Why do Government Need Bitcoin?

[Ambatman]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

[Mia Chloe]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

It's mostly based off profit incentives. It's gonna save the country a bigger amount of stress if they have an asset they are sure to a decent extent is going to continue to appreciate overtime. Basically every country wants to be at the top of the chain when it comes to economic stability and volumes.

Aside from that most coins the government claim to hold are seized assets and sometimes they do it to partially prove adoption if the country accepts bitcoin.

[BIT-BENDER]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

The French government holds gold and they hold it in large quantities. Some nations hold nuclear weapons and some don't want others holding, the British government holds artifacts and natural resources they got from countries they colonized.

This are few examples that many governments don't want to be left out, some government holds Bitcoin to make profit from it like @Miachloe rightfully said but some government it is more than just profit it is about not missing out on the future Bitcoin will create. Every country what's to be ahead and they aren't denying the possibilities of Bitcoin so the best thing they can do is hold.

[Die_empty]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

Donald Trump or other presidents, Central Bank heads or ministers of finance would have given the exact answers why they want Bitcoin.  Let me drop my views
1. Profit-making in the case of El Salvador and Bhutan
2. Reserve diversification because they see Bitcoin as a good asset
3. Become major players in the Bitcoin space.  Donald Trump wants the US to have more influence in the Bitcoin market than China. He has repeatedly said that if the US don't act fast China will take over the lead.
4. Hidden agenda, like the quest to manipulate the market if they could control a large amount of Bitcoin.

[Boiboi20]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

Honestly government don’t need bitcoin in the sense of running it or controlling it but there are reason they might still want it reason they can’t get from any other asset.
Bitcoin is the only global money that nobody can block freeze or take away from them.
That alone make it useful for government especially the one dealing with sanction or pressure from bigger countries a few examples
1 they can move money without asking permission from the U. S the IMF or any bank
2 it can protect them from their own currency problem if inflation gets out of hand
3 it’s liquid and fast so they can shift funds around in minutes if things go bad
4 honestly it give them leverage in a word where everyone depend on someone else financial system

[Alvin_talk]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

I think if we flip the question the other way round to Why don’t governments need Bitcoin? we would be able to arrive at a reasonable answer to this question and the answer is pretty simple, because it will expose most of their corrupt practices, it will also weaken their control and manipulation over our finance.

In a short summary, governments don't need bitcoin because they prioritise unchecked power and it  becomes an issue to them since bitcoin is a decentralised currency. So bitcoin would have been a great need for the government from the points raised by some valuable users above but it is obvious our leaders are so blinded by greed and corruption that they see bitcoin as a treat instead truly considering the purpose it was created for.

[Mrbluntzy]

I don't know, do they even need Bitcoin? No! They don't, they hate decentralized system, they want something they can control, they have gold, silver, diamond, oil, and fiat money. in the olden days, that was just all it requires for the government to make the country a better place back then, even then, the inflation was not bad like now, the cost of living was not as bad as now, the government still have all the resources they used in making their country better in the past, so what is their agenda for Bitcoin? that question brings me to having the thought that there's a hidden agenda and it could be to have a large amount of Bitcoin and control the market or control holders.

[Findingnemo]

IMO, they don't need bitcoin but if other countries adopted bitcoin as part of their payments, then others don't want to be left out. For example, China doesn't encourage a decentralized monetary system at all among its citizens but they are accumulating bitcoins to keep it with them just incase if they need it in the future.

So I guess it's more of a political reason, nothing else matters to them.

[nakamura12]

I don't think they need Bitcoin but if they can make a profit from it then they will surely use it but don't need it. In short, it's mainly for earning profit that's why that person said something that also made you curious. I also agree that it could also be for political reasons to gain more favors from the people like what happened not too long ago. I think the question should be why government don't want decentralized system like Bitcoin?.

[macson]

Actually they don't really need that, but they only see the profit potential if they invest in it or legalize bitcoin trading in their country. So for reasons they neglect the fact that bitcoin is decentralized and an alternative to banking, because the profit from bitcoin is more attractive.

Moreover, they can issue regulations that limit the use of Bitcoin to investment and trading purposes, while still encouraging the use of fiat currency for daily transactions. This way, they can still get taxes and returns from bitcoin invesment, but without losing control of the financial system as more people use bitcoin in their daily transactions.

[IjawMan]

It's mostly based off profit incentives. It's gonna save the country a bigger amount of stress if they have an asset they are sure to a decent extent is going to continue to appreciate overtime. Basically every country wants to be at the top of the chain when it comes to economic stability and volumes.

The incentive and regulatory intent is the primary objective of government integration in cryptocurrency, for the high growth potential of bitcoin the government like the private individuals are in for the profit incentive the assets can offer.

And as mentioned, with the intent to control the cryptocurrency environment the government cravings for regulation motivate them to participate in other to know how to have a thorough monitoring.

[KingsDen]

Let me think outside the box and behave like a government ally

• Government do not actually need bitcoin, they are into it to protect their citizen so that they don't lose money - Nigerian Government
• Government doesn't need Bitcoin, they are into it to be able to apprehend those using it to commit crime - US under Biden
• Government doesn't need Bitcoin, they into it in order to tax her citizens using bitcoin.
• Government doesn't need Bitcoin because it uses all the energy that the country was supposed to use - China government.

