Topic: More Money Problems that Bitcoin Solves (Read 598 times)

Not at all. I dare to suggest that you are mistaken and the reasons for denying bitcoin by governments are completely different. Your version seems too naive to me. Governments don't want to mess with BTC due to their lack of control over cash flow (BTC is still digital money, right). With the help of ordinary money, you can control people, and decentralized bitcoin gives freedom and financial independence. The term financial independence sounds a bit pompous and can often be heard on the forum, but it turns out really so. No government will be able to freeze your account or cancel your money transfer while using BTC.

Bitcoin and cryptocurrencies are not ideal. Just look at the current situation with horrendous transaction fees, but traditional money is also far from all right. In the case of BTC, there is at least a choice, and whether to accept it or not is up to everyone.

Oh, just don’t talk about laundering and other types of criminal activity with which bitcoin is associated, as this fake is being spread by the media and BTC-haters. This has been discussed many times. Traditional money is what is used in all illegal acts in the first place, but governments for some reason don't cancel it, do they.

bitcoin doesn't experience inflation that's one pretty good statement. the problem is that until now bitcoin is not easily accepted in any country even countries are starting to burden crypto with taxes eliminating crypto as a decentralized asset like before why is it now under government control. and it looks like for bitcoin to beat fiat it still isn't enough even if bitcoin is pretty good at some financial things.

The reason why governments are cautious about embracing Bitcoin and other cryptocurrencies is because they are still relatively new and untested in terms of their ability to provide a stable and reliable medium of exchange. In addition, Bitcoin and other cryptocurrencies have been associated with a number of issues, including volatility, price manipulation, money laundering, and other criminal activities.

Banks are developing blockchain technology to use it in different services but these are not related to bitcoin. Bitcoin does solve the problem that inflation has shown and also how we can easily send and receive money in decentralized censorship-resistant manner. Banks were also not that complicated at one time, just that the trust factor always needs to modified to avoid and work through the different illegal things that humans come up with.

Overall bitcoin has been a tech for the future and it will exist alongside fiat.

The presence of bitcoin is a solution to the complicated and complex transactions that occur in this world, all transactions are recorded on the blockchain so it's easy to track, although banks are also innovating to maintain fiat but I believe decentralized system users prefer more than fiat.

Now there are even no more problems with the issue of fees because there are so many ways to exchange one currency for another. So that there are more options that can be used by everyone when they explore one country to another, but the presence of Bitcoin does provide a solution with more different options than what already exists.

And even now there are also several countries that are starting to want to adopt Bitcoin which can be used by their citizens for all payments in their countries. Which has also provided examples of other conveniences to be used by citizens in any case that do not have problems with transaction costs.

Currently there are about 200 countries and there are more than 150 currencies, but the world is unified with the internet which allows anyone to transact personally with citizens in other countries, this is a problem when using currency because it creates large transaction costs, the presence of bitcoin is a solution for Faster transactions, lower fees and of course safer.

Solving the double spend problem in a trustless manner was one Bitcoin's greatest innovations. Bitcoin uses a distributed ledger to record all transactions in the network. This ledger takes the form of a blockchain, a large database. Bitcoin was created as a way for people to send money over the internet. The digital currency was intended to provide an alternative payment system that would operate free of central control but otherwise be used just traditional currencies

For the citizens there are problems and hurdles to overcome, for the people at the top fiat is working as it should and they are happy with the situation, make no mistake politicians are in that profession not to serve the public as they should but to fulfill their own agendas, they only give lip service to serving their citizens when it is absolutely necessary for them to do so, like when they are looking to get elected, but make no mistake they do not care about us.

The most frequent problem with fiat is that the value continues to decrease or inflation, it's time for many countries to immediately legalize bitcoin which is proven to be simpler and better in transactions and the security system is also better than banks, if we don't want to make changes then mistakes and problems in finance will continue to repeat and increasingly difficult to overcome.

Everything the government cannot put their control over, they don't give a sh*t about it. They are even very scared of it at one point along with the banks, fearing that people may use Bitcoin in transactions more often than using any third party money processors and banks. Until they found an alternative solution to make money out of every Bitcoin transactions by putting a regulations on exchanges and local wallets.

There are many reasons why governments don't really believe in bitcoin, such as volatility, decentralization, monetary threats and money laundering.
but actually the reason for the government of the country is like that, symbolizing that they are not really deep into bitcoin or crypto.

they think that with decentralized bitcoin, it will have the effect of crime or fraud because no one is watching and it is not detected.

even though the bitcoin system is not that weak, it can be said that bitcoin is one of the strongest systems.
in essence, the governments do not fully understand the ins and outs of bitcoin or crypto as a whole.

I need to repeat this, Bitcoin isn't a free money where you can get in easy way and become a rich person in very quick except you're an early adopter where you can claim faucet more than 1-2K Satoshi for every minute. Right now faucet is still exist but there's no way you can make money from 1-10 Satoshi, maybe it's when Bitcoin price already hit a million or billion in the future.

You can make borderless payment using Bitcoin, but actually digital money can be used like that.

