Why does the government hate bitcoin?

[Maoper602]

Decentralization perhaps plays a key role here. Governments cannot monitor the users associated with different accounts. Some governments have strict remittance policies which won't stand a chance if people use bitcoin or other decentralized currency. Then there is lack of practical knowledge which gets in the way.

[1715447510]

1715447510

[1715447510]

1715447510

[1715447510]

1715447510

[Mirendabaen212]

Because bitcoin is a decentralized currency. The government can't monitor the users and control the cash flow. It perfectly shows that government is still not ready for this kind of technology.

[Ibeild441]

Not all governments hate Bitcoins. What most governments are lacking is quick adaptibility. There are also some governments that are trying to adapt but is finding it hard to give it a proper value. Things will happen in due time and place.

[Edoanidd551]

Government hates bitcoin because of the decentralization feature and that they do not have appropriate management plan yet. It wull take some time and upgrades in order to get the approval of government.

[tungaqhd]

Because Bitcoin is anonymous, it means the government cannot control it. Hacker and crime can use it easily. It affects on the value of real money too.

[MTNAX]

The government hates bitcoin may be because bitcoin cannot be controlled by the government and considers bitcoin to be disruptive to the country's economy. The government has also not been able to monitor the use of bitcoin as a whole, so maybe this is the reason the government has not been able to accept bitcoin.

[hahay]

not entirely the government hates bitcoin, we can still see there are some countries that the government is friendly with bitcoin. Even though there are governments that hate bitcoin, I will not judge if the problem arises because bitcoin is anonymous etc., I just feel if the government is only worried about its people and investors, because we know bitcoin prices are very volatile which is likely to lose a lot the investment was due to panic seeing the market turmoil in the crypto market.

[Andrew Gergeo]

The government is afraid that paper money will disappear and instead of bitcoin, then the government can no longer control the financial markets, and their interests will be affected.

[VanityWallets2015]

In order to understand why the government hates bitcoin we need to understand how money actually works

In the history of the United States, the US dollar has been built on the "silver standard" and the "gold standard,". This means that the value of a dollar was directly tied to the country's silver or gold reserves. This is true in case of all currencies be it the Indian Rupee or The Chinese yen. A more simplified version of understanding this would be that any money you possessed could directly be exchanged for its value in whatever material it was being backed by. This is known as a commodity currency which does not exist in the current economy.

As an example, Lets say that you own a paper currency worth $ 20. Now you can take that paper bill and exchange it for gold or any other material backing it up which had the same $ 20 value.

But in the current economy the world runs on fiat currencies whose value is derived from the government that backs it. Plain and simple, a US dollar has value as legal tender because the US government says it does. Though this system isn't perfect, it has served its purpose for many years.

The government loves fiat currency because it is centralized which means control is also centralized on the production and distribution of their respective fiat currencies via large central banks.

What this means for the banks
They can track the currency's location in bank accounts, dictate its movement, and collect taxes on every financial transaction that includes their currency. This also helps the governments to try and keep their economy healthy by adjusting the amount of money in circulation to try and stimulate Wall Street investors or avoid a financial crisis.

Now why is bitcoin made?

The basic ideology behind Bitcoin is to use a combination of public-key cryptography and peer-to-peer networking to create a virtual analogy of gold,
that is to say, a substance that is scarce and fungible. Satoshi Nakamoto devised did arrange a set of restrictions in order to ensure that bitcoin is not misued to
an extent like the fact that there can only ever be 21 Million bitcoins ever in existence and as time progresses it will become difficult to mine bitcoins.

Nakamoto in 2009 -

The root problem with conventional currency, is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the
history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves
of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts." In contrast,
everything in Nakamoto's system "is based on crypto proof rather than trust

.

But is it really that simple

It is not as simple as "The government likes to control and tax the movement of money" that makes them seem evil or greedy. The truth however is that if all currencies are decentralized, who would determines their value?
Bitcoin is only in the virtual form, how can we protect oourself from hackers or technical glitches? These questions are just some of the reasons why there is no telling what the future of cryptocurrencies holds, but it isn't wrong to say that Bitcoin and other cryptocurrencies will not be replacing government-backed fiat currencies any time soon. This however does not mean that there isn't a future where cryptocurrencies will be treated as regulated global currencies. Of course if we include the corrupt institutions, politicians then we can say the government is evil and greedy.

For bitcoin to become truly succesful it must be both a medium of exchange and a reasonably stable store of value.

 

The only reason why bitcoin hates bitcoin and does not want bitcoin to get legalise in their respective nation as bitcoin transaction are now usually involve in many sort of illegal activities including terrorism so obviously no country wants that terrorism comes in their country and thus is the reason why governments of most of the nation are in against of bitcoin and the solution to this is that to legalise bitcoin all over the world, though governments will impose some taxes over bitcoin but then there will be someone who will keep eye over all the bitcoin activities.

