When it comes to politicians it seems that the only common thing about them is that they cannot agree on anything. However, recently another thing emerged that all the worlds governments are uniformly opposed to. Sadly, its not nuclear weapons or acts against human rights. Its a cryptocurrency.
Every expert in the finance industry agrees that the potential of cryptocurrency is incredible. Simply by making remittances cheap, it can trigger a huge change for third-world economies. And yet, this power isnt realized and mostly its because of the blockages from governments.
Why is that so? Dont the governments want whats best for their countries?
To understand why those in power are so wary of crypto and all it entails you need to understand the impact that its already had.
There can be no arguing the fact that the rapid rise of crypto is one of the most important things that happened in the last decade. However, aside from its stellar rise to prominence we also witnessed its sudden fall.
Bitcoin, the foremost cryptocurrency in the world even today, shows this change most prominently. Its value went from about $1,000 to $20,000 to $3,000 and then $10,000 all in the span of two years. That rate of volatility is concerning, but studying the latest bitcoin value trends one can see its more or less stabilized.
The same goes for the cryptocurrency market as a whole. Its not insanely booming as it did in 2018 but its also not rapidly declining. But the most important thing to ask here is why did that decline appear in the first place?
Any matter of global finances is complex and therefore influenced by a gazillion of factors. However, its a fact that one of the main reasons for the sudden downturn in cryptocurrency is multiple anti-crypto policies. Multiple governments of the world panicked as they saw the rapid rate of crypto growth and took steps to slow down or stop this process completely. Some even went as far as to ban bitcoin and other cryptocurrencies.
But of course, such a global power cannot be stopped. Therefore, while the rise of crypto was hindered, the trend for using blockchain technology and digital currencies remained. Today its evolving to fit within the legal regulations or work around them. This proves that despite the best efforts of politicians, the future of crypto is bright.
First and foremost, cryptocurrency has the power of making global trade both fast and more affordable. This alone grants it the power to revolutionize the world economy completely. Its because, despite all the progress in this area, the mechanics of currency transfers are complex and unsafe. Online currency transfer platforms made great improvements in some parts of the world and cut the costs of transfers to under 1%. However, cryptocurrency can make them virtually free.
Moreover, blockchain transactions are instantaneous and extremely secure. This means that global trade can speed up and reduce the level of risk for multiple businesses.
The result is that should cryptocurrency become universally accepted, the global trade will change beyond all recognition. Millions of businesses will receive limitless opportunities for growth and collaboration as cross-border payments will no longer eat up their profit margins.
Cryptocurrency is also untaxable, which means even more savings for businesses and investors. Therefore, they will have more funds to use for growth, boosting the global trade further.
But that lack of taxes is one of the biggest issues that governments have with cryptocurrency. Unlike fiat money, blockchain cannot be controlled and manipulated for political and economic machinations. So, is it really any wonder that governments are so uniformly against it?
Another important thing to consider when discussing cryptocurrency and its impact on global trade is that crypto itself has become a hedge. In fact, its currently growing in popularity as a hedge protecting people from bad governments, in particular.
Yes, volatility does pose some risk, but this risk seems huge to those who live in the US or top EU countries. For people of Venezuela, for example, that volatility isnt such a big issue as compared to the dramatic weakening of their fiat currency that resulted from the governments dreadful policies.
In response to similar situations, people are now considering investing in cryptocurrency the same as investing in gold. Many of them choose this as an alternative to converting their funds to USD, which has long been considered a hedge currency. This only adds to the list of reasons why governments, and the US government in particular, are using different means to hinder the progress of crypto.
The governments need to control the population and money flow is hindering the development of cryptocurrency. However, even unfavorable policies cannot stop the decline of fiat money. Leading financial institutions understand this, so they are trying to jump on the cryptocurrency bandwagon right now.
Bank of England is showing the way by announcing it considers adopting cryptocurrency. Its currently investigating the risks and benefits of using electronic money. In the world thats rapidly becoming cash-free, this is an example of forward-thinking that might make the difference for this particular financial institution.
As banks are rapidly becoming obsolete even for regular money transfers, they are searching for solutions. Money transfer platforms, which offer lower rates and better terms than banks, have a huge competitive advantage. These companies have already pushed banks and traditional money transfer providers to look for any way to improve their own offers. Otherwise, they will be completely ousted from the market.
Adopting blockchain and cryptocurrency is one of the solutions that banks are using to survive today. Over 200 of them are already accepting Ripple and other similar experiments with crypto are running in all major banks.
Money transfer companies also dont want to be left behind. Some of them, like Abra and BitPesa, accept cryptocurrency payments.
All these developments show that crypto definitely has a future. As the decline of cash is definite, blockchain can be the solution that will revolutionize the world economy. However, for this to happen, a change must start at the government level. Until digital currencies are, at least somewhat, legitimized, they wont be able to realize their potential.
Why Are Governments Really Opposed to Cryptocurrencies?
Why Are Governments Really Opposed to Cryptocurrencies?
