Bitcoin from the economic perspective

[Tellek Garing]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

[kryptqnick]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

I think that making such conclusions requires a lot of research and cannot be determined immediately (unless someone already did the research and one can simply refer to it). A quick search shows that such research hasn't really been conducted. So now to the reasons why it's not so simple to determine the answer right away:
1. There are countries that do well economically even though they aren't really into Bitcoin (like China).
2. What counts as approving a currency? It is only legal tender, or is it regulating it in any way? The US is doing well, and cryptos are legal there, but the legislation isn't crypto-friendly, considering the sell tax.
3. If a country is doing well and it's Bitcoin friendly, it doesn't mean that there's a causal relationship between the two. Switzerland is considered crypto-friendly, and it is doing well economically, but are these two really connected? Probably not, since Switzerland has been an economically strong country for a while, well before Bitcoin.

[palle11]

the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

What you are even saying is the future benefit that are yet to be seen and for the countries who are banning bitcoin , their excuse will be no benefit so far currently. But few countries that are open to freedom in all human life has seen bitcoin to have a financial freedom. They are not struggling with control yet but the intrinsic value of bitcoin.

[AhmadM]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

I'm wondering about source references did you use to come to those conclusions, I don't think the pros and cons of that regulation could be easily summarized particularly by outsiders without doing proper research or knowing the circumstances of the mentioned country. In addition, the high fluctuation of BTC also becomes one of the main factors why governments are reluctant to use it as currency.

[BITCOIN4X]

what the government in scared is the decentralization of the financial system.

That question has been answered thousands of times on this forum, so I don't know what else to say for you.

We do not have the power to push governments to adopt a decentralized financial system when they have adhered to a centralized financial system for hundreds of years. They will stick with their assumptions even though they know that whatever they fear from bitcoin will do some good for the economy. It is clear that they will not be easy to make changes, because they also have to conduct an in-depth study of the decentralized financial system. I'll just shut up and enjoy the game.

[tabas]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

Of course it does. But it's the government that has the whole mandate if they're going to adopt it or not, whether as a global reserve, an asset class, a store of value or even a legal tender. We can't do that much in doing those but just to apply that to ourselves alone. As an individual, we have the power on it to decide for ourselves without even looking at that obstacle which is the government that's going to be against decentralization. But, as what we can see, they're going with the possibility of intervening on it through transactions and by just letting us go free whatever we want as long as not involved with illegal trades.

[BIT-BENDER]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

I believe that even if the heads if the government aren't too familiar with Bitcoin they have advisers who are sure they should know the possibilities of Bitcoin to a nation's economy, I I believe is great even if their are some disadvantages to it, like people using it for illegal activities, but to me that's not the biggest threat to the government, the government are scared that crypto-currency gives so much power to the people and they aren't having any of that.

[suzanne5223]

Over the years and especially during the pandemic when a lot of people lose their jobs, Bitcoin was approved to be beneficial to the people but I was surprised the OP even say the words "more than the disadvantages of Bitcoin to an economy" when it has no disadvantage to the economy

[ilikesumma]

The idea behind blockchain and bitcoin was to update the old economy and financial sector that didn't change for a while. In my humble opinion the integration would be easier if governments would regulate new laws faster and be more friendly to new technologies. Decentralization and cryptography is for many still just a fantasy movie. Blockchain is King and bitcoin is simply a store of value.

[Gyfts]

what the government in scared is the decentralization of the financial system.

That question has been answered thousands of times on this forum, so I don't know what else to say for you.

We do not have the power to push governments to adopt a decentralized financial system when they have adhered to a centralized financial system for hundreds of years. They will stick with their assumptions even though they know that whatever they fear from bitcoin will do some good for the economy. It is clear that they will not be easy to make changes, because they also have to conduct an in-depth study of the decentralized financial system. I'll just shut up and enjoy the game.

In a democracy you do, elect a pro-BTC candidate. Bitcoin isn't a priority for most, so this won't happen lacking mass adoption, but there's change people can do. Folks in China have it different, but most European countries and the West have plenty of power to push for decentralization (or at the least, recognition of BTC as a currency).

Most people have just been brainwashed by the central banks thinking that fiat currency is stable, so the issue ignorance, not power.

[so98nn]

Though it is beneficial we can not have easy implementing of the bitcoin throughout the world. I mean crypto currencies are viruses which are spreading at alarming rates but they are also taking away huge amount of financing chunk from the Governments pocket. This is causing some sort of ecosystem safe fail as the money is being withdrawn to the cold wallets. The money is standing there for long now and thus no bank transactions for that amount and thus no tax payments.

Unless and until government do not figure out the middle way to work on this we can not be sure if this will ever be official part of our daily lives.

[Tellek Garing]

the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

What you are even saying is the future benefit that are yet to be seen and for the countries who are banning bitcoin , their excuse will be no benefit so far currently. But few countries that are open to freedom in all human life has seen bitcoin to have a financial freedom. They are not struggling with control yet but the intrinsic value of bitcoin.

