Why are some government scared of Bitcoin?

[indah rezqi]

And what bitcoin does when it comes to their power? It reduces it, bitcoin takes away part of their economic power and gives it back to people, programmable money could even replace some parts of the government and the legal system, bitcoin can also make way more easy to hide your wealth which reduces the taxes they can get and the money they can confiscate out of you, all in all while bitcoin does not threaten them directly it has the potential to reduce their power in a significant way and they hate this.

The fact is that bitcoin was not created for anything that is anti-government regulation, but you as a user can have the option of minimizing the centralization of your finances compared to the fiat system you have been using. My first thought about bitcoin was that it is a currency that is useful as an alternative payment option, but probably won't replace centralized fiat.

I don't hate fiat for helping us financially and facilitating transaction before everyone had bitcoin, but here bitcoin has a better solution as a payment system with increased innovation that fiat could not have before. Bitcoin doesn't exist to replace the previous financial system, but it offers a better solution.

[Ayers]

And what bitcoin does when it comes to their power? It reduces it, bitcoin takes away part of their economic power and gives it back to people, programmable money could even replace some parts of the government and the legal system, bitcoin can also make way more easy to hide your wealth which reduces the taxes they can get and the money they can confiscate out of you, all in all while bitcoin does not threaten them directly it has the potential to reduce their power in a significant way and they hate this.

The fact is that bitcoin was not created for anything that is anti-government regulation, but you as a user can have the option of minimizing the centralization of your finances compared to the fiat system you have been using. My first thought about bitcoin was that it is a currency that is useful as an alternative payment option, but probably won't replace centralized fiat.

I don't hate fiat for helping us financially and facilitating transaction before everyone had bitcoin, but here bitcoin has a better solution as a payment system with increased innovation that fiat could not have before. Bitcoin doesn't exist to replace the previous financial system, but it offers a better solution.

I also don't think Satoshi created bitcoin against fiat or government, it is suitable as an alternative beside fiat. But because it's decentralized and people start using it and they propagate that bitcoin will replace fiat, they already have bitcoin then they don't need the government, the government won't be able to do anything to them...it was these things that inadvertently made the government take a hostile view of bitcoin and caused the ban it is today.

Bitcoin brings us many solutions and benefits, but that doesn't mean we forget what fiat gives us, fiat is actually still useful to this day. It's funny how many people who have used fiat for decades are mocking fiat. I fear that one day there will be a better currency or asset than bitcoin that they will turn to smear bitcoin the way they are doing with fiat.

[BlackHatCoiner]

Lack of censorship susceptibility, control over monetary policy, and easiness on traceability (chain analysis companies already trace the majority of bitcoin owners, I presume, even though there are private techniques to avoid them).

I also don't think Satoshi created bitcoin against fiat or government

I, on the other hand, do think the opposite:

Escape the arbitrary inflation risk of centrally managed currencies!

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

Governments are good at cutting off the heads of a centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own.

[kryptqnick]

I don't think there's a major risk of adopting Bitcoin as a legal tender due to volatility specifically. If a country's own fiat currency is strong and stable, people will continue using fiat and appreciate its stability even more, looking at Bitcoin. If a currency is in a very bad situation already, Bitcoin can become a viable alternative, but since fiat is rarely more volatile than Bitcoin,  man might prefer their imperfect fiat. Letting people legally use Bitcoin doesn't mean that they'll do it. And risks for the state and businesses can be mediated by instantly or very regularly exchanging all BTC payments for fiat, which might actually strengthen the fiat currency as well.

[davis196]

Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.

Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?

Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.

1. No government in the world is "scared" by Bitcoin/crypto. Can you provide any sort of evidence that a government of some country(any country) is scared by crypto?

2.Most of the cryptocurrencies aren't "untraceable". There are privacy coins like Monero and use could use Bitcoin mixers, but those are exceptions, rather than the norm in the cryptocurrency industry.

3.El Salvador and CAR had accepted BTC as legal tender, because they have presidents, who are very pro-Bitcoin, not because there's a major benefit of adopting BTC as a legal tender.

[Taskford]

Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.

Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?

Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.

They are not scared its just some of the politician doesn't understand how to adopt new tech and they look at this for now as maybe an investment that's why they choose to release a fair warning about high risk investment towards bitcoin.

But if someone on their cabinet or shall say their economic team knows about how useful the bitcoin and blockchain for sure they are the one who will come into it then adopt bitcoin as new form of currency in their country.

[Tazzy4050]

Bitcoin is a very volatile cryptocurrency that has only been available for over a decade. However, fiat currency has been around for longer, and its value is stable. Most of the le do not trust the concept of Bitcoin due to the unstable value of this virtual currency. As a result, some governments we still fear this digital currency because they think it could technically be breakable. 

[MoonOfLife]

The government is not afraid of bitcoin but just doesn't like bitcoin because it's decentralized, which the government hates the most right now. Everything that the government has created and is creating is centralized, the purpose is to easily control us. But if they accept bitcoin it's like they broke their own power so they will do anything to stop it.

[Ojima-ojo]

We should project Bitcoin adoption in such a way that, Bitcoin will not be seen as an attack on the central currency or a replacement but Bitcoin should be adopted as an alternative.

If you really want to know why there has been limited Bitcoin adoption, is because of the fear that Bitcoin is out of their control and the government will not want what there can't control.

