Can Governments Crash Bitcoin?

Over 106 million people and institutions use Bitcoin today. The user base is growing by the day. For just 13 years, Bitcoin has grown to be one of the most successful digital currencies. This growth is because of various factors. For some, Bitcoin provides greater convenience than alternatives. But the growing popularity of Bitcoin has attracted the attention of different governments. You can easily use the available platforms like bit index ai to learn how it works and even trade in Bitcoin.

The nature of Bitcoin has attracted government attention. The main issue is that it is not subject to government control. Many governments are worried about how Bitcoin operates regarding the possibility of criminals using it for illegal activities. With Bitcoin, criminals can transact their illicit deals under the government.

Bitcoin for Anyone

Bitcoin is an open platform that anyone can use whether they have the necessary documentation. You cannot open a bank account without following the due process that includes providing specific documentation. People without such documentation cannot have bank accounts. Bitcoin is different.

Anyone can use Bitcoin. The only requirement is to open a Bitcoin wallet and have an internet connection. And this has opened up the financial bracket for many people. You also don't need to have a detailed understanding of how Bitcoin operates.

Where Is the Government's Involvement?

Bitcoin is a decentralized digital currency. No central bank or government controls it. To understand this, let's go back to the traditional fiat money. With fiat currency, the government controls how much money is in circulation. If you receive a significant amount of money in your bank account without proper backing, you will probably receive a call from the bank.

Bitcoin is not subject to government interference because it uses cryptography. No single entity can determine the amount of Bitcoin in circulation at any time. The government cannot influence how many Bitcoin tokens are in circulation. And this means that the power of the government to crash Bitcoin is already limited.

Additionally, Bitcoin is a peer-to-peer digital currency. It eliminates any third parties in transactions. Unlike traditional fiat currency, in which you had to go through the bank to transact, you will transact directly without involving the bank or any other third party. For example, your customers will pay you instantly with Bitcoin based on your agreement if you operate a business.

The fact that the government is not involved in Bitcoin transactions further limits its influence on the crypto. With conventional currency, the government can monitor and interfere with trade. For example, the government, through the central bank or other commercial banks, can withhold money that they suspect is from illicit activities. Bitcoin does not have such leeway for the government.

China illegalized Bitcoin, making it illegal and unusable in the country. Other governments have also adopted some regulations on Bitcoin. But this does not mean that any government can crash Bitcoin. Even after China illegalized it, other countries still use Bitcoin. China had to create the digital Yuan to compensate for the illegalization of Bitcoin.

Final Thoughts

Bitcoin is a unique digital currency that alleviates government control and interference. While governments can adopt some regulations on Bitcoin, no government can crash it. China illegalized it, but people still use Bitcoin in many other countries and territories. The decentralized nature of Bitcoin makes it unique and limits government control. Moreover, Bitcoin is not a currency for any particular country. Therefore, no single government can crash it. Government can only adopt some regulations to attempt to control how Bitcoin operates.