The government fears cryptocurrency because it threatens its revenue streams from taxes. Even though cryptocurrency is built on blockchain technology, an immutable and secure form of online record keeping, the government wants to see its laws applied. Read more here for more information regarding asset tokenization on the blockchain. Regulations already exist for foreign currency transactions, so there’s no reason why you shouldn’t include cryptocurrency in their purview.
Since bitcoin isn’t a legal tender, there are no laws controlling it or protecting those who use it. Some people believe that the government should not be able to control the value or use of cryptocurrencies any more than they could control the value or use of dollars or euros. If banks are allowed to fail without being bailed out by the government, then businesses using cryptocurrency should not be allowed to fail due to regulation either.
Why Is the Government Afraid of The Bitcoin (BTC) Cryptocurrency?
The government fears a currency they can’t track because it threatens their revenue streams from taxes. The government needs to know where money is coming from and how much money is in circulation. And how much money is being used, and by whom? Cryptocurrencies like Bitcoin don’t give them this information. This makes them nervous.
The government is afraid because they see blockchain as a way to store data but in a secure and immutable form. Blockchain acts as an “open ledger” that anyone can use. This means that any transactions made on the blockchain are viewable by the public. In addition, blockchains use cryptography to verify transactions and store them securely in blocks chained together into a chain.
Regulations already exist for foreign currency transactions, so there’s no reason why they shouldn’t include cryptocurrency in their purview.
The government needs to be able to tax and track transactions, enforce laws, control the value of the currency, and control its use. Cryptocurrency presents a challenge to all four of these needs.
Since bitcoin is not a legal tender, there are no laws controlling it or protecting those who use it. This lack of regulation has allowed the cryptocurrency to flourish and puts users at risk. In the case of a security breach or hack, there is no centralized authority to hold you accountable and no way to get your money back.
Some people believe that the government should not be able to control the value or use of cryptocurrencies any more than they could control the value or use of dollars or euros. They believe that governments should not be allowed to control anything.
If banks are allowed to fail without being bailed out by the government, then businesses using cryptocurrency should not be allowed to fail due to regulation either. This should hold for all currencies since governments do not have any control over their value or use. Suppose it is true that a country’s fiat currency has no inherent value and can only be worth something as long as people accept it as payment for goods or services and other countries agree. In that case, this must also apply to all forms of cryptocurrency. To ensure your cryptocurrency is not at risk, keep it in a wallet where you control the private keys.
There are many ways to acquire bitcoin. You can buy it on an exchange or from a friend or family member, but as long as you have access to the internet and a device to send funds from one wallet to another, acquiring bitcoin should be easy for anyone who wants it in their possession.
Final Words
We have discussed why the government is not accepting bitcoin. Clearly, the government doesn’t understand cryptocurrency and its potential role in society, but this is not a reason to ignore it. A balanced regulation needs to be created and discussed. If you are an investor, you can use bitcoin trading software. They allow efficient trading to big investors. The blockchain technology that powers bitcoin should be embraced and used for many other purposes that could benefit society in ways we can only imagine at this point. Bitcoin is a legal tender in El Salvador, becoming part of El Salvador culture.