In order to spread it, we need to first make sure that it goes high enough and stay there enough. I am not sure if we are going to end up with anything good by spreading it now when it is so low, there are people leaving the market right now, let alone bring new people in. So in order to make sure that we spread the name of crypto everywhere, first we need to buy it ourselves, if the people who believe in it end up investing right now, then it would make a lot more sense towards anything regarding crypto.

I believe that we should see it at 30k+ at least to start spreading, so that we could say it's recovering and people may take another look at it for the time being, would definitely help.

Financial Inclusion – Facilitates access to financial services for people who are unbanked or unbanked.
>> Well, to be honest, a controversial argument. It's hard to imagine where it could be? In very poor countries? So a person does not have deeng either on a computer or on a hardware wallet. If a person with a bad credit history / a scammer - so he will "throw" them into bitcoins ...

Reducing the cost of the transaction - without intermediaries, international transfers are too cheap.
>> also a moot point. With Visa Platnum, I don’t have commissions at all, while excellent leverage with 55 days at 0 rate, and installments for purchases up to 24 months with an installment cost of up to 1% for 24 months


Improved security and immutability - thanks to cryptography, transactions are protected and cannot be forged, which reduces the risk of fraud.
>>This technology is already being used both in the financial sector and, for example, in noarial offices. But in relation to real transactions and money.


Increased Transparency – Since the blockchain serving as the ledger is public, this increases the transparency and accountability of the transaction.
>> So here 90% scream for anonymity and "I won't show my transactions to anyone!!!!"


Inflation Protection - With a fixed supply of bitcoins, this helps protect against inflation by ensuring that the value of the currency does not decline over time.
>> Do you recall the story about the course of 18,000 dollars and then 3,000 for 1 bitcoin? And then 90% of home users leaked it for 3000-6000, and then bought it again for 60.000 ))

Decentralization – Because Bitcoin runs on a decentralized network, it can provide a certain degree of immunity from government and central bank financial policy.
>> If you live in a state, there will be no pseudo-currencies UNGOVERNED by the state. The Western world will definitely not allow it. And for example, such "fighters against capitalism" as North Korea and the like - generally introduce TOTAL control over their citizens. Where is the place for decentralization and immunity?

Understand - no state will ever use a currency that they cannot fully control. You just do not quite understand how the state and monetary policy work. don't be offended...
I will explain with an example - explain to me how, with bitcoin instead of the national currency, for example, such a problem will be solved: the global financial crisis or a pandemic like Covid-19 - how will you provide social financial support without "printing money"? Describe the process, in a non-inflationary model, with a fall in industrial production, tax revenues and other things, but in compliance with "fairness" and the payment of pensions, salaries, the organization of medical care and financial assistance to those in need and victims?

I get your point of view entirely. Seeing governments fail to properly see the promise of bitcoin and other cryptocurrencies is disheartening. When making judgments concerning the money, however, governments and financial organizations must weigh a number of considerations. They need to take into account issues like monetary security, consumer safety, and the suppression of criminal activities like money laundering. Change is slow because maintaining that equilibrium is difficult. Or they just simply scared of bitcoin

The advantages of bitcoin are real, and I've experienced them myself. I had a hard time sending money to my relatives in another nation due of the exorbitant fees and lengthy wait periods. However, thanks to bitcoin and other cryptocurrencies, I can transfer funds swiftly and cheaply. In addition, because it is decentralized, there is no risk of inflation or monetary policy changes by the government.

Keep in mind that both bitcoin and traditional currencies may exist side by side. In reality, more and more merchants are warming up to the idea of taking bitcoin as payment alongside more conventional methods of exchange. And as more people get familiar with bitcoin, governments are more inclined to take it seriously and look at methods to regulate and incorporate it into the existing financial system.

Even if we can't predict when or how, I'm confident in bitcoin's and other cryptocurrencies' long-term success. It is up to us as individuals and as a society to spread awareness and encourage widespread use.

They are waiting for the BTC to disappear. They can't allow something they can't control. And BTC being decentralized is their main fear. They have no control over it and they can't track your transaction if you choose not to disclose your information. This is the sole reason why the government is not allowing BTC to be legal in the first place. And to cover up that, they are showing these lame reasons.
I came across a discussion on my local board today and @Little Mouse has a great example on this.
The translation is somewhat like this:
Pablo Escober owned 30 billion dollars at that time. It is told that, when his daughter Manuela suffered from cold, he burned $2 million in order to keep her warm.  source
All that Pablo Escober had was black money. He was the biggest cocain dealer in the history. He had done all his deals with Dollars or golds. But neither the dollar nor the gold was banned.

In 2009 over $300 million were seized from drug dealers, and obviously they were not Bitcoins.

So the thing is, we need to control criminal activity. Wheater bitcoin exist or other currency, these criminal activity will still continue. Or the illigal transactions. So the Bitcoin is not the problem. The problem is, criminals using it for illegal activites.

So from my understanding from this is, the problem is control. If they can't control something, it's illegal.