Share on Facebook
Share on Twitter
Share on Linkedin
Share on Telegram
- Cryptocurrency market update: Major cryptos trade in tight ranges on Saturday - FXStreet - April 6th, 2020
- These are the main factors to consider before investing in the cryptocurrency market - CryptoSlate - April 6th, 2020
- Brian Armstrong: Cryptocurrency Boom Will Spawn Millions of Tokens - The Daily Hodl - April 6th, 2020
- Global demand for cryptocurrencies escalating rapidly: What is the reason for this? - Cryptopolitan - April 6th, 2020
- This Cryptocurrency Casino Is the Latest Terrible Idea by Atari - CCN.com - April 6th, 2020
- First Mover: Trillions in Coronavirus Stimulus Bring Out the Bitcoin Bulls - Yahoo Finance - April 6th, 2020
- YouTube Scares Off Cryptocurrency Supporters by Banning their Content - Coin Idol - April 6th, 2020
- Alipays Progress in Developing the Official Chinese Cryptocurrency Amidst the Global Chaos - TWJ News - March 29th, 2020
- Huobi (HT) Buying Bitcoin and Other Cryptocurrency Is Easier With Huobi Lite - The Cryptocurrency Analytics - March 29th, 2020
- Lukka debuts resource library on all things cryptocurrency - Accounting Today - March 28th, 2020
- Not Convinced New Investors are Buying Bitcoin, Top Analyst Says - newsBTC - March 28th, 2020
- How to identify when a cryptocurrency is about to skyrocket? | The Home of Altcoins: All About Crypto, Bitcoin & Altcoins - Coinlist - March 28th, 2020
- Coronavirus Crisis Shows Benefits of Virtual Reality to Cryptocurrency Enthusiasts - The Merkle Hash - March 28th, 2020
- Report: Asian Nations are Increasing Cryptocurrency Usage - Asia Crypto Today - March 28th, 2020
- President of Brazilian banking On cryptocurrency: They do not fulfill any of the classic functions of currency - Crypto Daily - March 28th, 2020
- Cryptocurrency Accounting Firm Launches Library of Legal and Tax Advice - Cointelegraph - March 27th, 2020
- Binance Reveals the Secret Behind Its Cryptocurrency Futures Success - Cointelegraph - March 27th, 2020
- What Happened In Cryptocurrency Tax Space In Q1 2020 - Forbes - March 27th, 2020
- What Will $6 Trillion in Monetary Expansion Do To Cryptocurrency? (Opinion) - CryptoPotato - March 27th, 2020
- Why this cryptocurrency just surged 16% on news of a key Binance partnership - CryptoSlate - March 27th, 2020
- The Role of Cryptocurrencies in the Rise of Ransomware - Cointelegraph - March 27th, 2020
- Cryptocurrency Market Update: Dash and Monero edge above Bitcoin to lead a remarkable recovery - FXStreet - March 27th, 2020
- Bitcoin news: Price hit by dramatic value fluctuations amid coronavirus panic buying and selling - The Independent - March 27th, 2020
- Bitcoin in the Palm of Your Hand Crypto Hardware Wallets Review - Cointelegraph - March 27th, 2020
- Ranked: US cities with the most crypto owners - Decrypt - March 27th, 2020
- The Coder and the Dictator - The New York Times - March 27th, 2020
- Cryptocurrency Market Gains $25.7B In 24 Hours As It Recovers From Massive Sell-Off - Benzinga - March 27th, 2020
- Chinas Cryptocurrency Is Closer Than Expected, Already Working On Legislation - CryptoPotato - March 27th, 2020
- We Implemented Cryptocurrency In Our Cannabis Business. Here's What We Found. - Green Entrepreneur - March 27th, 2020
- How To Make Money When The Cryptocurrency Market Is Tanking - Forbes - March 19th, 2020
- Thousands of These Computers Were Mining Cryptocurrency. Now They're Working on Coronavirus Research - CoinDesk - CoinDesk - March 19th, 2020
- Itiviti and Gemini to offer Nyfix connectivity for cryptocurrency customers - Finextra - March 19th, 2020
- 6 Cryptocurrency Exchanges That Don't Require KYC - Bitcoin News - March 19th, 2020
- How to Seize What Might Be Unprecedented Crypto Buying... - Coinspeaker - March 19th, 2020
- Will iMining Blockchain and Cryptocurrency (CVE:IMIN) Spend Its Cash Wisely? - Simply Wall St - March 19th, 2020
- How Do You Maximize the Benefits of Cryptocurrency While Avoiding Near-Term Tax? Consider a Self-Directed IRA - The Block Talk - March 19th, 2020
- Russian Premier Bank Signals Red For Cryptocurrency Circulation And Issuance - TWJ News - March 19th, 2020
- Cyber Thieves Using Coronavirus Fears to Steal Bitcoin (BTC) and Cryptocurrency - The Daily Hodl - March 19th, 2020
- BitGo Starts to Further its Cryptocurrency insurance policies - Crypto Daily - March 19th, 2020
