Topic: Why the disagreement between the Government, Bank and Bitcoin? - page 3. (Read 442 times)

Disagreements among the government, banks, and Bitcoiners stem from various factors. Financial institutions express concerns about Bitcoin's volatility, its decentralized nature, and the potential for illicit and untraceable activities. Bitcoiners on the other hand, views these criticisms as a resistance to innovation and as a way for the government to have control over the financial system. The relationship between Bitcoin and traditional institutions is evolving, with some institutions exploring the blockchain technology. i believe an open dialogue and collaboration are essential for understanding the benefits and risks of cryptocurrencies, such as Bitcoin.

OP, the answer is actually very simple :

Governments control the supply of all currencies and by doing that, they control the economy and the people in their country. So Bitcoin takes the control away from them, if Bitcoin replace fiat currencies and they want to prevent that at all cost. Governments can also monitor all transactions via Banks to track people's wealth... and for tax purposes.

The Banks on the other hand wants to make profits by over charging people on transaction fees and Bitcoin takes away some of their customers and they hate that.

Bitcoin are breaking the control that Governments and Banks have over people and they cannot handle that.

Don't compare Bitcoin to electricity and internet. They cannot be compared, since Bitcoin(the blockchain) is built by using electricity and internet. You can't mine Bitcoins without electricity and you can't use Bitcoin without the internet.
The governments are against BTC (not all of them) because they view it as an enemy to the fiat financial system(and the upcoming CBDCs).
This perspective isn't true, because we can see that Bitcoin/crypto isn't destroying the current fiat system, both fiat and crypto can exist without any problems, so this "crypto vs. fiat" antagonism is kinda fake(even though all crypto fans like it).
Maybe sooner or later all governments and banks will reach to the conclusion that this "crypto vs fiat" collision is fake.

 

Most media or newspapers always give negative publicity about Bitcoin. That is, who has done any scam through Bitcoin or what people have misused with Bitcoin, this type of news is usually always broadcasted. As a result, various government officials, including common people, always have negative thoughts about Bitcoin. But if this bitcoin is accepted by different countries then it is possible to do a lot of good work through this bitcoin. We need to get over the negative hype about Bitcoin. If we think about the positive aspects of Bitcoin and plan accordingly then it is possible to change the financial situation of different countries through Bitcoin.

There is no disagreement. There is war between these three entities. The reason is very simple. While Bitcoin gives the power back to citizens, banks and governments are more willing to control the power at their end. So there is obviously a conflict of interest amongst them. No government wants to loose the power to control the citizens financial matters. But with Bitcoin, they can't control it anymore. That's why government are furious about it.

Decentralisation has its own benefits which cannot be fathomed by the controlling authorities.

Is Bitcoin such a formidable threat that banks react with apprehension towards its existence? Yet, if we delve deeper, as illustrated by the OP, where electricity is supplied and regulated by the government, internet access is controlled by the government, and both the government and banks can potentially benefit from Bitcoin.

Banks can offer custodial wallet services for cryptocurrencies, which, of course, would not jeopardize their position as the reigning lenders in the country. People would purchase Bitcoin with fiat currency, and the control of their wallets would be in the hands of the banks. Although this contradicts the concept of decentralization, at least Bitcoin would become more mainstream and recognized by the wider population.

In doing so, banks would reap profits, and on the other hand, society would also gain awareness and education about Bitcoin.

Volatility and scams will be resolved quickly if they get bitcoin under control, so that's not really a problem. And you are right, decentralized, non-control is something they will never accept or support bitcoins. But given the strong and unstoppable growth of bitcoin, they will soon accept to some extent is a certainty. I believe all governments will soon accept bitcoin, but accordingly, there will be a series of regulations to oversee it.

Make sense, I agree here because people will become curious once they hear every time about Bitcoin. And Bitcoin will get the attention most of people. As more people are aware of Bitcoin, they will start to see how Bitcoin will help their daily lives, especially in finance.
This will put pressure on both government and banks. And later on, banks/government will "If you can't beat 'em, join 'em".

 Its going to be a battle for a long time and up until theyget every last bit of BTC I guess.

They've already tried the ESG and all it just need is to ban BTC and mining as well. Unfortunately situation will be tiricky because of the multipolarity. If US government banning crypto, the otherside of the world will take advantage of it like China is doing, opening its door allowing their citizens to invest in crypto.

Bank and government will just have to leave it this way.

Bitcoin doesn't fight with the government and banks, on the contrary, the government sees Bitcoin as a threat to them because when people use bitcoin, the government can't control everyone's wealth. When the government cannot monitor the transactions of every citizen, the government cannot collect the taxes they need. Meanwhile, the bank will be a stopover for people who withdraw their bitcoins and send them to their bank accounts.

If a lot of scams in the name of bitcoin occur, it is because people are too greedy or tempted to join such programs and not seek more information. And from the frauds that occurred, the government then concluded that bitcoin was only for criminal activity, not to mention the problem of money laundering.

It's not just because of volatility, fraud, etc. that some governments and banks are against Bitcoin. There are more fundamental reasons to it. Decentralization, for instance, is something the governments and banks don't like. So even if Bitcoin isn't as volatile as it is today, we should expect the same unfriendly treatment.

The truth of the matter is that they can't control Bitcoin so they're mad at the technology. This is the truth. Whatever they say is just their own way of attacking Bitcoin subtly, in a way that won't give them a bad name.

