Why Governments Ban Cryptocurrency {Bitcoin}

[Ayers]

I don't think that's their reason and they know what the real reason is, so even when crypto experts explain, they ignore it. If you are them, try to think: did crime come first or did bitcoin come first? And before bitcoin was born, what did criminals use for their crimes?
I don't think governments are stupid enough to not know those basics.

You won't be able to convince them with this kind of explanation. Bangladeshi ministers use these things as an excuse. No matter what, what was born first. They think criminal activity will increase if they legalize Bitcoin here. Yes, they are stupid enough to give these excuses. They think Bitcoiners are criminals and only use Bitcoin to pay for their crimes.

I'm not saying we need to convince them. Why do we try to persuade or argue with someone who knows everything but they deliberately ignore everything? I mean, the government knows all about bitcoin but because of its characteristics against them, the government cannot accept it. If they accept and allow people to use it widely, they are stupid because then they will lose power, control, and large tax sources...The government needs to put its own interests first before thinking about the people.

Another reason is that the government always wants to control your money. They want tax from your every transaction. If they legalize Bitcoin and you start paying using Bitcoin, they won't know these things. They won't be able to control you.

As I said before, this is exactly why governments don't want to accept bitcoin so they won't be stupid enough to accept bitcoin and accept losing control.

[Blitzboy]

Government ban cryptocurrency in our country beacose they know what happened in inside our country. The main reason or ban crypto money laundering. I belong from Bangladesh and you all know what is the financial issue of Bangladesh and what happening in this country. If cryptocurrency legal in Bangladesh then the money launderar will use the source for laundering. That's the main reason of ban cryptocurrency ban in our country...


There are many countries in the world where crypto is not legalized at all.  This is a stupid act. Our country is no different.  In our country too ,if caught by the administration regarding illegal crypto transactions, it is charged as a heinous crime like money laundering.  Those who are associated with the crypto market are basically acting like thieves because there is no sympathy for our country's legitimacy.  Because they know that they can be punished if they are caught by the administration.  For this reason, those who know from the family what kind of punishment can be if they are caught from being connected with the crypto market.  Because of this, they get away from work causing many family problems.  But who will convince them that crypto can bring a bright future.  There are many countries in the world that have complete legitimacy on crypto and there are many from those countries who are successfully making a living from crypto.  Our country's crypto legalization is a dream of lakhs of money.

Bangladesh's government's hasty actions in areas they dont understand are painfully obvious. Crypto, which is decentralized, terrifies these authorities because it may escape financial rules. Money laundering worries are real, but why not tighten laws instead of banning it? Through stringent regulations and oversight, several nations regulate cryptocurrency for financial security and prosperity.

Bangladesh is suppressing financial innovation and driving its citizens into perilous seas by banning crypto. With a restriction, people become more clandestine, resulting to the unlawful transactions the government fears. Sinister cycle. Instead of embracing cryptocurrency's potential and educating its citizens, the government is stifling innovation. Unfortunately, fear and ignorance cause family and social divisions and economic disadvantages.

[bettercrypto]

If there are countries that hate Bitcoin, it's because they see that they can't get any benefit from it. And if they say that bitcoin is not real, that is their assumption. Those people are considered to be highly educated, but they do not understand the deep concept of Bitcoin.

It's good that only the simple ones studied; they understood the simple context or concept of Bitcoin. For me, it is true that bitcoin is not a physical currency, but whale investors have given it a value in which it is not real money but can be exchanged for real money. It's just common sense; if it's really fake, I hope it's not included in the stock market or forex trading because it's all fiat currencies. Think about that: is it right or not?

[Sanitough]

Governments ban Bitcoin due to concerns about its impact on the financial system, potential for illegal activities, loss of tax revenue, and volatility. However, enforcing such bans is often difficult and can have unintended consequences. As Bitcoin continues to gain popularity and support from individuals and businesses, it remains to be seen how governments will navigate the challenges and opportunities presented by this emerging digital currency.

This topic might be redundant but reasons may vary depending on countries implementing strict regulations to cryptocurrency specifically Bitcoin. We all know that there will always be pro's and con's regarding this issue but it is still up to us on how we are going to deal with cryptocurrencies even though things go against the tides.

