Bitcoin was created in 2008, but now the scenario has been completely different because of the technological advancement over the years. You might have seen a lot of controversies and news headlines about bitcoins and other digital tokens every day. Enthusiasts of the cryptocurrencies keep making comments in their favour, while others believe that the cryptocurrencies will not be able to survive the next decade. It is all because of the variation in people’s thinking, but it does not prove that cryptocurrencies will become successful on https://brexitmillionaire.org/. So, everyone must understand the scenario which is going on between the cryptocurrency space and the government to understand the political effect of bitcoin.
Over the past few years, governments of different nations have discussed cryptocurrencies and their ecosystem differently. Some of them are you in favour of it while others are very of it. But, it would help if you understood that it is not always the case that any government will support bitcoin. Some nations have already accepted bitcoin legally, but others are not going to support this kind of concept ever. It is because cryptocurrencies are supposed to pose a grave threat to the financial ecosystem of any nation. It can undermine financial stability, and therefore, the government is Not yet willing to accept the bitcoin system. Today, we are going to read down some of the most crucial aspects of the BTC’s impact on the politics of any nation. We are not supposed to take an example of any nation, but we will understand the larger picture.
Bitcoin circumvents government capital controls.
Every nation in the world is believed to have complete control over the capitals of their geographical boundaries. They want to make sure that no one from their country has wealth out of the government rules and regulations, and therefore, rules and regulations are modified from time to time. The government ensure that there is complete control over the capital of the people, and it is going to be circumvented with the help of cryptocurrencies. It is a very prominent reason why the government is no longer willing to accept the system of bitcoin any time soon. Moreover, they criticise its concept because it can circumvent capital controls.
It is tied to illegal activity.
Today, it is very crucial to put control on the illegal and illicit activities going on in different nations of the world. If this kind of activity is not stopped very soon, it can negatively impact the whole world. Therefore, the government has always tried to protect the whole world from illegal activities, and it is doing the same by preventing bitcoins from becoming legal. Yes, you might think that bitcoin becoming legal will be a good thing, but, in some ways, it won’t be perfect. It will give a lot of ways for illegal activities, and therefore, the government is not supporting the concept.
Unregulated nature
To date, none of the government has managed to control and regulate the prices of cryptocurrencies, making it very difficult to accept them legally. Yes, some nations have said that if the government is capable of controlling the prices of bitcoin, they can very well accept the concept of these new digital tokens, but it will not happen anytime soon. So, there is a possibility that if the government decides to regulate the prices altogether, perhaps there will be stability in the prices of bitcoin, which will lead the bitcoin to become legal.
Opaque ecosystem
Even though cryptocurrency is believed to provide a completely transparent system for transactions, it is not very trustworthy. The primary reason behind the same is that it is processed in an opaque ecosystem which is not in favour of the government. So the transactions are considered safe and secure, but no one country backs the origin of the transaction, and it is a very negative thing about it. So even though the people find it very best, the government is not in support of this new concept.
Undermines the cycle of trust
As it is tough to trace back the origin of the transaction and get the information of the parties involved, we can say that cryptocurrencies undermine the cycle of trust. It is a very prominent thing because the government is not having a positive outlook on cryptocurrencies. Moreover, it is affecting politics because the government’s opposition sometimes supports the concept of cryptocurrencies very well.