Why does the government hate bitcoin?

[unbotak]

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

Bitcoin does have great power so the government is afraid that it cannot control it and that it will have a negative impact on the country. from what I know the government is afraid that Bitcoin will be misused to fund terrorists and so on because the Bitcoin system is peer to peer.

Bitcoin is also still not stable so the government is afraid that many people will suffer losses if they invest in Bitcoin. but if Bitcoin develops and the government knows what to do with Bitcoin then one day all countries can legalize Bitcon.

[Dimas99]

the government forbids bitcoin, of course, the negative results obtained from the existence of bitcoin are likely to occur with countries that strictly prohibit the existence of bitcoin, but in my country the government prohibits direct transactions with bitcoin but may access because the government has not fully inaugurated bitcoin as the applicable currency

[slasher0489]

Because bitcoin is a decentralized thing, they can't own it, they thought that it will be a bad decision if they will approve it but they don't know the real benefits of bitcoin how it affects our lives

[dealsmith]

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.

 

Everything seems very clear in this topic. the government hate bitcoin because bitcoin can threaten to the government. https://bitcointalk.org/index.php?topic=5030552.0

[ardhigalau]

Actually greedy people who hate bitcoin, they don't want to buy bitcoin and just want to make noise in cyberspace with their regulations. I am also very fed up with them including the government.

[lutfi-hasan]

In my opinion because the government does not want FIAT money to fall again because it was defeated by Bitcoin which is popular now, so if it continues to be left like this it will disrupt the sovereignty of the government, for example in my country that the government has not legalized Bitcoin so far, so I am very fed up with the government this. they seemed to not know the progress of innovation for the future of the community.

[Ace Amias]

The government hates bitcoin because it is a decentralized and the government cannot make and keep the record of it and this is the basic reason which is enough for the government to hate bitcoin.

[anitaraymonds]

Governments and their agents (banks and their owners) hate bitcoin because of the decentralized nature of bitcoin meaning it cannot be controlled by any body or organization. It is anonymous also. The nature of bitcoin will never allow the government to collect tax or any kind of fees from millions of transactions daily. This control is what they crave for because they depend on taxes to run the government. They have been trying the centralized the crypto to no avail and the next thing will be to destroy it.

[eann014]

I believe Bitcoin will not totally replace fiat currency. Bitcoin will be added as a currency that will be an alternative to those who don't like to use fiat currency. Don't expect that the government will give in and let cryptocurrency replace fiat currency.

Fiat will remain and bitcoin will still be staying because of us who are still using bitcoin until today and still believing that bitcoin will recover again soon. I know that there are some governments in some other countries that don't want bitcoin or cryptocurrencies to include with their currencies because they can't get tax from there, but there are also some governments that don't don't care with it because most of their communities are already paying tax and they are already getting millions with that and bitcoin/altcoins is not a hindrance for them.

[Chris772]

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

Yes i join you on your analysis

[faceoff97]

Simply because Government has no control over Bitcoin, since it is decentralized they could not get anything from it and there is no way they could stop this hype. The iDEA of Crypto give us the freedom from any third trusted party, this way we are free from any interest of the government. Since Crypto is suppose to show us the public code we are sure that are funds are well safe and secure and any potential vulnerabilities can be fixed quickly. Be reminded that we could only have this feature of crypto if we are using a storage or wallet that is open source and give us the full control over our funds like wallet Hodler wallet which is the only opensource multiwallet.

[itasannah]

In my country, the government does not give Crypto permission as a means of payment. And if that happens it will certainly have a very negative impact on the legitimate currency in my country. Until now, Crypto is allowed to trade, sell and buy, which can only be accessed using the internet.

[SimonJones]

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.

 

Government hate bitcoins because they cannot control it.

[ChriS474]

Because bitcoin is a decentralized currency.Governments cannot monitor the users associated with different accounts.
Hackers and crime can use it easily. It affects on the value of real money too.so governments hate to use bitcoin.

[darshan331]

I think the main reason to hate bitcoin is, it is decentralization system. and it is totally online business so the government is not responsible for btc. 

[Shimmiry]

Bitcoin and altcoin are very attractive, the government has not accepted because they do not have the appropriate management plan, it should take some time to Bicoin and altcoin system.

It has a point. And the kind of management they want is taking charge of it. But then it is decentralized therefore they cannot interfere with it. That is another point why they do not like it. Government wanted everything to be in their control but we can also see that government are being controlled.

[CryptoniusDemo]

They hate this new uncontrollable system, because they can't get anything out of it! Just imagine how much they can lose if everyone makes anonymous transmissions through such systems as a bitcoin mixer? I can`t believe that such money revolution can be and I can participate in this! We are making history, guys!

[Mr.grin]

there are so many reasons why the government hates Bitcoin, and I think the reason they made it to cover up is the real reason, which is actually the reason they hate bitcoin because the government has not reduced their tax revenues. but they covered the reason because they were worried about terrorism, money laundering, or other crimes. .

you're right, for now there are many reasons why the government hates bitcoin. however, little by little, I feel that they have accepted bitcoin, or altcoin. well, for 2019 there may have been many governments that accepted this. that's because bitcoin provides many benefits.

[ice18]

Most government hates bitcoin because of its transparency as we all know that bitcoin transactions can be open by anyone with the the use of internet and I think government dont like this idea when it comes to financial transactions as many of government officials in every country is corrupt and might get caught immediately if they will use public ledger like bitcoin. 

[virasog]

Bitcoin and altcoin are very attractive, the government has not accepted because they do not have the appropriate management plan, it should take some time to Bicoin and altcoin system.

It has a point. And the kind of management they want is taking charge of it. But then it is decentralized therefore they cannot interfere with it. That is another point why they do not like it. Government wanted everything to be in their control but we can also see that government are being controlled.

This has been discussed many times before also. In order for the governments to really benefit, they should integrate bitcoin with their current fiat system. The problem is that they cannot block bitcoins altogether and only due to this, banning bitcoin will being no good news for them. Its hard to accept bitcoin for the governments but they have to accept it one day.