Topic: Government vs Bitcoin - page 6. (Read 1188 times)

Actually they really understand of Bitcoin, really understand. that's why they are worried about how powerful Bitcoin will be if they can't control it. People in government are mostly smart people, of course they can easily understand what Bitcoin and cryptocurrency are like, what are the negative and positive impacts. They also understand how many people's lives have become better after using or related to Bitcoin. And they also understand that transactions with Bitcoin globally will be easier to do. Because they understand this, they make regulations that are at least able to limit the activities of their citizens towards Bitcoin and other cryptocurrencies, at least they limit it in terms of means of exchange or as money for transactions. because after all the government is unable to control Bitcoin.

I'm sure the governments quite understand about Bitcoin. They know that Bitcoin has the advantage for people. But since it doesn't bring an advantage for the governments, they seems like in the opposite position. They will accept Bitcoin when people want to pay taxes for Bitcoin transactions, it happens in some countries in the world. The governments also want to control the development of the business related to Bitcoin industry. So, they know the potential advantage for the government in the future. I assume governments will try to increase the taxes gradually when Bitcoin becomes more popular in the next few years.

Well, it is not about the governments have lack understanding about Bitcoin, dude. It is about the advantage and disadvantage of Bitcoin for the governments. 

IMO

Op, maybe you are the one who is totally wrong about it all, the government have good informations about Bitcoin, if you can think very well, the government is not just one body, it is totally run by a group of people, like special advisers and all the rest, so you can't tell me that the government doesn't have good knowledge about Bitcoin.
One of the major reasons why the government do not want Bitcoin is because they are totally scared of what Bitcoin can do in society. If they allow Bitcoin at all,  people won't be passing through difficult processes to change their currency if they travel out to some of these countries, and if the government allows Bitcoin, I am not sure that people are going to be paying some of their monthly fees because they won't be doing hard jobs but little jobs that can profit them well with their investment also.

Not only having the full control over their citizens money but also they do mind off about these things;

1. Taxation
2. Money laundering
3. Anonymity

This is why they would really be hating up Bitcoin because of this and cant really be fully adopted or accepted or simply regulated. Although there are some places in the world where
they do really recognize Bitcoins potential and overall of it. Just like on what El Salvador had done on which this is the first place who had made Bitcoin as their legal tender
although fiat do really still that preferred mostly of their citizens but at least they did really make a historical move that everybody thought that it was really that impossible
but it do shows out that it could be done.

Its better not to make yourself that minding that much on how government would really be making out such involvement or on trying out to surpress Bitcoin but instead
it would be wise that you should be caring on how you would really be taking up some advantage via accumulation of it.

On the contrary they know what bitcoin is, or any crypto for that matter, that's why they decided to have their own back crypto Central bank digital currencies (CBDCs).


You have to take for example US, some of the most powerful men, like the politicians are into it. Even their political system is divided, the other one supported it, while on the other side, they are totally against it. This is how disrupted bitcoin though, but for us average joe, it's just a tool for financial freedom. But government doesn't want their population to have that kind of freedom.

For sure the government will definitely attack bitcoin when they have no power to control it, this is how the government has always been. They know if people get to know Bitcoin very well and accept it for long-term savings it is going to affect the banking system which people might decide not to put their money in bank any more, I think this is the treat the government are facing from bitcoin that is why it very difficult for the government to fully accept bitcoin.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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:


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.

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.

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.

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.

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 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.