Government vs Bitcoin

[Razmirraz]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

The presence of Bitcoin has never harmed any party including the government, Bitcoin can be used by all elements of society and the government can also use the facilities provided by Bitcoin. The government is afraid because they cannot control all transactions made using Bitcoin and this fear continues to the collapse of fiat because people prefer to use Bitcoin as a transaction tool rather than fiat.

The government restricted the use of Bitcoin in the country due to deep fears of fiat collapse due to massive Bitcoin adoption. To maintain the integrity of fiat which can bring profits to the country, they regulate Bitcoin regulations only as commodity assets.

[1714307860]

1714307860

[1714307860]

1714307860

[1714307860]

1714307860

[1714307860]

1714307860

[1714307860]

1714307860

[JunaidAzizi]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

Yes, I agree with you Bitcoin is not as determined as some people suggested, Instead, it has the potential to do good in the world. Bitcoin is a complex and new technology A few people understand it but the govt does not fully understand it and that's why they ban it. The Govt is afraid of the use of Bitcoin in illegal activities. China, Iran, and Pakistan banned Bitcoin in their countries due to the afraid of using Bitcoin in illegal activities such as terrorist financing, and money laundering. There is no such evidence that Bitcoin is likely to be used in illegal activities. According to the research of the University of Sydney, Bitcoin is actually less used in illegal activities than the traditional fiat currency

[348Judah]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

The presence of Bitcoin has never harmed any party including the government, Bitcoin can be used by all elements of society and the government can also use the facilities provided by Bitcoin. The government is afraid because they cannot control all transactions made using Bitcoin and this fear continues to the collapse of fiat because people prefer to use Bitcoin as a transaction tool rather than fiat.

The government restricted the use of Bitcoin in the country due to deep fears of fiat collapse due to massive Bitcoin adoption. To maintain the integrity of fiat which can bring profits to the country, they regulate Bitcoin regulations only as commodity assets.

And to wrap it up, they cannot do anything about bitcoin than to watch it happening and people living to make use of it while it continues to exist, there are some particular things the government should know about the reason why the people insisted on bitcoin adoption over fiat, there are beneficial features that bitcoin renders and the fiat currency can never give, all these contributed to the massive growth of bitcoin in the world and the people are glad embracing this rare financial opportunity for their desired change they want in the economy.

[Lorence.xD]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

If you understand Bitcoin for sure the people in the government would also have the knowledge on Bitcoin's potential and benefits to the people, but if you are in the institution and part of the government, as you see people are more relying on the crypto currency which is the Bitcoin than the fiat money like USD of course it would be a threat for the economy of a country. Especially now in our current statistics that the Bitcoin adoption are keep rising so lots of country are banning Bitcoin before it affects the country. Plus the fact that it is decentralized so it would be hard for them to control like having a tax fee for them to take advantage from it but there's none. Although Bitcoin has helped a lot of people that could contribute back to the economy.

[Patrol69]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

Yes, I agree with you Bitcoin is not as determined as some people suggested, Instead, it has the potential to do good in the world. Bitcoin is a complex and new technology A few people understand it but the govt does not fully understand it and that's why they ban it. The Govt is afraid of the use of Bitcoin in illegal activities. China, Iran, and Pakistan banned Bitcoin in their countries due to the afraid of using Bitcoin in illegal activities such as terrorist financing, and money laundering. There is no such evidence that Bitcoin is likely to be used in illegal activities. According to the research of the University of Sydney, Bitcoin is actually less used in illegal activities than the traditional fiat currency

Bitcoin is completely banned in the countries you mentioned including China Pakistan Nepal Bhutan and even though Bitcoin is completely banned in these countries people are using Bitcoin defying government restrictions and in some cases citizens of these countries are doing some bad things with Bitcoin. The ones that have come before the government are mainly because of some incidents, the governments of those countries have completely banned Bitcoin in their country and they think that only criminal activities are completed with Bitcoin. The economic system of all the countries you mentioned except China is not that developed and they believe that if Bitcoin is legalized in their country they will never be able to fix their economic situation mainly because of these reasons Bitcoin is now completely banned as a currency in these countries.

[Smartgoat]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

looking at the hull thing , I don't think that government want to ban Bitcoin. because when you look at the advance country BTC is  used as means of payment. but in my own country, the government don't even want to ban BTC.  but, want to have control over it. the dependency of Bitcoin alone is very worrisome to the government .

