Why are some governments so keen to prove that bitcoin is dangerous. Recently, the Indian government sent notifications to the citizens that they should not invest in bitcoin.
There are a lot of factors to consider when accepting bitcoin in a country. Due to its decentralised and volatile nature, government intervention and imposition of tax is impossible as it cannot be regulated. The blockchain technology is so complex and technical that even the government cannot track-down transactions. Now, bitcoin has been used by criminals as a gateway under the dark web for illegal transactions of drugs, etc.
Not to mention, some banks see bitcoin as something that is dangerous to invest-on due to its 'high-risk, high-reward' factor.
Just cause that is not profitable for government, I think. Invest in crypto currencies is harmful to the banking system, in some extent.
It may be harmful but the positive implications it provide outweighs the negative ones IMO. As cryptocurrencies may be decentralised and have some lack of collateral, I see it as an opportunity to invest and earn long-term profit as compared to the other types of investment.