Why Cryptocurrency is not Legalized Despite the Many Benefits

[geegaw]

I think one of the reasons why crypto is not legalized by the government is because the movement of Cryptocurrency is very erratic and very decentralized so it is difficult to regulate it in government regulations, besides crypto is only a digital currency that doesn't really exist, so it has a very high risk  although it provides enormous benefits.

It can be added that once it is legal and cannot be regulated, the disadvantage will become more for investors, even the investigation of the police and government forces will have to split more every year because besides the creators of the project, along with them are super scammers and also produce projects, once the legalization process is clear, the projects will be like mushrooms and sprout everywhere. Government penetration does not retain the original treaties and benefits, they only aggravate the negatives of crypto.

[doomloop]

Blockchain is like a double-edged sword. although there are benefits, but it is very difficult to control. this is the reason why many countries are reluctant to legalize it. decentralization can destabilize the country, it can undermine the current financial system. maybe freedom is good, but the government doesn't like that. they are more interested in a system that can be monitored and controlled. The biggest reason a country rejects crypto is the decentralization and anonymity that comes with crypto.

The reason why it can't be illegal is the fact that... who is doing the illegal thing here? There is nobody at the top and there is no central organization that controls it. That is the good part about being decentralized, governments can't put the blame on any single person. Look at what happened to XRP, look at USDT, those all have central organizations that are running the currency, but bitcoin is not like that, it is purely decentralized.

So if you want to make something illegal, you make it illegal for everyone who holds any bitcoin or trades it, some nations tried to do that, but you are banning it from everyone and not just doing it for one company. This is why it is so hard to ban crypto as a whole, even if it is illegal in a nation, people just go with the p2p route and trade their coins that way hiding it from the government and still continue the operations, which is why it is hopeless case for governments.

[Viscore]

Blockchain is like a double-edged sword. although there are benefits, but it is very difficult to control. this is the reason why many countries are reluctant to legalize it. decentralization can destabilize the country, it can undermine the current financial system. maybe freedom is good, but the government doesn't like that. they are more interested in a system that can be monitored and controlled. The biggest reason a country rejects crypto is the decentralization and anonymity that comes with crypto.

The reason why it can't be illegal is the fact that... who is doing the illegal thing here? There is nobody at the top and there is no central organization that controls it. That is the good part about being decentralized, governments can't put the blame on any single person. Look at what happened to XRP, look at USDT, those all have central organizations that are running the currency, but bitcoin is not like that, it is purely decentralized.

So if you want to make something illegal, you make it illegal for everyone who holds any bitcoin or trades it, some nations tried to do that, but you are banning it from everyone and not just doing it for one company. This is why it is so hard to ban crypto as a whole, even if it is illegal in a nation, people just go with the p2p route and trade their coins that way hiding it from the government and still continue the operations, which is why it is hopeless case for governments.

Whatever banning made by the government, it won't create a huge impact on bitcoin anymore because its users will continue to access it in every possible way. This is the great advantage of being decentralized as it does not allow any entity or group to control it, while fiat is centralized in nature so the government has all the support on it. With bitcoin, the government believes its illegal so there's no way that it can be legalized.

However, every government differs in its leadership. And bitcoin creates more positive impact to those who believe in its potentials like young generations do. So we might expect that if a leader of a certain country is more open to new innovations, then bitcoin will always be legalized just like what El Salvador has did.

[sherenikaw]

Actually, Crypto legalization depends on the policies of each country. there are some countries that can accept crypto but there are also countries that prohibit crypto for their own reasons. what is certain is that if a country has legalized crypto, it will be easier for crypto lovers in that country to take the advantage of it than people in countries that prohibit crypto. Crypto is an option where both profit and risk can be obtained and it is up to the individual to manage the assets themselves. so while our country can accept and legalize crypto then use it well.

[Pelana vreo]

To my knowledge the first cryptocurrency was Bitcoin. Do you agree?
Since 2009 Bitcoin was launched by a person on behalf of Satoshi Nakamoto (aka) there have been very many positive things that have been obtained by people in the cryptocurrency space. Because Bitcoin has a limited stock, thus making the price of BTC expensive and then in anticipation of people being able to invest in crypto, Altcoins were born as an alternative.
Please give suggestions if my post is not correct.

No, there were a lot of ideas before Bitcoin was invented and we have seen Web based payments namely Paypal, but Bitcoin is the first cryptocurrency in the world, which has a blockchain and is still being developed.
There were a lot of ideas before Bitcoin was invented, but we have seen how Bitcoin has survived to this day and it's great
https://www.investopedia.com/tech/were-there-cryptocurrencies-bitcoin/

[Alert31]

Cryptocurrency is not legalized despite the of many benefits simply because government doesn't like it. But you know, I think a lot of government officials and workers also invest in crypto because I believe they already know how much it is worth to invest in crypto especially in bitcoin.

[odukoyaewatomi27]

Cryptocurrency have a lot of advantages and offers a lot of opportunities but it hasn't been legalized in a lot of countries because it also has a lot of disadvantages and can be used for criminal purposes. the decentralized revolution is bigger than the legalization of cryptocurrencies by any particular country and the crypto market will keep getting bigger

[m. yasir]

I think cryptocurrencies appear to make us easier to transactions but cryptocurrencies also appear as a threat to country's currency. This becomes a serious problem when the general public uses cryptocurrencies while the state not ready for it. then there are various countries that have not legalized cryptocurrency. but I'm sure cryptocurrencies will continue to grow over time and the times.