[skarais]

~~~

With a high probability I can say that you are from Russia, if you have such a state of affairs. That's not even the point.

You guessed wrong, I'm not from Russia.
But if you are curious where I am coming from then you can check my post history.

I am extremely annoyed by the fact that it is impossible to fully use crypto projects as an alternative payment system, but pay taxes if you have it on your wallets. And how to understand all this? Just give me the money and that's it.
Maybe give them the keys to the safe, where the money is? Well, why go around and around?

I have stated everything correctly, I mean crypto is not illegal in my country because the government allows it to be traded and it falls under the class of commodity assets. While the government through law prohibits its use as legal currency, I don't have a problem with that.

Despite this, the government manages to profit from the tax revenue of each trader who uses a licensed exchange. This has been implemented in my country, but not many people complain because the percentage withholding tax is still relevant.

[Gladitorcomeback]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

One of the main reasons of government to be against Bitcoin is it's decentralization. Govt want full fund information of the citizens he has hold and using for trading so that they collect taxes from them. In case of btc government couldn't get a fund record. Banks are also against the btc because If btc remain allow in any country then most of the citizens will not use bank to keep fund because btc is much better place of investment. Bank will be failed here and they will not be able to get high interest on their loan and they didn't want this.

If government and citizens both honest to each other than btc can play important roles. citizens should allow to completely free buy/sell/trade so that they get life standards and earn good income. at the same time citizens should have to pay proper taxes on the time and didn't use btc for illegal active.

[Mpamaegbu]

Please correct me if I am wrong.

Your observation is decently okay. Nonetheless, we should also factor in the reasonability that comes with government action on what goes on. I know it's difficult for Bitcoin fans to see any reason with that. The truth remains that people will always fight whatever they feel threatens them or their business. That's what government is doing by trying to strangulate Bitcoin. Government feels Bitcoin will go up against traditional banking institutions to eliminate them. Government's mistake in all this is that it's evaluating Bitcoin from a wrong lens. May be Satoshi saw well into the future what government interference would be and made himself anonymous. With all the chase to halt Bitcoin, I'm sure if Satoshi were known he would've been harassed to no end.

[BITCOIN4X]

Governments frequently misunderstand bitcoin innovation.

No, on the contrary they understand it correctly, but they are just doing what they have to do in an effort to keep centralization at the forefront. Governments don't approve of things they can't control like decentralized bitcoin, but you can't say all governments are the same. Currently there are several countries that have adopted bitcoin as a legal currency, while others disagree.

There is hope that adoption will improve in the future as time goes by, but it may not be easy. The government has its own way of advancing its own products where CBDC is the product they will introduce following the increasing need for digital finance. But bitcoin has its own way regardless of government regulations, even though it is subject to regulations in a country.

[mv1986]

Bitcoin hasn't harmed the government, but the innovation that is in bitcoin makes most governments afraid. Governments are afraid because they can't control bitcoin, of course that has made some of them ban it. But I am grateful that my country's government has not banned bitcoin completely, I mean bitcoin can be traded even though it is not allowed to use it as legal tender.

The policies taken by the government towards bitcoin are sometimes detrimental. Governments tend to say something negative about bitcoin, but they're basically just lying and pretending not to know. Bitcoin is just like any other currency, it can be misused for whatever reason. But that's not a good reason to ban a currency.

They can't ban Bitcoin and it doesn't matter whether they have good reasons or not.

I had a look at the etymology of the word and although it isn't surprising, the etymology states for to govern "late 13c., "to rule with authority," from Old French governer "steer, be at the helm of; govern, rule, command, direct" (11c., Modern French gouverner)..".

As far as I know there has never really been anything that the government could not control when they wanted to. They can slow down cryptocurrency expansion and adoption, but they can't ban it in its entirety. This has to do with both domestic policy and foreign policy consequences. Banning it in a home country could mean that a different country makes use of the opportunity and accepts it or even fosters the use of cryptocurrencies. Open and free countries have to carefully consider their decisions. China doesn't give a damn and has therefore announced every three months that Bitcoin is now finally banned, but the truth is:

China court declares virtual assets legal properties protected by law: Report

Despite a blanket ban on cryptocurrencies imposed by Beijing in 2021, many Chinese courts over the years have established that virtual asset holders have property rights.

Here you can see that Bitcoin has never disappeared in China because of a ban. Even better, I doubt that any court would rule against what the CCP really wants them to do. To me this seems more like a backdoor that the Chinese government can one day say that they except the independent judiciary system. The Chinese saw that instead of taking the lead with a ban, they are actually falling behind when many other countries choose to be more open-minded towards decentralized financial technologies.

[tread93]

It's only natural for the two to be at war. Neither can live while the other survives lol jk name that movie hah. Right now honestly it would work out in US favor if they just embraced it I think. Brics is a huge threat to the US government probably even more then bitcoin? But together they both pose a risk. Separate brics and usa could act as a catalyst for bitcoin longterm

[panganib999]

I don't think they "misunderstand" the power of bitcoin and the blockchain, it's just that when it comes to regulating these two things, it's going to be a massive ordeal for the government to deal with. So instead of dealing with the legal gymnastics and the problems that it would ensue, they just resort to banning cryptocurrencies or at least (as in the case with US) those they deem to be "unregulated securities" like altcoins and stuff. They know how powerful bitcoin is as a financial tool, it's plain to see after all when every bull run you see people pulling up in their lambos and whatnot, it's just that besides the fact that banks abhor cryptocurrencies, they also couldn't find a legal middle ground between regulation and decentralization.

