We know that cryptocurrencies are so good, so why are so many governments don’t like it?

[phabulu 0]

If people use bitcoins, instead of the state currency, the government can not “tax” them or give a “value” through the inflation “tax”

 

The key to its success is something called the blockchain. The blockchain is a means of solving the double-spending problem: which is that because the currency is digital it is open to being copied and spent more than once – something banks stop with physical currency.

However, the blockchain acts as a digital ledger, whereby every single transaction (called a block) is securely linked together using cryptography and encryption. It’s verifiable, available to everyone who owns Bitcoin and is immune to fraud and hacking – unlike centralised banks.

It enables one digital wallet (that can be stored on a phone) to directly connect with another securely and process a transaction.

If virtual currencies are so good, why are so many governments with the flea behind their ears? The Chinese government is embarking on a crusade against bitcoin. In India, the situation is not much different. There are other examples. Because?

The potential benefits of crypto-coins are real. Governments around the world are full of debt. Many of them will hardly be paid. Brazil( My country) is not an isolated case. Europe has a very serious social security problem. Governments promised worlds and funds. But their populations are aging. And, at the same time, fertility is falling. The account will not close.

governments can issue money directly. They can finance their debt with monetary printing. It’s a default of a different kind. The trick is inflation. Today, you have $ 100 in your wallet. With that money, buy ten packets of a wafer. If the price of the wafer package doubles, you will still have $ 100 in the wallet. But your buying power will fall by half.

What if you have a government debt bond instead of a $ 100 bill (or deposit)? In developed countries, government debt is not indexed. So inflation works, solve the problem of the Treasury.

But in others (as in Brazil), there may be indexation. Then the government bond will pay inflation for the period + x%. How to pay off this debt? It is only passing a law changing the rule of correction of the titles. Or make a compulsory loan. Or freeze deposits. Or make a board. There will always be a cunning economist and a good talk advocate to wrap the fish. And it’s not just in Brazil!

This is where the magic of cryptos begins to function. If people use bitcoins, instead of the state currency, the government can not “tax” them or give a “default” through the inflation “tax”. State tricks do not work with bitcoin.

The full post is available on my website:

http://mundodascriptos.online/index.php/2019/08/28/we-know-that-cryptocurrencies-are-so-good-so-why-are-so-many-governments-dont-like-it/

 

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[andrehol 16294]

The government of any country lives on taxes paid by its citizens. Cryptocurrency payments exclude intermediaries such as banks and governments. Where can they get the money?

[cryptokram 102]

TAX!!! This is the main reason why many government don't allow crypto to their country especially Bitcoin.

The transaction is anonymous and there is no trace for them to collect tax on their citizen. And they are protecting their FIAT currency from dissolving! 

[redamoun 811]

On 10/9/2019 at 4:00 AM, Rodaniev lovowtsky said:

Many government doesn't like it becaue the decentralized currency operates independently and with anonymous people who've been using it. The can't control it through legality of taxation, so people generally avoided payment for the certain regulations.

       I'm not sure if the government hate cryptocurrencies or not, because and like every time we cannot trust media, there is always fake news, also as you can see in the USA the bigger hater to crypto, there are state that do mine BTC, also in this country you can find the big number of A.T.M OF BTC, yesterday MIAMI airport adopted BTC as a method of payement,
       In my opinion, all governements are collecting 3 or 4 kind of coin, and thats what we need to know, wich coin they are working in the darkside of this word.

[Mathers 295]

3 hours ago, andrehol said:

The government of any country lives on taxes paid by its citizens. Cryptocurrency payments exclude intermediaries such as banks and governments. Where can they get the money?

No the government doesn't totally live on the taxes being paid by its citizens because technically because a large portion of the taxes are also used to provide basic amenities for the citizens such as road and bridges construction.

The reason why the government hate cryptocurrency  is because of the privacy it provides to the citizen and it's is easier to evade tax if you're using it.

[mahouka 66]

Because no one can control cryptocurrency therefore the government does not like cryptocurrency as an investment

[bliznec 22268]

In the government, under the understanding of such a concept, cryptocurrency is far from clear, so they are trying to solve their own and the problems of society in the crypto industry.

[Caporetto 327]

The same politicians who are calling BTC a scam also thought internet will never catch on, close minded people are everywhere.

