Why Cryptocurrency is not Legalized Despite the Many Benefits

[noorman0]

Only a few cryptocurrencies have any real benefit, arguably only a fraction of the thousands of new altcoins. The problem is that people's curiosity has no limits so they are often caught up in crime and fraud. Banning can be a solution on the grounds that it is a form of citizen protection.
Moreover, dealing with crypto crimes is more difficult than crimes involving fiat.

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[Krishna901]

The truth about why Crypto is not legalized is because of its distruptive potentials. Crypto has ability to change the global monetary system for better. Am not saying all cryptocurrencies are good , there are some unrealistic ones that are just developed to scam investors. In addition, crypto has tendency to overtake the traditional financial system due to its unending benefits. Based on these features, it will be hard for government to legalize it . It is not strange anymore that Fiat money is full of manipulation , no stable supply and lots of flaws in fiat money .

[junkerr]

Only a few cryptocurrencies have any real benefit, arguably only a fraction of the thousands of new altcoins. The problem is that people's curiosity has no limits so they are often caught up in crime and fraud. Banning can be a solution on the grounds that it is a form of citizen protection.
Moreover, dealing with crypto crimes is more difficult than crimes involving fiat.

that's one of the reasons why bitcoin and crypto can't be easily legalized in a country. That's because the handling and evaluation, which I think will be quite complicated, must be implemented by the country that enforces it. especially those that legalize transaction tools. because most countries do not prohibit ownership of crypto and bitcoin. it's just that the use of crypto and bitcoin is regulated.

[conected]

what do you mean by legalized? Is it legal to replace existing fiat currency or is it legal to make transactions with Bitcoin?
for now I see there are countries that prohibit Crypto and there are also countries that allow it, there are even companies that pay incentives for their workers with Crypto. hopefully Bitcoin or other digital currency will be the payment method for the future

Bitcoin does have the potential to become a legal payment method in the future, because bitcoin technology can help make it easier for people to make transactions, but I'm not saying that bitcoin will be legalized by all governments in their country because many of them are very worried, that bitcoin can interfere national financial stability system.

- Besides worrying about the level of financial intervention as well as the management system, we should also redefine the benefits, except for personal goals, very rarely do I feel bitcoin can meet the community criteria because from a payments stance, the community chooses their country's tradition, instead of innovating with bitcoin, they choose bitcoin as just a volatile battleground, take away the legacy of those who died on the battlefield. A place to make money full of sin, greed and the government not sure it should be made public

[Beparanf]

Only a few cryptocurrencies have any real benefit, arguably only a fraction of the thousands of new altcoins. The problem is that people's curiosity has no limits so they are often caught up in crime and fraud. Banning can be a solution on the grounds that it is a form of citizen protection.
Moreover, dealing with crypto crimes is more difficult than crimes involving fiat.

Since most of the the coins are decentralized, it will be hard for many governments and institutions to collect data and information. This will be a medium to scammers and many laundering if been pushed to legalized. It's too broad to be operated or monitored by the government knowing every problem can be blamed on them ao they just act safely when they ban or just put a note of how risky crypto is.

[iv4n]

...

Since most of the the coins are decentralized, it will be hard for many governments and institutions to collect data and information. This will be a medium to scammers and many laundering if been pushed to legalized. It's too broad to be operated or monitored by the government knowing every problem can be blamed on them ao they just act safely when they ban or just put a note of how risky crypto is.

It's not hard to collect data and information... it's an open ledger, anyone can check anything, you just need internet and computer! But I guess that's the problem for many countries (if not all of them) because if they reveal everything they will fall so fast like an apple from a tree! Secrecy, keeping people in the dark, is one of the best tools for many modern governments, we don't even know what governments are doing, where and how they are spending money for a big part, they just say "national interests" and we can do anything about it!
One of the things I like about decentralization, it can be fully transparent! And I believe without full transparency we can't have a better and nicer world!

