World Governments are Scared of the Popularity of Bitcoin

[Zlantann]

The claim that Financial Stability Board that the rise of crypto on Wall Street could trigger another financial crisis is laughable. The decision of Morgan Stanley ( one of the six biggest banks in the US) to offer its wealth management clients access to bitcoin funds, following JPMorgan footsteps is threat  conventional banking systems .

Contradicting itself the FSB stated it will examine the possible regulatory implications of cryptocurrencies such as Bitcoin and ether, which are not backed by a stable traditional asset such as the dollar. This means that their earlier statement that the rise of crypto on Wall Street could trigger another financial crisis is based on speculations and not proven facts.

The Financial Stability Board also accepted that volatility in cryptocurrency markets cannot lead to financial crisis because it makes up just a fraction of global assets.

https://markets.businessinsider.com/news/currencies/rise-of-crypto-on-wall-street-cause-financial-crisis-fsb-2022-2

Why all these attacks?

[jackg]

Crypto at the moment is a tiny asset, housing when it caused a crisis was very big and happened globally (I think housing in the UK alone is worth at least £10 trillion/$13trillion)

It is possible that too many speculating with too much on bitcoin and cryptocurrencies could cause a crash but these types of crises seem to be caused by large financial institutions repeating the same mistakes and overleveraging themselves and poorly diversifying.

[bitmover]

You know there isn't a World Government, right? Centralization of power is not there yet (thankfully).

I think that cryptocurrency is here to stay, and most people in financial markets believe that so. Bitcoin is growing exponentially, and Defi solutions are going to solve a lot of the problems in the financial system. NFT are probably connected to the metaverse (if that is to survive).

But cryptocurrencies will not trigger a financial crisis. Maybe it will cause a financial crisis in banks. But I believe it will empower individuals.

[aoluain]

Why all these attacks?

Pandering to those who still resist the call of Bitcoin ^{and crypto}

There are a few institutions who have relinquished the hard line stance against Bitcoin
and have started to embrace ^{i use that word loosely} to what Bitcoin offers

Bitcoin is in its 14th year, its no longer a troublesome toddler, more people take it seriously now.

At this stage in the FIAT financial system if there is another crash there is no way
Bitcoin could be faulted, it "may" contribute to it but purely as a result of people
opting for an uncorrupted alternative to something financiers have messed up.

[Agbe]

Is there any government for world government? It would have been world governments. When you say world government.

You are trying to refer to a country that controlling the other countries governments in the world but we don't have such.

[Leviathan.007]

I believe you are talking about the USA government and the answer is yes the government is scared of seeing many people getting into bitcoin and cryptocurrencies and the reason is clear to me for any government that's so bad to see another currency is trying to be more powerful than their own currency so they would surely be scared of this, especially talking about the government like USA because they want their own fiat currency to be used not just by their own people but even by the people in all over the world.

[franky1]

which are not backed by a stable traditional asset such as the dollar.

what is dollar backed by?...
.. oh yea i remember now. nothing but more paper.

i can destroy a bank note with a match, but no one can bruteforce my bitcoin on the network.
bitcoin is backed by the expensive effort of securing the network via mining. ($37k-$87k depending on region) where the market price sits somewhere inbetween depending on circumstances of peoples sentiments of value within the range

much like gold value is backed by the fact that it doesnt cost $2 to mine an ounce but depending on region it costs $900-$2000 to mine an ounce. with the market price sitting somewhere inbetween depending on circumstances of peoples sentiments of value within the range

[batang_bitcoin]

Describing "World Government" you made me remember of One Piece, as it's the actual name of the government on that Anime/Manga series.

Is there any government for world government? It would have been world governments. When you say world government.

You are trying to refer to a country that controlling the other countries governments in the world but we don't have such.

There's none but there are centralize agencies that have been uniting every country and formed that as one body that shall govern and do its duty. Like the World Bank, WHO and the others of the same.

@OP they're not scared because if they are, they have been pushing too hard for its eradication. But, they've understood that they can't do that whether they'll call out all of those agencies that can do it yet, they failed in doing so. Bans, FUDs and many other negativities that have been made for bitcoin, most of them failed so instead of pushing it hard away they're now joining.