[Smartvirus]

Lately, I’ve been trying to get some different insight to the government not having to back bitcoin. What would it mean to them and in the case of a flaw with developing technology, what becomes of the government and there stands in the event of a backing. To answer that;

Having to back bitcoin or cryptocurrency is the government giving assurances to its citizens that nothing could go wrong.
It’s a government’s responsibility for the safety of its citizens and a government that isn’t able to do that is a government that have failed in its purposes. Now, it’s hard having to do that on a currency that they can not control.

It’s the one reason why we appreciate the bitcoin idea, it’s decentralized and privacy nature which is, the only reason why government isn’t so bitcoin friendly. There are a lot other reasons but still, I don’t blame them for a gradual acceptance, it’s a process.

[Dr.Bitcoin_Strange]

In all the countries where Bitcoin, or generally, cryptocurrency, has been restricted or banned, the governments of those countries have their best reasons why they decided to ban cryptocurrency in those countries, but that doesn't mean that Bitcoin has been used to commit any crime that has not been committed in the past with other assets, and those crimes are still repetitive today and will continue to occur even if Bitcoin remains banned. Some people have given the reason that the reason for restricting Bitcoin in their country is because they are trying to keep investors safe from investing in volatile assets like Bitcoin and having to risk those funds to volatility. while some also said it's because of the decentralised nature of Bitcoin, and others said that Bitcoin is an easy means for money laundering without being caught.

So, all this and some other minor reasons are why some governments have decided not to legally allow the free adoption of Bitcoin in their country.

[aylabadia05]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.

The prohibitions and regulations they issue are clear. They are also not wrong in understanding Bitcoin innovation because one of the organizations that understands Bitcoin best is the government.
Bitcoin is not like an ecosystem that can destroy the environment.

Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

Prohibitions and rules made that have an unreasonable impression will not prevent users from using Bitcoin because Bitcon is a very unique electronic payment system. The process of using it is also very easy. They reject Bitcoin because it doesn't need a third party or anyone can control it like a bank system.

[Blitzboy]

In all the countries where Bitcoin, or generally, cryptocurrency, has been restricted or banned, the governments of those countries have their best reasons why they decided to ban cryptocurrency in those countries, but that doesn't mean that Bitcoin has been used to commit any crime that has not been committed in the past with other assets, and those crimes are still repetitive today and will continue to occur even if Bitcoin remains banned. Some people have given the reason that the reason for restricting Bitcoin in their country is because they are trying to keep investors safe from investing in volatile assets like Bitcoin and having to risk those funds to volatility. while some also said it's because of the decentralised nature of Bitcoin, and others said that Bitcoin is an easy means for money laundering without being caught.

So, all this and some other minor reasons are why some governments have decided not to legally allow the free adoption of Bitcoin in their country.

The reasons governments ban or restrict cryptocurrencies like Bitcoin are complex. As you noted, each government has a reason. However, lets analyze. Comparing Bitcoin crimes to crimes with other assets is like comparing digital and real footprints - the medium changes, but the intent doesnt.

Bitcoin's volatility is real, but so are traditional stock markets. Remember 2008? Banning a volatile asset is like blocking the sun with a sieve.

The decentralization of Bitcoin is game-changing. The central banks' inability to regulate it worries them. Yes, some criminals use Bitcoin, but to call the entire ecosystem "bad" because of a few bad apples? What a reach. If we dig deep, the main difficulties seem to be lack of comprehension and fear of losing financial control. Thus, bans.

[Nrcewker]

Government only hates Bitcoins because it cannot control it. Due to the decentralised nature of the coins, no organisation or governing body can control Bitcoins. Hence the things which government doesn’t have access, they declare it as illegal. There are still some countries where Bitcoins are legalised, but the rest nations are too much rude to accept it. Let’s continue like this only.

[tygeade]

The government is the head of a country, they are the ones who have controlled us for thousands of years, so it would be naive to assume they have bitcoin ignorance. The government is smart and they are doing what is in their best interest and banning bitcoin is in their interest too.

Regarding the acceptance of bitcoin, I believe that all governments will soon accept it because they gradually realize the benefit of accepting it, which is being able to collect huge taxes from us. And of course, we will be able to use bitcoin but there will be limitations, we will never be free to use bitcoin as we want, we need to comply with the law. That is why many governments have accepted bitcoin as an asset, not a currency.

I agree that if government wants to prevent something they will prevent it, anything illegal you see that is not prevented, is not prevented because government doesn't want to prevent it. Anyone who thinks that governments couldn't stop someone, must be not aware of the fact that these are the governments that literally end up with changing nations heads, USA literally change the presidents of other nations, we are talking about that big governments.

So in the end, we see that they are letting it be and they are fine with it and we should be happy about that as well. I get that sometimes it is not that easy but it should be easy in the end, time to time there could be some question marks but that is not going to change anything.

[Rabata]

Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.

Governments of many countries are talking about Bitcoin, but many of them do not know what the purpose of Bitcoin is? Some governments are only bringing up its negative aspects but they do not reveal the positive aspects that they have. The fact is that they cannot control it, so it is better to keep the public as far away from it as possible with various restrictions.

People are not indifferent in this age anymore. They know that even if the government bans it,  the high-ranking officials of the government understand its benefits, they will not want to stay away from it. Bitcoin is a means of transaction and should not be considered only as a tool for money laundering. We urge the government to adopt appropriate policies to embrace Bitcoin on its merits rather than as a competitor.