Why Cryptocurrency threatens governments

[richmcrich]

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.

The main reason is Bitcoin being decentralizes due to which it makes it difficult for the country to collect taxed like they do through banking. Besides, the introduction and implementation of this system can possibly change the banking system and again the government might not earn the amount they make through banks right now.

Imposing regulations is something that makes the user feel insecure on the other hand. SO there is a two side insecurity and this is the reason cryptocurrency is viewed as a threat for the developing economies. For the developed economies, things might work in a different way.

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[jcojci]

Because cryptocurrency can replace the existing fiat and there are many other benefits from cryptocurrency than fiat. And the cryptocurrency itself offers a simple way and easy to use without any limit so people can use it as one currency. But I don't think that the governments will disagree with the cryptocurrency because as long as they know that the technology era will come, they will prepare and perhaps, they will create their crypto to compete with the other crypto.

[VaryTime]

I think cryptocurrency threatens government because People tend to use bitcoin than banks. But the government control banks and tax, if no one uses banks, it will truely threaten govenrment.

[davinchi]

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?

There are lots of reasons why people, especially banks and the governments hates Bitcoin. Anything that has an advantage will also have disadvantage. As for Bitcoin, are you aware of that fact that ransom wares always request for Bitcoin before releasing the computer? Guess most of you wouldn’t know that, the only thing you know is money laundering –and that’s another reason why they also hate Bitcoin.

I like Bitcoin, so I wouldn’t come here and start saying things that would discourage people from it. Bitcoin is good, you just have to be careful how you use it and always respect yourself and avoid doing bad with it, cause the more people continue to use it for bad, the more government will seek for ways to stop it for good.

[Freshmen]

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.

In my view, there are many factors that a government does not allow cryptocurrency investment and trading. Mostly corrupt people put their money in cryptocurrency because it is a safe place for black money. Government has no control over cryptocurrency trading and they cannot impose tax on crypto income. These are all threats for government.

[sinkfish]

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.

another concern is crypto could backfire and destroy government and centralize institution.

[guoyu78]

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.

Blockchain technology is not a problem for the government, what the government feel threatened mostly about is the idea that bitcoin and cryptocurrencies are bound to being decentralized and for that reason, it would be hard for them to control which is one thing they have only been used to.

It is more like saying for instance, that you have always been in control of something over the years and then, there is something that wants to take the control away from you, the same way you will feel threatened is the same way the governments are also feeling threatened now, but they simply know blockchain technology is the future,

[Kusnechik]

Governments need cryptocurrency, just as they need a blockchain, which will simplify their interaction with citizens.

[maarx]

Government wants everything under its control,  it is not possible in crypto. It cannot be controlled by government that's why government afraid to accept crypto. More over crypto currencies have covered the currency market and attracted more investors into it. This is another reason  fiats values have gone less compared to crypto currencies.

[South Park]

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.

Taking taxes out of cryptocurrency investors is proving to be a very hard battle to win, and they are realizing that now that there is a very low number of persons which are using cryptocurrencies, the costs of trying to get taxes out of people when bitcoin becomes widely adopted are going to rise dramatically and it is going to be impossible to tax people at the current levels if cryptocurrencies become widely adopted.

[Raven91]

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?

since the cryptocurrency is decentralized, government cannot handle it. plus the fact that it will remove all of the taxes that is needed by the government.

[denuhaqiqi]

They considered the cryptocurrency to have negative consequences and high risk to traders. Because it is decentralized, it distinguishes it from conventional money issued by the central bank. So that the government might not find a way to control cryptocurrency. The government in the country does not prohibit bitcoin or cryptocurrency users from owning it. But what is prohibited by the government in my country is used as a means of payment because what is recognized is only the country's currency.

[PeachPam]

The government want to control everything but bitcoin is decentralized and can not be controlled anyway. That is the reason why cryptocurrency can threaten to government

[The Sceptical Chymist]

Government wants everything under its control

That's definitely true.

It cannot be controlled by government

This is definitely NOT true.  Any government could "control" crypto just by making its use illegal.  True, that wouldn't stop the hardcore crypto enthusiasts, just as anti-gun laws don't stop outlaws from obtaining illegal firearms--but you can be damn sure that if bitcoin was made illegal that would effectively be the death knell for it.  The price would probably crash, for one thing, and there would be nobody using bitcoin to buy stuff they could buy with fiat. 

That said, I don't think governments see crypto as a threat to fiat.  I don't think most governments even know what to make of crypto so far, much less how to regulate it or use it to their advantage.  Time will tell, but I highly doubt the 1st world governments at least are going to try to ban it.

[Lorna111]

I think its because some people even politicians have devised a means of carrying out criminal activities using bitcoin.

   The entry of Crypto Currency in the Market change the out look of the  Business and Financial World, It is not as simple as putting aside the Market Laws as the guidelines of every government create by Central Bank of every country, that's why, the government is very serious on the issue of Regulation on the entry of Crypto Currency Business with Digital Transaction on the market. We've seen on the news that some Hackers, Scammer, and even Criminals able to make some use the plat form of Crypto for their illegal transaction. no government would just allow such a thing specially those of Illegal wrong doing.

[Mihaylovic]

cryptocurrencies are an alternative solutions to traditional banking system. it is a decentralized and very innovative solutions. and due to traditional banks are backed by governments, they dont want to let any alternative solution to dominate nowadays financial system.

[Kittygalore]

Fiat currency its a currency that a government has a control while crypto can not be manipulate and can not be created out of thin air.  If people adopt a crypto currency then the fiat currency price will plummet. Its one of the reason why government impose a stricter rules in cryptocurrency.

In short, the government wanted to be in control on everything especially in terms of money. The government think that if everything will be on their control, it will be okay or the market stays stable. Not really the market but the economy will be on their power. But as we can see, there is nothing happens in the economy. Go up or go down, the worldwide economy is still not good.

[Siren]

Because this will stop the corruption and the illegal profiteering will be gone forever

They know(the corrupt officials)that if the cryptocurrency becomes legal tender everything in government become transparent and the under the table will be lessened if not totally stopped

And the governmental illegal transaction will change to neutral because the payments will directly go to government and not in their pocket

[Daimon88]

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.

What you have stated is the actual truth and one of the reasons why banks will always be functional in the long run, while finding a way to integrate the blockchain technology into their system. Banks know that blockchain is the future and they are ready to study and adopt it in the long run.

Sure, decentralization may be one thing they feel could be a problem, but in essence the use of bitcoin would just be another form of making payments, which would only be applicable to those who are adopters of it, since not everyone will anyway be accessible to it, but in the long run, banks will always still stay relevant, and I do not think at this stage, the government will feel threatened with cryptocurrency.

[fauzan Ichsan]

Because this will stop the corruption and the illegal profiteering will be gone forever

They know(the corrupt officials)that if the cryptocurrency becomes legal tender everything in government become transparent and the under the table will be lessened if not totally stopped

And the governmental illegal transaction will change to neutral because the payments will directly go to government and not in their pocket

instead, with cryptocurrency that is anonymous,  government is worried that money laundering will occur by officials. for that until now government still calculates the policy to be taken