Topic: Why Governments Ban Cryptocurrency {Bitcoin} (Read 809 times)

I really struggle to see how the declaration from the former European central bank president can be taken seriously since there is a clear conflict of interests in this case, it's like asking someone who sells petrol or coal what the thinks about electrical car, and of course it works also the other way around. Fiat money is a joke, they can just print as much as they want and they have total control over it, with bitcoin they can't do that, so of course many bankers/institutions are against it, but they're too late now.

If it's only because they will lose financial gains if they approve Bitcoin, then there are ways to make money even with legalizing Bitcoin. Indian Government approved Bitcoin transactions as a legal and implemented tax on their financial gains. Many governments can also do this if they want to make money from Bitcoiner's profit. The Romanian government approved Bitcoin transactions as legal as well, and they also implied tax on financial gains. But when controlling your money, there is no point in supporting Bitcoin or any other crypto.


We both agree here.

[/quote]

• they see bitcoin and other cryptocurrency as not trustworthy, as the value changes.

The truth is that cryptocurrencies are still in their infancy and its impossible to predict how they will evolve overtime. The greater the dominance of Bitcoin, the more fearful the market is and the lesser the Bitcoin dominance, the greater the crypto market becomes. It cannot be regulated, it is used by criminal, and it can help citizens circumvent capital controls; is amongst the greatest challenges facing government about Bitcoin. Twelve years ago after its inception, the world is still deciding what Bitcoin does as well as how it should be classified cos there have been lots of complications.
    

You're absolutely right! Governments often oppose things that don't align with their interests. Bitcoin challenges the traditional banking system, which can be seen as a threat. Instead of embracing its potential benefits, some governments choose to ban it. However, Bitcoin has the potential to positively impact economies. For instance, it can create opportunities for self-employment, reducing unemployment rates and boosting a country's economy. It's a shame that greed and ignorance sometimes cloud the judgment of governments.

What makes the government powerful is the control they have over the citizens and the country; the most visible one being economic power. Whenever that control is threatened, the government always try to resist.  Bitcoin is known to limit this controls by eliminating several means through which the government exerts this control forces such as the banks and other third parties. We should not expect the government not to react because they will.

One thing that is certain is that you cannot ban what you cannot control,  there will always be a way people trade in Bitcoin. Ban will only slow the spread but cannot stop people from trading in Bitcoin.

If you are talking about local exchanges, including Bitcoin in local exchanges is at the discretion of the exchange owner, the government only provides regulations on how it is used and the government applies taxes on trades that occur.

and Bitcoin as a currency maybe some people have different opinions.
If it is said to be a currency it will be used as a legal transaction tool, but some government regulations such as the government in my country do not allow Bitcoin to be used as a payment currency, only as a commodity or for trading.

Bitcoin does have real value, providing benefits from trading activities carried out.
But to become a currency, a means of payment is still quite difficult because it is hindered by regulations that are not in line.

It is not that they don't understand Bitcoin and its technology, it is that Bitcoin is not aligned to the government's vision of having authoritative control over everything.  Since the government cannot control the Bitcoin network, they try to restrict or regulate it according to what is written on the law.


Bitcoin is included on the exchanges because there is a demand and some governments agree and or tolerate it to be included on these exchanges.  About Bitcoin being money, it has been long debated but there is no doubt, after all these years, Bitcoin has established that it has real value.

Well, as long as bitcoin is decentralized, they can never manipulate or take full control on its market. That is the main reason I believe that they don't develop or encourage themselves to understand bitcoin well. They assume that bitcoin is a tool for criminals and something like bitcoin has no place in the government or in the lives of the people.

 But in reality, the opposite actually happens. Even if they continuously put restrictions on using bitcoin or some countries have banned it, it seems bitcoin is not even triggered but has even flourished and becomes the choice of the people more than fiat currency. And if promotion will continue to spread worldwide, I guess by that time the government will definitely lose its hope to navigate or manipulate bitcoin based on its own personal interest.

Every government has probably their own reason why they ban bitcoin, but one thing is certain is that they can’t totally control bitcoin and all its transactions, due to its highly decentralized nature. The reason why some countries chose to regulate it instead of banning hoping that it could be centralized in the future.

However, the good thing about bitcoin is that no matter how the government dislike its existence, or even if they decide to ban it for good, people will still be able to continue operating bitcoin and continue its accumulation. The fact that it remains decentralized up to this moment, then people can still enjoy the freedom that they want to obtain out from a very controlling government. Financial freedom will always be possible as long as bitcoin stay out of the shades of the government.

If there are countries that hate Bitcoin, it's because they see that they can't get any benefit from it. And if they say that bitcoin is not real, that is their assumption. Those people are considered to be highly educated, but they do not understand the deep concept of Bitcoin.

It's good that only the simple ones studied; they understood the simple context or concept of Bitcoin. For me, it is true that bitcoin is not a physical currency, but whale investors have given it a value in which it is not real money but can be exchanged for real money. It's just common sense; if it's really fake, I hope it's not included in the stock market or forex trading because it's all fiat currencies. Think about that: is it right or not?

Bangladesh's government's hasty actions in areas they dont understand are painfully obvious. Crypto, which is decentralized, terrifies these authorities because it may escape financial rules. Money laundering worries are real, but why not tighten laws instead of banning it? Through stringent regulations and oversight, several nations regulate cryptocurrency for financial security and prosperity.

Bangladesh is suppressing financial innovation and driving its citizens into perilous seas by banning crypto. With a restriction, people become more clandestine, resulting to the unlawful transactions the government fears. Sinister cycle. Instead of embracing cryptocurrency's potential and educating its citizens, the government is stifling innovation. Unfortunately, fear and ignorance cause family and social divisions and economic disadvantages.

