Reasons why government would like to ban Bitcoin?

[iTradeChips]

From what I remember, China did not ban Bitcoin nor cryptocurrencies altogether. They banned the mining of Bitcoin that's for sure. Other governments only want to regulate the Bitcoin apps and platforms that are being set up in their respective countries. But on the individual level, many bankers and people from the financial sectors around the world will stop at nothing to defame and destroy Bitcoin. For them it is a threat to their financial security.

[Shasha80]

Many bad issues associated with Btc. They said Btc is linked to the financing of terrorism, or unsafe systems, and is even a place for money laundering.
The government will provide this information so that people do not invest in Btc but stick to conventional banks. As we know the banking system is very profitable for them because of the system of interest-bearing loans. I think if the government legalizes Btc, conventional banks will lose their place and the government will lack financial assistance from there.

The government only makes the reason that Bitcoin is widely used for illegal activities as you have mentioned, to be able to ban Bitcoin. In fact,
the government is only afraid that the banking system that has been profitable for them will be threatened if they accept Bitcoin. Moreover,
Bitcoin cannot be fully controlled by the government, so the government prefers to ban Bitcoin. Although there are several countries that legalize
Bitcoin, usually on a limited basis, Bitcoin can only be used as a digital asset.

[wxa7115]

I would like to read your opinions about this topic, what are the reasons? Why is it Illegal? the fact that it is for earning & living?   May this answers we have here nailed in everyone's mind in this forum. For learning and importance.

In many countries bitcoin is legal by law or legal by the fact no law prohibits it directly, however it is not difficult to see why bitcoin is not seen with good eyes by many governments of the world.

The most obvious is that bitcoin is a threat to their monopoly, before the advent of fiat currencies private companies known as mints could issue gold coins, however later on with the excuse to put a stop to bad practices from those mints the governments took control of this and eventually introduced fiat currencies which gave them too much power, bitcoin is a threat to that as we could go back to the days citizens minted their own coins, as it is the case in bitcoin, and governments do not want that.

[Luqman]

Why is it Illegal? the fact that it is for earning & living?

Each country has its own rules. For a digital asset, many countries already allow it because it doesn't break the rules on the countries. While for payment purposes, several countries don't allow it because it breaks the laws in the countries. In my view, Bitcoin is actually not banned totally, just banned for specific purposes. It is like in my country, our government is fair enough, they allow people to trade or invest in Bitcoin. But to use it as a payment tool in daily life is not allowed. Bitcoin has a very volatile value, it is possible to bring bad impacts. Also, our law stated only national currency can be used as a payment tool.

[Gyfts]

The one and only reason - gives them less fiscal control over their citizens. A centralized currency means the government retains all the power, and it means they can control the money supply. Within an instant the government can essentially freeze all assets and lock you out of your finances.

Also means when they ruin the economy, they can retain even more power as they prop up fiat through reckless printing.

[Sayeds56]

Why is it Illegal? the fact that it is for earning & living?

Each country has its own rules. For a digital asset, many countries already allow it because it doesn't break the rules on the countries. While for payment purposes, several countries don't allow it because it breaks the laws in the countries. In my view, Bitcoin is actually not banned totally, just banned for specific purposes. It is like in my country, our government is fair enough, they allow people to trade or invest in Bitcoin. But to use it as a payment tool in daily life is not allowed. Bitcoin has a very volatile value, it is possible to bring bad impacts. Also, our law stated only national currency can be used as a payment tool.

The decentralized nature of Bitcoin which empowers people and gives them control over their money/wealth which no government likes because it challenges their authority to control money and people. Governments will ban Bitcoin when it becomes too important and threatens national sovereignty. At least these critics understand Bitcoin’s importance and the power that state currency monopolies .The second  reason is extreme volatility of Bitcoin which benefits some smart traders but majority remains in loss but if you are long term investor then most likely you get huge reward of your patience.


https://bitcoinmagazine.com/culture/why-governments-cant-ban-bitcoin

[zanezane]

Most likely the reason that bitcoin has this kind of problem with the government is because the government has some friends in sectors in the economy that's going to be affected by crypto because of their ability to give people financial freedom and those friends of the government doesn't want that kind of freedom achieved by their demand which is the public.

[iTradeChips]

One word - control. Anything that the government cannot control, they are going to be against it. Bitcoin gives people anonymity and that people can do all these borderless transactions without the need of the middle man that would take away more value out of their money. It is then totally expected of these governments to be against Bitcoins since they cannot control it. Though I must say the government is slowly trying to inch their way so that they can eventually control cryptocurrency.

[Lucius]

China doesn't ban Bitcoin (holding, trading, etc) but they only ban Bitcoin mining, just like another misconceptions China's can control Bitcoin since they has over 51% Bitcoin hash rate.

Don’t you know that China banned all crypto exchanges back in 2017, and shortly thereafter announced that the same fate awaits crypto mining in the coming years? It is true that possession is not illegal, which has already been proven in some court rulings, but there are no legal ways to trade crypto in China.

Earlier this month, the People's Bank of China (PBOC) which is the central regulatory authority that regulates financial institutions and drafts the monetary policy of the country, issued a statement that “it would block access to all domestic and foreign cryptocurrency exchanges and ICO websites.”
As per the news, China aims to clamp down on “all cryptocurrency trading with a ban on foreign exchanges.”

Any question that starts with "why would any government ban BTC?" in fact it has an answer in the very essence of what Bitcoin represents, and it can be read already in the first sentence of Bitcoin Whitepaper

A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.

If we know that the modern world is based on controlling people through financial institutions (banks, IMF, World Bank), and through the supervision of everything we do in life - why is anyone surprised that Bitcoin is something that interferes with this system?

