Why Cryptocurrency threatens governments

[joromz1226]

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 cryptocurrency is not threatening the governments of each nations. Instead, its giving opportunity to help the economy of their own country. Because, why some other country adopted the sytem of blockchain technology, like Australia, Russia, Europe, also most of the Asian country too are adopting the cryptocurrency, it showed only that its not threatens the government. 

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[Ailmand]

It is simply because crypto will take away the governments power over fiat currency. If by chance crypto will be massively accepted as an alternative to fiat and it's centralization will stay, the government will lose control over the fund and most people will switch to crypto. Cryptocurrency has gave the people's right for privacy and anonimity.

[teosanru]

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 that governments are designed so that every thing happening in their country stays under their control and something which doesn't is smuggling. So same is the case in Cryptocurrency too. Cryptocurrency and their supply is not controlled by the government and nor they can tax this income if they do not account for this income. This makes them to ban Cryptocurrencies. This is radical in small economies because large inflow of Cryptocurrencies can lead to increased aggregate demand therefore leading to a situation of high inflation beyond the control of governments.

[meliodas]

Cryptocurrency threatens the governments because most of the cryptocurrency are decentralized. If the cryptocurrency dominate the world then the power will be brought back to the people and not to those government officials and they will no longer have control to the people. The only danger is if the people will become abusive to the power of decentralization.

[Vishnu.Reang]

Cryptocurrencies do not represent a threat to governments and majority of them doesn't even think so. The thing is that they don't want to stop the progress that cryptocurrencies represent but they want that to be under certain conditions and one of them is regulation. In.modern societies everything is regulated in a way according to some rules in order to functioni properly within.society so cryptocurrencies are not exception.

The threat is not to the governments, but to the economies. And a bad economy can negatively impact the hold of the government on the general public. But I would rather say that as of yet, Bitcoin hasn't grown enough to challenge the government or to have a big impact on the national economy. But the governments are wary about Bitcoin user base increasing with every passing year. 

[hahay]

Cryptocurrencies do not represent a threat to governments and majority of them doesn't even think so. The thing is that they don't want to stop the progress that cryptocurrencies represent but they want that to be under certain conditions and one of them is regulation. In.modern societies everything is regulated in a way according to some rules in order to functioni properly within.society so cryptocurrencies are not exception.

The threat is not to the governments, but to the economies. And a bad economy can negatively impact the hold of the government on the general public. But I would rather say that as of yet, Bitcoin hasn't grown enough to challenge the government or to have a big impact on the national economy. But the governments are wary about Bitcoin user base increasing with every passing year. 

Maybe in another view the government only intends to protect its people and because of that concern the government feels the need to limit the use of cryptocurrency itself, if the government is concerned about the economy then I think cryptocurrency is not something to be feared because with this industry, people are becoming more independent for their financial needs which means it improves the economy for them.

[Jorge158]

The governments are afraid of cryptocurrency because of its decentralized nature which makes the governments unable to own total control over the financial transactions of the people. Typical example is Bitcoin. However, the governments cannot collapse Bitcoin irrespective of the laws they may set in a particular country.

[nakamoshin]

Rulers of the world do not want us to develop into a self-organized social society without overseers. Let's remember the story of Nikola Tesla, and everything will fall into place. Satoshi is Nikila Tesla, who has no time? Banks, resistance is useless and even disastrous for global community! As long as the price of Bitcoin is below $ 100k , there is no reason to worry, the low price is good for decentralized distribution after leak of the Chinese stake.

[Greed Dev]

The government's job is to control all your activities and the cash flow, bitcoin is uncontrollable and not manipulated, they are afraid that when the cryptocurrency is popular, many people will use it for the black market to buy illegal things like weapons or money laundering. In addition to cryptocurrencies that are not taxable, businesses or individuals will use cryptocurrencies more to evade taxes and that will be a huge loss for the country. In my opinion, cryptocurrencies will need more time to develop more suitable for society.

[WatchMaker]

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.

Yes, the Government wants to control the flow of money using Banks.
Yet cryptocurrency cannot be controlled with banks because cryptos are peer-to-peer digital currencies.