To answer your question, since Bitcoin is legalized in the country, the government will tax it. When people transact bitcoins from the place where the tax is determined, the tax will automatically be deducted according to that percentage. So in this case I see that Bitcoin transactions are definitely profitable for the government. Assuming bitcoin is legal in your country, the government will tax it at 35%, then if you trade bitcoins from your country, you will deduct 35%, so in this case the government will have a profit here. But Bitcoin cannot be regulated by the government because Bitcoin is decentralized and completely out of government control. Because of this disadvantage, the government considers Bitcoin dangerous.

If I were you, I would not jump into conclusion because bitcoin may not or may be accepted by the government and banks. It is just a matter of time recently I saw a news on bitcoin magazine on Instagram quoting a post from Twitter talking about the US presidential candidate "Robert Kennedy Jr to become the first presidential campaign in history to accept Bitcoin lightning payment. So your assumption that government and banks will NEVER agree with Bitcoin is wrong.

The fact is bitcoin violated the definition of government, According to a Russian- American political scientist, David Easton, defined government as an agency that derives the will and affairs of a state. Which means the government is supposed have absolute control over everything but Bitcoin is the opposite of that ideology. I believe Bitcoin will be accepted by the government and submit to it as far as we are consistent with Bitcoin

It is too much of an illusion to say that governments and banks will submit to bitcoin. Government and banks don't need bitcoin, conversely, without government permission and don't use banks, how can we participate in bitcoin investment? A 14-year-old asset with a market capitalization of only 500 billion that wants the world to obey him? I am a bitcoin investor, but I need reality to assess the situation to benefit myself financially. I don't want to live in illusions and stupidity.

So that's it, the conflict is more fueled by seeing the shortcomings of the two where they can can neither tolerate nor be able to deal with.
Even a bitcoin maximalist cannot be classified as a bank hater (neither do I believe in speaking they don't have a bank account), they don't necessarily hate banks at all. In fact, they may share some financial aspects to remain subject to the law or completely independent, and that is part of the legal rights of every free person that the government should understand that limitation.

SatoPrincess I agree with you. I think it is a big win for the government because they have succeeded in painting bitcoin black in the eyes of people even though not everyone believes in their lies of calling bitcoin evil because of their inability to have total  control over bitcoin users and regulate the transactions made by them.Personally,  I also think the government can only limit people from using bitcoin by not adopting it but they can't force her citizens not to do transactions if they are wise enough to speak out on what they want and how they can't be regulated on how they should spend their money. The government can only submit to bitcoin and allow everyone to use bitcoin if they find a way to monitor the transactions of all users which is not possible or the value of fiat which is generally accepted by the government is equal to zero which I don't think can be possible except that the government will still find it difficult to generally accept bitcoin rather they will keep spreading rumours on how bitcoin is used by criminals, drug dealers and money launderers as if all this evil acts has not been done using fiat currency which is the most accessible and well known currency all over the world.

why would the government and banks submit to bitcoin? I think I need to put things like this:

1 - what would governments gain from bitcoin? the answer to this question: it is nothing, governments would not gain anything from bitcoin

2 - what would banks gain with bitcoin? the answer to this question: it is nothing, governments would not gain anything from bitcoin

governments make money from the taxes that people pay and these government officials own banks, ganks make money from the high interest loans they keep giving people, governments have created laws and rules that force companies to have to putting people's salaries in the banks and with that, the way was opened for people to have no choice, they are forced to use banks, to have to do kyc in the bank and declare any amount of money that is too high to enter the account from the bank

the banks have profited a lot and as i said the owners of the banks are government people, so these guys don't need bitcoin for anything, they will never submit to bitcoin because they have their corrupt scheme that gives them a lot of profit, bitcoin for they are useless, that's why in a few years you will see bitcoin being used everywhere because governments will see that bitcoin does not pose any threat to the system of banks and governments.

I think, their difference base on the differences in ideology, control over monetary systems, regulatory concerns, and the risks associated with cryptocurrencies. Bitcoin's decentralized nature challenges the traditional control exerted by governments and banks over financial systems. Governments and banks worry about potential illicit activities facilitated through cryptocurrencies and the volatility of Bitcoin's price. On the other hand, Bitcoin enthusiasts believe in the importance of financial freedom and view Bitcoin as way to reduce reliance on traditional financial institutions.

I think they have done a pretty good job making bitcoin look illegal in the eyes of people and promoting CBDCs. I don’t imagine the government will ever  “submit” to bitcoin. They are doing everything in their power to regulate bitcoin, it’s not even about the banks hating bitcoin, the problem is that the government wants to control and regulate how we spend our money. Bitcoin is the only opposition to this plan, that’s why the government will never accept bitcoin.

Because Bitcoin is different from Electricity and the Internet, which government is out of control of Bitcoin
Because they know that Bitcoin operates outside the traditional financial system, which can make it difficult for governments to regulate and monitor them effectively.  IMO, this lack of regulatory oversight raises concerns about money laundering, tax evasion, and other illicit activities.

There's a conflict between decentralized and centralized financial systems, people do love financial freedom while the government is always against it and wanted to regulate people's money.  It might be because this was the duty of the government and banks which are responsible for implementing monetary policy to manage a country's economy.

Good thing, as of now not all governments and regulatory bodies have the same perspective on Bitcoin.  Some are opening their yes and embracing this new technology which they think is very helpful to their economy.