Adopting directly in a pure manner will make them lose their control over people and economy, that's clear. But it's wrong to say that government doesn't let bitcoin to coexist with the traditional money because average person has no problem with using bitcoins.
Major players in the crypto market are the following companies Binance, Coinbase, Kraken, etc. All of them are centralized and very popular, highest percentage of crypto users use these companies and their services. These companies ask you for KYC verifications, they track your transactions, they even offer cards to track what you buy in the supermarkets. They are regulated companies! Doesn't this mean that the government has whole access on your info even when you use bitcoin through these exchanges? Majority of users prefer easy and simple solutions and these solutions are provided by the centralized companies. So no, only the form has changed, otherwise they aren't different from traditional banks and tracking systems. This way, bitcoin will coexist with the traditional money without a single problem.

The fiat system gives the government the power to govern people's lives and while they know BTC can be more beneficial to the people, BTC is not beneficial for the government because more people that have money can actually fund a revolution against the government. They may even try to confiscate money from people including the BTC.

They are not willing to give up that power to the people.

It's clear that Bitcoin is the only financial freedom we got that has no intervention of someone or third-parties which means it's a total decentralized digital/crypto currency. If they want to adopt Bitcoin, we already have a centralized one that was being forked from Bitcoin before or they could simply use the XRP(Ripple) or Tether(USDT).

Well, not all of the government are against the adoption of Bitcoin but those who are against it are clearly saying that they can't no longer control the people because they have freedom already of using their own hard earned money.

You do know that human traits and characteristics mostly prefer to take care of themselves first before anyone else. Some people serve the people, but the majority don't. It's just that in the world now, and I hope it changes. It's best to start with ourselves, and hopefully, others will follow.

So if we are interested in BTC being used, be an example to others.

A smaller part of cryptocurrency holders earns on the crypto market. You, in a particular case, earn on SPECULATION, which means at the expense of another or other holders of cryptocurrencies / fiats. Why are you better than a "capitalist bloodsucker"? This is of course a joke, but with regard to the idea of "general equality" and "honest economy" it is exactly like that Understand - money does not appear "out of nowhere". They flow from one pocket to another. And now you have shown a very unfortunate example of "cryptocurrency honesty", although it is positive for you, congratulations

PS By the way, explain your idea "If I didn't work hard, then I get paid less." ? To earn a lot you need to study a lot, work a lot. Once again, I will clarify - purely speculative mechanisms are working now. And describe how you will make money on the crypto market when the crypto market stabilizes and there is no such volatility? And this will happen if crypto-currencies become an official means of payment and a complete analogue of fiat money?

I like the fact that bitcoin has been the source for decentralization whereby we have this unique freedom with our financial economy away from the central authorities, the second aspect is the low cross boarder transactions charges whereby we got billed whenever we are sending money abroad and lastly, the benefits of providing solution to cash bulkiness in making payments of good and services, we don't have to suffer the challenges of handling cash bulkiness in terms of buying and selling of economical values and commodities.

 It's quite obvious that Bitcoin is freedom. And just like almost everyone has opined, it's certainly gon cause a big disadvantage to the government. First, it takes away their power over monitoring your finance, and if I'm allowed to state, it blocks the avenue to siphon funds. Imagine when you exploit the fact that Bitcoin is volatile to use as a reason to kick against it when in actuality, fiat suffers a lot more.
 In summary, the government cannot endorse what they can't control. Hence the Bitcoin apathy.

Asking why the government didn't see the greater money problem is something that doesn't worthwhile because even a little kid can fully understand that the fiat currency problem cant fix by the government's selfish strategy but they keep doing the same thing over again because they seem to profit from it.
I don't see them coexisting with Bitcoin and the only thing they want to do is regulate Bitcoin while they create their CBDC.

You are not really understanding their motivations at all, most politicians do not serve their citizens anymore, they serve themselves and a few people at the top and that is it, and what those people want is power and the ability to wield it as they want, fiat currencies are probably the most powerful tool they have at their disposal which is not a weapon, fiat currencies allow governments to avoid being fiscally responsible since they can always print more money to pay their debts or to pay for whatever free stuff they promised to get elected, and they are never going to let go of this tool unless they are completely forced by their citizens.

I think the answer is quite easy on this matter. What needs to be understood is that this is about a centralized system vs a decentralized system. it may be about the interests of an individual/group/country. and about a controllable and an uncontrollable system. But at least I believe that slowly the adoption of bitcoin will continue to be carried out by more countries. due to the fact that the current generation and the next will support a decentralized system more. But for me there is no problem with the existing system. I just want the government to be run honestly and there is no more corruption. or it means I expect a system that makes government more open to the public. An open system will make it difficult for officials to commit corruption.

Bitcoin was only just an addition and it doesn't remove the fiats at all so we can still be able to tax the people and then we can also get extra taxes for those who use a Bitcoin. This sounds great but I wonder why many of the governments are still against the BTC. Maybe they aren't smart at all to think of this but they only think negatively. They think adopting BTC can cause more harm than good.

There could be some governments who aren't ready yet. Okay, they can take their time and people can just extend their patience. BTC and fiat aren't totally the same so each of them can solve different problems and there is no problem if fiat can solve more problems.

