Topic: Why Cryptocurrency threatens governments - page 20. (Read 19868 times)
For me, cryptocurrency can threaten governments because bitcoin has more remarkable features than fiat and it has a chance to replace fiat in near future
When everyone uses cryptocurrency to trade, the government will not get any benefit, the tax can't be collected, and the government will go bankrupt because of the cryptocurrency. So the government will definitely cooperate with the cryptocurrency.
Because cryptocurrencies are decentralized, governments will struggle to control them. If all of us use cryptocurrencies, it threatens their country's currency. That's why the government is against cryptocurrencies.
Many states have already legalized the crypto currency, but made it property, not a means of payment. But this did not affect the work of bitcoin. Difficulties in working with crypto-currencies arise only in those countries that have banned the use of crypto currency.
This is the reason why there would always still be demand for fiat until maybe we get to start seeing real life usage and even at that, it does not necessarily mean every part of the globe will immediately just switch to cryptocurrency, and even if they do, the government with some regulations in place will still always benefit from it, and so at the end, it still remains a win-win situation for both the government and the users. They might feel threatened, based on the idea of control, but we all know there would always be a way around one way or the other. 
According to me government thinks that cryptocurrency will disturb the economy of their country that why they are afraid of cryptocurrency.They think that cryptocurrency will affect the economy upto that extent that ones it get disturbed it can never be recovered easily.Moreover their is no central management to control the cryprocurrency when threatens the government more.
That has not happened anywhere in the world, the only places in which cryptocurrencies are very influential are in countries that are in a terrible economic position and in which people are using everything that they can just to survive, in those circumstances governments should see cryptocurrencies as a good thing because it helps the people and yet we see that the most strict regulations come from those countries. 
After all, governments are very tightly connected with banks, and the latter, in turn, can not control the crypto currency, which is becoming more popular.
Government cannot control the cryptocurrency like fiat. Fiat is controlled by government that's why government afraid to accept crypto. If all people are use only crtpto means its a great loss for country. Economically the country would suffer a lot. Many countries now legalized rypto with some rules and regulations to avoid illegal activities.
Cryptocurrency is made for the people, they are the one to control the demand and price.
Unlike Fiat, the government is the one to control the supply.
Cryptocurrency has its supply limited.
this is why government afraid of crypto.
Unlike Fiat, the government is the one to control the supply.
Cryptocurrency has its supply limited.
this is why government afraid of crypto.
The government is used to controlling what is in its power, and the crypto currency is not in its competence and it does not like it, as it loses a lot of money that is invested in other countries.
It is simple, if government officials were corrupt-they would take cuts and and bribes from merchants and other establishments that do illegal activities such as money laundering and other related to illegal money transactions. If those illegal activities would stop they are going to have none. It's business for them to stay at their position and make the most money out of it. That is why we need trusted officials in the government-they are the seed of evil and they need to be cleansed first. Crypto is a decentralized system and none other governments holds it, therefore its hard for them to control.
I guess you can read it in this forum that some people made a nice point. Basically, people invest on crypto currency from a national currency then once the user exchanges it back to fiat in a much higher value, the government doesn't get any tax from it but losses a great deal of fiat in the process accross alot of users.
Yeah you are right and the other reason is that people take off their money from their country to invest in cryptocurrency. It is a big deficit for a country that their reserves are reducing by this way and it threatens governments the most. Due to decentralization of cryptocurrency government has no benefit of its investment and that’s the reason that many governments in the world has banned cryptocurrency Over the years cryptocurrency has evolved into a global currency but governments are trying to sweep it's relevancy under the carpet. We all know that the eyes of the community are now opened to the importance and blockchain technology.
What baffles me is why are the government making lives difficult by banning or limiting it's use? Is it because it threatens the political power or are they scared it will improve the global economy or force the traditional banks to reduce their ridiculous interests rate which we have been robbed of for decades now.
What is your take on this and what do you think will make governmental bodies to finally accept crypto?
