Specifically, they are grappling with the following three problems presented by Bitcoin in its current form. Bitcoin can circumvent government-imposed capital controls. Bitcoin is ties to illegal activity. Bitcoin is not regulated. All this are the major concerns of government not wanting bitcoin in circulation.

Below are the three major things that makes bitcoin looks like a threat to government:
* Governments around the world are eyeing Bitcoin's advance warily because it has the potential to upend the existing financial system and undermine their role in it.

* In its current form, Bitcoin presents three challenges to government authority: it cannot be regulated, it is used by criminals, and it can help citizens circumvent capital controls.

* Until the time that Bitcoin's ecosystem matures, it will continue to be viewed with distrust by established authorities.
By JAMES MCWHINNEY  Updated March 19, 2022