The government will not adopt or accept anything that is uncontrollable and unmanipulative just like Bitcoin. So we can't blame them for banning crypto or for not supporting it because they know for sure that they will be doomed if Bitcoin will take over fiat. However, fiat will still be the priority of the government and as much as possible, they will cover their eyes so they won't see how Bitcoin could really help. I hope that they will resist and try to consider Bitcoin in the future despite being decentralized.

Actually, financial freedom for everyone can support the country to improve the economic level. When people become richer, they can pay more taxes. Bigger taxes make the government to have bigger money to grow the country. Basically, this is not a problem, but the government doesn't want to lose its power to control the money circulation in the country.

The accusation of money laundering in Bitcoin is intended to make people stay away from Bitcoin. The government use an unfair way to build the wrong assumption of people about Bitcoin. But smart people know that Bitcoin isn't related to money laundering. Even there are such cases, it is just a coincidence.

IMHO, CBDC is another form of fiats. It is only a digital form of fiats. So, no change at all!!

Not totally superior because there are still things that BTC can't do but fiats can do therefore they shouldn't be scared of it. The reason why some bans is not because they are scared of it but because they can not control it. As of now, many people already know and use Bitcoin but they haven't totally dump fiat for it.

Fiat is still the one that they use as a medium of exchange and Bitcoin for them only works as a long term investment and for trading. As long as Bitcoin is allowed in our country for both asset and currency use then we can now use it for buying directly or paying to avail some service as long as it is also supported by the merchant. There's no need to wait for BTC to become a legal tender as that can take a long time to happen.

Yea I kind of agree with this. In as much as governments are greedy and self-centered we can't act as if we don't know the illegal things done with bitcoin. Drug trafficking, human trafficking, fraud, money laundering, terrorism, and so on. I know that every invention can be used for negative purposes like the internet, mobile phones, guns, etc but there are at least sophisticated ways the government uses to fight these vices, same cannot be entirely said about bitcoin. In the world we live in today it is too risky to have something as big as bitcoin that is 100% unregulated. I don't know if there are ways the regulatory bodies can be involved while the privacy, security, and total control of bitcoin by bitcoin users will still be maintained but the very thought of what can be done with cryptocurrencies gives me the shivers.   

Imagine you are part of the government who heavily rely on taxes for your own salary, projects, and every expense needed for literally everything.
Then, you put in Bitcoin. The difficulties to track them down, their p2p transactions that won't register on taxes. If they will inject this feature there must be a big change in the financial services of the government.
It's not like you cure a cold with a medicine over the counter. There must be a process, a plan, and I think our governments are not ready for that, or they just don't want to be ready at all because the traditional thing is still working on their favor.

No individual would wanna lose possession of it's stronghold not to talk of the government that is power-centric, do you expect them to reduce their power by giving room to competition (Bitcoin) which they very much understand that it's not in there reach to control like they do with the fiat.
They understand the potential but it might threatens their autonomy in many ways which is what they don't wanna see happening.

That freedom, that "get paid what you deserve" instead of "get paid what the market around you tells" is the reason why I love crypto so much. I have been earning way more here than anywhere else I have ever worked in, you wanna know why? My contribution here is calculated, and when I make my boss money, he pays me good money.

If I didn't work hard, then I get paid less. In a regular job that I work, it has to be somewhere close to my house, even if with a ferry or a bus, it's around where I live, and that is why it's going to be paid very less because most of the time the buyers are close to where the seller is as well. Hence, crypto gave me freedom and feeling of worth.

It's quite a shame how many people don't understand this -- government is an institution and the people that are part of these institutions have an interest in sustaining them. The interests of government survival outweigh the interest of their constituency, and the constituency will suffer. Bitcoin could solve a lot of problems, but there is no incentive for problems to be solved.

I'm an advocate for limited government for this reason. The predations of governmental power on normal citizens cannot be understated.

The government know the power bitcoin possess, they know that Bitcoin can solve all the money problems we face as countries, thinking they don't is a misconception.

They know all that there is to know about bitcoin and how it's adoption can put an end end to inflation, but their problem with bitcoin is that bitcoin is decentralized, they can't and will never have control over it, to them, bitcoin is actually a threat for with bitcoin, they will lose one thing which they value so much, and that is power over the financial system, power over the people, power over businesses and many more, this is why several of them are really reluctant to accepting bitcoin as a means of payment, also because they are yet to figure out how to really have control over all the bitcoins within their country which I also don't think is possible.

They won't be on their positions if they are not knowledgeable people. It's only sad that they didn't use this gift to greatly improve their country. I think these people are just selfish and maybe they are also corrupt too. People on their country will surely put a hate on them for this and I think many are forced to do the unwanted thing.

It's where they illegally access and use BTC using some kind of a tool like VPN. Maybe it's true that those governments are waiting for BTC to die and to make the process faster, they have created their own versions of Bitcoin which is called CBDC but I don't think people will be encouraged to use this. BTC is what they want not this sh8t.

Exploring possibilities of bitcoin? Possibilites like not having a change to print more money as a buffering system to protect governments from catastrophes?