[Outhue]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

That's the point that you don't get.

Coming from a centralised authority telling the world to trust a decentralised innovation, wouldn't that be interesting? Something that has never happened before, apart from the fact that the government are in for some gains for themselves too Bitcoin is something that serves not only the government, so if they talk about it and advise people to buy it this will be the first truth that comes from their mouth and for a very long time to come it will be the same.

Coming from the government or not, this is a win win situation for everybody, both the weak and the strong, or the poor and the rich, join the train and that's it, you will reap the reward, there is nothing ever like this before, the government consists of people too, and Bitcoin creator never said that anyone working under the giver can't invest in Bitcoin.

[criptoevangelista]

to try to gain some kind of control over the masses, meaning they could easily accumulate bitcoins to start manipulating the market up or down, creating another money-printing machine. After all, with large amounts of bitcoin and privileged information, it is possible to multiply dollars with just a few moves. And the more money they take from people during these moves, the more taxes they can collect, assuming people actually declare it.

[The Cryptovator]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

To get an honest answer, ask yourself, 'Why do you need Bitcoin?' Though the government is an autonomous entity, it's for the citizens. So as a citizen, when you ask yourself, 'Why do you need Bitcoin?' then you will get a perfect answer. For me, I have been accumulating Bitcoin to secure my funds and get profits on time. So I believe if my government decides to reserve Bitcoin, they will think similarly.

I don't know why you don't like generic answers, but they reserve Bitcoin to make a stronger economy. Since Bitcoin has done a revolution, the clever governments of developed countries don't want to be backdated. They are taking advantage of the Bitcoin technology. The government themselves really don't need Bitcoin; the funds from Bitcoin will be used for the country's development, definitely. So it's for you, you are also a stakeholder and other citizens as well just like you.

[Ambatman]

To get an honest answer, ask yourself, 'Why do you need Bitcoin?' Though the government is an autonomous entity, it's for the citizens. So as a citizen, when you ask yourself, 'Why do you need Bitcoin?' then you will get a perfect answer. For me, I have been accumulating Bitcoin to secure my funds and get profits on time. So I believe if my government decides to reserve Bitcoin, they will think similarly.

Well I'm not the government. Decentralization may Favour me as a citizen but not the government itself.
The underlying reason is decentralization and centralization.
There's a reason we get the narrative that Bitcoin is digital Gold and store of value
Than it been centralized.

So I believe if my government decides to reserve Bitcoin, they will think similarly.

I said need though
Not want.
Bitcoin is vital since it gives control. Government itself already have control.
If I'm going to pick I would say it gives them another industry to Tax on.

The government themselves really don't need Bitcoin;

This is similar to my question.
And I was speaking about Bitcoin usecase not price perse.


Maybe I should clarify more on the OP

[FirmWars]

They need it to also benefit from the profit that comes in when the price surge, if that's not the reason, do you think they need it just for decorations? If there's any reason why they are thinking of keeping a large number of Bitcoins as federal reserve, then it's because of the value appreciation which is expected in the future.

[Stablexcoin]

Someone said something on Altcointalk and it got me thinking why do government need Bitcoin?
Yes I'm genuinely curious. I'm not talking about generic answers like making a strategic reserve or the likes
Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

The government will never allow Bitcoin to overshadow local fiat, i don't think the government sees its monetary value, and just like what a few others have said, governments are interested in generating profits from holding reserves, that is the only goal when you see them take Bitcoin seriously.

I have never known any government that prefers to save in Bitcoin, they aim for investment, exactly what the majority of people holding Bitcoin are doing, they won't allow it to overgrow fiat, but they know the benefits of holding the asset over time.

[Stalker22]

to try to gain some kind of control over the masses, meaning they could easily accumulate bitcoins to start manipulating the market up or down, creating another money-printing machine. After all, with large amounts of bitcoin and privileged information, it is possible to multiply dollars with just a few moves. And the more money they take from people during these moves, the more taxes they can collect, assuming people actually declare it.

Governments dont need Bitcoin to control people; they already use the dollar (or their own money).

If a government actually gets involved with Bitcoin, its probably to keep some in strategic reserves, or more likely, to regulate it so it doesnt mess up their powerful financial monopoly.  They dont have to mess around with crypto market to control people - they already have a central bank that does the job just fine.

[PrivacyG]

Something that would make them neglect the fact that Bitcoin is decentralized and doesn't need a Central Authority.

I believe the answer is particularly this.  They can not ignore an Asset that grows this much.  In the same way they are trying to shut down any thing that grows in a Decentralized manner, they are going to rather join Bitcoin and drive it their way than ignore it and let it grow as wild as it did.

They also need Bitcoin because it does not have a Supply that is mainly found in a particular region of the World, it has real natural Scarcity, it does not require massive underground ways of storing it and its course can not be affected by other countries.  Moving oil and other resources from other countries to a particular country has many risks Bitcoin does not offer.

They probably adore Bitcoin.  But only for them selves.  For the rest of us, they hate that we can have it too.