Why Cryptocurrency is not Legalized Despite the Many Benefits

[Evgenklm]

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 just a matter of time, remember how we got used to plastic cards, it was also quite a long time, and now everyone has it...it's the same with bitcoin and cryptocurrency in general, it takes time and knowledge in this area, because young people will quickly figure it out, but I doubt older people, in general, everything has its time.By the way, there are countries that have already legalized bitcoin, such as El Salvador.

[abralzain17]

As we all know, there are countries that have allowed digital currencies to operate in their countries and there are also countries that still prohibit Crypto from circulating in their countries, this is due to the government's concern about the risks that will be faced. besides that there are also countries that prohibit crypto in their country because they are afraid that there will be a lot of money laundering so that it will damage the country's economy. I think that's the reason why many governments don't legalize Crypto in their country.

[DrBeer]

The answer is very simple - in the presence of technological advantages, decentralization and uncontrollability by the state or specialized structures does not allow this solution to be used at the level of the state financial system! Never (in today's world), no state will allow its financial system not to depend on it!
Although it should be added - I am sure that some of the blockchain technology solutions will be integrated into today's banking and financial solutions! And the technology itself is already used in the non-financial sector quite often.

[OrangeII]

The answer is very simple - in the presence of technological advantages, decentralization and uncontrollability by the state or specialized structures does not allow this solution to be used at the level of the state financial system! Never (in today's world), no state will allow its financial system not to depend on it!

this is still propaganda. people think that because it can't be controlled, the government doesn't accept it as a legal transaction tool (although some countries have started to legalize and start making regulations about it). however, the reason is still the same, it's because of the rampant fraud that mentions the name of cryptocurrencies, and there are still many unfulfilled regulations of cryptocurrencies for some countries. however, for now it is good enough that cryptocurrencies are still allowed as an investment tool by many countries. it can be a trigger little by little crypto is accepted among the public before it grows even bigger.

Although it should be added - I am sure that some of the blockchain technology solutions will be integrated into today's banking and financial solutions! And the technology itself is already used in the non-financial sector quite often.

Right. I've read some information about banks trying to develop a blockchain system for themselves. In fact, China is also developing their own cryptocurrency but still rejects other crypto. well, I still pay attention to such information.

[iTradeChips]

In my opinion, there are many obstacles that crypto needs to pass before it can be legalized. For once, we have to remember that it is governments of the countries that legalizes things and what they see as benefiting of their country, then they can legalize. Like in El Salvador, the ministers there might have considered what Bitcoin can do to their country so they legalized it. Not sure why other countries are not legalizing crypto but hopefully we can see that in the next few years.

[bryant.coleman]

Benefit to the general population doesn't necessarily mean that the government is profiting out of it. If people use cryptocurrency as a mode of payment, then obviously the purchasing power of the national currency will go down. And this will make it harder for the governments to take loans, and to repay the existing loans. Less than 10% of the world nations are operating on surplus budgets. The remainder need to take loans to cover the fiscal deficit. Under such a scenario, weakening of the national currency is the last thing that they want.

[john_nautica]

Benefit to the general population doesn't necessarily mean that the government is profiting out of it. If people use cryptocurrency as a mode of payment, then obviously the purchasing power of the national currency will go down. And this will make it harder for the governments to take loans, and to repay the existing loans. Less than 10% of the world nations are operating on surplus budgets. The remainder need to take loans to cover the fiscal deficit. Under such a scenario, weakening of the national currency is the last thing that they want.

This has been a topic for quite some time now, and I could not agree more that the legalization of cryptocurrency will depend on governments and how they see the overall impact of crypto in a nation. That being said, the government will most likely prioritize the consideration of its effect on national currency and operations.

[Benefactor]

They will do according to their desire. Most significant one is charge. Assuming they need some assessments from individuals in the pandemic. Certainly they will legal jargon and get a benefit from it. The main issue is your clarification didn't coordinate with the title of your string coz your clarification didn't identify with the sanctioning of bitcoin nor cryptographic forms of money.

