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.