[noorman0]

It's not hard to collect data and information... it's an open ledger, anyone can check anything, you just need internet and computer! But I guess that's the problem for many countries (if not all of them) because if they reveal everything they will fall so fast like an apple from a tree! Secrecy, keeping people in the dark, is one of the best tools for many modern governments, we don't even know what governments are doing, where and how they are spending money for a big part, they just say "national interests" and we can do anything about it!
One of the things I like about decentralization, it can be fully transparent! And I believe without full transparency we can't have a better and nicer world!

You are right in this, but the fact is that many cases of minor scam are not possible to be handled due to various factors. For example, a person from country A is scammed $20 bitcoin by a random person on the internet from country B. Of course, the value to be fought for is not worth the process because it is a transnational crime.
In the crypto space, civilians with zero skills can easily become criminals which is rare in traditional finance. And a corrupt government will not truly serve the people if it is not profitable.

[Ryder Kudrow]

Cryptocurrency has been legalized in some countries, and it is only banned in a few countries.
They banned cryptocurrency because decentralization cannot supervise it, and it cannot track transactions that may be used for illegal and criminal activities.
If the country legalizes cryptocurrency, they will not be able to benefit from it like fiat currency. So the government will not legalize it for its own benefit.

[watergold]

what you say is true but not completely true because crypto is now widely circulated and this means that this only goes back to the policies of each government because if we look at it legal or not this is like a pro and con, which means for the pros to legalize and for the cons it becomes illegal.
but they do have their own reasons for that, for example for banning bitcoin because it is based on the decentralized nature of bitcoin and that means it will not be easily tracked by the government when we make transactions and there are still some countries that consider bitcoin to be synonymous with terrorists, so they forbid that matter.

[dezoel]

The main idea is that if crypto is basically a legal tender like El Salvador but in all nations, then there will be a lot of people moving to that. It means if banks and all those horrible companies have a crash, governments can't just print more money and give it to them to make them rich again and dominate over regular people, they would have to print their own currency, and if they do that then the price of bitcoin will go up since it will devalue fiat, which results with regular people getting richer because of bitcoin ownership while companies are getting free money but one that is devalued all the other amounts they claimed to have, now a 1 trillion company is worth 800 billion even though they were given 50 billion.

Long story short, it would destroy the power dominance of wealthy over the poor, and they do not want that to happen, can't stop it neither, so they are postponing it.

[South Park]

As a decentralized currency, Bitcoin's development is not subject to excessive government restrictions or influences, while the cryptocurrency economy is subject to peer-to-peer Internet protocol monitoring.
Cryptocurrencies have not been widely accepted by businesses and consumers, and their prices now fluctuate so much that they are not suitable as payment methods.

Those are some decent points but it does not really answer the answer of the OP, bitcoin is still seen with bad eyes by the governments and this is simply because bitcoin gives freedom back to the people, the current banking system has all kind of measures that are there with the intention of not letting you move your money freely, bitcoin works with the exact opposite idea, bitcoin lets you do whatever you want and this is not something that governments like at all.

[fullhdpixel]

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.

First of all I’d like to point out that Satoshi Nakamoto created Bitcoin for transactions online. Although this time around a lot of us are now looking at it as an investment asset. So, this is why a lot of things have changed. When you introduce Bitcoin to people they always see it as a means for them to make money and when they are not able to make that money they say that Bitcoin is a scam.

Yes, there are so many good things that we have been able to benefit from Bitcoin, but a lot of people can see that. I hardly see anyone these days talking about Bitcoin as a method of transaction, they only talk about how much they can make from it and nothing else. But I do understand that it would be hard for people to accept it in such a way because of how volatile it is.

[freedomgo]

I would instead answer on your question on why it's not Legalized despite of the many benefits.

Actually, one country has already confirmed that Bitcoin is legal and they consider it as a legal tender.
https://cnnphilippines.com/business/2021/9/7/El-Salvador-first-country-bitcoin-national-currency.html

Think that it's the beginning that other countries might follow as well.
For poor countries or maybe underdeveloped countries, this is a good solution to free them from the manipulation of the bully countries.
Decentralization is the key to success in some countries and El Salvador is willing to experiment on that.