[jaberwock]

people think that because it can't be controlled, the government doesn't accept it as a legal transaction tool (although some countries have started to legalize and start making regulations about it). however, the reason is still the same, it's because of the rampant fraud that mentions the name of cryptocurrencies, and there are still many unfulfilled regulations of cryptocurrencies for some countries. however, for now it is good enough that cryptocurrencies are still allowed as an investment tool by many countries. it can be a trigger little by little crypto is accepted among the public before it grows even bigger.

I would say that as long as you could make laws about the crypto world, then you can make about how legal it could be or how illegal some things are. Like does any single nation in the world has a cyber security group focusing on following the crypto transactions of fraud claims? Not a single one.

If a nation has a data tracing team that checks from the moment some scammer took the money from you and send it to somewhere else and where it lastly ended up, then it would still be quite possible to catch that person. Me personally? I can't do anything but a government can protect my crypto as well if they want to. I would rather have that scam risk and zero government involvement, do not make it legal or illegal just ignore crypto, but they do care about it and tax it so if they want to tax it then they should figure out how to find and jail crypto scammers as well.

[zonefloor]

The biggest reason for this, in my opinion, is the banks. Because banks earn their earnings from money order and EFT fees. In crypto money, there are transfer fees even in funny numbers. That's why the global economy doesn't want to allow it. Another issue is money laundering issues. Cryptocurrencies cannot be tracked because there is no identification. Therefore, there is no information flow about where the money comes from and where it goes. Therefore, states do not want to legalize it because of this situation. In short, the source of the money cannot be fully determined and its source is unknown. For these reasons, I think it has not been legalized. Finally, there is no fixed exchange rate index. It is not clear when it will happen on crypto currency exchange platforms.

[bayyildiz]

I think that there can't be an ideal have-it-all situation in crypto. You kind of have to choose between complete anonymity&privacy, or complete security&mass adoption. Mass adoption without KYC regulations or taxation doesn't seem possible for now, and these things automatically negate the complete anonymity and decentralisation, two of the core reasons why most people choose crypto.

[Viviangelio]

Bitcoin: a Brief History
The concept of digital currency is not new. There have been footprints of digital currency dating back to 1983, though in theories only. Since 1983, there have been many transformations, experiments, implementation glitches, as well as decentralization issues in the development of the first decentralized cryptocurrency. In 2009, Bitcoin was eventually launched as the first-ever decentralized cryptocurrency, courtesy of Satoshi Nakamoto. However, even before Bitcoin, there were several other digital coins like e-gold and Digicash among others, which somehow crashed.

TL;DR Your post is correct, I read an article about it.

Source https://blockster.com/blockdesk/1217_bitcoin-vs-ethereum-a-brief-history

[DonFacundo]

Your post is correct Satoshi Nakamoto is the person who made bitcoin but his identity is still unknown some says Satoshi Nakamoto is a group, and yes bitcoin is very expensive because of limited supply. Talking about legalizing cryptocurrency, yes there are many benefits but there are also disadvantages of cryptos like the price is volatile, can not recover once transaction is done, some scams, untraceable.. these are the reasons why some government not legalizing it.

[DrBeer]

The answer is very simple - in the presence of technological advantages, decentralization and uncontrollability by the state or specialized structures does not allow this solution to be used at the level of the state financial system! Never (in today's world), no state will allow its financial system not to depend on it!

this is still propaganda. people think that because it can't be controlled, the government doesn't accept it as a legal transaction tool (although some countries have started to legalize and start making regulations about it). however, the reason is still the same, it's because of the rampant fraud that mentions the name of cryptocurrencies, and there are still many unfulfilled regulations of cryptocurrencies for some countries. however, for now it is good enough that cryptocurrencies are still allowed as an investment tool by many countries. it can be a trigger little by little crypto is accepted among the public before it grows even bigger.