[Grace 236]

Lol 😅 Because they are governments...They hate these things.They just want to make money How much they want.But at bitcoin there will be just 21m Bitcoin 😉

[Sungoku 13]

9 minutes ago, Grace said:

Lol 😅 Because they are governments...They hate these things.They just want to make money How much they want.But at bitcoin there will be just 21m Bitcoin 😉

true, bitcoin and altcoin will be a real threat to them if they legalize, but the government should not worry about that

[Grace 236]

8 minutes ago, Sungoku said:

true, bitcoin and altcoin will be a real threat to them if they legalize, but the government should not worry about that

Of course they should not worry about it.Because this is reality,they are our future.Instead of trying to ban coins just try to understand them

[werus 6]

43 minutes ago, Grace said:

Of course they should not worry about it.Because this is reality,they are our future.Instead of trying to ban coins just try to understand them

despite the fact that bitcoin uses advanced technology, but this is still classified as their threat, the threat is still the threat of America that says

[andrehol 16294]

14 hours ago, Mathers said:

No the government doesn't totally live on the taxes being paid by its citizens because technically because a large portion of the taxes are also used to provide basic amenities for the citizens such as road and bridges construction.

The reason why the government hate cryptocurrency  is because of the privacy it provides to the citizen and it's is easier to evade tax if you're using it.

Is it possible that the majority of the provided amenities for citizens by the government, then do not turn out to be paid? Toll roads are almost the norm. Anonymity? All transactions can be tracked

[jcarlo 206]

In my opinion, the government actually does not hate cryptocurrency because the government can take taxes from transactions on the cryptocurrency market. The government is still stuttering in regulations and this is seen as an attitude that the government hates cryptocurrency even though in my opinion it is not like that

[Saqib Ali Sadiq 438]

crypto currencies are good for those who is using it and earning from it, it is not good for those who dont know about and they are not making investment in this business so they dont have any knowledge about.

[Mathers 295]

1 hour ago, andrehol said:

Is it possible that the majority of the provided amenities for citizens by the government, then do not turn out to be paid? Toll roads are almost the norm. Anonymity? All transactions can be tracked

Yes, all transaction can be tracked but  do you think the goverment can tell how how many Bitcoin addresses a citizen owns ? I mean they can tie a one person to an address but what happens when the coins is being moved ? You never know if it was spent or not, and using the different addresses after every transaction makes nearly impossible for to be tracked. 

[dentolas 551]

I think the problem goes further than just tax... we cant forget that governments are one part of the system, they are the ones connected to the central banks that print the bills and control the system...

If you introduce the possibility of people dealing with their money and finances without the need to believe on their printed bills, this can introduce a bug in the system that might propagate...

It is all about money, but also control

[andrehol 16294]

27 minutes ago, jcarlo said:

In my opinion, the government actually does not hate cryptocurrency because the government can take taxes from transactions on the cryptocurrency market. The government is still stuttering in regulations and this is seen as an attitude that the government hates cryptocurrency even though in my opinion it is not like that

Yes, here I agree with you: the government actually does not hate cryptocurrency. The government just wants to take another part of our money from cryptocurrency transactions.

[Geo 90]

If our Government accepts BTC ,there will be a great down for there economic status owing to the service tax paid by the individuals will highly decreased and job opportunities given by them also have no great demands because of Block chain developers are paid enough amount for there effort.

[andrehol 16294]

Just now, Mathers said:

Yes, all transaction can be tracked but  do you think the goverment can tell how how many Bitcoin addresses a citizen owns ? I mean they can tie a one person to an address but what happens when the coins is being moved ? You never know if it was spent or not, and using the different addresses after every transaction makes nearly impossible for to be tracked. 

What if they happen to be arrested together with a co-computer? and on it is your wallet with a password? Is it hard to tie it to you if you own the computer?

[Crypto123 0]

Yes, your words are very logical and reasonable. Indeed Bitcoin can solve many economic problems. I believe that some anti-Bitcoin governments have started to accept bitcoin and blockchain like China, especially after the recent and positive speech of the Chinese president on the blockchain.

[teminalibug 309]

8 minutes ago, Smiling_assasin said:

As we all know it is new technology, even when internet is new, it also have to face same consequences but now you can't do anything whithout internet and few countries are bringing regulation for crypto.

Regulations to crypto is juts a way  for government to seize control on cryptocurrency, it is not as good thing as we think it is.

[Soaib khan 1035]

crypto currencies taxes is very low and i aloso using crypto currencies for international payments and crypto not traceable this the mane reason some countries government hate crypto 

1 minute ago, Soaib khan said:

 

 

Edited January 1, 2020 by Soaib khan

[Interface User 1070]

It also make freedom to the user itself because this will demolished the unnecessary deductions from the governments and banking system. Also security also enhanced because blockchain used some cryptography and hashing to protect the data.

Edited January 1, 2020 by Interface User
Correction for words

[Afrizal rahman 2636]

Sometimes the reason the government rejects it is because Bitcoin is not regulated by anyone. They worry if Bitcoin without control can be misused by people who think negatively. But if the government wants to accept, I think they can overcome this by cooperating.