[evichi]

Government of any nation decides what happens to the people being governed. Government decides what is legal or not. Basically, most banks or financial institutions have some involvement with the Government. To a large extent banks and government work hand in hand. Banks are institutions of third party that handle people's funds. Governments benefit a lot from banks. The original idea behind Bitcoin is the capability of 'be your own bank'. Third party is apparently eliminated. Most Governments are still skeptical about crypto currencies because they have similar function of 'be your own bank'. The rise of crypto is to some Governments is a challenge to an already existing banking sector. So it will really take some time for some Governments to legalize crypto currency. For any Government to legalize crypto currency, it means they have probably structured a way to benefit from the crypto ecosystem. Currently, crypto currencies are a lot more beneficial to individuals/decentralized bodies than the central Government.

[faithupgrade]

I am a crypto lover but sometimes I agree with the rules implemented by the government from acquiring crypto. Just take a look, not all people are patient and some of them are greedy sometimes. Just take a look, if theres not restriction. Crypto can become a platform of money laundering. It can weaken the government's monetary. If there is no restriction people can become bankrupt if they will use their creditcards to buy huge crypto but become liquidated in Bitcoin futures.

The government is controlling the greediness.

[tygeade]

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.

Yes, you are right. There are lots of things that the world has benefited from Bitcoin, it has created lots of opportunities that we see today. The invention of Bitcoin has opened the world to a new area that we never knew existed. This time around there are lots of alternative coins and there are lots of other things that have come into play.

Now we have NFTs, and other inventions that are coming into the community. Bitcoin was the gate to it all, if it was never invented, then we wouldn’t have seen all these things that we are seeing now, all the opportunities. Bitcoin was what opened our eyes to see them all, thanks to satoshi nakamoto. So, if you talk about benefits , there are lots of them that bitcoin has brought. As for bitcoin being legalized, not in our power to do so, it is left for the government. It has been legalized in so many countries already.

[jack wira]

It is possible that the government does not want fraud with cryptocurrencies, for example, such as money laundering, corruption and which are detrimental to the government itself.
 Or it could be that with the legalization of bitcoin, people will leave fiat currency, even though in reality it is not that easy to use digital money for ordinary people, like bitcoin, bro.

[Chathusand]

Because governments are opposed to decentralization and do not want to lose control of their citizens' spending, as well as anonymity because they cannot impose on people's income, if they are to accept cryptocurrency, they must be the ones to create and control it; otherwise, they will be unable to operate.

[milewilda]

Because governments are opposed to decentralization and do not want to lose control of their citizens' spending, as well as anonymity because they cannot impose on people's income, if they are to accept cryptocurrency, they must be the ones to create and control it; otherwise, they will be unable to operate.

Exactly and they dont really like on things which cant really be controlled which it isnt really that surprising that there would really be those oppositions on terms of adoption most of the time.
They dont like about being anonymous and irreversible transactions or something like that and when it comes to transparency since everything can really be checked out on blockchain
then this is something that they dont prefer but somehow there are already countries do consider on adopting or integrating it which is great but i wont be surprised if others
wont really be following the lead.

[Pamadar]

It is possible that the government does not want fraud with cryptocurrencies, for example, such as money laundering, corruption and which are detrimental to the government itself.

And all this is also possible using regular fiat right?

More on the government still lacking of ideas about this industry, or the influenced of conventional businesses still at large.
Cryptocurrency is a threat as this system gives people freedom to hold their money without the help of any third party system.

Or it could be that with the legalization of bitcoin, people will leave fiat currency, even though in reality it is not that easy to use digital money for ordinary people, like bitcoin, bro.

If people understand everything well, this is very possible to happen, the emerging innovations from the technology

will lead most people to accept these new digital ways of payment transactions.