Governments fear bitcoin as it function of its own without getting into any sort of dependence. It is an independent market and can't be controlled, though it is manipulative to some level. Another thing is its usage on different needs. Government fear, it can increase the illegal activities.
Above all the security issues and the hacks is a reason. Something happening like FTX or with some other hacks will cause heavy loss to its citizens. Now the users would go seek support from the government. Here the government can't do anything, and that looks like the ultimate reason governments staying away from bitcoin.
Topic: Why are some government scared of Bitcoin? - page 5. (Read 953 times)
Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.
Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?
Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.
You don't actually need to make Bitcoin legal tender for it to have major presence. Legal tender status gives you the ability to pay off debt to the government or a private party with whatever currency. I'm not against making crypto legal tender, but it's not a large hurdle.
Most transactions aren't facilitated to or by the government, so it doesn't matter much if you can't pay off a government debt with Bitcoin. That still gives you the ability to pay all private debt with Bitcoin, and most transactions in a free economy are done privately to begin with.
I do not think that the government is scared of Bitcoin, Bitcoin isn't a threat to any sovereign besides if we look at it, it can help a lot by opening new opportunities to its citizen. I believe, it is not fear that other government does not recognize Bitcoin but the lack of control over it. Aside from that many governments do not see it fit to be considered legal tender because of its nature. It is decentralized, meaning there is no one to go after if Bitcoin crashes, in short, there is no insurance that someone will take responsibility if the Bitcoin market becomes faulty. It is too volatile and is a poor store of value. This current situation of Bitcoin is the reason behind some governments are hesitant to adopt Bitcoin as legal tender.
Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.
Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?
Recently, El Salvador and Central African Republic announced that they have adopted Bitcoin as a legal tender.
been doing and the things that had been affected on the time that they do make it as a legal tender.This isnt something that a country could easily made out such decision
due to its nature.yes, its decentralized and something that cant be controlled this is why government doesnt really like its existence and since they couldnt
really be able to get deal with it technically, then this is where they do really make focus on putting up stricter regulations into those platforms or companies which
are connected or dealing up with crypto which it would really be passed up into the community.
Making Bitcoin a legal tender is different from what you explained so far as an example, because right now people are using Bitcoin to purchase anything they feel to purchase, making a Bitcoin a legal tender simply means that a country will adopt the uses of Bitcoin in any activity concerning fiat currency in that country, not in the process of many people selling or dealing with any business will not accept Bitcoin as a payment options in the country. So legalizing Bitcoin as option of payment everywhere in a country is directly meaning of a legal tender.
Bitcoin is a decentralized asset that cannot be controlled by any entity including governments. This makes the government reluctant to recognize it as legal tender because they have no control other than the user. The government has always said that bitcoin is a currency that allows abuse, is not transparent, and supports terrorism. But the fact is bitcoin is just a tool like any other currency that can be misused by anyone.
Government fears then about its volatile value, but it's the safest currency I've ever known should they legalize it.
Government fears then about its volatile value, but it's the safest currency I've ever known should they legalize it.
I feel like there is a good chance we could end up with governments actually enjoying it for this reason. Because people do not realize that while bitcoin itself is decentralized and governments initially disliked it because of that, we are also talking about something that is centralized when used. Just to give an example, if governments had banks or their own exchanges, that would mean you have a decentralized coin, inside a centralized exchange, which it is already like that. So all in all, governments would tax it, and track it, and would be able to work with it. Thats how it could be.
It’s very understandable why governments around the world do not like bitcoin or private cryptocurrencies like monero and dash when you look at this quote by Henry Kissinger: “Who controls money control the world.” The government do not have control of the transactions made with bitcoins unlike fiat that is regulated by the government, Bitcoin poses a risk to their rule because it gives citizens the power to be their own bank and this may in the future cause a power shift between the elites and the masses.
Government always likes Everything must be controlled by them. Yes, it's pretty standard of a centralized organization to dislike a decentralized cryptocurrency over which they have no control. Because everyone's mind are the same, some governments, such as El Salvador, think in different ways. They believe Bitcoin is a potential cryptocurrency that will benefit their economy, so they have made it legal tender. Nonetheless, some governments are concerned about Bitcoin because they want complete control over everything.
I believe Bitcoin as legal tender will need a lot of years before it will be considered by the government. They need something to be controlled so that they can manage the risk to protect all the consumers of Bitcoin.
Are they really trying to protect consumers or are they trying to find a way to control bitcoin to protect their power? If everyone is using bitcoin and giving up fiat altogether, how can they manage us, how can they tax us? The bank is their ultimate power, they use it to manage us and find ways to take our money to serve them. And if we don't use the banks, and don't pay taxes, they won't be able to maintain their power. I think they ban bitcoin for their own benefit and not for the sake of the people.Those governments who knew what is btc are not scared with it because they know that it is not possible for all people to convert in btc and abandoned fiat completely but it is possible for us to remit our tax manually. Crypto exchanges and any other crypto services that we use, can automatically charge us for tax purposes as well.