Just because bitcoin would be a tool for you fighting against inflation doesn't mean it would be such for any government. At the moment it's too volatile for any government to take a risk even investing into it. And inflation isn't really a problem as long as it stays in control and don't spiral out of control. It's only problem if you think fiat money as long time storage for wealth, which it's not. It's a tool for transactions and with a high liquidity and being not so volatile it's a good tool for that.

Bitcoin overcomes people's finances, improves their lives, especially the economy, which can make someone who is poor with strong determination equal to the rich. Freedom over your own finances and the government doesn't like that. They can't cut crypto taxes, they can't make the state coffers grow. Therefore Bitcoin is always used as a label for money laundering in their eyes. Because the government has to print more money for Bitcoin disbursement. While CBDC is just an evolution of fiat, its nature and use remain the same in controlling how many assets are owned by the community.

They are called governments because of the leadership and control they pursue over their citizens and their entire wealth; therefore, why did you expect them to fully accept a decentralized and transparent currency over which they will have no control? I believe it is against their will; they want to continue receiving a small percentage of our savings, which can only be done while we use Fiat currencies; however, once we switch to Bitcoin, the government will never be able to achieve this, and as a result, they will always prefer fiat over Bitcoin.

Governments dont  want every problem to be solved. Unless you have a problem you cannot get votes to run an election. Get my point?

Bitcoin is already coexisting with fiat. CBDC is how they think fiat could be digitalized into a crypto-like thing and make the population accept that and move the bitcoin users to CBDC.

But a deflationary economy is difficult to maintain. In reality we do not want that and the current way of how fiat and bitcoin coexist is adequate in my opinion. The problem is bringing in CBDC, which we have to observe how they work. Beyond that I feel the next big thing that we should focus on is the acceptance of bitcoin in bigger eCommerce merchants - to force governments to allow bitcoin trading.

I have a gut feeling that once CBDCs get introduced, eCommerce giants will pop in as that being the mode of transaction using bitcoin and the CBDC as intermediary.

The best scenario IMO is to encourage free market competition, to emulate industry advancement afforded to consumers by the intel vs AMD rivalry. Competition can incentivize progress. Within the span of a few decades we have witnessed desktop PCs advance from having 64 megabytes of RAM. To having 8 gigabytes of RAM as a standard. Competition can definitely have some positive implications for society. Perhaps these positive trends can carry over to bitcoin being a competitive asset in global markets.

Bitcoin could produce incentive for the financial establishment progressing to better implement blockchain and other modern technologies.

We have already seen stock brokers adopt low commissions on trades and other things which were pioneered by crypto exchanges. Perhaps bitcoin and crypto have other things to offer the world.

Bitcoin is so much superior to any fiat that they're afraid of it because as soon as people will understand it, they will dump fiat for good and never look back. But the truth is people are a bunch of easily manipulated, brainwashed, propaganda puppets. They're waiting for the government to allow them to use it as legal tender (like El Salvador did). Only then global hyperbitcoinization is possible.

Have you been asleep for the last 10 years? Most countries that do not have overly oppressive governments like the Americas, Europe, Australia and parts of Asia are quite open to allowing it to co-exist with their own currencies. Quite rightly they just want to understand the cash flows that are taking place because many countries use taxes as a way to run public services - like putting roads down or paying for the police force. If people are avoiding contributing to that while running a business via cryptocurrency then they are getting an unfair advantage against neighbors and the rest of the country. None of the points you raise have any relevance to allowing cryptocurrency or keeping a stable economy.

Not that it's true, I disagree with it, but I can give you the answer of some people who support this idea that I talked before. The main idea is that they believe fiat is controlled by governments (true) and bitcoin is not controlled by anyone (logically true, financially wrong) which is why if the whole world stopped using fiat, and suddenly overnight goes into crypto usage instead, we would have our own currency that nobody meddles with and would be able to actually make a good income and live comfortably instead of living in the fiat world where rich gets richer and poor gets poorer.

It's true that the world we live in sucks, but I disagree with them because bitcoin wouldn't help in this regard.

We all know and governments are also aware of the bitcoin benefits for the world and the problems it can save in the economic systems but even if the governments are aware of these benefits still they mostly resist agist bitcoin and especially if they have a strong currency they will not allow something like bitcoin or any other cryptocurrency to take their place because the decentralized system behind the bitcoin can be dangerous for them because they won't be able to take everything under control as they do usually.

Because by regulating that fiat will give them power and authority, it helps them to control people their wealth they can even gain more cuts by asking people for taxes. Bitcoin gives us freedom and many things that make us more human I mean, they cannot control us , they may not know on what things we are invested with and what do we do with our money because they cannot trace it nor regulate it.