Every government has probably their own reason why they ban bitcoin, but one thing is certain is that they can’t totally control bitcoin and all its transactions, due to its highly decentralized nature. The reason why some countries chose to regulate it instead of banning hoping that it could be centralized in the future.

However, the good thing about bitcoin is that no matter how the government dislike its existence, or even if they decide to ban it for good, people will still be able to continue operating bitcoin and continue its accumulation. The fact that it remains decentralized up to this moment, then people can still enjoy the freedom that they want to obtain out from a very controlling government. Financial freedom will always be possible as long as bitcoin stay out of the shades of the government.

[Japinat]

The government can do whatever they want to do, especially with businesses, whether they approve it or not, as long as they benefit from it. Of course, they will prioritize their personal interests over the benefit of the government.

And any government will not really agree if they have no benefit to gain from it. Especially since they own it. But this kind of behavior by the government is normal, so many countries have banned Bitcoin, and eventually they also revoked it because they realized that it has benefits for their country.

The very main reason why I believe some countries have negative approach towards bitcoin is that this market is decentralized.
So the government has no hold or no control on this currency and that they don't want to deal with such uncertain market.
Also, the point that most of these officials up until now are not really educated to this market, hence, their hesitation to include this in their financial plans.
So I guess, learning this market will give them more insights and be more open mind as this market will continue whether they will participate or not.

Well, as long as bitcoin is decentralized, they can never manipulate or take full control on its market. That is the main reason I believe that they don't develop or encourage themselves to understand bitcoin well. They assume that bitcoin is a tool for criminals and something like bitcoin has no place in the government or in the lives of the people.

 But in reality, the opposite actually happens. Even if they continuously put restrictions on using bitcoin or some countries have banned it, it seems bitcoin is not even triggered but has even flourished and becomes the choice of the people more than fiat currency. And if promotion will continue to spread worldwide, I guess by that time the government will definitely lose its hope to navigate or manipulate bitcoin based on its own personal interest.

[lionheart78]

If there are countries that hate Bitcoin, it's because they see that they can't get any benefit from it. And if they say that bitcoin is not real, that is their assumption. Those people are considered to be highly educated, but they do not understand the deep concept of Bitcoin.

It is not that they don't understand Bitcoin and its technology, it is that Bitcoin is not aligned to the government's vision of having authoritative control over everything.  Since the government cannot control the Bitcoin network, they try to restrict or regulate it according to what is written on the law.

It's good that only the simple ones studied; they understood the simple context or concept of Bitcoin. For me, it is true that bitcoin is not a physical currency, but whale investors have given it a value in which it is not real money but can be exchanged for real money. It's just common sense; if it's really fake, I hope it's not included in the stock market or forex trading because it's all fiat currencies. Think about that: is it right or not?

Bitcoin is included on the exchanges because there is a demand and some governments agree and or tolerate it to be included on these exchanges.  About Bitcoin being money, it has been long debated but there is no doubt, after all these years, Bitcoin has established that it has real value.

[taufik123]

-snip-
Bitcoin is included on the exchanges because there is a demand and some governments agree and or tolerate it to be included on these exchanges.  About Bitcoin being money, it has been long debated but there is no doubt, after all these years, Bitcoin has established that it has real value.

If you are talking about local exchanges, including Bitcoin in local exchanges is at the discretion of the exchange owner, the government only provides regulations on how it is used and the government applies taxes on trades that occur.

and Bitcoin as a currency maybe some people have different opinions.
If it is said to be a currency it will be used as a legal transaction tool, but some government regulations such as the government in my country do not allow Bitcoin to be used as a payment currency, only as a commodity or for trading.

Bitcoin does have real value, providing benefits from trading activities carried out.
But to become a currency, a means of payment is still quite difficult because it is hindered by regulations that are not in line.

[adultcrypto]

Just as you have mentioned or said rather, the countries that banned bitcoin did so for several reasons, but for me, what I have always believed is that, the government will always hate what they cant conquer, and try to destroy that which they do not understand that seem like a threat to them and their centralized financial system.

