The fact of conflict between Cryptocurrencies and Centralization of banks

samsolocrypto

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Good analysis Thank you for the useful information

bitart

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Vires in Numeris

Quote from: samsolocrypto on February 03, 2018, 07:27:49 AM

The fact of conflict between Cryptocurrencies and Centralization of banks... Huh

Why all this trouble in world of crypto??? Huh

what do you think???

Governments' (major) income is the tax. The currency of the tax is the country's own fiat currency. People in the country get their salary in the fiat currency and they buy the everyday things and store their savings in the fiat currency as well. Governments have control over their own fiat currency, and over the tax income. As soon as people will start to use bitcoin or any other cryptocurrency (which the governments can't control) they will get less income in taxes, that will cause problems in the country, this is why the governments are against cryptos. Banks work with the fiat currencies as well. They are allowed to 'create' money out of thin air (giving out credit to the people or to the companies). They are strictly controlled by the goverment, in order to only create as much fiat from loans and credits that don't endanger the country's fiscal policy. If bitcoin or another cryptocurrency will come and take a share from the B2B or B2C transactions, banks and the government can't be sure about the maximum amount of fiat that can be used in the country, and if the overall fiat amount in the country will be more then enough, it will start an inflation of the fiat itself, that's what countries want to avoid.