Why people are comfortable investing in government controlled investments

[wxxyrqa]

I am sure that investors are not attracted to the fact that the government controls certain companies, but that these companies are genuine and not fraudulent.  The fact is that there are quite a lot of companies on the cryptocurrency market whose developers stole a lot of funds from investors, but no one found any way to return their stolen funds.  If the activity in the cryptocurrency market was subject to certain controls, then investors could return their funds in a judicial proceeding.  In real life, any crimes and fraud are punished according to the Criminal law, but in the cryptocurrency market there are still not one scammer who has been punished.  And if we talk about bitcoin, then I’m sure that governments have no choice but to fully recognize Bitcoin as a digital asset and means of payment.

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[Wintersoldier]

In my own opinion, people are comfortable investing in government controlled investment because it can be trusted and it is legitimate, unlike in crypto space not all projects are legitimate because most bounty projects in cryptocurrency is a fraud and scams, that is why there are only few people who uses and buys bitcoin.

[mahilchii]

The major reason I think is because of security and to avoid scams. For example like banks, people don't want to opt for private banks rather they go with their central government associated banks. They don't want to risk their hard earned money in a unsecured banks, The same works here its all about trust how we build with the people's.

[Sanugarid]

In my own opinion, people are comfortable investing in government controlled investment because it can be trusted and it is legitimate, unlike in crypto space not all projects are legitimate because most bounty projects in cryptocurrency is a fraud and scams, that is why there are only few people who uses and buys bitcoin.

You have already given the answer that the OP needed, people are more comfortable with government/institutional legitimate investments because it is safe. Cryptocurrencies on the other hand has more risks that contains volatility which the other economists coined it  "bubble" because of the movement it does and figuratively speaking it is since it is running under decentralized system and the core is just a speculation. People are afraid of what is uncertain, people are afraid of dark passages and people are afraid in losing their money.

[madhavsinghrajput]

There are several reason for people to prefer government controlled investment over crypto market.Trust and safety factors are biggest of them all.But with times fraud rates have not increased people are slowly attracted towards.We all know that rate of money which has been injected in past few years is large.Many countries are and will use bitcoin to tackle inflation and article of coindesk also says soo
https://www.coindesk.com/bitcoins-role-combatting-inflation
Even Forbes believe that bitcoin can be the next gold or even bigger than gold.
https://www.forbes.com/sites/investor/2019/04/16/bitcoin-is-the-new-gold/#76fe088a239a

[Meowth05]

I think the reason that people invest in government controlled investment is that it is safe and it has insurance so if something happens you will still have the assurance that you will not lose your money.

[Kakmakr]

THE REAL QUESTION IS:

Why are people comfortable investing in BitCoin 

I think it might be because of the no bull$hit attitude that Bitcoin takes on the financial system. We have Corporate shareholders pulling the strings in traditional investments and they are protected by governments. Bitcoin is basically tipping the cow $shit on traditional methods of investing and takes things back to real demand and supply fundamentals.

A lot of people also look at disruptive technologies as a huge potential to make large profits. The digital camera totally destroyed Kodak in the past and it opened up better method of doing things. (Can you imagine if we still had to use film and the time it took to develop that film?) 

[South Park]

Is because of the safety and insurance that the government investment platforms offer its members. I have seen in my country when a bank goes bankrupt and the government takes over to pay the debt gradually but this only applies to approved banks where the government owns some shares in it. Many people have been deceived by several crypto projects in their ICO and IEO and could not build any solid project. these are the number of projects that i have lost huge amounts of money in MiracleTele, Vivid, CryptAssist, Lympo, Flogmall etc. I can't even count them

While some sort of protection like that exists in most countries the truth is that the governments cannot back every single bank if they begin to fail at the same time, at best they can cover something like 10% of all the funds deposited in those banks if a system failure hits them, and there is no reason to believe that will not happen again at some point, then all of those promises are going to be broken and the people that had their savings there will lose most of the money they spent a life saving when they could have chosen a safer alternative like gold to protect them in the case that were to happen.

[Jeezy911]

Because you can't get hacked and lose it all, and if you did, you are insured in most cases. Everyone here has a sad crypto story. Still love Bitcoin, but this is reality.

[mrrdewitt]

I’m not sure that Bitcoin is a safe haven. Imagine this situation. The global economy collapsed. Unemployment, there is no food in stores, people in a panic begin to rob stores, etc. How will your 10 bitcoins help you in this case? If you spend this money in order to pre-purchase the necessary for life, then you can survive in such times. I mean, you need to invest in something that is really useful for life, if everything collapses.

And Bitcoin is not very different from other financial instruments. All of this is not reliable, in my opinion.

[milewilda]

Security and Insurance.

These are the reasons why do most people prefer on investing in government controlled one since they do know that they can rely into something when theres a problem
but when it comes to risk on losing money then its just the same since theres no safe haven when it comes to this field.

Or

People arent just aware on other investment opportunities which is way more better imho.

[DevilSlayer]

Security and Insurance.

These are the reasons why do most people prefer on investing in government controlled one since they do know that they can rely into something when theres a problem
but when it comes to risk on losing money then its just the same since theres no safe haven when it comes to this field.

Or

People arent just aware on other investment opportunities which is way more better imho.

It is really because of security, Robert Kiyosaki made a cashflow quadrand explaining that the left side of the quadrandt are the people who seeking security and benefits so they are the people who are investing in government controlled investments while the right side are the people who seeking financial freedom. Those people who seeking securities thought that they can be rich by investing in government controlled investments.

