Topic: Why Governments Ban Cryptocurrency {Bitcoin} - page 3. (Read 796 times)

There are many reasons why a country bans Bitcoin, and most countries don't want to bring these reasons to the public. Some governments think that if Bitcoin is allowed in their country, they will not be able to control their country's economy, while some countries' governments think that if Bitcoin is allowed in their country, people will deposit their money through Bitcoin instead of keeping money in banks, which will result in their country's money going out , while some countries may ban bitcoins in the country considering their country's education rate. For example you mentioned China and Russia here, I know you all have very good economic condition of China and Russia, why they are not allowing Bitcoin in their country despite having good economic condition, there may be some reason behind it. Maybe they don't want another currency to rule their country. 
Different countries generally play different roles in banning Bitcoin.

The main reason why government are against Bitcoins is the decentralised nature of the coin. Due to the decentralised nature of the coin, no governing body or other individual can know, how many Bitcoins a user is holding. As government cannot control the coin, hence they cannot impose tax on it. Now in such situations, many government gets offended and they ban the cryptos in their respective nations. Some government have neither made Bitcoins legal nor made it illegal.

I agree with you on what you said that governments don't want their citizens to use bitcoin instead of banks or fiat. But I disagree with you and the OP in saying that the government knows nothing about bitcoin. Maybe the president and politicians won't know about bitcoin because they have thousands of things to worry about but they have not just one but thousands of consultants and experts in every field working for them. It would be naive to assume they would introduce bans or regulations without knowing anything about bitcoin. I bet the government understands bitcoin better than you and I, let alone the fact that they don't understand how bitcoin works. If they were more stupid than us, they wouldn't be able to lead us.

You already answered yourself. First, some country's government doesn't even know how it works and why it's good for people. Even if they know, they want their people to use bitcoin because they will miss a huge commission. If their people use alternative methods like banks and other financial services, the government will get a commission from each and very transaction while bitcoin does not provide any commissions to the government. The government won't be able to control people's money. They won't be able to use your money whenever they want. Bank does business with their customer's money. It's like frying a fish with it's oil.

There's only one reason to consider banning Bitcoin, and that's if a government doesn't like it. Because if they do appreciate Bitcoin, they'll find a way to regulate it. It's really a choice between the two – either ban it or regulate it.

While some countries have chosen to ban Bitcoin, it's essential not to worry too much. Many countries have opted to regulate it, and that's a reason to be optimistic about Bitcoin's future. Governments that currently ban Bitcoin may change their stance in the future, especially when they see the widespread adoption and the potential for tax revenue. After all, Bitcoin knows no boundaries. When properly regulated, it can lead to economic improvement in a country.

We're in the digital age, and even in economically challenged countries, people can find online job opportunities and get paid in Bitcoin. This can be a solution to address unemployment and underemployment issues. Countries willing to outsource jobs can save on costs, and at the same time, they can benefit the poorer countries where the cost of living is lower.

Governments should consider these opportunities, rather than simply banning Bitcoin because they don't like it. Banning it would mean depriving people of a chance to improve their financial well-being and contribute to overall economic growth.

Some governments have given reasons to protect their citizens from scams and they decided to ban bitcoin, but is that the real reason or just an excuse? Because have they really stopped all the scams involving fiat currencies? Even without bitcoin, scams still happen every day and why haven't they solved it yet?

They banned it because it was uncontrollable and they feared their power would be shaken if bitcoin became popular and widely used, there is no second reason for them to ban it. It's all just an excuse because bitcoin is too perfect to find weaknesses. Bitcoin creates decentralization and promotes privacy, and that goes against the government's policy toward its citizens.

Your concern about governments banning bitcoin to protect citizens from scams is real. The criminal element has tarnished bitcoin's image in the eyes of many governments and their citizenry. Please be honest. Scammers will take any opportunity to profit, but should they obstruct technical advancement? I doubt it.

Bitcoin's decentralization does strip governments of some authority, but isnt that its essence? Bitcoin was created to empower individuals without intermediaries. Some governments may see this as a threat to their power. One needs to wonder if governments are actually serving their citizens' best interests or merely resistive to change and afraid of losing control.

Control is one thing that the government wants from us. They can't control Bitcoin and no way they can access its utmost core.

This is why some countries are outright banning and outlawing BTC and cryptocurrencies. Like they're declaring them as illegal and any citizen who is involved may get punished for doing so. But this won't stop them from keep doing BTC transactions even on the underground like using VPNs, etc.

But some countries like El Salvador are accepting it as open arms and is already making BTC as legal tender.

There are also countries like the Philippines where they are crypto-friendly but on a grayish area where the Central Bank is just acknowledging and regulating BTC and other cryptocurrencies.  

I don't see that we differ in opinion much. These legislations that prevent use actually exist, but what is missing is how it will be possible to track these activities if they are not linked to central platforms or in a direct relationship with any commercial activities, for example. People will be afraid of going to prison or paying for their sins, and some will give up on the whole matter and some will look for alternative plans. Without connecting to any central service, whether company or platform, there is nothing to be afraid of.

There are several reasons why government would want to ban bitcoin or already banned bitcoin and these reasons differ from country to country and maybe I will have to speak for my country and one of the major reasons why the government has decided not to identify with bitcoin is because of the risk of its citizens getting scammed by those online hoodlums who always get people scammed through bitcoin and this singular act of scam has already painted so much wrong image of bitcoin already and the government has already warned all banks and the cbn from getting involved in any cryptocurrency transaction.
And another reason is the fact that bitcoin is decentralized and if accepted, will be very difficult for the government to country or have dominance or its citizens hence they’re doing really hard to fight and I think they already have wrong advisers around them .

