Why does the government hate bitcoin?

[teejayrichard2]

well from all you said and analyzed, you right. Government hate anything they have no control over. cryptocurrency is a threat to the greedy and wickedness of government and they fully understand if cryptocurrency becomes fully functional in transactions, then they wont be able to dictate some certain things and they seriously don't want that.

[thankyoulord]

Everyone know government will never support anything they have no control over. They government, always want to be on top every issue, dictating what happens at every point in time. Government will only accept and adopt the use of bitcoin fully if they have a way of regulating it else they will continue to push against it.

[aris av]

I think the government always wants to apply control to bitcoin, and because bitcoin is decentralized, the government has difficulty controlling bitcoin, and bitcoin can endanger fiat currency so the government hates bitcoin.

[Maxson]

The government are part of us all, the information on bitcoin as a means of exchange is what most African society are confuse about, so they fail to get more benefits in this very good mean of exchange.

[Renampun]

because bad news is circulating and there is a business competition I feel that the government causes it to hate Bitcoin and other cryptocurrencies, if the government's reason is security then without cryptocurrency crime will continue to exist, so I feel security is not the reason..

[Bonsaiav]

The government hates bitcoin, because this currency is considered to have the potential for abuse, and the lack of a regulatory body, so that the existence of bitcoin is not once used by scammers to benefit from innocent people especially from a financially insecure society, meaningful not only falls under one jurisdiction or has become the responsibility of all countries. While based on reality bitcoin is like any other currency, even better than other currencies.

[fistteam]

Bitcoins have not been legally recognized in some countries and I think governments have no specific plans for managing Bitcoin. Bitcoin does not benefit the government because of its anonymity. I hope that in the future Bitcoin will be legalized and traded more widely.

[nahotachikwem]

Since bitcoin is decentralized and controlled by individuals which the government do not have access over, I think they wouldn't like bitcoin.

[Bennix]

For me in particular,government hates bitcoin because they can't control it through its central bank.Government sees bitcoin as a currency that may perform more than its traditional currency ,and if the masses adopt bitcoin ,it will pose a great loss to its financial institution.To be more direct,government has no information on the whereabouts of the founder of bitcoin.As result ,government is seeing bitcoin as a risk,meaning no one can be prosecuted if something goes astray.
On the other hand,government is seeing bitcoin as a currency that can be used for fraudulent activities of which if that happens no one can be traced.However,government sees bitcoin as a very high volatile currency that can't be trusted.In other to protects its economy,government is advising people to avoid investing in bitcoin.Government are not not in support of bitcoin because many exchanges where bitcoin is traded are not regulated,and this trend  could pose grave danger to people fund.
Finally ,government thinks that central bank system  might
be destroyed if its citizen are given go ahead order to be using bitcoin to buy whatever they want.

[BIPBot]

the government hates crypto currencies because they always think negatively of money laundering and fundraising for the future

You may not know that the government is also trying to create a strong Crypto market even though they issue bans. Governments are not stupid as to what you are thinking, and they are operating anonymously in the Cryptocurrency market.

Could you elaborate a little more on this?

[LieTOme]

in my opinion the government does not hate bitcoin, in my country the government only limits the movement of bitcoin for example by banning transactions directly with bitcoin but the government does not prohibit access to bitcoin

[memecoin]

maybe the government doesn't understand bitcoin, as in my country it's still not permitted / banned on bicoin, but many have played bitcoin in my country, except in some parts the government doesn't know what bitcoin is, and I'm sure sooner or later they will know what it's bitcoin. and immediately permitted

It is possible that your country knows about Bitcoins, but accepting them for their people's use is not allowed. Due in part to the government's lack of control over the BTC and the other part that they do not know much about bitcoin as we should think bitcoin is a scam.

[Schmidt Abrams]

maybe the government doesn't understand bitcoin, as in my country it's still not permitted / banned on bicoin, but many have played bitcoin in my country, except in some parts the government doesn't know what bitcoin is, and I'm sure sooner or later they will know what it's bitcoin. and immediately permitted

It is not because the government doesn't understand bitcoin  the government doesn't want to understand and just want to kill bitcoin> Bitcoin is threatening to the existence of bank, that is the reason why the government hate bitcoin.

[gulshan1]

Bitcoin currency is not based on the silver and gold in all country economy system. So that which effect the true value of fiat currency of the country which is the main reason to not accept the bitcoin by the government hate to bitcoin. But bitcoin is spreading in the world like a fire and can not stop to it because  people are trusting to it and becoming strong every day of use by every one.

[jonathan6655321]

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.

 

isn't it obvious?

[Suckerpunchman]

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.

 

isn't it obvious?

Not to everyone.

[cxmyifan16]

I find the opinion in your post interesting but to my mind the government doesn't hate it but is afraid of changes which are going to come together with the btc appearance and its implementation in the system instead of other coins

[DennyPen]

Governments hate btc only until it comes up with its "own btc." The uncontrolled moneymaking tool may become dangerous, so of course governments don't like that. Why would they? Until they research the ways to make money on people using btc, they won't be satisfied.

[DJ_Rick]

I think that fear is the main factor that prevents government from having positive emotions towards btc. They don't want to change the system that looks stable for them. To my mind, in the future most governments will accept it

[bitcoinrays]

The Government hate Bitcoin and other Crypto because they can't control it!

I often said this is all about the selective choice of few people among government officials. In our government, right now they have started their mindset be molded to accept bitcoin. Till now things weren’t that much sweet here. Going to thorough mindset, politicians often don’t accept such thing because they couldn’t be making any progress on corruption circles they always plan.