Bitcoin is the first crypto currency which was created in 2009 by an individual group called Satoshi Nakamoto. It was created for peer-to-peer electronic money transfer where there will be no third person to control the money transaction. What does the third person mean? Suppose you are going to send money from your country to another country via a bank and the bank will process your transaction. Here the bank is the third person who keeps all the records of your transaction. But Bitcoin does not follow this. It has its own rule which is peer-to-peer money transfer between buyer and seller only.
Over the last decade, there was not enough awareness about bitcoin and crypto. But recently from 2017 to now crypto is the major financial issue in this whole world and Bitcoin is a threat for them. Because of bitcoin adoption, use case, popularity and stability of funds security. As Bitcoin shows you decentralized finance or shows you how to be financially free , this has become a threat for the government now. But how? Let’s discuss a few topics.
TAX ISSUE
Bitcoin and crypto is the only way to avoid the tax problem if you are a millionaire or billionaire. Because in this decade the tax problem has become the major problem for rich people. If you want to feel the effects of tax then you should search for John McAfee who has invented anti virus for computers. He has been prisoned due to tax issues from the US government and died in the prison too this year. This is just one example but there are many stories about tax again. And Bitcoin can solve this issue and no one will need to pay tax to the government again nor face tax.
The problem comes from the government now is that if they can not take tax from people then how will they take control over us? The situation has become like this: “ Not your keys not your money”. So if the government is not able to control our money, they will not be able to control us. This means we will have financial freedom. But the government will not let this happen ever.
But why do they hate bitcoin? Because bitcoin is the major crypto till now and it will be adopted worldwide. All over the government know this well and some of them have already adopted crypto as they know well, they can not protest this. But there are some countries available who will not let this happen, Such as China. China has banned bitcoin mining and all the trading this year fully because this is a dangerous threat for their centralized finance. To avoid this decentralized coin, China created Digital Yuan which will work like Bitcoin as they said but mostly this is called stable coin. And this is a centralized coin. They thought people would choose this but the reality is different. Why should people choose a centralized coin when they have a choice for a decentralized coin? This is the reason why China banned Bitcoin. They do not want to introduce themselves with such coin which will go against their centralized finance.
Illegal activity
If you are a crypto lover, I am pretty sure you know crypto is the main source to pay for those illegal activities. And Bitcoin is the most used coin in this case. I read over the past years that the use of Bitcoin for illegal activities has increased. Illegal activity usually means drugs supply, crime, dark web crime and more likely terrorist activity. So this became a major point of burden for the government to accept Bitcoin. Also there is money laundering crime. Because you know in a bitcoin transaction there is no third party who will control you. So if any criminal wants to do money laundering then he can easily do this.
And there are many reasons why the government does not want to accept bitcoin and keep banning it.
Thanks for reading!