Among the last three terms on my topic, each has representatives, and they've been having disagreements; the Government and banks against Bitcoin. With no tangible reason why it's so? I mean, Electricity came, the government and the bank accepted it and placed an electricity bill, the internet came they both accepted it and the Government works with ISPs to take bills from data subscriptions. Bitcoin came they took advantage of centralized exchanges, yet they're not satisfied. I've read multiple bad reasons placed on bitcoin volatility, fraud, etc, and don't see it tangible because every innovation has its risks and importance.
On the contrary, why do Bitcoiners quarrel with them? knowing that they, Government and Bank, got no strong evidence to tarnish the image of Bitcoin completely. I think the quarrel will make Bitcoin very famous to the extent that both opponents will have no other option than to submit to Bitcoin.
There are a few main reasons for the disagreement between governments, banks and Bitcoin:
1. Loss of Control - Governments and banks lose control over the money supply and monetary policy with Bitcoin. They cannot manipulate or interfere in the Bitcoin system. This loss of control worries them.
2. Illegal Usage - Governments are concerned that Bitcoin could enable illegal activities like money laundering, tax evasion, drug trafficking, etc. due to its pseudonymous and borderless nature.
3. Competition - Banks see Bitcoin as competition for their business. Bitcoin offers an alternative payment network that bypasses the traditional banking system.
4. Volatility - The price volatility of Bitcoin makes governments and banks nervous. They prefer the relative stability of fiat currencies.
5. Security Risks - Hackers have managed to steal Bitcoins from exchanges multiple times, which worries governments and banks about the overall security of the Bitcoin network.
6. Energy Consumption - The high energy consumption of Bitcoin's proof-of-work system has come under criticism from governments focused on reducing carbon emissions.
7. Lack of Recourse - Since Bitcoin transactions are irreversible, users have no recourse in case of fraud or theft. This worries governments used to providing consumer protections.
8. Technology Risk - Both governments and banks are cautious about embracing an emerging technology like blockchain that they don't fully understand yet. They prefer more tried-and-true systems.
So in summary, it boils down to issues of control, security, volatility, risk, competition and the disruptive nature of this new decentralized cryptocurrency that exists outside the existing financial system. But as Bitcoin matures and improves its security, governance and environmental impact, it has the potential to gain more acceptance from governments and banks over time.