Many governments are concerned about Bitcoin and have continuously made attempts to suppress its growth. Despite these attempts, it has been relatively impossible to prohibit the general public from using BTC. There are multiple reasons why governments would seek to control or even potentially stop crypto in general. Govts fear losing control of money if Bitcoin becomes mainstream. BTC can entirely replace all currencies in the world, and BTC is undoubtedly instrumental.
Governments thrive on three major aspects that appear to be gravely violated by the Invention of Bitcoin. Most governments rely on the ability to regulate capital, control capital, and prevent illegal activities through monitoring transactions.
Since Bitcoin cannot be regulated or controlled, criminals freely transfer funds to anonymous addresses, and governments cannot trace these transactions. BTC is anonymous and this feature is highly undesirable to governments, leading to the high motivation to ban it completely.
Bitcoin ecosystem allows people to transact across regional borders without tax which is hurtful to the government. Based on these reasons, it is doubtful that governments will embrace Bitcoin as it is; instead, most governments will continue to find ways to regulate or totally ban it.
Several governments have attempted to regulate Bitcoin with no real success. Governments are interested in controlling Bitcoin transactions as it is a threat to the economy and the power of any government. Considering the Bitcoin infrastructure, governments can’t stop Bitcoin. Many governments can ban Bitcoin, as they have, but the total eradication of the projects seems far-fetched.
Just like other financial assets, Bitcoin can be accepted by the central bank as long as it follows regulations. The ban on Bitcoin is majorly expected from authoritarian governments or regimes that haven’t quite figured out how to integrate it into their economy.
Bitcoin has managed to thrive despite the global regulatory competition that has limited its penetration into conventional financial institutions like banks. Bitcoin self-regulation is highly desirable and increases trust among its users, making it a solid digital asset with acceptance across the globe.
The Crypto revolution has been in existence for quite a long time, and the movement is still on. Along the way, crypto enthusiasts have faced tremendous resistance from governments for many reasons. Despite these limitations, Bitcoin adoption has transcended, and today, some countries have begun to embrace it and accept Bitcoin as a mode of payment.