[Vaskiy]

There is tremendous growth in terms of adoption as well as individual acceptance. More countries are with the plans of regulating the usage of cryptocurrencies. Even a country have made bitcoin a legal tender. This all happened as an outcome of growth and nowhere it has paved path for crisis. Once after the increasing usage of cryptocurrencies it has streamlined the process of banking. The combined value of bitcoin around the world is around one trillion USD whereas the banking is $8.5+ trillion. Such a market difference won't get impacted in a short term.

[adzino]

What is this world government you are talking about? I don't see anything written about it on your post other than talking about the States.

Why all these attacks?

All they are trying to prove is that "bitcoin" is evil and shouldn't go mainstream. They are trying to prove that bitcoin should go mainstream only if the government is able to control it (hence the talk about regulation and control of the flow of crypto currencies which hysterically is funny which indeed does contradict what they are saying). And you are right, all those rise of crypto on wall street can cause financial crisis is bullshit. They are just trying to scare "the people" into passing all the bills they want.

[DoublerHunter]

What is this world government you are talking about? I don't see anything written about it on your post other than talking about the States.

Why all these attacks?

All they are trying to prove is that "bitcoin" is evil and shouldn't go mainstream. They are trying to prove that bitcoin should go mainstream only if the government is able to control it (hence the talk about regulation and control of the flow of crypto currencies which hysterically is funny which indeed does contradict what they are saying). And you are right, all those rise of crypto on wall street can cause financial crisis is bullshit. They are just trying to scare "the people" into passing all the bills they want.

^ You are definitely right and I agree with you, in fact not only BTC cab be used in a criminal act which the government now they most afraid of, but it also includes fiat which is they neve know. They are trying to control it because of the tax that they can get which means if they cannot control it will not be accepted. Many of them too thinking that it is a threat to the financial system which is clearly not.
Nevertheless, let them scared and there is nothing they can do, people who love to use BTC will be free to use whatever they want.

[Wexnident]

If you mean by government in general, well, they've always been doing this kind of stuff afaik? It's closer to fearmongering among then I reckon? Though Idrk tbf, Im no economic expert. They can't really do anything even with all the negative press they do about it though, as I said, most of what they're saying is closer to fearmongering imo. Crypto would stay whether the governemnt of any country want it or not. Even if they did try something, it'd be something I'd consider as a soft ban, (heck it's not even a ban tbf), they're just making it take a bit more effort to use it.

[pooya87]

Actually being concerned about altcoins is a reasonable thing. The statements are only stupid when they are said about bitcoin but they aren't saying it about bitcoin, they are saying it about cryptos which is normally equal to altcoins.
In fact I wouldn't be surprised to see the next financial crisis in US happens because of the shittokens as wall street goons could get greedy and start investing in shittokens (ICO, DEFI, NFT,...) then lose trillions in them because either the flawed protocol burns their funds or someone uses another exploit in it and steals all of their money.

[avikz]

It's a hilarious claim to be honest! Bitcoin has a market cap of 77 billion dollar and the total crypto market cap is standing at 1.86 Trillion at this moment. As per some reports, the global economy stands at roughly 100 trillion dollars. So I am not sure how can crypto market can fuel destabilization into global economy! This is definitely based on some personal prejudice and not on hard facts!

Those banks like JPM or MS has understood the next big game and that's why they have started offering investments into bitcoin fund and other crypto related instruments. These banks have picked up the trend quite early and understood that if they don't change with time, they will become extinct. So it's their future survival strategy to stay at the top of the game. The banks and financial institutions who have not picked up on it, they will surely face extinction slowly but surely!

[DapanasFruit]

I am sure that maybe these people and their agencies are not making any money yet on Bitcoin and that is why they never have a stake in here so attacking it and putting non-sense scenarios into the future can easily be done. In fact, it is Bitcoin and cryptocurrency that can be saving the economy of the USA and not the other way around. The fiat money and the irresponsible Wall Street people were the ones who pushed the country to almost collapse back in 2008. Maybe they have forgotten that and remember that many of the failures and the problems back then are still with us today though in varying degrees. Now, wait till the government is getting a big chunk of revenues from the crypto industry by means of any form of taxation and am sure the tempo would be different.

