Why do Government Need Bitcoin?

[Luzin]

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.

Logically, no, the government does not need Bitcoin. The decentralized Bitcoin system is very much at odds with the financial system used by the government. So the current phenomenon is that Bitcoin grows naturally through public trust. As of now, the government has not really taken notice, so it is still a minority. But since 2021, when big industries started to get involved, many countries began thinking about creating regulations. The reason is user security. In fact, one definite goal is to gain profit from the circulation of the financial industry. They regulate, collect taxes, but the government does not actually need it at this time.

[Z-tight]

Most of the BTC governments around the world own is through confiscation. They seized these coins from people involved in illicit activities and they auction or sell it for profit. For the few that buy or mine BTC, or are nursing the idea of converting their confiscated BTC to strategic reserves, then they need it for the same reason they need strategic reserves, i.e. Gold.

Holding BTC would generate returns for them in the long run. They also need BTC to stay ahead of other countries, especially the major powers. They wouldn't want to be behind other countries of similar strength in crypto adoption.

[Ucy]

The legal reasons are Store of Value and Medium of exchange (especially for governments/countries that have difficulty exchanging with the dollar)

Other possible reasons, which are basically from intelligence communities and underground groups, is to do with Bitcoin what they do with VPN (will pause it here for now... It's a deep info that those who deserve to know may eventually know and be prepared)

However, the main purpose of Bitcoin is have an alternate system and currency that survive and thrive when the centralized one and fiats are collapsing and failing. It will also serve as an alternative system to the system that will impose a tyrannical financial order that certain people call "mark of the beast". People who refuse to be part of the order won't be allowed to buy or sell, but they can freely use Bitcoin.
These are the sort of thing Bitcoin is well designed to handle, more than what certain governments and people would want it to be

[HelliumZ]

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 don't think the government needs Bitcoin, but still some governments have given importance to Bitcoin, notably El Salvador, the United Arab Emirates, Kazakhstan, and Bhutan. However, the government may hold Bitcoin for strategic reserves of Bitcoin, but this is a purely optional matter for the government. However, governments can only hold Bitcoin as an asset. If Bitcoin were essential to the government, governments of various countries would be deeply focused on holding Bitcoin.

[JaredIbrahim]

Govs need Bitcoin for three hard truths:

FOMO on the next monetary system.

To track citizens' wallets on the public ledger.

As a geopolitical chess move against the dollar.

It’s not love; it’s strategy and damage control.

[terrific]

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.

Unless it's them that has made Bitcoin. There's the conspiracy theory that it is the government that has made bitcoin.
Even with decentralization that it has on its system, the government can do things against them and later on take them as if it's theirs.
Anyway, aside from the strategic reserve, we cannot ignore the fact that if there is a gold reserve, there's the hurry on how many each country can own it. Because it shows how wealthy they are, they're on a competition now to take as many bitcoin's as they can because of it having a limited supply.

[GigaBit]

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.

Unless it's them that has made Bitcoin. There's the conspiracy theory that it is the government that has made bitcoin.
Even with decentralization that it has on its system, the government can do things against them and later on take them as if it's theirs.
Anyway, aside from the strategic reserve, we cannot ignore the fact that if there is a gold reserve, there's the hurry on how many each country can own it. Because it shows how wealthy they are, they're on a competition now to take as many bitcoin's as they can because of it having a limited supply.

Prudent governments can predict the potential of Bitcoin, they will definitely try to collect Bitcoin. Because a country cannot increase its reserves by relying only one asset. Governments must take good steps so that they can strengthen their economy in a short time. Some governments have already realized this and are increasing their Bitcoin holdings. If the government wants to do something in the near future Bitcoin would be the best option.

[internetional]

In recent years, the vast majority of national currencies have suffered from severe inflation. And it seems that every government needs an asset that doesn’t lose value together with those currencies. After all, a state must preserve its ability to service external obligations and purchase goods from abroad. When its own currency weakens, that ability declines. When foreign currencies depreciate as well, they stop making sense as a store of value. So where should a government turn? Out of sheer necessity, it has to explore every possible option - and Bitcoin is no exception.

