The reason for that is because the government wants to get their hands on your money. And the only way they can do that is by forcing everyone into using their own centralized currency.
Cryptocurrency itself is a digital medium of exchange and is now being seen as a form of social protest. Cryptocurrency is not monitored by a central authority, which means it cannot be shut down or controlled. Governments are threatened by cryptocurrency because they restrict its use, but also because it circumvents the need for banks and taxes within the jurisdiction. It is safe to say that governments all over the world fear cryptocurrency because it represents a new form of social protest.
Even though we live in a democratic country, government agencies are always interested in invading your privacy. and that why crypto can down from sky(heaven )to safe.
Here are five reasons why the government really hates cryptocurrencies
1. Governments fear cryptocurrencies will disrupt their authority
The current financial system isn't perfect, but it does allow for a centralized monetary authority to act as the proverbial banker that ensures stability in money. You deposit your cash with the bank and, when you need it back, they give you some of what is in the bank vault. Except now there is Bitcoin.
In a bitcoin system there is no central bank at all; instead, transactions are processed by computers around the world that are part of a peer-to-peer network (or "mesh"). The currency works through a process known as "mining" where people can make transactions without going through any sort of financial institution whatsoever.
Governments and central banks are not happy about this.
China's government, through its central bank, has banned financial institutions from dealing in bitcoin. Russia is reportedly considering a ban as well. France's finance minister has said that he is watching it closely because of the risks associated with money laundering and tax evasion. The Netherlands Antilles (a tiny European island territory) has essentially declared the currency illegal for anyone on the islands to use or operate on behalf of others. Even Germany, which has been somewhat positive about bitcoin regulation, plans to crack down on bitcoin users by using their anti-money laundering and know-your-customer regulations to force anyone using bitcoin to identify themselves.
Governments are afraid of cryptocurrencies. And it's because these currencies could/(is already) disrupt the way financial systems work. Governments are concerned about decentralized cryptocurrency because of the potential for abuse and money laundering.
2. Governments have no way to tax the transactions
The government cannot tax your transaction but they can tax you for holding your money. In a healthy economy, the government does not tax your transaction. It takes money from some people and gives it to others through the tax system. This is called the production tax.
3. Governments are trying to regulate cryptocurrencies
The hard fact is that governments are not going to let go of the power they now hold over their citizens. They will do whatever it takes to keep controlling the flow of information, money, and the people who use it. Governments have always been the main gatekeepers of information. They control the flow of information and can block it if they want to. This is one of the reasons that people get censored on Facebook and phone calls are monitored. At the core of Ubuntu is a completely open code. Anyone can see and modify it's source code. This makes it very difficult for governments to restrict access to information on the Internet.
The difference now is that cryptocurrency has the potential to evolve from a service that you can use to pay for goods and services on the Internet, into a new asset class – the first step to true decentralization. The technology is capable of doing that. Some governments around the world are already waking up and starting to take notice of this. Japan and Russia are both allegedly preparing legislation to control, regulate, and tax cryptocurrencies, which will certainly come as a shock to people involved in cryptocurrency. But it will simply show how far governments will go in their efforts to clamp down on cryptocurrencies rather than embracing them as they should be – as an innovative technological advance in financial services.
4. Cryptocurrencies give power back to the people
A lot of people are not happy with the way the government is mismanaging power in America. And these people are fighting back by taking control of their own money and banking. Cryptocurrencies give power back to the people and the federal government doesn't want that. They don't know how to deal with it yet, so they have no choice but to regulate them into oblivion.
Just last week coindesk posted abour how the federal government and Joe Biden administration are on their way to regulate crypto. it all suck this simply means they are afraid of what crypto can do. Read for here : Coindesk
The current state of cryptocurrencies is a mess, but one day these currencies will go mainstream and change the world as we know it. Right now, it's not possible to safely send money between countries without going through a bank. And those bank are tied up in the U.S. dollar, which is controlled by the federal government and can be watched by the NSA for any reason, or even no reason at all. If you're not with them, you're against them, to them, it doesn't matter if you're old and rich or young and penniless because they don't care what your physical condition is or what country you came from or even how many people you supply their team …..
The power that cryptocurrencies give back is huge! The more people that learn about this technology the more people will demand these currencies as an alternative to the fiat of their choosing.
5. Cryptocurrencies make it easier for people to trade goods
Cryptocurrencies are the future of money, but that doesn’t mean governments are going to accept them without fighting. Most of us have heard about cryptocurrencies through the media. They are a new way to send money across the world almost instantly, and the government doesn’t know what to do with them. They have gone from being almost worthless to $35k or more in less than a year. Governments are freaking out and it is showing in the way they are trying to destroy them.
Japan was the first country to start trading bitcoin a few years back, and Japan has had a great run with it. They don’t have any regulations around it, and trading has been excellent for them. Crypto-currency is all about freedom of trade, which is why the government hates it so much. More freedom of trade means less control over the people by the government, and they can not accept that.
This war between the government and crypto is in it early stage. My point is that the only way to end this war is for the government to site down and realized that crypto is here to stay for good.
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There won't be a war if there is no government left or we break its leg by not giving it any money. No army will fight for a bankrupt government. Let the wars begin.