Many governments are concerned about Bitcoin and have continuously made attempts to suppress its growth. Despite these attempts, it has been relatively impossible to suppress Bitcoin and prohibit the general public from using it. Despite significant concerns about the illegal use case of Bitcoin, the cryptocurrency was created to solve fundamental problems faced by fiat currencies since the introduction of paper money
Governments fear losing control of money if Bitcoin becomes mainstream. While Bitcoin can entirely replace all currencies in the world, BTC is undoubtedly instrumental. The future of finance is intertwined with the future of Bitcoin. The infrastructure around the technology makes it extremely difficult for governments to stop Bitcoin adoption.
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, governments cannot trace these transactions - hence a problem.
Blockchain technology is immutable. Thus, data entered cannot be modified. Bitcoin developer Satoshi Nakamoto said the feature promoted blockchain trust. Everyone on the network can see transactions. These may be bad for secretive regimes and governments that engage in shady dealings in private.
Finally, the Bitcoin ecosystem cannot be regulated in its current form; the blockchain is immutable, preventing any form of government interference. It allows users to send and receive cryptocurrency without government interference.
Several movements have attempted to regulate Bitcoin with no real success. There have been multiple crackdowns in the east for Bitcoin miners. The regulations have cited the vast carbon footprint contributed by the proof of work consensus mechanism used by the Bitcoin network.
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. However, it is prudent to say regulations can be put in place to limit the use of Bitcoin within a specific jurisdiction in a country’s efforts to maintain control of the fiat currency.
For governments, the concern to have control is legitimate, as it threatens national sovereignty if control is lost. Bitcoin can act as an alternative currency that is equally accepted within society with no resistance from those who wish to.
Many financial institutions are unable to facilitate crypto adoption due to regulation by the Central Bank. Despite these limitations, Bitcoin adoption has transcended, and today, some countries have begun to embrace it and accept Bitcoin as a mode of payment.