I'm not saying we need to convince them. Why do we try to persuade or argue with someone who knows everything but they deliberately ignore everything? I mean, the government knows all about bitcoin but because of its characteristics against them, the government cannot accept it. If they accept and allow people to use it widely, they are stupid because then they will lose power, control, and large tax sources...The government needs to put its own interests first before thinking about the people.

As I said before, this is exactly why governments don't want to accept bitcoin so they won't be stupid enough to accept bitcoin and accept losing control.

Government ban cryptocurrency in our country beacose they know what happened in inside our country. The main reason or ban crypto money laundering. I belong from Bangladesh and you all know what is the financial issue of Bangladesh and what happening in this country. If cryptocurrency legal in Bangladesh then the money launderar will use the source for laundering. That's the main reason of ban cryptocurrency ban in our country...


There are many countries in the world where crypto is not legalized at all.  This is a stupid act. Our country is no different.  In our country too ,if caught by the administration regarding illegal crypto transactions, it is charged as a heinous crime like money laundering.  Those who are associated with the crypto market are basically acting like thieves because there is no sympathy for our country's legitimacy.  Because they know that they can be punished if they are caught by the administration.  For this reason, those who know from the family what kind of punishment can be if they are caught from being connected with the crypto market.  Because of this, they get away from work causing many family problems.  But who will convince them that crypto can bring a bright future.  There are many countries in the world that have complete legitimacy on crypto and there are many from those countries who are successfully making a living from crypto.  Our country's crypto legalization is a dream of lakhs of money.

They don't attack bitcoin and they attack altcoins and centralized exchanges because there is no point in attacking bitcoin because there is no one in charge, bitcoin is decentralized. Meanwhile, altcoins and CEX are centralized by leaders and operators so litigation and sanctions will be easier.

As for the issue of bitcoin consuming a lot of energy and polluting the environment, that is just an excuse for them to smear bitcoin. But eventually they realized that no matter what they said about bitcoin, people wouldn't stop using it, so they kept quiet and silently accepted bitcoin. I also believe that in the near future all governments will accept bitcoin, bitcoin will be popular all over the world.

I believe most government are already doing that but it’s hard for them to come out to the open and publicly embrace it, I don’t see much of a direct attack from many government now are days what I have been seeing is government and it’s regulatory authority attacking altcoins and large crypto firms like big exchanges this is as a result of them figuring the market manipulation that those exchange are doing and the kind of fee they are taking which the government are just after their tax and other licenses fee payable.

Looking at things now even the high energy they claim bitcoin was consuming and was causing a damage to climate has also been less of a topic now are days as it’s make use of more less energy and has no negative effect to any climate, with time we will see many government publicly adding bitcoin as part of the general accepted currency for local payment.

During the early days of bitcoin, many people held so many negative options about bitcoin. Some said;

• It is a bubble that will burst soon 
• It is a Ponzi scheme
• It is a scam
• It cannot be a currency because only government issues a currency 

And many more things. I do not actually blame them because bitcoin was completely new and strange, but if people still hold same believe about bitcoin today, I will say that they are wrong and somewhat gullible.

Well to be very honest why would any government not ban cryptocurrency? They all are aware that cryptocurrency can’t be regulated and will be helped to fund shady organisations across the oceans. Although the government themselves might be using the same currency for their own shady transactions.

I know not everyone will believe in bitcoin but this is exactly what I expect from such people and if i was in in his i will also be against bitcoin something that will make my company become irrelevant. They are pained about the creation of bitcoin and because of its features which are against the regulations of the government, they are worried that one day it may become more relevant to people than their fiat so they are trying to do everything in their power just to condemn bitcoin.

Exactly, Bitcoin’s features makes it more suitable for people than their currency and also has so many advantages over fiat that’s why they are afraid of it. Bitcoin is so powerful that it can render fiat currencies useless that’s why most countries doesn’t want to legalize the use of bitcoin. The Government already knows alot about bitcoin so they are doing all they can not to make any mistakes to let bitcoin takeover.

This is the major reason why the government is scared of bitcoin, people have suffered so much in the hands of the government they come up new regulations every now and then which is always in their favor neglecting the effects it will have on the people. People lack freedom over their own hard earned money and they even monitor the way people spend their money which in my opinion is bad.

Kudos to Satoshi for thinking of a way to solve this issue people face regarding their own money. Decentralization have done it all with bitcoin we now have total control of our money

I don’t think that’s their first thought, they are only their own personal gains and if you say preventing people from scam is their reason for going against bitcoin then i would disagree with you because scam have been in existence long before bitcoin bitcoin was invented. Read here when the first case of scam was recorded so why don’t they focus on preventing fiat scams that have been in existence for long.

I think that's not the only reason, but it's also a factor why some countries wouldn't acknowledged Bitcoin since criminals could use it in any illegal activities such as transferring money, of course government can't access the information since Bitcoin is decentralized. We all know that government is smart, as they have the capability to adapt and learn such thing like crypto, imagine they are running for a long time, so a simple technology that even an average person could understand wouldn't they interpret?

This issue of government banning crypto (Bitcoin) really depends on the country, especially countries that are relying on their own currency, cause it could be consider as threat that might affect the economy. Plus they couldn't control it as well which they can't put taxation for them to benefit.

Bitcoin is arguably the best form of money because it's decentralized and not controlled by any centralized authority. This is the reason it is branded illegal because it's a threat to fiat. The government is constantly sponsoring propaganda against bitcoin, feeding people all sorts of lies hoping that it would cripple it grow but bitcoin keeps soaring higher. We've heard lies like bitcoin is the currency used by bad actors, but the US dollars is still the most laundered currency in the world. As if that's not enough, the government are now coming up their own CBDCs, but the truth is they cannot stop bitcoin.