[katebrownell86]

I think it’s really valuable to have thoughtful conversations about these topics here on BitcoinTalk, given how long this community has been a core part of the crypto ecosystem.

From my perspective, it’s important that we base arguments on clear facts and share knowledge respectfully so everyone can benefit. Governments may need Bitcoin because it provides a neutral, non-controlled global asset that can strengthen financial resilience and reduce dependence on other nations’ currencies. It also enables faster, cheaper international transactions and can act as a hedge against inflation or geopolitical risk. As Bitcoin adoption grows worldwide, holding or using it can become a strategic advantage.

[Antotena]

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.

Government doesn't like Bitcoin if we want to be honest with each other. This guy that is now the president of United state never for once like Bitcoin, his tweets are there and not deleted about the things he said about Bitcoin. He left the white house with that hatred, there was enough time for him to know the benefits of Bitcoin but he never did, it was later after he left the office he now see the benefits of Bitcoin, do you see how manipulative these people can be to Bitcoin.

One thing about any government, if it's not benefiting them they will not put support. The previous government never loved Bitcoin till they left the office. I don't pray bad things happen but you see what is happening now if another government comes to power after Donald Trump, he will not give much attention to what's happening to Bitcoin especially if he didn't come to the Whitehouse with Bitcoin agenda on their campaign.

[terrific]

Unless it's them that has made Bitcoin. There's the conspiracy theory that it is the government that has made bitcoin.
Even with decentralization that it has on its system, the government can do things against them and later on take them as if it's theirs.
Anyway, aside from the strategic reserve, we cannot ignore the fact that if there is a gold reserve, there's the hurry on how many each country can own it. Because it shows how wealthy they are, they're on a competition now to take as many bitcoin's as they can because of it having a limited supply.

Prudent governments can predict the potential of Bitcoin, they will definitely try to collect Bitcoin. Because a country cannot increase its reserves by relying only one asset. Governments must take good steps so that they can strengthen their economy in a short time. Some governments have already realized this and are increasing their Bitcoin holdings. If the government wants to do something in the near future Bitcoin would be the best option.

They can rely on one asset which is the global standard and that's with gold.
If they are doing good economically, they can spread the wealth they have into diversifying into other assets and that's where bitcoin gets in.
Even if we know that we're die hard to bitcoin and we're going to hold it for long term, owning bitcoin isn't a priority to them.
But they just can't let others take all of the advantage when they know that there's something huge that's within it.

[Man of peace]

Yes of course Government needs Bitcoin if not for the fact that Bitcoin  does not create room for central authority and that was why some many countries doesn't encourage the use it in their country, otherwise Bitcoin serves the same purpose that gold, crude oil, silver and other minerals resources served in a countries and far more Better than those minerals resources that stands as a keyholder of every countries and should have been recommended like every other minerals resources in the country by the government..

And it's not that the government doesn't know the potential value of Bitcoin and how great and fastest it can help in developing one's country when been fully adopted into the system ,but because they lack the power of authorization of Bitcoin and that has been the major challenges.so those government  who are gradually getting into the Bitcoin investments maybe secretly seeking for their way out into power of authorization over Bitcoin,or may just involving on it just to accumulate Bitcoin and take it advantages like every other investors..

[Numeral]

Some high-ranking officials openly state that Bitcoin cannot be controlled in any way. Based on this, accumulating as much Bitcoin as possible in the hands of the state could be seen as an attempt to control Bitcoin to some extent. I have even come across a theory that the US, China, and Russia will concentrate the largest amount of Bitcoin in their hands. And smaller states may have a reason to simply earn extra money from this rather attractive investment. It's not even about reserves, they may reach a price at which they will want to part with their reserves in the future for the benefit of private investors or even larger states. But the fact that the major powers are seeking to concentrate as much bitcoin as possible in their hands is very bad for it, in my opinion.

