Why Does the Government Fear Bitcoin (Why Do Countries Oppose Bitcoin)?

Why does the government fear Bitcoin? Why does the government fear Bitcoin? On December 18, 2018, the U.S. Federal Trade Commission issued a warning against the cryptocurrency industry. The warning stated, “Due to the continued expansion of the crypto market, the government has taken a great interest in crypto assets.” Furthermore, the report also pointed out that without adopting new regulatory methods and regulations, it could lead to “high volatility” of Bitcoin. However, despite these threats seeming positive, they have not stopped people from using cryptocurrency technology. Therefore, they are considering applying blockchain to their businesses. “We must acknowledge that Bitcoin is a means of storing value – a digital form of gold with scarcity and divisibility,” which is a significant development in the past decade.

Although some may argue that Bitcoin is more susceptible to attacks compared to other types of technology due to its complex and borderless nature, there are exceptions that show Bitcoin being used for illegal purposes, meaning it is actually used to pay for goods and services. In fact, “Bitcoin” is not held by any individual or entity but by private companies.

As mentioned earlier, governments around the world have been seeking to address this issue, and many countries in the world today are facing the same problem. For example, President Nixon recently stated that he believes central banks can control the economy and provide funds to businesses to deal with global financial crises.

At the same time, the Biden administration is also exploring how to use Bitcoin for large-scale economic reform. In late 2015, he published an article titled “The U.S. Dollar as the World Settlement Network,” which detailed his views on Bitcoin and its ecosystem, as well as the importance of this innovation. The article stated that Bitcoin is a good tool to allow the government to understand this new phenomenon and better understand how it operates, but of course, there are many other things to pay attention to.

Historically, central banks issuing their own currencies usually face political pressure. As more officials join in, they hope to achieve their goals by establishing a more transparent and inclusive system. However, these policies may not necessarily effectively prevent criminal activities at present, and it is evident that these policies often only affect public interests in certain situations.

So why is the government so concerned about Bitcoin?”

Here are the reasons why we believe the government does so:

1. Bitcoin is not a legal tender. The laws of most countries are determined based on specific conditions. Therefore, even with a strict definition, it is not possible to guarantee that ownership belongs entirely to every individual.

2. Due to Bitcoin itself having no practical use (i.e., limited utility), it is difficult to convince the government to ban it, and only a few people can protect themselves to some extent from potential tax fraud and money laundering risks.

Why Do Countries Oppose Bitcoin

According to cointelegraph, based on data from the World Economic Forum (WEF), over 1,000 countries worldwide oppose Bitcoin. Why do these countries’ governments oppose Bitcoin? The main reason is that they regard cryptocurrency as a highly speculative asset and see it as unfit for use as a means of payment. Additionally, there may be other factors that hinder the legalization and implementation of Bitcoin. For example, former U.S. President Trump stated that Bitcoin does not comply with its legal status or any “lawful store of value” principles.