Governments are in a difficult position because they want to have a firm grip on their economies but also avoid falling behind technologically in the crypto space. This is why several national governments are exploring CBDCs (Central Bank Digital Currencies) or their own digital currency initiatives. This manner, they may maintain some semblance of economic autonomy while also retaining a technological edge. It's something to keep an eye on, for sure

Bitcoin isn't banned by many countries, actually, so in a way, it is allowed to coexist with fiat. That being said, it's usually allowed to coexist more with stocks than the local fiat, as Bitcoin is recognized as a means of payment in only a handful of countries. Many countries just haven't settled on a particular policy regarding Bitcoin, so they aren't against allowing it along with fiat necessarily.
Inflation is only partially resolved with Bitcoin because the worst consequence of inflation is devaluation of money, and while Bitcoin isn't susceptible to hyperinflation, it can lose as much value (at least, in midterm perspective) as pretty unstable fiat currencies suffering from inflation.

In a technical perspective adopting Bitcoin will give the following benefit:

• Financial inclusion - makes it easier for people who are underbanked or unbanked to access financial services.
• Reduced Transaction cost - without the need for intermediaries, international transfers are way too cheaper.
• Improved Security and immutability - with cryptography, transaction are secure and cannot be tampered with reducing the risk of fraud.
• Increased Transparency - since the blockchain that serves as ledger is public, it increase the transparency and accountability of the transaction
• Protection against inflation - with the fixed supply of Bitcoin, it help to protect  against inflation by ensuring that the currency value is not eroded overtime
• Decentralization - since Bitcoin operates in a decentralized network , it can provide a certain degree of immunity from the government and central bank financial policies.

and in the contrary it also gives a negative impact in its current situation like:

• Volatility - due to high volatility, it is risky and dificult for businesses to price their goods and services
• Lack of Regulation - due to lack of regulation it is more vulnerable to fraud and money laundering  and make the business hard to comply with AML and KYC regulation
• Complexity - this makes it difficult for average person to understand and use.
• Limited Acceptance - at the current state of adoption, Bitcoin is not yet fully adopted making it hard for businesses to accept and consumers to use it.
• Environmental Impact - to secure the network, bitcoin needs miners and consumes a significant amount of energy which can possibly have a negative impact to the environment.
• Legal and Tax Implications - at the current state, Bitcoin is not legal to other countries, and it maybe subject to different regulations and taxes in different jurisdiction which can make it difficult for businesses to operate and for individuals to comply with tax laws.
• Accessibility - people who are not tech-savvy might find it hard to access Bitcoin which can limit Bitcoin's potential to reach wider audience.
• Digital Divide - to access Bitcoin network, people need an internet which make it difficult for people without reliable internet smartphones or laptops to participate in the economy.

So basically government are hesitant to adopt Bitcoin and cryptocurrency because of the possible negative implication it gives since the regulatory framework for Bitcoin and other cryptocurrency are yet to be formed.

We have seen on the pros and cons that Bitcoin at its current state is more likely inclined with individual/group benefits that is not regulatory compatible while the negative impact happens when used to business that requires government regulation.  And due to the need of internet and technical knowledge it will be bothersome to people who are not tech-savvy and have poor access to internet.  

I might say at the current state of technology and internet propagation, the world isn't ready yet to embrace Bitcoin in full or shift to digital currency, only few countries can provide the needed requirement for Bitcoin to fully operates.

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Sources:
https://www.sofi.com/learn/content/benefits-of-crypto/#:~:text=Transactional%20freedom%2C%20security%2C%20and%20ease,widespread%20use%20or%20adoption%20yet.
https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/benefits-of-cryptocurrency/
https://cs.stanford.edu/people/eroberts/cs181/projects/2010-11/DigitalCurrencies/disadvantages/index.html
https://www.investopedia.com/terms/c/cryptocurrency.asp

Bitcoin is frequently misunderstood to be an inflation hedge. In fact, it serves as a safeguard against currency depreciation.
Although more bitcoins cannot be created, the huge price swings are just a result of this absence of fundamental worth technically speaking,
and these values are heavily controlled by the large holders, something that US authorities admitted when they rejected ETFs in spot bitcoin.

Therefore, the smart money responds quickly when the Fed tries to combat inflation by tightening the money supply rather than by cooling the demand bubble.

Usually a government or rich people have a strategy where they want to make more money with all of their power. Example a big country ban Bitcoin, so it will make Bitcoin price drop since their citizens would high likely sold their coins in panic situation. When Bitcoin price is cheap and they have a lot money, they will buy a lot Bitcoin. Then during bull season, the government might revise their law and unban Bitcoin. So when Bitcoin price is high, they can easily sold most of their coins and repeat.

But after all it's just a conspiracy, although I think somewhat it's true, but they just using different method.

I believe government are already aware of the benefits of Bitcoin but they are hesitant because they are not ready to cede to decentralized currency like Bitcoin because at the current system the government and central bank has the power to control the money supply and interest which they think is the key factor in managing the economy.  shifting to decentralized currency like Bitcoin will likely take those power away.

But as Bitcoin and other cryptocurrencies become more widely use it is possible that the government will consider or will be more open to allowing them to co-exist with traditional fiat currency. 

