Bitcoin: and why governments around the world will most certainly ban it if it grows too much?

Photo by Executium on Unsplash

---

Bitcoin was the first use case of blockchain technology which gave us ‘Decentralized Money’.

Historically money has always been centralized.

Whoever is the most powerful has always controlled the money, its creation, and policies around it.

Be it kings, or religious institutions, or ruling organizations like present governments through central banks.

But Bitcoin so far seems to be the best alternative to centralized fiat currency.

Opinion:

I think it’s a direct threat to the current central banking system as it provides alternative borderless currency to people and central banks won’t have control over monetary policy anymore. They cannot dilute it (print as much as they want) anymore.

It takes a great deal of power away from central banks(governments) and gives it to the common people.

The scarcity of bitcoin and its proven security is what gives it value and makes it trustworthy for stores of value.

What makes bitcoin additionally attractive especially blockchain is that traditional currencies have some fixed institutional costs attached for their working which makes it inefficient and slow and unreliable sometimes because if there is any issue in the central entity, everyone gets affected.

But in bitcoin, there is no single point of attack, it is borderless, frictionless, cost-efficient, fast, reliable, and transparent. And it's improving every day.

As bitcoin is competing directly with sovereign fiat currencies, it’s very natural that central banks(governments) will try to suppress it/ ban it completely.

Now what remains to be seen is to what degree they try it and what alternatives they provide to bitcoin-like cryptocurrencies. And what degree of decentralization we settle on.

But what’s inevitable is going to happen.

Cryptocurrencies are here to stay and no democratic government will be able to stop them for very long.

If this article was helpful to you. Write to us. Follow us on Instagram.

and don't forget to subscribe for new podcasts and posts like this.

For any queries,

Reach us at our social media handles, We'd be delighted to talk to you.

Thanks

Kamal J. Sharma