Why Cryptocurrency threatens governments

[Hannahanto]

Government cannot control the cryptocurrency like fiat. Fiat is controlled by government that's why government afraid to accept crypto. If all people are use only crtpto means its a great loss for country. Economically the country would suffer a lot. Many  countries now legalized   rypto with some rules and regulations to avoid illegal activities.

[passeroutpass]

After all, governments are very tightly connected with banks, and the latter, in turn, can not control the crypto currency, which is becoming more popular.

[South Park]

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.

That has not happened anywhere in the world, the only places in which cryptocurrencies are very influential are in countries that are in a terrible economic position and in which people are using everything that they can just to survive, in those circumstances governments should see cryptocurrencies as a good thing because it helps the people and yet we see that the most strict regulations come from those countries.

[katrimans]

Many states have already legalized the crypto currency, but made it property, not a means of payment. But this did not affect the work of bitcoin. Difficulties in working with crypto-currencies arise only in those countries that have banned the use of crypto currency.

This is the reason why there would always still be demand for fiat until maybe we get to start seeing real life usage and even at that, it does not necessarily mean every part of the globe will immediately just switch to cryptocurrency, and even if they do, the government with some regulations in place will still always benefit from it, and so at the end, it still remains a win-win situation for both the government and the users. They might feel threatened, based on the idea of control, but we all know there would always be a way around one way or the other.

[lantan81383628]

Because cryptocurrencies are decentralized, governments will struggle to control them. If all of us use cryptocurrencies, it threatens their country's currency. That's why the government is against cryptocurrencies.

[Robbio]

When everyone uses cryptocurrency to trade, the government will not get any benefit, the tax can't be collected, and the government will go bankrupt because of the cryptocurrency. So the government will definitely cooperate with the cryptocurrency.

[MinSiu]

For me, cryptocurrency can threaten governments because bitcoin has more remarkable features than fiat and it has a chance to replace fiat in near future

[South Park]

When everyone uses cryptocurrency to trade, the government will not get any benefit, the tax can't be collected, and the government will go bankrupt because of the cryptocurrency. So the government will definitely cooperate with the cryptocurrency.

And how exactly are you planning that governments cooperate with cryptocurrencies? The developers of bitcoin are never going to introduce any kind of code that will allow the government to tax you directly, so governments will need to try to find a way to identify the people that are using bitcoin or any other cryptocurrency and even if they find a way to do that, we still have anonymous coins impossible to track.

[Clavulanic]

When everyone uses cryptocurrency to trade, the government will not get any benefit, the tax can't be collected, and the government will go bankrupt because of the cryptocurrency. So the government will definitely cooperate with the cryptocurrency.

And how exactly are you planning that governments cooperate with cryptocurrencies? The developers of bitcoin are never going to introduce any kind of code that will allow the government to tax you directly, so governments will need to try to find a way to identify the people that are using bitcoin or any other cryptocurrency and even if they find a way to do that, we still have anonymous coins impossible to track.

It's not fair for bitcoin investors that Government will take over immediately without proper regulations to bitcoin, and possible corruptions will be initiated with that if not reviewed briefly. That's their threat because they can't control it's price to move to the limitless value and nobody can regulate the price in order to stabilized at sustainable price. Taxes will always be for fiat currency, and with regards to bitcoin taxes maybe the local trading can handle that over on their businesses.

[qwerty12]

Of course, Cryptocurrency threatens the government. There is a cryptocurrency aspect that weakens the power of the government to control citizens' money.

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

Well, if the government is aware of the benefits associated with crypto taxation, I think that this will make crypto accepted by the government.

[qumeijia]

I don't think that Crypto currency doesn't threaten government, but it is just potentially decrease the taxation income our country. Let's imagine if Crypto is used for global currency and it is allowed and legalized as a mean of payments. Every one perhaps won't to use physical money, all are prefer to use Crypto for purchasing and paying (as we know Crypto rules very small tax/fee). It is absolutely decreasing the income of particular states. 

[sirohige]

I think maybe it's because this cryptocurrency is a digital currency that can be seen by all transactions by everyone so that the government is afraid that if it can't do corruption again, imagine if all systems in the government use blockchain technology.

[Layers318]

It is very obvious that Bitcoin is the number one cryptocurrency which threatens the governments. This is largely due to the its huge user base on the market with a total history of anonymity. The governments wish to know the people behind these transactions in order to check money laundering, terrorism funding, drug trafficking etc.

[gambitcoin53]

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?

it is simply as govt are hiding something big under their sleeves, bitcoin and cryptocurrencies runs on blockchain and as we know, it is decentralized and anonymous, they know how blockchain works, govts have an issue on transparency of transaction, it is incorruptible and anti graft practices can be easily viewed, all the illegal transactions and under the table money transfer can be viewed by the whole chain. that is why most of the countries who banned bitcoin belongs to the known corrupt country in the world. shame. 

[iMark]

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.

because the government does not have any control over crypto right, yeah they are afraid of that, then they try to control it in
various ways such as legalization and data verification? this was done so that the threat from crypto could be minimized

[Chrisjay29]

No other reason why other government threathen crypto. It because lot of people scamming by using crypto. If this people wont stop i think i cant see any future on crypto. Because if all country unite decision and they want to banned bitcoin in the world then all will be gone.

[Duogembrot]

I think the government feels threatened because this bitcoin has blockchain technology that can see all existing transactions and no longer need to use a bank so I am sure the bank is also threatened so that banks threaten the government and government feel threatened from banks and bitcoin I am sure of that.

[Ozero]

For me, cryptocurrency can threaten governments because bitcoin has more remarkable features than fiat and it has a chance to replace fiat in near future

Governments, of course, do not like the non-controllability of decentralized crypto currency, its high price volatility, its virtuality, the unknown source of origin, not the provision of material values, and much more. Therefore, it does not hasten to legalize it, because it is about introducing someone else's money to go out. However, the Crypto-currency does not threaten the state. Any state is able to effectively defend itself against such threats. If the crypto currency will go. only in parallel with the national money of this state, it can even benefit this state, as Japan did.

[Janation]

I think the government feels threatened because this bitcoin has blockchain technology that can see all existing transactions and no longer need to use a bank so I am sure the bank is also threatened so that banks threaten the government and government feel threatened from banks and bitcoin I am sure of that.

So you are saying that the function of banks is just to see the existing transactions that is being made in the country? No, that is not true. Banks has a lot of functions in a country and it is important.

Banks are not threatened by cryptocurrencies, Why? Yes, Bitcoin and other cryptocurrencies are decentralized, it is anonymous but in terms of transactions, payment method using banks are still great. Cryptos still has tranasaction fees though most of the banks don't have, it is widely accepted while cryptos are not and it is more quicker or faster than cryptos.

[Falmera]

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 crypto currency do not threaten the government. It is the government that fear the crypto. And why do you think it is? Well, I think because they do not really know what bitcoin is.