[Stalker22]

~

In a way, yes, but we need to keep in mind that governments usually anticipate things far in advance. They have probably been involved with bitcoin for many, many years already. About control, it is something like this: regulate everything endlessly to pressure people and manipulate them into thinking about selling and paying the required taxes. Maybe it makes sense, I am not sure.

Well, I think governments usually move super slow.  They kinda ignored crypto or tried to ban it until it became too popular to ignore.  Now they are regulating it because thats just what governments do.  But from what I have seen, it can backfire.  Too much red tape can push people away, into the dark corners and illegal stuff.  If governments want to tax crypto, they gotta make it simple, not make it a confusing mess.

[Asuspawer09]

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 not like the government need Bitcoin, the government can do it without Bitcoin and it doesnt need Bitcoin, I mean Bitcoin doesnt exist in the past and the government still run until now, In my opinion they just need to or force to since its gonna be beneficial for both crypto and the government, There was a saying that if you can't beat they join them, in the oast the banks and cryptocurrency are kinda like always a discussion where Bitcoin is going to destroy the banking system, but not banking system adopted in the situation and now it is also doing cryptocurrency adoptation and you and buy and sell cryptocurrency in.the banking platform itself.

Bitcoin and cryptocurrency is getting popular to the point where government adopted it as a reserve or investment, but it doesnt need it, but its going to be beneficial in the long run.

[CryptoHeadlineNews]

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 truth of the fact is that government needs Bitcoin because of the same reason by which you as an individual also needs Bitcoin, which typically revolves around preserving the value of your digital asset in the near future. Because unlike fiat bank currency and gold, Bitcoin has got a huge winning potential of having great value over a long period of time, and the government has got to understand how this Bitcoin investment works and now venturing into it, as an avenue to prevent it's country's asset value over time when the country's currency starts depreciating. Hence, Bitcoin is important to all, both government and citizens.

[Cookdata]

Well, I think governments usually move super slow.  They kinda ignored crypto or tried to ban it until it became too popular to ignore.  Now they are regulating it because thats just what governments do.  But from what I have seen, it can backfire.  Too much red tape can push people away, into the dark corners and illegal stuff.  If governments want to tax crypto, they gotta make it simple, not make it a confusing mess.

Some government understand that in some situations it's better you draw your enemy closer than send them away. Bitcoin became a thing that some countries felt threaten by it because of its existence. I remember Donald Trump was shouting some months ago   the China want to take all your Bitcoin, bla bla bla, we want US become the central of crypto and we want to make Bitcoin our reserve bla bla, they let it stay and watch it than ban it to make people go private and become tough to see what's going on within.

[Ivystar5]

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.

You want to know the truth? government want bitcoin to keep the control they have and keep people under their ruling force, if anything that is not part of the plans of controling everyone and not letting people move from a particular strata to another or anything that will make the people raise against the injustice the government practice on people or just for people to begin to get overly eye open in what is happening and how much control they have over peoples lives and how they mess up our lives to keep their flowing, their will be a very dangerous up raise of people against governments, so they have to be involved and scare anything that has the intention bitcoin once had or was coming up with, like Monero. the more private our life becomes the harder it is to control us so they can't do anything as they do now so they try to be overly involved and still make the most money out of it and the users or lovers.

[topbitcoin]

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 does not need bitcoin because it goes against the system they are running right now which is centralized and benchmarked to the government and the rules that have been set but in this case they only need power for their existence that is already running.

Currently they cannot control bitcoin so trying to intervene is useless so they need a new approach so that they can still have power even if it is small in bitcoin.
With a new approach where they have a gap to be in bitcoin on the pretext of being friendlier it becomes an opportunity for them to create things like taxes for exchanges which in fact become the same (centralized) so that they still have a little control even though in bitcoin it is thin.
 

[redhack]

Governments don't need Bitcoin. They just want to ensure there's nothing left they can't control. If they hold a significant amount of coins, they can control this market, manipulate it if necessary and regulate prices as they see fit.

Just as they have control over other financial instruments, they don't want to stay away from cryptocurrencies either. At least that's how the governments of developed countries see it. They've wised up now, realizing they can't defeat Bitcoin, they want to control it as much as possible.