Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
They do not fail to understand, but are too afraid that people will abandon fiat currency because Bitcoin can provide certainty, so various framings are carried out to create a negative impact on it. As time goes by, people realize how Bitcoin has gained such huge adoption throughout the world even though some countries have banned it.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.
Which rule do you mean is unreasonable? and bitcoin does not harm anyone if the individuals involved in it are not trying to commit a crime. Bitcoin is much more independent for itself and bitcoin can also survive in the midst of inflation and recession, just as gold tends to be unaffected. It's just that people don't see bitcoin as a general step for investment because it talks about volatility, but when they study it they get an idea of how bitcoin can have the same impact in maintaining the value of the investments we make.