It is a hard fact that governments hate bitcoin. Several reasons remain behind it. First, you can explore it on the sites like bitcoins-evolution.com. There you can explore the topic in detail. Second, bitcoin or any other digital currency is regulation-free, and no one like the government or bank controls them.
However, Bitcoin and other digital coins are becoming popular, and governments cannot stop this storm. Thus the governments are not putting their efforts to study the implications of Bitcoin and other digital coins on their financial conditions in the coming future. These governments are now keen to check over the issues revolving around Cryptocurrencies, particularly Bitcoin. Let’s dig in deep into this as under:
Bitcoin defies all the regulations coming from the government
Many government agencies put capital control for preventing the flow of digital currency when it comes to export debate. For some people, this is a different kind of regulation added by different governments putting over the fiscal and economic policy. In such cases, there are few stateless options for bitcoin that remain too handy to reduce the control over capital and export the assets.
The known example of a capital fight with the help of BTC comes in China. The country has put limits on its people for buying foreign money. It comes as 50K USD claims the reports of a digital currency-based group called Chainalysis. You can find different China-supported digital currency wallets in other nations last year. It means the people in China use currency coming from Bitcoin. These are transacted in other borders and then to the regulation.
Due to illegal activity use
The following reason why the government is wary of Bitcoin or any other digital coins is due to illegal activity use. The cyber crooks and similar people find Bitcoin and other digital coins as a boon. They can easily transact in bitcoin and other digital currency for their criminal activities. It is impossible to trace them when you transact in Bitcoin or digital coins. For instance, hackers hack servers and lock company data. They demand huge money, but they accept it only in Bitcoin.
This way, they play safe and take big companies for a ride. Besides, even if you are transacting using trusted groups, there is a possibility of an illegal transaction. It is a victory for them that makes the government wary about digital currency. Also, Bitcoin helps criminals procure drugs and is seen on Dark Web as well. The anti-social elements procure guns and arms using Bitcoin.
Government cannot regulate Bitcoin
The next big issue the government face is that it cannot regulate Bitcoin. The makers of Bitcoin have come up with this digital coin only to survive the financial losses and issues like inflation and recession occurring now and then in few years. They have devised these coins only to bypass the traditional control of government and banks that face issues every few years. Hence Bitcoin has no control from the government that makes the users also evade the tax and other things.
However, instead of cribbing for Bitcoin for being non-regulated, we see nations and financial institutions adopting it. There is an example of small nations in South America making Bitcoin its legal tender. Other nations like Panama to are planning to make it legal tender for its nation. It means they have proper regulations for Bitcoin, and they have gone out of the way to make things work for the digital coin.
As we see people using Bitcoin as a currency on the web for their daily transactions, digital coins are becoming popular now. They find Bitcoin with a value that helps them to carry out different investments. Despite having some issues with Bitcoin, people are now getting more attracted to digital currencies. Both the detractors of Bitcoin and the government have a lesser chance to regulate it. All they can do is to think about ways of incorporating in their current system.
They can use Bitcoin in different products in the coming future and attract traders. But when you underline the market, they can find out ways to survive. Some nations have already started their experiments. Even financial institutions are also studying some viable options to deal with Bitcoin by incorporating it. So, with all said and done, governments or banks will not be able to defy bitcoin or any other digital currency to enter into people’s lives.
