We are all aware of the potential of bitcoin. Bitcoin is a cryptocurrency that operates via the internet and is able to completely dismantle the previous conventional financial system. By using cryptocurrencies like bitcoin,
we could rapidly eliminate intermediaries with the conventional financial system. Furthermore, crypto currencies are becoming more and more well-known all over the world. This is due to the fact that central banks don't operate using the same technology as bitcoin,
and also have its own method of managing the country. In contrast, Bitcoin is a peer-to-peer payment medium that users can utilize without interference from the government up to now. Since it isn't controlled,
the government will not have any influence on the transactions that you conduct using crypto currency. Additionally it is important to know the reasons you should consider investing with Bitcoin.
Bitcoin is still believed to be a revolutionary medium for transactions, however it's different from the banks. The conventional system of finance considers that bitcoin is an imminent threat to.
It has been damaging the financial system for a considerable time currently and the government must to end it. There have been many instances of corruption because the government has begun to think that bitcoin is a threat to our financial system that has been operating for a long period of time.
Also, the increase and decrease in the amount of bitcoins as well as the value fluctuations; it is impossible to be certain that bitcoin will stay the same. So, the banks are looking at creating a new financial system to accommodate cryptocurrency.
Why is the government against Bitcoins?
The rise in bitcoin's value has increased exponential over the past few years. As of now, governments of various countries are keen to learn how bitcoin has weakened economies and will impact the financial system as it is.
The government also wants to utilize bitcoin's technology for trading its financial abilities. Particularly, they have identified three issues due to this reason, the federal government has become cautious of bitcoins. We will explain more about them in this article.
- It is a way to circumvent capital controls by the government.
It is the job for the authorities to implement some capital controls , so that they can stop the outflow of money in the form of exports by the country. But, if you are able to do these transactions without involvement of the government, then the government is removed. Thus, the government can not be able to stop the flow of its currency out of the country it is from. This could be a problem for the entire nation in this type of situation. So, the government doesn't favor increasing the use of bitcoins in a variety of instances.
- Participation in illicit activities
It's not that long since the occurrence of Silk Road. Silk Road was among the most important illegal activities that was carried out with the aid of bitcoin. The fact that criminals also conduct payments using bitcoin.
This is simply inspired by recent scandals. Silk Road is one of the instances that can serve as an inspiration to many. Many countries engage in actions like money laundering as well as terrorist financing using cryptocurrency. The principal reason behind the use of the digital currency to conduct illicit activities is because they are not traceable by the authorities quickly. If transactions aren't identifiable, the government can't regulate them.
The governments of many nations have issues with regulating cryptocurrency like bitcoin, despite the fact that it's been nearly 10 years since the coin's inception. There's not just one however, there are many obstacles when it comes to the regulation of bitcoin.
It is impossible to determine the value of bitcoin because it keeps changing constantly. The government agencies have to supervise the cryptocurrency in order to define it and to make laws for it. But it's not easy due to the uncertainty of the cryptocurrency market.
Final Line
Although cryptocurrencies have many potentialities to help the financial system but their ecosystem is also being utilized in candles and in criminal activity. Thus, be aware of the use of cryptocurrency in criminal activities, the government isn't even far from accepting it as the form of legal currency.
In the meantime, we can't anticipate cryptocurrencies such as bitcoin to be mainstream. Additionally, governments do not want any private company with more authority than the public. This is another reason that the government should declare the contrary of crypto currency like bitcoins.