[michellee]

The government banned crypto because they can not control the circulation of crypto in the market and are worried that people can use crypto for illegal things. Maybe the government is not ready to see their people get wealthy from the way that they can not know and their people can avoid paying the tax of having crypto. If they can open their minds and integrate their system using blockchain, maybe that can give them a solution to reduce the corruption in their country. Maybe many benefits that the government can take from the blockchain that they do not know yet.

[Rockstarguy]

The government will always want to be against Bitcoin because they are not in charge of it, they can't regulate it.  Whatever government is not in charge of the government will not always stand with it.

[dezoel]

I have also asked myself this question and there’s nothing reasonable enough that can make them to ban Bitcoin except that the government always wants to be in control. The government wants to be in control of everything, and since Bitcoin cannot be controlled due to the fact that it is decentralized it has made the government to dislike it. Although a lot of them do come up with excuses such as Bitcoin can be used by criminals and terrorists to transfer money around the world, but things like this has been happening even with Fiat, and there has been a lot of people being scammed  till this day with the use of fiat.

So, if people have been using Fiat to scam others then what's the difference? Business server insert that I’ve made, Bitcoin is less likely to be used for such  illegal activities. So, I think the main reason that the government doesn’t want us to use Bitcoin is because they  don’t want us to have freedom. Although in some situations I’m not really going to blame them because people tend to misbehave when they are given freedom.

[Kelvinid]

The government banned crypto because they can not control the circulation of crypto in the market and are worried that people can use crypto for illegal things. Maybe the government is not ready to see their people get wealthy from the way that they can not know and their people can avoid paying the tax of having crypto. If they can open their minds and integrate their system using blockchain, maybe that can give them a solution to reduce the corruption in their country. Maybe many benefits that the government can take from the blockchain that they do not know yet.

In general, they can't control the market.
I'd some time to think that the government that supports crypto is a planned trick for us. Once we fall in on their trick that is the time to take advantage and imposed taxes as their main goal. Probably, this will be going to happen in El Salvador.

The government will surely find a way to make us pay taxes, if it is not today, that might happen by tomorrow. That is the SEC is urging developers to list their projects as this will be the way to get in. Well, I appreciate their hard work but this might lead to losing our freedom.

[UKprod]

It is quite simple why govt. wants to do it. These are just some of the reasons:

• Govt wants to completely control the flow of money and let it go into the hands of the people it wants to send it to
• It wants the powers to be polarized and centralized in it own hands
• It doesnt like rebelling or revolutionary citizens

[molsewid]

One word - control. Anything that the government cannot control, they are going to be against it. Bitcoin gives people anonymity and that people can do all these borderless transactions without the need of the middle man that would take away more value out of their money. It is then totally expected of these governments to be against Bitcoins since they cannot control it. Though I must say the government is slowly trying to inch their way so that they can eventually control cryptocurrency.

You nailed it mate it's a very precise word that would define why other government would like to ban bitcoin or let say cryptocurrency-and it is the word "control". Government would really wanted to take control on things that they would going to allow to be operated legally in the country because they said that they care for their people's concern if ever there's a complaint that would link to a blockchain they could not resolve it because crypto is a decentralized finance. In short, the government couldn't control a crypto transaction but I do believe that many countries were now studying to adopt this digital finance.

[blckhawk]

Probably out of spite that they can't tax crypto entirely or probably out of their childish reason to control the people and what they want. I think there's really no good reason to ban bitcoin besides those things because what's going to happen if they ban it, it will only get much more expensive and people will want them more.

[kryptqnick]

Do you mean reasons that are being thrown around by different authorities or legit reasons? Restriction of Bitcoin can be explained by protecting investors (due to volatility and many crypto-related scams) or the environment (while not moving to eco-friendly sources of energy and continuing coal mining, of course), it can be simply restricted on the ground that it's not issued by proper authorities and cannot be properly regulated. But the only true reason I see is fear of not being in control. Fiat is relatively easy to control, and Bitcoin is not something you can play with so easily. So restricting or banning Bitcoin ensures that your coins stays in power on a certain territory, that people use banks on a regular basis and don't get any ideas about decentralization. I can understand why people who live in fear of losing their power might restrict Bitcoin this way, but I don't think there are any truly justifiable reasons for banning Bitcoin.

[LimLims]

I would like to read your opinions about this topic, what are the reasons? Why is it Illegal? the fact that it is for earning & living?   May this answers we have here nailed in everyone's mind in this forum. For learning and importance.

Government like to rule his area.
Same happens with Bitcoins too.
The main reason for which the government treats bitcoin as illegal is due to it’s decentralised nature.
As the government cannot control it therefore they consider it as illegal in it’s nation.
Moreover they also banning bitcoins because of it’s anonymous nature and many hackers using it.
Hope this helps you now OP.

[Zanab247]

Here are some reasons why government would like to ban bitcoin:
1) Decentralized : Bitcoin is a decentralized currency that cannot be control by the government. Government need a currency they can control at anytime they want in the country.
2) Unpopular: Fiat money is more popular than bitcoin in the country, and many citizens are finding it difficult to make use of it in some community.
3) Negative trust: Government are looking at bitcoin as a currency that came to eliminate their fiat money. It increases and decrease anytime, any day without the concept of the government.

[ivankoh]

The government gives freedom to the people but wants to control and manage their finances in a cage by of regulation and formality, banking… while bitcoin offers boundless freedom and is completely impossible  controllable.  The government wants to ban bitcoin because it goes against their undesired interests and certainly the government fears the power of bitcoin.  And I think this is a pragmatic idea and will increasingly undermine the system of government, banks will collapse to the way they are currently operating.