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Not all countries are welcoming Bitcoin and other cryptocurrency others are even planning to ban them because it disrupts their traditional finance system and make people ignore their released CBDC.  Just like in the case of India where the Reserve Bank of India Governor Calls for an Outright Crypto Ban

neither bitcoin nor CBDC are simply payment alternatives to currencies. After all, hasn't bitcoin been coexisting with fiat all along? And what changes did you see? Increasing the individual's standard of living is not a significant change in this realm. The changes the government hopes for should reach the entire population.
In fact anyone can use bitcoin for something "freely" (decentralized) without waiting for government approval if they think it will solve a financial problem.

I asked the question many times, but NEVER received a reasoned, logical answer. The question is extremely simple: how, and how will the real economy really benefit from the transition to Bitcoin?

Unfortunately, I have to state a fact - many supporters of Bitcoin as the currency on which the economy works, simply do not understand how the economy of countries works, what the central bank is, how the budget is formed, where inflation comes from, and much more ...

The simplest example of misunderstanding: bitcoin will "destroy inflation". Absolute stupidity. Bitcoin itself is indeed a deflationary "currency". But the economy, the economy and the state budget are formed in a completely different way, and a deflationary model is simply not possible in most real situations. Try to simulate and you will understand that the implementation of such a model will instantly lead ... to impoverishment and a drop in living standards, especially for the poor and socially unprotected segments of the population. And it will not solve the problems of the economy ...

How do you expect them to amass enough wealth if they allow btc into the economy? government will always create a problem in other to have the opportunity to fix it.
The government are fully aware of what you just said but the simple reason that they will lose control of the financial system will prevent them from giving btc a chance.

The point is not that bitcoin can solve all the problems of fiat money and that it will be used as an alternative to fiat, what needs to be considered is its benefits when applied. If the government uses bitcoin, then they get almost no benefit from it, otherwise, it harms them there is no reason for them to use it. On the other hand, fiat is a disaster for us, but it benefits the government, so they will choose it. Benefits are still the top priority, good is not enough. Another thing is, our world is controlled by the government, so we have no right to claim.

Obviously when bitcoin is grounded it will become a threat to them the governments in terms of control, as we can see and analyze, it's difficult to manage risk because the nature of bitcoin is outside the control of the government, maybe the government can regulate the law and its use, but that doesn't mean fully manages, but probably pivots on usage limits and nothing more.

In my view the main problem in this case is about principles, in which the government adheres to the principle of centralization for management in terms of sovereignty (including finance) while bitcoin itself is on the other side, namely decentralization which cannot be fully controlled.

And bitcoin is still relatively new to changing the financial system itself even though it has been running for more than 10 years, maybe many governments are still learning about bitcoin or are watching EL Savador as an experimentation in fully using bitcoin to find the right formulation before it is implemented in their country.

The government are very well-informed people and definitely they know better that bitcoin is something helpful but at the same time not helpful to them but to the general masses who they wish to keep under their control. If you are wondering what they are waiting for, they are waiting to see if bitcoin and cryptocurrency in general will just die down and go away due to market pressure or any other activity since they have refused to accept it, but we all know that that is not happening.

I am sure starting from your comment below, there will be more silimar and correct answers. You just made the point using the fewest words. Good job !

You want freedom, I want freedom, everybody wants freedom, but the government doesn't want us to be free. Their power comes from controlling us, so it's no wonder they don't accept bitcoin, which will disrupt everything they've built for thousands of years. If I were the government, I would also ban bitcoin because I don't want to lose power.

Inflation is a big issue for us, not a big issue for them. Increase interest rates, and control cash flow to reduce inflation, but people bear the consequences, the government is not affected. So there's no reason for them to stop inflation altogether, inflation is like crypto winter, sometimes need to use it to reset some things.

Inflation often is a part of fiscal budgeting because the greatest effect is to ease the burden of national debt at the cost of users of that currency.  The issuers of the currency are the first in line for any benefits from that new money and the further you are away from that source the more you are paying on the cost of lost value.  This is part of why 3rd world countries can so easily become poor, it takes alot to fight the tide of endless new money.

I think, many governments are preparing to listen to Bitcoin in their countries because they have heard and seen the good things Bitcoin has done in the country that made it legalized few years ago, that is making their citizens celebrating for the good decision their government made to make it work in their land. El Salvador was the first country that made Bitcoin legal in the whole world and they are doing well in all areas of financial aspect and other sectors in the country that is making other countries to follow their steps in this new year to use it to reduce inflation in their countries.

Some governments don't hinder the development of Bitcoin, but some of them also don't fully understand how the Bitcoin system is so it still takes time to make a decision and see examples in countries that have legalized Bitcoin and adopted it into legal payments without eliminating fiat. This means that not all governments think that Bitcoin is a problem, even though not all governments think that Bitcoin can solve financial problems in every country, because each country has different laws, so you need to make the wisest decision possible for this.

The development of Bitcoin will never be hindered by governments that do not agree to use Bitcoin as a means of payment, because Bitcoin can still develop gradually as long as there are people willing to use it. Especially now that there are several countries that see Bitcoin as a serious asset to be used and developed into payment systems, it is clear that Bitcoin will never die and will continue to grow every year.