[nabilapimpo]

The government is wary of crypto. We know that this crypto can be utilized for anything including for evil. Even if Bitcoin becomes a payment medium will certainly affect the local currency. But what happens in my country Bitcoin grows and many people feel curious about Bitcoin.

Bitcoin is even able to be a trend among people who like to work online. I am very confident that someday the government can legalize Bitcoin.

[leavolnhals]

I just know that cryptocurrency can launder money anywhere.  That's why governments never accept it.  And in the future, I also think they don't need it because it will have a big impact on the financial economy if money laundering cannot be controlled.

[UstadSoleh]

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?

The information I get is that the government is still conducting a study to accept Bitcoin. I personally see this Bitcoin does not have a standard price. So the government assumes that Bitcoin cannot be established. Moreover, the crimes committed through this technology are very likely to occur and it is difficult to become anticipated.

But our expectations are all of course that Bitcoin can be accepted by the Government and make regulations. They have a variety of security for anticipated crimes committed in the crypto industry. So it is no doubt for the government to regulate Bitcoin.

This is just my opinion and hopefully, in the future this industry will be much more developed.

[Sithara007]

I just know that cryptocurrency can launder money anywhere.  That's why governments never accept it.  And in the future, I also think they don't need it because it will have a big impact on the financial economy if money laundering cannot be controlled.

This is not a very accurate statement. It is not very easy to launder money using cryptocurrency. Most of the times, you need to convert your cryptocurrency to fiat cash, in order to launder it. If this was not the case, then many of the dark market drug lords would be roaming around free even now. Many of them were caught, while converting the cryptocurrency they earned from the drug sales to fiat currency. The moment you convert your cash to fiat, the anonymity is lost and that's how they got caught. But if you don't convert it to fiat, then you can't spend it. It is not possible to purchase real estate or equities using Bitcoin or other cryptocurrency.

[Falconer]

Cryptocurrency is not always viewed negatively by the government because some countries have agreed to use cryptocurrency and many public services such as postal delivery and others accept payments using bitcoin. I am sure the next few countries will overtake doing the same thing, wait and see.

[setialovers]

I think cryptocurrency will not threaten the government. Of the many cryptocurrency on the market, the only potential that is used as a means of payment is bitcoin but because of the small total supply, it is difficult to use bitcoin as a transaction tool. So I think our transaction will still use fiat money even though it will be digital

[virasisog]

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?

This has been one of the number 1 question amongst bitcoin believers and non believers is trying to push.
whether government will have the power to shutdown digital currencies when it will disrupt the control of the government,
or will it go the other way around.

[TrevorS]

The reasons are actually many. If you do not touch on the aspect that cryptocurrency takes people out of the state’s monetary control, then there is another side of cryptocurrency and cryptocurrency projects.
In particular, ICOs spoil the lives of citizens of a particular country, namely, scams of ICOs of which there were many and a lot of money was stolen. This money did not go to the state budget, which means that such situations are unprofitable for the state.

[joinfree]

The  Answer  is simple  crypto  is giving full access  to their own money. It a threat to  currency  banking system  and their  policy.  and the  fact  that  money  cant reverse  is also  a threat  to  monitory  policy. government believe  people will use cryptocurrency  just    to  invade  taxes but i when you understand revolution you will be  patient  for the government. Internet  has the  same issues when it  was coming out.     

[alyssa85]

The European Union is terrified of Libra (Facebook's proposed cryptocurrency). They've opened a pre-emptive investigation:

https://www.bloomberg.com/news/articles/2019-10-01/vestager-says-libra-s-potential-to-spawn-an-economy-raises-risks

The European Union’s antitrust chief says she’s taken the unusual step of scrutinizing Facebook Inc.’s planned cryptocurrency because of the risk that Libra will lead to the creation of a new, entirely separate economy.

“It’s a new thing that we’ve begun to ask questions about something that doesn’t yet exist,” Margrethe Vestager said in an interview with Denmark’s finance industry union, Finansforbundet. “But it’s because we want to be far enough ahead that we can say whether this will be a problem.”

Whatever we think of Facebook and Libra, we should all be afraid of this because they'll use their conclusions to go after cryptocurrency in general.