I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?
It's pretty easy to make bitcoin illegal and for example India plans to do that but why? Is there benefit behind this idea? I think no. Also there are a lot of mining datacenters, exchanges which bring a good money in budget. Also governments at some point need bad guys, money is made during these processes. Also if you make bitcoin illegal can you imagine what it will cause? Even harder ways for governments to solve another upcoming problem. By banning something you can't stop it, you just make it difficult to detect again and I think that must be clear for everyone.
Also why to say that governments would never wish bitcoin to be created? After all they happily try to get something from it, implementing of blockchain technologies.