- Cryptocurrencies see $93.5 billion wiped off value in 24 hours as bitcoin plunges 48% - CNBC - March 15th, 2020
- [Updated] The Real Reason Behind Bitcoin And Cryptos Massive $50 Billion Crash? - Forbes - March 15th, 2020
- 50 Companies Back New Cryptocurrency Project Competing With Facebook's Libra - Bitcoin News - March 15th, 2020
- The unlikely cryptocurrency bill that went to Congress - Decrypt - March 15th, 2020
- Bitcoin Just Failed the Coronavirus Test - Motley Fool - March 15th, 2020
- XRP on the Verge of Free Fall - Crypto Briefing - March 15th, 2020
- Cryptocurrency exchange CoinDCX invests $1.3M in education initiative 'TryCrypto' - YourStory - March 15th, 2020
- Rise in trading volume a positive sign for cryptocurrency - BTC Wires - March 15th, 2020
- Elon Musk and Daniel Craig Featured in Cryptocurrency Scam Promising Massive Returns - The Daily Hodl - March 15th, 2020
- South Korea passes one of the worlds first comprehensive cryptocurrency laws - TechCrunch - March 10th, 2020
- Bitcoin And Crypto Investors: Avoid This New Cryptocurrency Like The Plague - Forbes - March 10th, 2020
- Over $26 billion wiped off cryptocurrency market in 24 hours after massive oil price plunge - CNBC - March 10th, 2020
- Chinese Nationals Charged with Laundering More Than $100 Million in Cryptocurrency | Chief Investment Officer - Chief Investment Officer - March 10th, 2020
- View: Why it's better for RBI to just wait and watch on cryptocurrency - Economic Times - March 10th, 2020
- Will Japan have a National Cryptocurrency? - Asia Crypto Today - March 10th, 2020
- Cardano (ADA) Cryptocurrency Going Great with Commercialization Measures - The Cryptocurrency Analytics - March 10th, 2020
- Binance Coin (BNB) Cryptocurrency Is Surging: Here's How It Can Refuel BTC - newsBTC - March 10th, 2020
- Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency? - newsBTC - March 5th, 2020
- Nearly $10bn worth of cryptocurrency was stolen in the past three years - TechRadar - March 5th, 2020
- Latest news on the cryptocurrency market - Born2Invest - March 5th, 2020
- Coinbase CEO Reveals Controversial Bitcoin (BTC) and Cryptocurrency Prediction With Major Shift Incoming - The Daily Hodl - March 5th, 2020
- Elon Musk Just Sent The Best Cryptocurrency And Prank Bitcoin Rival Sharply HigherHeres Why - Forbes - March 4th, 2020
- Who Needs Cryptocurrency FedCoin When We Already Have A National Digital Currency? - Forbes - March 4th, 2020
- Binance, Coinbase, And Other Cryptocurrency Exchanges Reportedly Targeted By A New Trojan Virus - CryptoPotato - March 4th, 2020
- North Korea may Have to Forfeit 113 Cryptocurrency Accounts - The Merkle Hash - March 4th, 2020
- Elon Musk says Dogecoin is the best cryptocurrency - Decrypt - March 4th, 2020
- CoronaCoin: Cryptocurrency that bets on coronavirus deaths - Business Today - March 4th, 2020
- Meet the Northumbrian using cryptocurrency to address the UK's housing crisis - North East Times - March 4th, 2020
- How UNICEFs crypto currency fund could change the UN - Quartz - February 28th, 2020
- When IRS Asks About Cryptocurrency On Your Taxes, Answer Carefully - Forbes - February 28th, 2020
- While The Rest of the Market Tanks, One Cryptocurrency Is Above All-Time High - newsBTC - February 28th, 2020
- Crypto in the Hermit Kingdom: Understanding the Objectives of the Pyongyang Blockchain and Cryptocurrency Conference - RUSI Analysis - February 28th, 2020
- Warren Buffett: Cryptocurrency 'has no value' 'I don't own any and never will' - CNBC - February 28th, 2020
- VeChain (VET) Billion Dollars Partners Believe in the Cryptocurrency - The Cryptocurrency Analytics - February 28th, 2020
- Yemens Civil War Shows the Dangers of Crypto - Yahoo Finance - February 28th, 2020
- Fantom Foundation (FTM) 20 Cryptocurrency Transactions in a Single Second on the Blockchain - The Cryptocurrency Analytics - February 28th, 2020
- VertCoin (VTC) One Click Miner Beginning To Rock the Cryptocurrency World Already - The Cryptocurrency Analytics - February 28th, 2020
- A plan to sell Perth Glory to the LFE cryptocurrency firm is over, but the deal never added up - ABC News - February 28th, 2020
- Crime And Punishment In The Cryptocurrency World - Forbes - February 27th, 2020
- Cryptocurrency in Focus: Ethereum Is on Fire - TheStreet - February 27th, 2020
- Warren Buffett says he will never own any cryptocurrency - Yahoo Finance - February 27th, 2020