That's very true and those future benefits of bitcoin as advocated by Bitcoin fans are flexibility of the economy in such a way that the blockchain will play a vital role in the financial economy and also serve as a secondary currency which will double as an asset of great value.

[takngantuk]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

in fact governments need not fear blockchain decentralization, as long as their regulations are tightened. the problem is when a country is too dependent on bitcoin. it will be very bad if bitcoin dumps, or there is a crash in the market. if only legalizing bitcoin i think it will not be a big problem.

[Darker45]

Wait a minute, what do the economic performance and statistics of countries tell you about the potential economic benefits that they could get from approving Bitcoin as a currency? I'm asking this question because I cannot see a connection.

Would I understand the economic implications of Bitcoin's approval in countries by looking at their economic performance? After all, Bitcoin and the currency economy belong to a completely different paradigm. The failure of the current economic system does not necessarily suggest Bitcoin as a solution. You are making a huge leap here.

[Kakmakr]

Governments are not scared of anything, because they have the power to do what they want. In many countries dictators are ruling the country and they do what they want. They have the backing of the local Police and Army to enforce their rule and they determine the laws that are applicable to their citizens.

So, if they want to ban Crypto currencies, they will simply do it. (Example : China)  The only countries where Crypto currencies can make a difference are the countries where democratic votes determine the leaders of their government. The people can then use their democratic vote to vote for a government that supports Crypto currencies. 

[Cookdata]

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

What the government cannot control doesn't exist in their cycle. They are pained and still in pain that satoshi idea wasn't funded by their highly inflated money, that's why the idea of giving bitcoin a chance in their failed system is so hard for them to accept.
Have you thought about it, what will have happen to the world of Bitcoin was designed by US or Russia? That would have been an oppression to other countries and would want to do the same and I'm very confident that it will collapse in no time except that they know how to mass print dollars the way they feel.
Bitcoin/Crypto will not have adoption by all countries but there are some that denied it in public and steal from people in silence, North Korea does that a lot.

[hugeblack]

This benefit will not be achieved unless:

 - State buys a few bitcoins
 - Sets laws to track currencies, thus ensuring tax collection and the absence of any tax evasion

All is good, but it needs some acceptance from politicians and expenditures in infrastructure, which is something that is contrary to the current financial trend that is managed by central and commercial banks.

The best that many governments can do is classify cryptocurrencies as assets and thus be able to impose high taxes on them (income tax and exchange tax) or even accept to pay taxes using those currencies.

The increase in popularity among the population and the possibility of using them just like stocks will facilitate the acceptance of them by countries as legal tender, although I expect them to be used as a store of value and for trade exchange between countries.

[AmoreJaz]

This benefit will not be achieved unless:

 - State buys a few bitcoins
 - Sets laws to track currencies, thus ensuring tax collection and the absence of any tax evasion

All is good, but it needs some acceptance from politicians and expenditures in infrastructure, which is something that is contrary to the current financial trend that is managed by central and commercial banks.

The best that many governments can do is classify cryptocurrencies as assets and thus be able to impose high taxes on them (income tax and exchange tax) or even accept to pay taxes using those currencies.

The increase in popularity among the population and the possibility of using them just like stocks will facilitate the acceptance of them by countries as legal tender, although I expect them to be used as a store of value and for trade exchange between countries.

most governments don't have clear stand towards crypto market because they don't have the full grasp of what's going on with crypto. though they have researchers and all, but the politicians themselves, i believe, don't have very good comprehension on crypto. so up until now, it is hard to convince them about the potential of crypto in their financial system, aside from the fact that btc is decentralised.
but no matter what, crypto is expanding. so for the govt to benefit from its existence, they can always set their taxation protocols to crypto-related businesses, even if we say, they cant get the whole picture of their market under their jurisdiction.

[bitzizzix]

Bitcoin or crypto is the future and still need processing for everything, I'm sure the government understands and also learns it well overall about bitcoin because they are smart people and as long as there are pros and cons it will only slow down the goal.
don't separate the government from the people, the people have interests, and some people are interested in bitcoin or crypto and they will lobby their respective governments for their cause and regulate for their interests, and as long as there are lots of people using bitcoin and it keeps growing it can't be controlled. there is a possibility in the future the government will realize that anything in the future can happen.

[fiulpro]

I think the governments are very well aware of the benefits and that is why that they have been increasing the taxes on things like bitcoins and other cryptocurrencies, at the end of the day they are more worried about stabilizing the economy right now therefore I have seen many countries legalizing the gambling as well which is related to cryptocurrencies. This is a very serious matter since government cannot simply ban bitcoins, it's not centralized they can for sure make laws but they cannot confiscate the cold wallets and people can still store their coins overseas therefore I do think that in a while most of them will let go for sure. Other than that we are already seeing improvements.