Why Cryptocurrency threatens governments

[Osarman]

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?

Not everyone can understand the reason behind government being afraid of cryptocurrency. It’s even difficult for me to explain, except for those who knows a bit about government and conventional currencies. But I believe that one of the main reasons why the government is afraid of cryptocurrency is because it has no primary control. It is unlike the fiat currency which is controlled by government and has value just because the government says so.

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[gheawari431]

This is a very new idea. Bitcoin was born out of the idea that the success of cryptocurrencies will quickly change the world. The government will lose some control over the economy. Although the market is more free, it may have a fatal impact on the traditional economy. But people's development is always fast.

Bitcoin was created with the aim of making digital transactions between regions or countries very efficient, safe, cheap and fast. If this is implemented perfectly, the government will lose revenue because bitcoin is not taxed, the government will lose control because bitcoin is anonymous so it is not known who the owner is, besides financial institutions like banks will be eroded because some customers switch to using bitcoin.

[yitzjoe]

I am sure they are blocking crypto because of political affairs and threatening the system they have built up to now, and financial policies such as monetary policy and inflation are products that they can create and for regulation as drugs, central banks and politicians continue to urge crypto to harm all and other negative sentiments. this will not make us retreat because the purpose of bitcoin and altcoin is to provide benefits for everyone

[miltonpogi]

What kind of government exactly? Don't generalized government because every country has a different one. For example Japan. They are using cryptocurrency but it is not a threat but actually a way for their country to grow. There might be some who ban it but not because it's a threat, but because it causes some frauds and scams.

[ganlianshifu1]

The cryptocurrency economy is small and the liquidity is small!
Due to the occultity of cryptocurrencies, the government is worried that illegal elements use cryptocurrencies for money laundering activities, thus effectively supervising cryptocurrencies. The cryptocurrency has almost no threat to the government!

[pinkpanther03]

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.

And for how long will they control absolutely everything. We are suppose to be living in democracy era but what do we get, restrictions from freedom

I know how you feel dude, I do agreed we really suppose to be living in democracy and yet it is not happen in reality in some other country. But here in my country we are living in democracy, where we have freedom of speech.  Now in connection of cryptocurrency, our government is not that strict on this aspects in fact, we have 3 exchanges here that are existing for a years who are bitcoin accepted together with the altcoins too such as BCH, XRP, ETH and BTC.

[zhelis74]

The cryptocurrency economy is small and the liquidity is small!
Due to the occultity of cryptocurrencies, the government is worried that illegal elements use cryptocurrencies for money laundering activities, thus effectively supervising cryptocurrencies. The cryptocurrency has almost no threat to the government!

I think crypto is not exactly threaten governments as I believe that the only reason of why they are hesitant on crypto currency is because they cannot take any control of it and specially to the income earn of each individual that have no tax, crypto can make people rich but not the government so maybe they afraid that time comes it will lead to inflation.

[goldengold5]

The government will lose revenue because bitcoin is not taxed, the government will lose control because bitcoin is anonymous so do not know who the owner is, besides financial institutions like banks will be eroded for a The number of customers switching to bitcoin.

[KorakPawon]

Basically it's just because crypto cannot be fully under their control. Government as the highest matter in a country, wherever it is, want to know what how, when, where their people moving and working. Banks and such kind of companies are legal and accepted because government can watch them, can trace their activity, can control their policy and work together to get many advantages like taxes, while crypto is not as easy to be told, be order, or be control by government because its system. That's why crypto being opposed or threaten by government.

[Andrea9000]

I hope that once the crippling currency will destroy the present system of finance, and the calculation will be much more convenient. I think the world has to accept criminals and then it will be better.

[cizatext]

The point is government will never want us to get that financial freedom which cryptocurrency offer us today and at that for government to maintain that level of relevance it has to hold on on that freedom and you know when you control the finance you have the economy so the government may never support cryptocurrency because of against it policy.

[kokobaba880]

I think that crypto have never threaten any government and it is the free source to every one so they use it for their use and government have no intervention with this I can use it for my personal benefit and personal use so it is important to me but if a government allow this to use legally for trade and other payments that would be the soft policy of the governments and it is good for the government too because many currencies would be trade over the internet.

[KesoNie]

I think that crypto have never threaten any government and it is the free source to every one so they use it for their use and government have no intervention with this I can use it for my personal benefit and personal use so it is important to me but if a government allow this to use legally for trade and other payments that would be the soft policy of the governments and it is good for the government too because many currencies would be trade over the internet.

For me government is the one that threaten the cryptocurrency because they want to have power to control it which is the crypto blockchain technology has decentralized system. But even the government threatened crypto, there have a good intention why they want to enter the crypto world and control it because they know crypto can used as a tool as payment for illegal transactions but since crypto is decentralized so no one can control it.

[Escf4]

The cryptocurrency technology might treatened the government ,in terms of taxs collections , because cryptocurrency is circulating decentranlized without being supervised by the national government , its transactions are in through the internet , and the government can not monitor the cryptoactivities and can not demand taxes from crypto to the government, so this treatens the government

[horrifiedx1]

I think that crypto have never threaten any government and it is the free source to every one so they use it for their use and government have no intervention with this I can use it for my personal benefit and personal use so it is important to me but if a government allow this to use legally for trade and other payments that would be the soft policy of the governments and it is good for the government too because many currencies would be trade over the internet.

For me government is the one that threaten the cryptocurrency because they want to have power to control it which is the crypto blockchain technology has decentralized system. But even the government threatened crypto, there have a good intention why they want to enter the crypto world and control it because they know crypto can used as a tool as payment for illegal transactions but since crypto is decentralized so no one can control it.

of that, so many governments have not been able to accept cryptocurrency. besides for the country's global economy, sometimes there is a personal interest from officials not to legalize it

[niko337]

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.

Cryptocurrencies aren't threatening the govt, they're threatening the banking system as a whole. Nowadays, people are opening their eyes and have started to take their money out of system to put it in a decentralized system like Bitcoin where they can be their own bank. Obviously, this means that the govt will start to lose control over people's money, that's why they're doing everything they can to force people to stay within the boundaries of the financial system.

what do you think will make governmental bodies to finally accept crypto?

Adoption. I think once cryptocurrencies like Bitcoin go full mainstream and people start accepting them as payment worldwide, the govt around the world will have no choice but to embrace cryptocurrencies as the general public will be using it for pretty much anything.

Touché. To governments, loss of control over people's money means a great deal. The world only need about 10% of the world population to get into crypto to trigger a governmental crisis. That is why they are trying all means to regulate crypto.

[Lumi3004]

Of course in the world of trade, there are many risks and challenges, competition must exist, one thing we can take wisely.
the government actually does not completely prohibit cryptocurrency just remembering the crypto user to be more careful and aware of the range of frauds, if this happens the government is troubled too, I think that is the point of the problem.

[Dimas99]

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.

maybe what you say is true the government always rejects and thinks negatively about the development of the crypto currency but if it can work together it will certainly make it even better for the government to monitor and monitor what will happen I think something will develop more

[Silberman]

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 are afraid of anything that takes away some of its power, when the Internet began to become popular governments were very afraid of it but now after a few decades governments now love the Internet because it allows to them to spy on each individual all the time, so it is possible that we are going to see a similar change in the next years on the posture of the governments.

[rikybrosh]

Bitcoin is not really dangerous threat and it's actually not a threat for their economy. Government want everything under their control, government can't control bitcoin due to the decentralization nature of it. Bitcoin can be a good tool to improve their citizens economy because if government legaize bitcoin then there will be many investors who invest in bitcoin and their citizens who become early adopters of bitcoin can be richer than before.