I think it makes the government feel limited about control. They can not manage transactions. Is it legal? And that has caused security concerns. In fact, there have been many cases of money laundering or illegal trafficking with Bitcoin being discovered and that fear is well founded.What baffles me is why are the government making lives difficult by banning or limiting it's use? Is it because it threatens the political power or are they scared it will improve the global economy or force the traditional banks to reduce their ridiculous interests rate which we have been robbed of for decades now.
What is your take on this and what do you think will make governmental bodies to finally accept crypto?
You probably answered already what you are asking for. Governments tend to prevent cryptocurrency because they are afraid that it can replace banks or fiats. Bitcoin is anonymous and cannot controlled even the government. They will not gonna legalized bitcoin because inflations are always associated with it and it may just boost up some government issues.
using blockchain, it will reduce the number of employees, so that it will increase unemployment, and i don't think every country is ready to accept crypto like other developed countries 
Simply because governments like to have complete control over everything in our daily lives.
This is one reason among many reasons why the advent of cryptocurrency is a threat to majority of the developing countries. If we see the trend of growth of cryptocurrencies in the developed countries, it is swift and normal for the governments to tackle the challenges posed by it but in case of the developing countries-majority of which are already in financial crisis-the advent and implementation of crypto system in the economy can disturb the existing system whose policies have been built around fiat. the government wants everything under their control
whereas cryptocurrency is economic freedom
and of course that is not in line with the government's vision
Everything has always been in their control right from the onset, and I am sure they would not want that to change for anything. It is more like you being in control of something and they you see something that wants to take the control away from you, won't you feel threatened? whereas cryptocurrency is economic freedom
and of course that is not in line with the government's vision
However, there are certain times when you will just need to understand that the world is evolving, things are changing, and the best is just to accept in a way whatever it brings and I hope the governments all over the world can realize this.
Maybe the presence of a cryptocurrency can threaten the existence of fiat, in my opinion, we take the example of US Dollar, almost all trade between countries using these currencies and the dollar circulates in almost the entire world, causing the dollar value is exceed almost all currencies in the world. Then, what happens when almost all trade between countries uses cryptocurrency, Bitcoin for example, then the circulation of Dollar in the world is drastically reduced because there is no demand, resulting in a drastically fall in the Dollar value. And surely many conglomerates will not want that to happen 
Yeah, but at the same time we also have to understand that in reality, to see everyone globally making use of cryptocurrency may not be that easy. Nevertheless, I understand that with this in play, this would make the need for USD for international transactions dropped rapidly and then we see a lot of people who understand the benefit the crypto world brings, hopping into it. Can this be allowed by the government, probably with regulation, but we all know governments will never want to give up control and that threatens them a lot.
You probably answered already what you are asking for. Governments tend to prevent cryptocurrency because they are afraid that it can replace banks or fiats. Bitcoin is anonymous and cannot controlled even the government. They will not gonna legalized bitcoin because inflations are always associated with it and it may just boost up some government issues.
The Internet has been a tool for freedom before, but now there are a lot of restrictions on its use, and this will happen to cryptocurrencies.
No it won't. If they fail to control bittorent they will definitely fail to control Cryptocurrency.. Cryptocurrency is more decentralized than BitTorrent.
Internet is not a good example. It is very centralized Cryptocurrency isn't.
We should be very worried Howevery . We should be worried because they could totally control/regulate the Internet in order to capture Crypto World. The desperation is there already.
. Torrent has always been like the first decentralized way of sharing files and that is one thing they have tried to want to get rid of, but as long as things remain decentralized, that would always be a hard thing to achieve. Moreover, I do not see any reason why we need to be worried if they feel threatened; as I believe the ability to control the internet would be something that could not be that very much possible, unless there is something I am missing. Highest we would see is regulation and that would be subject to fiat conversion most of the time.
if a government is not allowing crypto and they threatens there should be some reason behind that like in few months i have seen a report in which one country have criticized bitcoin because for it's virtual nature and many says that it is used in terrorism but on the other side if we look it is the development of technology and those who are used to it they are accepting these.
Its a threat because they cannot control it, since bitcoin is decentralized, usually people and government control bank's in and out of money but with bitcoin they cannot simple even see the exact amount of it and cannot interfere with it.
Jump to: