Governments Fear Bitcoin

Bitcoin has remained powerful, and it has emerged as the first decentralized p2p payment option, which several users empower without any middleman. This lack of central authority remains the basic reason governments are scared about bitcoin or digital currencies. Well, to have clarity on this fear element, it is very much vital to know a bit about conventional currencies and governments. It is also interesting to note how the growth of Cryptocurrency has grown all these years, particularly Bitcoin. What makes the governments fear Bitcoin. Well, let’s explore in the following paragraphs why bitcoin is popular. Let’s begin:

So, now the big question is, what are the things you trust in? Well, the first one that comes to your mind is the traditional money, also called Fiat, which governments generally issue. Fiat money is known to have value since governments back it, and they stand by the same. The increasing number of people who come along with a promise means a lot. You can see that traditional money is not often supported by any solid asset. You may not return this money to the government while exchanging against any gold or silver bar or other stuff that has no value. Traditional money is often supported by the complete faith and the right kind of credit given to the government as issued by one and all. If you are keen on getting gold or any other stuff in exchange for the traditional money with anyone, you would certainly want some value in that entity.

The next big question that comes into the scene is why you need to control matters? Well, we know the government controls the traditional currencies, and the central banks are using these for issuing or damaging the money that is found out of thin air with the help of monetary policy to add some economic impact. They also find out how fiat currencies can be easily transferred that further would enable monitoring the movement of any currency or find out the profits from the movement along with collecting the taxes over it and then trace any activity of a criminal. All the control seems to be lost while one can find non-government bodies being seen creating their own money. If you have control over currency, one can find too many downstream impacts. Perhaps the most usual ones include the fiscal policy of a nation, efforts to reduce crime, and business atmosphere. These are broad topics and are to be dealt with in a general way. 

The next thing to discuss is fiscal policy, which remains the key potential for a crime that further keeps a watch on the attention of people along with checking the role of the currency that further plays an important role in checking the monetary policy of the nation and it has a great potential to adjust a greater impact. As governments are seen boosting or limiting the total amount of money that is seen getting circulated over the economy as far as stimulating the investment and spending is concerned, we can also see things like jobs generation or even slashing down the recession and inflation. In other words, it remains an exceptionally complicated subject. 

Now, let’s understand the business of bitcoin. This coin remains free from any banking system. BTC is developed using the process of mining backed with powerful computers and dealing with tough mathematical stuff that acts like verification for the transaction of BTC. One can find the reward is used as payment when it comes to cyber currency, and these are stored using the digital program and then are passed between different buyers and sellers without actually getting them for an intermediary.  At a very similar level, we see airlines also rewarding miles and enabling several travelers to procure plane tickets, items, hotel rooms, and other places. If you find digital currencies like bitcoin becoming highly adaptable in our society, then it has to become irrelevant. Although this may be a nice little idea in the perfection of the banking domain, the coin has two sides. Without the presence of banks, your mortgage payments are getting hacked often. You may not be able to earn any interest from your saved money. Lastly, who will help you in day-to-day transactions?

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