[Ozero]

Cryptocurrency have a lot of advantages and offers a lot of opportunities but it hasn't been legalized in a lot of countries because it also has a lot of disadvantages and can be used for criminal purposes. the decentralized revolution is bigger than the legalization of cryptocurrencies by any particular country and the crypto market will keep getting bigger

Cryptocurrency provides many benefits to people. However, from the point of view of states and their bodies, it is almost useless and carries a lot of risks, including the possibility of its use for criminal purposes. Therefore, states are in no hurry to legalize decentralized cryptocurrency. On the contrary, in opposition to it, they create their own digitalized currencies of the central banks. The legalization of cryptocurrency is happening more due to the pressure of people on governments and enthusiasts among officials. Therefore, the process of legalizing cryptocurrency will not be as easy as it seems to many.

[llecrf]

To my knowledge the first cryptocurrency was Bitcoin. Do you agree?
Since 2009 Bitcoin was launched by a person on behalf of Satoshi Nakamoto (aka) there have been very many positive things that have been obtained by people in the cryptocurrency space. Because Bitcoin has a limited stock, thus making the price of BTC expensive and then in anticipation of people being able to invest in crypto, Altcoins were born as an alternative.
Please give suggestions if my post is not correct.

It's been more than 12 years, and I'm still waiting for it to be legal for worldwide payments, but every country has laws and regulations, we can wait for other countries like El-Savador to accept Bitcoin for payments.
So far I'm happy with each country's regulations, because some countries legalize crypto investment and that's a good thing

[carrigan]

Actually, whether Bitcoin is legal or not, it depends on the government in your country. Maybe some countries do not allow transactions using Bitcoin or Bitcoin is called illegal because it is volatile and cannot be controlled. Even difficult to predict the price. Moreover, the numbers are small and exist in digital form which will be difficult to reach for some people who are technologically stuttering. Bitcoin is legal or not in your country, even though you can't use it as a means of payment at least you can use it as an investment tool because this will be very profitable.

[Rb48]

This cryptocurrency has been given legitimacy in different countries. However, there are some countries where cryptocurrency has not been legalized. And in those countries where no legitimacy has been given, there are many problemsSo there is no legitimacy in all those countries.

[GaxviiBuss]

You are right, there are only two type of coin in crypto world:
Bitcoin
Altcoin
So all other coin falls under altcoin. You are also right on the basis of the increase in bitcoin price, when their is scarcity there will be inflation in price. To buttress what you said when their is need their will be increase in demand and there will be hike in price also..

[Theones]

Many countries have legalised cryptocurrency use in centralized form where government can track its moments. In decentralised cryptocurrency, government has zero control over it and that's why many government's have banned its use. There are predictions that rivalry bw decentralized crypto n government's will intensify in future.

[darahjuang]

update

Of all those who speculate on this topic, the average reason why Cryptocurrency is not legalized in many countries even though cryptocurrency has too many positive benefits is because it can damage the economy of a country.
If indeed the presence of cryptocurrencies can damage the economy of a country, why are there still many people who continue to carry out trading activities in Cryptocurrencies?

[Orange89]

It is definetly because of  the CryptoCurrency system is hiding the people details and transaction but the government doesn't want that's crypto currency will be legal because they wanted to Track us and our transaction and these untracked technology is called as Blockchain technology that's the reason you are finding the majority countries and banning and making guidelines against the crypto

[Al Qiyamah]

update

Of all those who speculate on this topic, the average reason why Cryptocurrency is not legalized in many countries even though cryptocurrency has too many positive benefits is because it can damage the economy of a country.
If indeed the presence of cryptocurrencies can damage the economy of a country, why are there still many people who continue to carry out trading activities in Cryptocurrencies?

the government of a country just doesn't want its official currency to be replaced by crypto currency. that's why there are also countries that do not legalize crypto currency as a legal tender. but if it's only for trading activities for profit, I don't think it's a problem for FIAT.

[oemar bakrie]

how will it be legalized because it can reduce the value of the official currency in our own country, and not all people can understand how to use crypto, and the security aspect is also not there and the risk of loss is also very large..

[tvplus006]

They simply wanted to have full control and it's not possible with crypto currency that's why many countries still unable to legalized this
system they don't want their people to skip thier obligations.

And the fact that they can also bypass govertment laws which is giving this users freedom to what they wanted to do with thier money.

Cryptocurrency can be legalized only if all countries have a single currency and a single central bank. At the same time, the central bank must fully control all transactions in cryptocurrency that are made in the world. But we understand that this is not possible in the near future.

[bitcon]

To my knowledge the first cryptocurrency was Bitcoin. Do you agree?
Since 2009 Bitcoin was launched by a person on behalf of Satoshi Nakamoto (aka) there have been very many positive things that have been obtained by people in the cryptocurrency space. Because Bitcoin has a limited stock, thus making the price of BTC expensive and then in anticipation of people being able to invest in crypto, Altcoins were born as an alternative.
Please give suggestions if my post is not correct.

To my mind autoritives can’t legalize Bitcoin as they have no control over it. They are used to controlling everything including finances, so they can’t let Bitcoin and other altcoins develop as they are not familiar with these technologies. They will have to change the tax system.

On the other hand, some countries are going to offer alternatives by creating a digital state currency like the digital yuan.