Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
Bitcoin was created to be an alternative to fiat this is because people will always use the latter. If Bitcoin gains acceptance by the government and the transaction fees still remain low, more people might choose to use it more than fiat. So, it will be common to assume that traditional banks might face a reduction in transactions if using Bitcoin is faster and cheaper. We are already experiencing strict regulatory laws in many countries. The government will keep making laws that will increase KYC, thereby increasing centralization.
But is the idea of bitcoin becoming a currency a reality when we only see it as an investment and not too many people consider it an alternative to fiat?
Do you think the government will agree and legalize it as an alternative currency while they cannot control it? Besides, how long do we have to wait for a real solution to make bitcoin's transaction fees cheaper and transaction speeds faster?
All of your “what if” ideas are highly unlikely and even impossible. We should look at reality and not talk about “what if” scenarios.
The only people that will have more challenges to face aside from the ones that they are already facing are the broker operators. Regulations are not being made in their favour; they are being billed and asked questions by different government agencies.
We now live in a time where decentralized exchanges are attacked because the government has made laws that group them as a channel for money laundering. The Bitcoin space is gradually moving to an era where the government wants to control every part of it. And they will keep making and amending regulatory laws to achieve their aim.
I think sooner or later the government will issue regulations for bitcoin if we want it to become legal and popular, we should adapt to that because it is inevitable.
Many people have looked down on the power of the government and said that the government will not be able to do anything to us, but look how there are more and more regulations, more bans on decentralized services. It is true that they cannot intervene or directly control the bitcoin blockchain, but they can control and eliminate bitcoin-related services.