Why Governments hate Bitcoins
Governments and financial institutions have increased efforts to curb the distribution of Bitcoins and there is a reason for that. Just like Uber, Bitcoin is an innovation that challenges the status quo and the ‘natural order of things’ as far as big businesses are concerned. In other words, these ideas challenge the elite’s right to rule and activities that allow them to advance their own interests.
Bitcoin is known as the ‘people’s currency’ for a reason. It is an alternative to traditional currencies that are under the control of federal banking authorities that are always looking out for their own profit. These institutions use physical currency as tools to control how money is distributed which is almost impossible with cryptocurrency.
Since Bitcoins mean a loss of income for governments, it is little wonder why they are trying to stamp it down. The benefits they get from printing money gives them control over the economy that they would otherwise lose if cryptocurrency is allowed to proliferate without restrictions.
This is why governments in China and Russia have been trying to crush its influence on the economy. They are doing this by banning ICOs or Initial Coin Offerings and by closing down exchanges.
However, the digital currency is far from disappearing since the tech working behind it is just too powerful and it cannot be controlled by federal agencies. Even if they are successful in stamping down on it, the cryptocurrency will eventually return and with more influence than ever before.
How governments are regulating Bitcoin
This digital currency went live back in 2009 and it is still going strong. There have been price swings when government officials tried to bring it down causing market wide panic. However, the effects rarely last or take effect for long. Take the Chinese government for instance. Bitcoin exchanges are now being controlled in China and owners have to pay taxes and commissions on them now.
This did result in a massive price drop in the currency, but it did not take long for the price to rise again. This shows that government control is not as stringent as it first appears. People are tired of listening to what they have to say and losing out in the bargain. That is why it is almost impossible to crush Bitcoin completely and this is true for any cryptocurrency in existence.
That is the beauty of such currencies. Unless someone ends the internet, Bitcoins are not going anywhere or disappearing. That’s because transaction records of this currency or blockchains are spread across the World Wide Web and impossible to eradicate.
That is also why Bitcoin is almost impossible to regulate no matter how hard the government tries to control it. At some point they will give up on crushing the currency and try to introduce regulatory frameworks that can control it somewhat. This is happening across the globe, but it has little to no effect on the value of the currency.
Why Governments hate Bitcoins