Bitcoin has to work as a side currency, while its volatility remains high. A government can't compromise the whole economical system by adopting Bitcoin and forgetting their national currency, although in some cases it makes more sense to adopt BTC than making use of fiat currencies which are incredibly devalued. The point is that with Bitcoin a country can lose or win 50% of their treasury in one day due to market's fluctuations. People in general can't live in such unstable conditions, so Bitcoin isn't an alternative for a country to adopt officially, as main currency.

Even El Salvador, which turned BTC into legal tender, hasn't seen its DCA and holding benefits yet, because on every dip the country purchased BTC, its price declined more yet. They are in an extremely delicate situation, waiting for a market recovery, so they can finally show their people Bitcoin was a good investment.

That's exactly why they don't want bitcoin: they can't print out more of it. If they can, then they'd probably use it to some degree. That's what countries' economies are based on: the endless printing of money and control of interest rates in order to balance the scales so as not to have an economic meltdown. Bitcoin cannot be controlled in any way save for buying a lot and hoarding them, but that will increase its price which will again, prove that bitcoin isn't good for usage on a wide-scale when we're talking about a country's economy.

It solves some financial problems on paper, but in application it performs poorly compared to fiat. At least though, it works for individual people that looks to solve these things on a small scale.

No government wants to lose control over the financial system. With bitcoin into the financial system everything will be transparent and governments can't take money from the pockets of people. It is the people who decide what to be done with their money.

Governments know well about the potential of the technology and the financial system having advantages over the traditional one, but they never show interest to make use of it. Over time scenario could change, but it can take generations for a massive change.

They have learned it but they aren't willing to accept the fact that it can deal with many good things into their government.

Bitcoin isn't really for the government but for the people thus, the government that controls everything we people have, they're intervening in it. It's just a matter of time that they'll act the same as those countries that have adopted bitcoin too.

We'll see them having legislation about acceptance of bitcoin or if they don't have, they are free just to declare that bitcoin isn't illegal on their territories.

But bitcoin doesn't just replace fiat money. This means that its use is not limited to trading. Bitcoin can be compared to gold and precious assets even if it is not authorized to be circulated among people. Governments cannot ignore the value of Bitcoin even if they do not recognize digital currencies in the first place. Bitcoin in international transactions between countries (not between individuals) provides much better facilities and guarantees than what the financial system currently offers.

Have been asked numerous times. There are many reasons why Bitcoin is not widely accepted as a mode of payment. Firs is decentralization wherein governments won't be able to tax every transaction unlike with fiat or fiat based digital currencies. Next is the risk involved with market price volatilty. For sure not every people would be interested to invest and out their money at risk; the price moves a lot which can yield to losses at any moment. There are even businesses which accepted cryptocurrencies as mode of payment but eventually stopped doing so, simply because they cannot sustain the business by holding it whenever the market price is low. These are only few reasons why, and I guess we are not yet ready for total adoption of this technology.

Like KingsDen has rightly stated, the government don't care any bit about you. With the amount of resource available to them, it's hard for them not to accept the fact that, a lot of good can come from bitcoin or cryptocurrencies to its people. That's why, they've got a similar innovation in the CBDCs to fill in but, the ideas behind is what hinders its progress.

The government is about control and nothing scared them more than loosing control of its people and most of all, to its people. This is the idea bitcoin comes with, the idea of freedom of finance and that has been the major element of government's grip on its people along with its military power.

With cryptocurrency having a decentralized system of operation, it makes it a direct enemy to the government but the thing is, you can't fight freedom!

The BOLD TRUTH is that the government doesn't care for you as much as you thought they do.
They don't give a shit of whatever solve money problems. In the first place do they really want to solve money problems. If they solve the money problems, how will they extort us and keep empoverishing the masses.

If it is not what they control, the government doesn't care about you and your fvcking idea or invention. If you want the government to adopt bitcoin, simply redesign BTC such that it will be highly centralized and then give it to the government 

Pretty simple. Governments have control over their people/economy through their local currency. Them adopting bitcoin would make it highly likely for them lose the control that they had to a certain extent.

Most governments resist using bitcoin to coexist with ordinary money because they want to create tough monetary policies and financial scenarios that would have a negative impact on the people. This is done to ensure that they can keep the citizens at bay.

 If not tell me why won't any country not adopt bitcoin as a legal means of payment considering the potential that it possesses.

Every day, the IMF and the WORLD BANK will announce how this or that will have an impact on the global economy, yet bitcoin can easily fix half of the issues they are predicting.

Why aren't the governments of the world seeing the greater money problem that bitcoin, and not even their CBDC, can solve? Can they at least think about allowing bitcoin to coexist with their money? I'm not asking them to abandon their fiat. Can they stop hindering Bitcoin's development and begin exploring its possibilities? It hurts that they are aware of the potential of bitcoin and have decided to ignore it. The issue of inflation, which destabilizes the world, can be resolved by Bitcoin. Additional money can be printed, but more bitcoins cannot be created. Inflation occurs when there is more money in circulation than is required. This can never happen with bitcoin.


When will they learn that bitcoin may be helpful? What are they waiting for?