[tbct_mt2]

Scare of Bitcoin or not, they will not be able to stop Bitcoin network and usages of Bitcoin. Bitcoin was created for people's freedom and after 13 years, it has achieved this mission. In coming years, it will become bigger and more accepted by people.

In addition, if governments can not stop Bitcoin now, they won't be able to do this next 10, 20 or 50 years. The bullish case for Bitcoin is a very comprehensive book to read.

[hugeblack]

The total money in the world is more than 100 trillion, and the volatility of cryptocurrencies cannot lead to financial movements of about 1 trillion in the best case, and therefore its impact on the global economy will not lead to a financial disaster.

It is different with other activities such as the real estate market, which represents a huge proportion of the money.

So far, Bitcoin is being offered as a new investment option, but unfortunately it is not seen as a decentralized payment network, and therefore you will find that many are willing to buy Bitcoin and keep it in banks, which is the opposite of the idea in its essence.

[stompix]

The combined value of bitcoin around the world is around one trillion USD whereas the banking is $8.5+ trillion.

Where do you got that 8.5 trillion number?
Just deposits in commercial banks in the US are 17 trillion, and that is just the US.

It's a hilarious claim to be honest! Bitcoin has a market cap of 77 billion dollar and the total crypto market cap is standing at 1.86 Trillion at this moment. As per some reports, the global economy stands at roughly 100 trillion dollars. So I am not sure how can crypto market can fuel destabilization into global economy! This is definitely based on some personal prejudice and not on hard facts!

You missed a zero after those 77, at least I hope you did unless we're back to April 2020 levels, but with the rest, I agree.

The weird thing is that in this scenario some views collide, some poeple are laughing now saying that the banks are just spreading fud with his but at the same time they tell how bitcoin will change everything once and make the traditional fiat system collapse which, by all logic means clearly destabilization.
So, this is one of those headaches moments when things are both wrong and right at the same time.

Describing "World Government" you made me remember of One Piece, as it's the actual name of the government on that Anime/Manga series.

Off-topic but holly $%$%$ that thing is still not over?  

[asus09]

I believe you are talking about the USA government and the answer is yes the government is scared of seeing many people getting into bitcoin and cryptocurrencies and the reason is clear to me for any government that's so bad to see another currency is trying to be more powerful than their own currency so they would surely be scared of this, especially talking about the government like USA because they want their own fiat currency to be used not just by their own people but even by the people in all over the world.

It's true as you said the government is afraid of being rivaled, the government is afraid of their fiat money being rivaled by bitcoin, that's why the government always tries to drop bitcoin, and always posts negative things about bitcoin, the media also cooperates with the government to drop bitcoin, and scares beginners about the dangers and risks in investing bitcoin..

[Yaunfitda]

If this is not enough, then read this:

 Justice Department Announces First Director of National Cryptocurrency Enforcement Team.

The Justice Department today announced the selection and appointment of Eun Young Choi to serve as the first Director of the National Cryptocurrency Enforcement Team (NCET).

Ms. Choi is a seasoned prosecutor with nearly a decade of experience within the department, and most recently served as Senior Counsel to the Deputy Attorney General. She will assume her duties full-time effective today.

“With the rapid innovation of digital assets and distributed ledger technologies, we have seen a rise in their illicit use by criminals who exploit them to fuel cyberattacks and ransomware and extortion schemes; traffic in narcotics, hacking tools and illicit contraband online; commit thefts and scams; and launder the proceeds of their crimes,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The NCET will serve as the focal point for the department’s efforts to tackle the growth of crime involving these technologies. Eun Young is an accomplished leader on cyber and cryptocurrency issues, and I am pleased that she will continue her service as the NCET’s inaugural Director, spearheading the department’s efforts in this area.”

So every government agencies around the world might put up a similar task force to tackle crypto.

But I'm not surprised though, with the popularity of crypto is increasing day by day, this government will have to do something and step up to tackle the supposedly the growth of crypto.