Although it should be added - I am sure that some of the blockchain technology solutions will be integrated into today's banking and financial solutions! And the technology itself is already used in the non-financial sector quite often.

Right. I've read some information about banks trying to develop a blockchain system for themselves. In fact, China is also developing their own cryptocurrency but still rejects other crypto. well, I still pay attention to such information.

I agree that I also forgot to indicate the high probability of fraud and the irreversibility of transactions. But this problem is a derivative of the advantages of technology, as it happens in our life, and there are many more examples ...
And the fact that technologies will be adopted in real sectors of the economy - you can not even doubt. For example, an interbank blockchain can be built, with its own security implementation (for example, as in YUSDT where you can block tokens), exclusively for interbank interaction. I know that some information registries are already using blockchain technology. The same work of notaries - this is the purest blockchain, where technology guarantees the immutability of notary records, which will make it impossible for many fraudulent schemes!

[adzino]

What do you mean by "legalized"? As far as I know it is legal to use, own or trade crypto currencies in most part of the world. Only few countries out there has made bitcoin illegal for some weird or unknown reason. If you are talking about why they are not making it a legal tender, then its more complicated than you think. Most crypto currencies are decentralized. So its hard for the government to track or impose proper regulation. Hence they don't want to make it a legal tender. At least not now but maybe in the future they will come up with something. Also risk associated (the volatility) with it is high, hence holding back the countries from making it a legal tender.

[South Park]

In my opinion, there are many obstacles that crypto needs to pass before it can be legalized. For once, we have to remember that it is governments of the countries that legalizes things and what they see as benefiting of their country, then they can legalize. Like in El Salvador, the ministers there might have considered what Bitcoin can do to their country so they legalized it. Not sure why other countries are not legalizing crypto but hopefully we can see that in the next few years.

The US is legal tender at El Salvador I do not know if they have their own national currency but if they do then it must be very weak, this is why El Salvador is not afraid of doing something like this, but in the rest of the countries where the national currency is the only legal tender you are allowed to use then it makes sense they do not want to allow another form of money to compete against it, especially one that is as strong as bitcoin and that it is almost impossible to regulate completely.

[MaiQwaN]

The main feature of cryptocurrencies is decentralization and anonymity. But governments want to know everything about their citizens, manage everything from a single state center and control all financial flows of people in order to collect taxes and prevent the financing of illegal actions. When the authorities find a way to fully control cryptocurrencies, then it will be legalized.

[19Nov16]

The thing that makes cryptocurrencies difficult to get legalized is a decentralized system, when the government cannot control cryptocurrencies there will be many problems such as manipulation and of course hacking cases, this does not make us pessimistic about the future of cryptocurrencies as long as the global community is strong and continues to grow.

[Bikan]

Coin is a type of software developed via non-governmental organisations and communities. Because bitcoins are similar to securities in the rudimentary notion of authorities, their acceptance as finance poses a danger to monetary system. Up to this point, analyzing and discussing bitcoins is already a contentious matter, and we already know that they also have little impact on the economies, although they will be progressively changed.

[watergold]

Benefit to the general population doesn't necessarily mean that the government is profiting out of it. If people use cryptocurrency as a mode of payment, then obviously the purchasing power of the national currency will go down. And this will make it harder for the governments to take loans, and to repay the existing loans. Less than 10% of the world nations are operating on surplus budgets. The remainder need to take loans to cover the fiscal deficit. Under such a scenario, weakening of the national currency is the last thing that they want.

The most important thing here is actually for the general public we need to ask questions because what I have met and I feel here is that crypto can be a benefit for those who understand and want to learn about this (not the general public) because I think the general public is the majority. public.
and I don't agree with this because not all people want to study and at least do research in crypto.
regardless all this. I don't think crypto is useful for the wider community but crypto will be useful for people who want to explore it.