The very main reason why I believe some countries have negative approach towards bitcoin is that this market is decentralized.
So the government has no hold or no control on this currency and that they don't want to deal with such uncertain market.
Also, the point that most of these officials up until now are not really educated to this market, hence, their hesitation to include this in their financial plans.
So I guess, learning this market will give them more insights and be more open mind as this market will continue whether they will participate or not.

If this is the reason, government should have banned fiat currency because there are more events where people got scammed in this form of currency.  I don't think it is about protecting their people.  I believe it is about the control and the implication it will cause to their economy  and profit.

I believe the government is more knowledgeable than the average Joe when it comes to Bitcoin knowledge but they can't just simply approve it to co-exist with their national currency because of certain grounds.  The high volatility and the unable to control the source of the cryptocurrency.  We all know that the government hates anything they can't control and often tag them illegal.

The government can do whatever they want to do, especially with businesses, whether they approve it or not, as long as they benefit from it. Of course, they will prioritize their personal interests over the benefit of the government.

And any government will not really agree if they have no benefit to gain from it. Especially since they own it. But this kind of behavior by the government is normal, so many countries have banned Bitcoin, and eventually they also revoked it because they realized that it has benefits for their country.

Bitcoin's decentralized nature doesn't prevent it from evading bans. A government can force people not to use bitcoin and they can discourage people by implementing criminal charges against its users. Despite these some people will use it but most of them will turn away from it. No one wants to go to jail by any means. The government doesn't need to be 100% successful to force their people not to use bitcoin to be successful. If most of the people stop using it out of fear of imprisonment that will be enough for them.

I have a comment associated with the title ; I think that using the word “Ban” is not appropriate, terminologically or linguistically, because no one can do that theoretically or practically. Bitcoin has decentralized characteristics that do not allow any central authority to make a decision about it. It is not an application stored on a server or a company that can be disagreed with or asked to stop its activities in a certain area. Governments are well aware of this, and therefore they can impose sanctions on anyone proven to use Bitcoin for exchanges, but they cannot completely prevent him from using it, and it also makes it difficult for them to monitor him if he uses his own wallet.

And that what makes it really that invincible or something that government couldn't really be able to touch up completely nor really that be able to control and thats the main beauty of it and this is why it did really get that much attention and support here in the community. We do really know that it wont really be that something that could be fully controlled by the government and everything that opposes governments preference would really be that something that their main concern and needs to be deal out.This is why they would really be focusing on touching up crypto space via with those centralized applications on which they would really be able to touch up themselves in speaking to this.

There might be some places on this world which recognized Bitcoins existence but most of them would really be totally going against with it which its not really that shocking.
Good thing that despite of those restrictions and even banning, the community stood strong and do really be able to see that there's really that a huge support
and recognition on which it is really that something that they would really be that really be against with.We know that anonymity and decentralized things isnt a government thing.

Not all in general for the governments. But that's one reason why they don't want to legalize it at least for those that don't really like it.
But there are countries and its governments agrees to just let it pass and let their citizens don't have any trouble in using and investing on it.
They don't want to block the progress of the thriving Bitcoin market to their country because they have got citizens that are into it and that's the type of the government that we all wanna have.

I don't believe governments are dumb, they know exactly what they're doing. The government knows more about stuff than you. Most of us believe they don't understand Bitcoin but I don't agree with that. They know that Bitcoin stands against their core power: control.
It's very easy to control people if you control their financial lives.
The government wants to be in control of everything.

If Bitcoin was a coin made and controlled by the government they'll be accepted as legal tender by now. This is evident in the fact that they created their own CBDC. If they were totally against crypto there would be no need to create their own digital coin.

They say Bitcoin increases internet fraud and scams, these are all the excuses they use to justify their actions. Why didn't they ban the internet, why didn't ban phones and computers?

I don't think everyone needs government approval to use bitcoin as a means of payment, but of course it can't be done openly. As long as transactions can be carried out anonymously between two users using bitcoin, then you can always use bitcoin as a means of payment even if your government does not legalize bitcoin as a means of payment.

The government is certainly afraid of the impact of bitcoin adoption on the superiority of its centralized financial system, which is understandable. Many people would abandon the centralized financial system if the government had adopted bitcoin as legal tender, especially for everyone who understands bitcoin and its innovations.

You can said bitcoin is been banned in some of the countries you listed but people living in those countries are making use of bitcoin, so if people living in same country where government announced that bitcoin has be ban is still using bitcoin what can you think about that?

That is to say that government of that particular nation deprived people their choice of monetary transactions and other kind of living, so therefore government of those nations just restricted the banks from bitcoin, because bitcoin  cannot be ban by a particular nation because bitcoin is not centralized currency, it's when bitcoin is centralized when a particular government can have access to sealed a centralized environment where bitcoin been transact.

But it a decentralized currency in which it's obvious that you can't ban bitcoin but you can regulate it and also restrict bitcoin in your country through the country world ban..I could remember vividly when bitcoin was not been restricted in my country, exchange of bitcoin do take place directly from the bank because as of that time bitcoin is been trade directly in my country central bank, but right now we are making use of p2p since it has been restricted.