[Bobrox]

Government controlling by several politician and I think about Bitcoin scared become legal currency transaction depend with them how interested for legalizing with Bitcoin as payment currency or not, but I think have intervention from another countries actually with United State when try legalizing Bitcoin as payment way. We know about USDT as common fiat currency adopted by all countries when making business import or export and give benefit for United State if consistency adopted or used USDT as payment currency,

actually when using Bitcoin as payment currency have benefit for many countries when sending transaction more faster than USDT, another side fees payment lower when using Bitcoin than USDT. I think this common reason when many countries still scared for adapting Bitcoin as legal payment currency.

[qwertyup23]

Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.

Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?

Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.

It is not about that the government is scared of bitcoin, it is more of that it is something that they have no control over it. Satoshi envisioned a place where people would experience financial freedom- where every transaction is made public and unalterable. That is the reason on why the blockchain technology exist for this purpose.

Now that cryptocurrencies is one of the ways in achieving financial freedom, the government somehow wants to control the transactions under its wing. They see it more of a threat than an actual danger in any case since cryptocurrencies had been used for illegal purposes in the future.

[Freeveto]

Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.
Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?
Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.

The the decentralized system of Bitcoin is opposed to the centralized government system of operation, which is central control of money, basically the supply and demand side. Government cannot adopt what they can't control, hence they will find it difficult to immediately adopt Bitcoin until they have find a way of playing part in order to control the system, which the decentralized nature of BTC has made it difficult for the government control.

[NicNacCoin]

Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.

Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?

Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.

El Salvador has legalized Bitcoin through legal tender in its country. He did a great job. Now more or less every country is using Bitcoin but the government is not getting any revenue from it.If Bitcoin is valid and legal tender in every country, the profits from this will accrue to the government revenue and the government funds will be much higher.The system that happened in El Salvador. If Bitcoin is valid, the number of unemployment in that country will also decrease.

[jokers10]

El Salvador has legalized Bitcoin through legal tender in its country. He did a great job. Now more or less every country is using Bitcoin but the government is not getting any revenue from it.If Bitcoin is valid and legal tender in every country, the profits from this will accrue to the government revenue and the government funds will be much higher.The system that happened in El Salvador. If Bitcoin is valid, the number of unemployment in that country will also decrease.

Bitcoin has a different philosophy than based on inflation economy of our days. So some of benefits of its implementation are not instant, and some old financial structures are not so happy with a competing financial system making them working better not to lose clients. So old systems lobby will keep fighting with Bitcoin as it is about the measure of their income, they prefer more and more.

[Rana590]

Government wants power to control the economic condition of a country but Bitcoin is a decentralized crypto. Government isn't able to control and track the transactions. There is a big possibility of money laundering. Besides, banking system will fall down which is big loss in this sector. But proper steps can help to adopt Bitcoin as legally.

[virasog]

Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.

Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?

Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.

Not some governments but all governments are afraid to make bitcoin legal tender. Some governments follow the policies of the United States and the western world, even if they want to make bitcoin legal tender, they will hesitate until they get a green signal from these western countries.
Those countries that adopt bitcoin are usually those that have bad financial conditions and are near defaulters. They adopt bitcoin as legal tender to re-grow their economy.

[Zanab247]

The government is not afraid of bitcoin but just doesn't like bitcoin because it's decentralized, which the government hates the most right now. Everything that the government has created and is creating is centralized, the purpose is to easily control us. But if they accept bitcoin it's like they broke their own power so they will do anything to stop it.

I agree with you, that is the reason some government are afraid of bitcoin because is not control by the government like the way they control other businesses in the country. Since other countries that adopted bitcoin are doing well in development, I guess very soon many governments will kill that fear to make their citizens to have access to bitcoin in the country. Many governments need to learn from El Salvador government that adopted bitcoin some years ago and their economy is improving every day for other to know how good digital currency is to a nation.

[serjent05]

Government wants power to control the economic condition of a country but Bitcoin is a decentralized crypto. Government isn't able to control and track the transactions. There is a big possibility of money laundering. Besides, banking system will fall down which is big loss in this sector. But proper steps can help to adopt Bitcoin as legally.

I agree that the government wanted to take control of everything. The government believes that anything that is out of their hand is taboo so they do everything it can to manipulate, regulate or intimidate anything that they can't control.  Although the Bitcoin network can't be controlled by the government, I don't agree that the government can't trace the transaction of Bitcoin.  We all know that Bitcoin blockchain is transparent and viewable in public so it is quite not true when we say that Bitcoin transaction is untraceable.


The government isn't scared of Bitcoin because they can completely shut off Bitcoin in their financial system, I believe the government is worried about the implications of the unknown if they just let Bitcoin roam freely in their financial space so they try to regulate it and limits its influence.

[rendravolt]

Government wants power to control the economic condition of a country but Bitcoin is a decentralized crypto. Government isn't able to control and track the transactions. There is a big possibility of money laundering. Besides, banking system will fall down which is big loss in this sector. But proper steps can help to adopt Bitcoin as legally.

With the adoption of bitcoin, what the government is afraid of is that money laundering and the collapse of the banking system are true, but from another perspective they can still get taxes from trading crypto, be it monthly reports or certain transactions on exchanges, in this case there are several countries who have implemented it. So the government shouldn't need to be afraid of that, it's better to start legalizing bitcoin for a better purpose and being able to make fair policies that help the economy for every country through bitcoin.

[CryptoPanda]

I do not think that the government is scared of Bitcoin, Bitcoin isn't a threat to any sovereign besides if we look at it,

I disagree, if we do look at the origin of bitcoin we would see clearly Satoshi Nakamoto’s goal for creating bitcoin. Satoshi made reference of a newspaper highlighting the great crisis in 2008 which affected both the elites and the average Joe. Bitcoin is a revolutionary statement against the traditional financial systems which failed to secure the interests of the people.