What makes the government powerful is the control they have over the citizens and the country; the most visible one being economic power. Whenever that control is threatened, the government always try to resist.  Bitcoin is known to limit this controls by eliminating several means through which the government exerts this control forces such as the banks and other third parties. We should not expect the government not to react because they will.

One thing that is certain is that you cannot ban what you cannot control,  there will always be a way people trade in Bitcoin. Ban will only slow the spread but cannot stop people from trading in Bitcoin.

[Traderbtcc]

For obvious reason, cryptocurrency is the opposite of how government wants to fiat, it's a matter of how they can control it which is they can't over crypto. For those countries who accepts bitcoin (crypto-friendly) are those government who understand y really well and used it for their advantage.

You're absolutely right! Governments often oppose things that don't align with their interests. Bitcoin challenges the traditional banking system, which can be seen as a threat. Instead of embracing its potential benefits, some governments choose to ban it. However, Bitcoin has the potential to positively impact economies. For instance, it can create opportunities for self-employment, reducing unemployment rates and boosting a country's economy. It's a shame that greed and ignorance sometimes cloud the judgment of governments.

[shepherd_gee]

[/quote]

• they see bitcoin and other cryptocurrency as not trustworthy, as the value changes.

The truth is that cryptocurrencies are still in their infancy and its impossible to predict how they will evolve overtime. The greater the dominance of Bitcoin, the more fearful the market is and the lesser the Bitcoin dominance, the greater the crypto market becomes. It cannot be regulated, it is used by criminal, and it can help citizens circumvent capital controls; is amongst the greatest challenges facing government about Bitcoin. Twelve years ago after its inception, the world is still deciding what Bitcoin does as well as how it should be classified cos there have been lots of complications.
    

[Learn Bitcoin]

I'm not saying we need to convince them. Why do we try to persuade or argue with someone who knows everything but they deliberately ignore everything? I mean, the government knows all about bitcoin but because of its characteristics against them, the government cannot accept it. If they accept and allow people to use it widely, they are stupid because then they will lose power, control, and large tax sources...The government needs to put its own interests first before thinking about the people.

If it's only because they will lose financial gains if they approve Bitcoin, then there are ways to make money even with legalizing Bitcoin. Indian Government approved Bitcoin transactions as a legal and implemented tax on their financial gains. Many governments can also do this if they want to make money from Bitcoiner's profit. The Romanian government approved Bitcoin transactions as legal as well, and they also implied tax on financial gains. But when controlling your money, there is no point in supporting Bitcoin or any other crypto.

As I said before, this is exactly why governments don't want to accept bitcoin so they won't be stupid enough to accept bitcoin and accept losing control.

We both agree here.

[Ale88]

Former European central bank President once said bitcoin is not real, he also said he is against bitcoin, so many people saying there own opinion towards bitcoin. But have you ever thought why?, from my own point of view

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin
• knowing that bitcoin is a decentralize currency, the government cannot control and monitor your funds.
• As bitcoin continues to grow most people continue to adopt bitcoin as there currency, the increase population of bitcoin has become global, business owners, traders, now use bitcoin so the government is scared of loosing there value of money. The more people use bitcoin in saving there money the more the government loose control of there currency.
• they see bitcoin and other cryptocurrency as not trustworthy, as the value changes.

   

Conclusion:

Countries ban bitcoin for different reasons, some, the government (president) didn't even know anything about crypto but the financial advisers gave the wrong information or they advise the government wrongly on cryptocurrency.
If the financial advisers gave the right information on cryptocurrency many countries would have adopted bitcoin in their countries. Some of them were trying to prevent their citizens from internet fraudstars and scammers probably because of the previous experienced in the country.

I really struggle to see how the declaration from the former European central bank president can be taken seriously since there is a clear conflict of interests in this case, it's like asking someone who sells petrol or coal what the thinks about electrical car, and of course it works also the other way around. Fiat money is a joke, they can just print as much as they want and they have total control over it, with bitcoin they can't do that, so of course many bankers/institutions are against it, but they're too late now.