Governments and central banks view Bitcoin as a threat to their control over the monetary system from "summary" of The Bitcoin Standard by Saifedean Ammous
Governments and central banks have a vested interest in maintaining control over the monetary system. This control allows them to influence the value of money and manipulate interest rates to achieve their economic goals. Bitcoin, with its decentralized and limited supply, poses a threat to this control. Unlike fiat currencies that can be printed at will, Bitcoin has a fixed supply cap of 21 million coins. This scarcity makes it immune to inflationary pressures that governments often resort to. Furthermore, Bitcoin operates outside the traditional banking system, allowing individuals to transact directly with each other without the need for intermediaries. This undermines the central banks' ability to monitor and regulate financial transactions. As a result, governments and central banks view Bitcoin as a challenge to their authority and control over the monetary system. In addition, the pseudonymous nature of Bitcoin transactions makes it difficult for authorities to track and trace illicit activities. This anonymity raises concerns about money laundering, tax evasion, and other criminal activities that could potentially thrive in a Bitcoin-dominated economy. Governments fear losing the ability to enforce financial regulations and combat illegal activities in a world where Bitcoin reigns supreme. Despite these concerns, the growing popularity and acceptance of Bitcoin as a legitimate form of currency cannot be ignored. As more people adopt Bitcoin for everyday transactions and investments, governments and central banks find themselves grappling with the reality of a decentralized monetary system that operates beyond their reach. The rise of Bitcoin signifies a shift in power from centralized authorities to the individual, challenging the established order of the financial world.
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