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Why Governments will trust Bitcoin and no other cryptocurrency ever

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Reasons as to why the government would prefer Bitcoin rather than any other cryptocurrency if it incorporates cryptocurrencies by any chance.

Comprehending the features of Bitcoin, which makes it a reliable option for the government.

Why is Bitcoin so popular, when there are tons of other cryptocurrencies?

The main intention behind Satoshi Nakamoto’s initiative was to design and radicalize a currency which wouldn’t be under the jurisdiction of any form of government or a specific financial institution. Even though Bitcoin has been left behind by various cryptocurrencies in terms of attributes like transaction fees and confirmation time, it has managed to remain as the largest cryptocurrency by market capitalization since a very long time. This might be due to the precise reason that Bitcoin is absolutely decentralized and most popular one in the domain.

However, let’s try to figure out, reasons as to why the government would prefer Bitcoin rather than any other cryptocurrency if it incorporates cryptocurrencies by any chance.

 

The technological innovation with Bitcoin could improve the lives of the poor

It is self-understood and deep seeded that the Bitcoin and various other cryptocurrencies require the usage of Smartphones or any other electronic gadget, so as to undertake transactions in a simple manner. It must be emphasized that the users need not go to any of the banks or ATM to undertake the financial transactions. Therefore, the countries which are underprivileged with respect to such facilities of banks or ATMs then Cryptocurrencies like Bitcoin must be a great sigh of relief for the entire community of that particular country. This is also self-evident as one of the blockchain based projects, Nebues assists the rural masses in order to avail loans, this is very crucial in empowering the backward community as they are always denied of loans, due to unavailability of their bank accounts.

 

Bitcoin helps in controlling corruption, in countries, where the government is corroded with it

with reference from brookings; With the initiation of Bitcoin, people assumed that it provides an anonymous way of sending money from one point to another, but sit and analyze how does it provide anonymity when the entire blockchain is publicly visible to everyone? Tracking a person’s identity through his IP address along with the public key visible on the public blockchain is not that difficult. When the government would entirely run on Bitcoin, then there would be no room for corruption, as everyone’s account could be tracked easily through the main blockchain. What more can a government ask for, when such a facility can be availed by using Bitcoin. Long story short, the government has more control and access to information, through the public Bitcoin blockchain, rather than that of bank accounts in a particular Bank.  

 

Bitcoin assists the government to bring stability to their economy

Bitcoin is inflation proof, where a centralized authority can’t control the production of Bitcoin. Even if the government undertakes the jurisdiction of Bitcoin and legalize it, they have no control over its circulation and production.  Therefore, a number of people would actively utilize the Bitcoin services and when people are satisfied intern the government is satisfied. This is one of the precise reasons that can be quoted as to why the government would incorporate Bitcoin and not other cryptocurrencies, as Bitcoin provides lots of convenience to its users.

 

There is a lot more to be developed in Bitcoin and scalability can be provided

Most of the crypt enthusiasts assume that the development and technological innovation with respect to Bitcoin has reached its saturation level but refer this. The author here beautifully represents as to how the various technological innovations have been developing over time and the curve for Bitcoin relative to all the other technological innovations stands at a very small scale. Also, significant advancements can be expected in the future. Governments have understood the potential of Bitcoin and therefore have been providing attractive incentives and set of regulations in order to harness its power.

 

Decentralized nature of other altcoins

Bitcoin is preferred over other cryptocurrencies, as it is absolutely decentralized with no controlling authority. Other cryptocurrencies no matter how much ever decentralized they deem to be, have a particular owner and a governing organization (according to an article published on bitcoin.com) but Bitcoin is the odd one out. Ethereum has Vitalik Buterin, EOS has Dan Larimer, Litecoin has Charlie Lee, and so on. Therefore, the actions of these people can also trigger some of the other kind of reaction, in the respective Crypto space, but whom will you instigate to fluctuate the Bitcoin prices? The undercover Satoshi Nakamoto prefers to be anonymous.

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9 Comments

9 Comments

  1. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever | 247 Bitcoin

  2. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever – Crypto Feed

  3. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever – The Coinage Times

  4. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever | Kryptous

  5. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever | 247 BTC

  6. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever | 1 Bitcoins

  7. Sheena Arcamo

    October 21, 2018 at 5:52 am

    imo since BTC is the first successful crypto and has proved its potential over the years. I have read at myshield about crypto might engage in such as risks, scams, and fraud, I think that’s the reason why the government is being extra careful in terms of this.

  8. Pingback: Why Governments will trust Bitcoin and no other cryptocurrency ever – BTC Brain

  9. Pingback: Unocoin launches ATM to bypass RBI diktat on cryptocurrencies – CRYPTOTIMES.MOBI

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#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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#Bitcoin

Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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