Why Governments and Banks Are Not Fond of Bitcoin?
Bitcoin is one of the greatest modern inventions (if not the greatest) in the global financial industry. This cryptocurrency counts over 5 million users. The reason why so many people from all around the world are fond of Bitcoin is that this cryptocurrency is user-orientated and unlike regular payments, Bitcoin purpose is to make sure that the people using it are provided with the best service possible.
But, even though Bitcoin has tons of advantages that make it a futuristic payment method, it is still opposed by both governments and banks. We wanted to take a closer look into this case and explain why they deem it as illegal currency. Without any further ado, let’s dive into the details, starting with governments.
The Case Of Governments
As you are probably aware, the main reason why so many people use Bitcoin is the fact that it allows them to make a profit. There are even some reports that state that there could be as many as 100,000 millionaires in the world who managed to make their fortune by trading with this cryptocurrency.
Currently, Bitcoin is valued at around $40,000 and it has the potential to reach a six-figure number in the final quarter of 2021. Naturally, thousands of people are joining the network and are looking to trade and profit off Bitcoin.
What’s even more interesting is that trading sites have even bettered their services and made it easier for traders to make a profit. Thanks to the advanced AI systems that they are using, these platforms can supply traders with information on how will Bitcoin fluctuate soon.
One of the trading sites that utilize this type of technology is Quantum AI. To gain access to this service, traders just need to register. One thing that is worth a mention is that the profit is not guaranteed, but the chances of making one are increased a lot.
The problem that governments have with all this is the fact that they cannot control Bitcoin as it is self-sustainable and highly decentralized. Additionally, they have one more consequence from this fact and that is their inability to slap people with taxes on profits. Considering the fact that they do not have a solution, they just decided to make it simple and deem it as an outlaw currency.
What About Banks?
Banks also have a major problem with Bitcoin’s self-sustainability and here’s why. We all know that banks are the institutions that process online transactions with regular payment methods. That is why they can impose various hidden or added fees on a majority of transactions.
Fees are the main way through which they make a profit and since Bitcoin excludes banks from online transactions, they are not able to profit off people. If you are wondering how Bitcoin managed to break free of banks, you can thank the revolutionary blockchain technology.
Thanks to the blockchain, all Bitcoin users are able to record and verify, thus process transactions made with Bitcoin. Not only that, but the processing time is much faster. While banks take up to 7 business days to process online transactions, Bitcoin transactions are instant.
As you can see, there are tons of advantages that come from using Bitcoin. You are provided with instant online transactions, void all fees, and even get the chance to make money. But, because Bitcoin is user-orientated, rather than designed to benefit banks and governments, these institutions are making sure that Bitcoin remains an outlaw currency.
That is the reason why it is hard to determine Bitcoin’s future. While the number of users will continue to rise, the chances of Bitcoin being legalized and made an official global currency are not that big.