[KrisAlex18]

Well, as I expected there are still so many people who invest in government controlled becausenof thinking that it is more secured compared to crypto investment websites, we cannot deny the fact that there are people who do not believe the benefits of having bitcoin or the use of bitcoin to them. Even me before I don't believe too much about bitcoin or any crypto investment websites because of being afraid to do so and I don't have enough knowledge about crypto that time but now, when I did some research about it, I found it so good and one of my friend invited me to try crypto world and he's not wrong that there are so many opportunities to make money in crypto world such as investing, hodling, trading, etc.

[Farma]

if people feel comfortable with investing in the government, that is clear, because the current system is in favor of the government, even some of us think of doing that too. Well, that's because of the collateral that they can give, like in a bank. however, considering the large risks is still quite difficult for some people, so they choose to invest in the government.

[maydna]

People are comfortable investing if the government can control the investment because they want to feel safe, and they don't want to see their money is gone or steal. When something worst happens, the government can handle the care, and if someone takes the funds, the government will give back the money to people. You can check on the banks, how many people will save their money in the banks, and they don't feel afraid about anything even if they need to pay the taxes to the government. So people can choose what type of investment they want while today, they have so many investment types that they can use to increase the number of their money.

[Sanitough]

if people feel comfortable with investing in the government, that is clear, because the current system is in favor of the government, even some of us think of doing that too. Well, that's because of the collateral that they can give, like in a bank. however, considering the large risks is still quite difficult for some people, so they choose to invest in the government.

That's their decision, majority of us are not really risk takers so we can't blame them that their life will not change.
In crypto, this is considered as a risky type of investment, it might result to big loses but it could also change our lives if we got lucky here, we call ourselves real gamblers but it's alright because we are not only gambling based on pure luck only, we gamble in the future of crypto because we believe on its potential.

[Latviand]

Of course many people will prefer investments controlled by the government because because of a sense of security over a long time the government guarantees those who are controlled by the government if you have any obstacles then it will be very safe for us to invest for a long time even investors also use government control.

But, are they aware that government controlled banks are sometimes unorganized and polluted? The government authorized banks are ineffective when it comes to investing cryptocurrency. You will know the reality if you know how market flows, how can the economy manage their movement. Banks are not favorable about using crypto for investments such as bitcoin, some governments are really ignorant about the value of bitcoin in the economy. It is potentially a safe haven for the users, the only problem is how the government banks manipulate this asset in the economy.

When Covid-19 came, now the government is overwhelmed in the face of them spending so much money to treat all infected including employees etc., then here is bitcoin able to handle all this I think not because there is no control in crypto so it will be difficult to wind fresh for bitcoin to be recognized throughout the world for now.

The only thing valuable during this kind of Covid-19 crisis are fiat currency, because it is the most popular and people are used to spend money in fiat. Government doesn't support any cryptocurrency, not all, but some of the government are ignorant about this. Bitcoin can be used as a payment for online transactions and the authority is still ignoring the use and value of bitcoin in the economy. Also government is favorable about fiat because it is easy to be corrupted and steal as it doesn't need any exchanges or conversion. Hoping that during this pandemic, the cryptocurrency will become more noticeable compared to the fiat currency because they both have different function in the market and the society.

[Yatsan]

They feel safe, Any mistake they can make they can correct it! That's the huge advantage of bank to cryptocurrency. Your card has been stolen? You can easily get that block and make sure your money is safe and even sometimes when you get scammed you can get your money back and you can make sure that the bad guys will get punished. Cryptocurrency is decentralized means your safety is in your own hands, 1 mistake you cannot go back and fix it. People trust government because they feel safe. That's it.

[tippytoes]

They feel safe, Any mistake they can make they can correct it! That's the huge advantage of bank to cryptocurrency. Your card has been stolen? You can easily get that block and make sure your money is safe and even sometimes when you get scammed you can get your money back and you can make sure that the bad guys will get punished. Cryptocurrency is decentralized means your safety is in your own hands, 1 mistake you cannot go back and fix it. People trust government because they feel safe. That's it.

This pretty summarizes why people are still into banking even if some of them are already crypto users. Security is the key. Whatever happens to their account, someone will help them recover it. But in crypto, you are alone in the battle. When you lost it, it's totally gone. So you really can't expect people to totally convert them into crypto users. They will always allot their resources to their safe haven and I don't see anything wrong with that. We all want some security in this life.

[Nunoluck]

Basically the government only wants the country to be safe. If the economy weakens then the country will be fragile, if there is a strong country that utilizes the situation by means of war then this is not a mild problem. The most important think is to safe our country first. When the WHO officially declared the spread of covid 19 a pandemic, the price of bitcoin drop aggresively, in line with stock market. This virus force human to do physical distancing which means there will be less interaction between us, while economic activity go on only because of human interaction, thats why investors prefer to save their money rather than invest. Actually in my opinion with this virus people will prefer bitcoin because this virus can spread through paper money. Most us still see bitcoin as invesment, this is not so good for bitcoin sustainability as currency. Bitcoin must be treated as currency, when most of keep the velocity of bitcoin in market then the price of bitcoin will be stronger. People looks like comfortable in government controlled investment rather than bitcoin because this virus epicentrum is in china where most of bitcoin users are there.