[djselery]

Governments hate Bitcoin because it is a decentralized currency, and they can't control its price, market, and the transactions of its users. They want to support only their fiat currencies which can control them easily.
In fact, they hate all the cryptocurrencies because of their decentralization nature.

[aliceHortrex]

In order to understand why the government hates bitcoin we need to understand how money actually works

In the history of the United States, the US dollar has been built on the "silver standard" and the "gold standard,". This means that the value of a dollar was directly tied to the country's silver or gold reserves. This is true in case of all currencies be it the Indian Rupee or The Chinese yen. A more simplified version of understanding this would be that any money you possessed could directly be exchanged for its value in whatever material it was being backed by. This is known as a commodity currency which does not exist in the current economy.

As an example, Lets say that you own a paper currency worth $ 20. Now you can take that paper bill and exchange it for gold or any other material backing it up which had the same $ 20 value.

But in the current economy the world runs on fiat currencies whose value is derived from the government that backs it. Plain and simple, a US dollar has value as legal tender because the US government says it does. Though this system isn't perfect, it has served its purpose for many years.

The government loves fiat currency because it is centralized which means control is also centralized on the production and distribution of their respective fiat currencies via large central banks.

What this means for the banks
They can track the currency's location in bank accounts, dictate its movement, and collect taxes on every financial transaction that includes their currency. This also helps the governments to try and keep their economy healthy by adjusting the amount of money in circulation to try and stimulate Wall Street investors or avoid a financial crisis.

Now why is bitcoin made?

The basic ideology behind Bitcoin is to use a combination of public-key cryptography and peer-to-peer networking to create a virtual analogy of gold,
that is to say, a substance that is scarce and fungible. Satoshi Nakamoto devised did arrange a set of restrictions in order to ensure that bitcoin is not misued to
an extent like the fact that there can only ever be 21 Million bitcoins ever in existence and as time progresses it will become difficult to mine bitcoins.

Nakamoto in 2009 -

The root problem with conventional currency, is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the
history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves
of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts." In contrast,
everything in Nakamoto's system "is based on crypto proof rather than trust

.

But is it really that simple

It is not as simple as "The government likes to control and tax the movement of money" that makes them seem evil or greedy. The truth however is that if all currencies are decentralized, who would determines their value?
Bitcoin is only in the virtual form, how can we protect oourself from hackers or technical glitches? These questions are just some of the reasons why there is no telling what the future of cryptocurrencies holds, but it isn't wrong to say that Bitcoin and other cryptocurrencies will not be replacing government-backed fiat currencies any time soon. This however does not mean that there isn't a future where cryptocurrencies will be treated as regulated global currencies. Of course if we include the corrupt institutions, politicians then we can say the government is evil and greedy.

For bitcoin to become truly succesful it must be both a medium of exchange and a reasonably stable store of value.

 

Governments hate bitcoin for not being able to take tax from operations. It really pisses the fat, fat politicians off. They do not understand what bitcoin is in the essence and I think that they will be able to tax everything that they will get their hands on. But it was not there. Bitcoin is anonymous and secure - so governments will always hate and ban it

[aryaadikariyansyahsuwarto]

the government hates bitcoin there are several causes, for sure, one of them is bitcoin is used as a currency exchange for criminal activities, such as drugs, human trafficking and others. but there are also countries that actually support bitcoin, not all countries hate bitcoin ... !!

[zhelis74]

the government hates bitcoin there are several causes, for sure, one of them is bitcoin is used as a currency exchange for criminal activities, such as drugs, human trafficking and others. but there are also countries that actually support bitcoin, not all countries hate bitcoin ... !!

Some governments are hesitant to accept bitcoin because they cannot take control on it and they have no access for taxation even though how good that crypto gives to its citizen but still its all about money that they can't benefits and that is why they always give such negative storey about crypto to destroy its image.

[Urbexs]

More than anything, bitcoin invades taxes. and the government would not have control of the economy.

[BagzMM]

I think it is because they differ on regulations, they have different policies . Government cannot control over cryptocurreny.

[DisWhale]

The governments hate Bitcoin because it is decentralized, thus it takes the power of control over finances and give it to its users. The Blockchain does not allow any central authoritative third party involvement, hence in a way, the governments think they lose power with the existence of cryptocurrency.

[Keyboard PC]

what you mentioned is true and some countries even forbid the use of this bitcoin digital currency because of the influence of people who hate bitcoin. even though this bitcoin is a very good and very efficient digital currency.

[Mikwik]

For me, I don't think that or government hates or dislike the bitcoin or any crypto currencies. In fact, crypto currencies is legal to the country where I belong. For now there are some of the financial transactions in our country which involves crypto currency payments and any digital methods. So I was to glad to have in this country where I belong.

[MTNAX]

I think the government doesn't hate bitcoin it's just that they ban the use of bitcoin because they fear that bitcoin will disrupt the country's economy, so the government prohibits its use. But I am sure that if the government can manage the course of bitcoin, the government will also accept bitcoin.

[jayintop]

Simple. Its tax free and they can't control it. The government hate anything they can't control or make money from.