Why is Bitcoin not suppressed by the government?

Why is Bitcoin not being suppressed? If you think the government will use “cryptocurrency” to replace the US dollar, then all of this is for people to understand.

US President Donald Trump’s announcement in November last year to impose financial sanctions on protesters has sparked a growing demand for Bitcoin and other digital assets. However, as more institutional investors join in, they are also turning to Bitcoin and other cryptocurrencies, even some broader things.

These critics also mentioned that the Federal Reserve is considering issuing a central bank digital currency (CBDC) to avoid economic collapse, inflation, and market manipulation issues. There are also proposals for regulatory frameworks for projects like Libra, including a new proposal recently put forward by US Treasury Secretary Steve Mnuchin to reduce the risk of bank runs in the US and make more companies accept this emerging technology. However, for most people, this does not mean that Bitcoin will not be affected. On the contrary, Bitcoin has become a very important global reserve investment tool: it is one of the world’s largest digital gold and the first fiat digital currency supported by a country, and has great potential as a payment mechanism.

Nevertheless, we still need to see how Bitcoin is changing our lives, as we must understand that although this process may be relatively slow, I believe Bitcoin is the direction and foundation of the future.

First, let’s look at the birth of Bitcoin. This is a great technological revolution, and what is more profound than any previous technological movement is its nature: the emergence of blockchain technology solves a complex and difficult-to-scale problem-trust. With blockchain technology, users can securely access every transaction that occurs on the Internet.

Secondly, from history, it can be seen that blockchain is an immutable database system with the characteristic of decentralization. Currently, many blockchain projects run on different chains, such as every block on the Bitcoin network will generate a unique hash value, enabling every participating node in the blockchain to view all transaction details without duplicate calculations. Since there is no unified method to track the entire ledger to confirm all details or record timestamps of each transaction, it is difficult to achieve consensus verification, so Bitcoin has issues of trustworthiness.

Finally, let’s look at the price of Bitcoin. From the chart of price changes from 2017 to 2019, it can be seen that many large companies have entered this industry, and listed companies like Square are also actively laying out this business. However, the number of these companies is limited, and the amount of data they own falls far short of expectations. In addition, according to Bloomberg’s report, Grayscale’s parent company, Digital Currency Group (DCG), has been buying Bitcoin and other digital assets, but according to CoinMarketCap data, GBTC’s share ratio dropped 18.5%, marking the largest single-day decline since 2016.

However, in the past few years,

Why is Bitcoin not suppressed by the government?

According to CCN’s report, why is Bitcoin not suppressed by the government? Because different countries have different attitudes towards regulating cryptocurrencies. For example, US Treasury Secretary Steven Mnuchin said that banning the use of digital assets and encryption technology would legitimize them. EU Commission member David Marcus also believes that the use of cryptocurrencies for tax evasion and illegal activities should be banned. In addition, Russian President Putin has called for stronger control over the country’s financial system, and China is also one of them.

So why can’t the government prevent Bitcoin from being used for criminal purposes? The reasons are as follows: 1. If Bitcoin does not receive government support and recognition, it will not be protected by the law. 2. Bitcoin itself is not a means of value storage, but as a global, tradable, and highly volatile network platform, its price may be very high, even much lower than many other major network platforms. Therefore, it is vulnerable to illegal activities such as hacking or money laundering. 3. Although Bitcoin has a certain level of anonymity and is susceptible to hacking, it is still a highly risky investment. 4. In essence, it is decentralized and can be used to store anything. 5. Since Bitcoin is not a legal tender, lack of understanding or trust in it can cause many problems, especially for those who cannot transfer funds through the blockchain. Bitcoin has great potential economically. 6. Over time, the price of Bitcoin may change, but this market is already quite mature. 7. The underlying technology of Bitcoin is not fully understood, and most people do not know how to achieve this goal.