it is swift and normal for the governments to tackle the challenges posed by it but in case of the developing countries-majority of which are already in financial crisis-the advent and implementation of crypto system in the economy can disturb the existing system whose policies have been built around fiat.

[nur rochid]

You probably answered already what you are asking for. Governments tend to prevent cryptocurrency because they are afraid that it can replace banks or fiats. Bitcoin is anonymous and cannot controlled even the government. They will not gonna legalized bitcoin because inflations are always associated with it and it may just boost up some government issues.

using blockchain, it will reduce the number of employees, so that it will increase unemployment, and i don't think every country is ready to accept crypto like other developed countries

[dlouulmusthofa]

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.

that is the main problem of government fear, which is that it cannot regulate it, it all depends on the market situation

[ErmaburR]

I guess you can read it in this forum that some people made a nice point. Basically, people invest on crypto currency from a national currency then once the user exchanges it back to fiat in a much higher value, the government doesn't get any tax from it but losses a great deal of fiat in the process accross alot of users.

Yeah you are right and the other reason is that people take off their money from their country to invest in cryptocurrency. It is a big deficit for a country that their reserves are reducing by this way and it threatens governments the most. Due to decentralization of cryptocurrency government has no benefit of its investment and that’s the reason that many governments in the world has banned cryptocurrency

[kaya11]

It is simple, if government officials were corrupt-they would take cuts and and bribes from merchants and other establishments that do illegal activities such as money laundering and other related to illegal money transactions. If those illegal activities would stop they are going to have none. It's business for them to stay at their position and make the most money out of it. That is why we need trusted officials in the government-they are the seed of evil and they need to be cleansed first. Crypto is a decentralized system and none other governments holds it, therefore its hard for them to control.

[maxman190]

The government is used to controlling what is in its power, and the crypto currency is not in its competence and it does not like it, as it loses a lot of money that is invested in other countries.

[gunhell16]

Cryptocurrency is made for the people, they are the one to control the demand and price.
Unlike Fiat, the government is the one to control the supply.
Cryptocurrency has its supply limited.
this is why government afraid of crypto.