It is a distributed system that makes it difficult for counterfeiters as well as creating other forms of payment. Unlike government-issued cash and gold, cryptocurrencies are completely decentralized and cannot be hacked by nature. I think it's good for the government to embrace this technology and change this game.
Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.
Given the unstable nature of cryptocurrencies, and their untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?
Recently, El Salvador and the Central African Republic announced that they have adopted Bitcoin as a legal tender.
Some countries are of the opinion that adoption of bitcoin will have negative effect on banks especially when bitcoin hodlers kept their coins in their wallet rather than saving it as fiat in a government own or commercial banks where taxes on any transactions is deducted to the government account which amount to huge sum of money earned consequently government revenue will decrease drastically, personally my savings is in form crypto kept in my wallet I only save small amount of fiat in my bank account for running cost of my family, imagine every other individual adopted this method of hodling cryptos invariably the government will lack revenue.
It plain to see why governments are scared of Bitcoin- it can disrupt the fiat game, which in turn could re-order financial systems, thus and probably the biggest fear, taking control back from the governments, meaning a loss of control.
Making Bitcoin a legal tender means when a person goes to purchase a commodity, instead of paying with dollar or whatever currency is being used, they pay with BTC.
Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?
If the state is afraid of that and does not accept Bitcoin as legal payment then why not make Bitcoin an asset on an equal footing with other investment assets.
Who are the governments? They are people like us that could think exactly thesame way we do in how we believe about something , i can't say that they aren't afraid of bitcoin but they are scared if the power in it which is the ability to remain ever decentralized as long as individuals cannhave their bitcoin in their own wallet, this will cauee them to loose regulations, power, incentives and control over the financial system as it has always been before now, things are challenges already and they had no option than to harvest on the centralized exchanges and currencies which are centralized but not with bitcoin.
Governments are in charge of monitoring affair of their countries this will not allow them to adopt bitcoin because they will not be able to have enough business transactions in the central bank,this will make the government loss since they are in control of central banks.
Bitcoin will reduce their tax generation in the since that bitcoin transaction is being made via p2p and no KYC is needed and will not be able to track or monitor every money transactions made by citizens. The government will also no longer have control over money regulation policy making them powerless.
Bitcoin will reduce their tax generation in the since that bitcoin transaction is being made via p2p and no KYC is needed and will not be able to track or monitor every money transactions made by citizens. The government will also no longer have control over money regulation policy making them powerless.
I don't know why people are so obsessed with the idea of Bitcoin as legal tender, and we saw that in the example of El Salvador it did not result in any mass application in that country. Bitcoin can be a completely legal means of payment without being a legal tender, which is the case in many countries and works quite well.
No democratic government is afraid of Bitcoin to the point of banning it, and those that ban it can mostly be categorized as dictatorial/communist countries where the authorities want to control every little aspect of their citizens.
OP, it's not like El Salvador made that decision recently, it's been more than 1 year.
No democratic government is afraid of Bitcoin to the point of banning it, and those that ban it can mostly be categorized as dictatorial/communist countries where the authorities want to control every little aspect of their citizens.
OP, it's not like El Salvador made that decision recently, it's been more than 1 year.
I believe Bitcoin as legal tender will need a lot of years before it will be considered by the government. They need something to be controlled so that they can manage the risk to protect all the consumers of Bitcoin.
Are they really trying to protect consumers or are they trying to find a way to control bitcoin to protect their power? If everyone is using bitcoin and giving up fiat altogether, how can they manage us, how can they tax us? The bank is their ultimate power, they use it to manage us and find ways to take our money to serve them. And if we don't use the banks, and don't pay taxes, they won't be able to maintain their power. I think they ban bitcoin for their own benefit and not for the sake of the people.
It’s all about control. Any government would love to have absolute control over its citizens. A controlled citizenry is every government dream. While the government, having little or no control over its citizens use and adoption of bitcoin gets them scared.
They want something they could control and regulate. Bitcoin isn’t having any of that and that fact makes them jittery. So they go all out to spread propaganda and false claims to get people to fear and avoid bitcoin. But as bitcoin adoption gradually increases, these propaganda and untruths are steadily being debunked.
It is very true as you said, the reason the government is afraid of bitcoin is because of control issues, because bitcoin is decentralized and bitcoin cannot be managed by third parties, so of course the government is very afraid of this, because the government's goal is to definitely want everything to be able to set under their control, the government also does not want to lose the tax revenue of its citizens. They want something they could control and regulate. Bitcoin isn’t having any of that and that fact makes them jittery. So they go all out to spread propaganda and false claims to get people to fear and avoid bitcoin. But as bitcoin adoption gradually increases, these propaganda and untruths are steadily being debunked.
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