Regular citizens who understand Bitcoin and cryptocurrency comprehend its power to do great things for society. We also understand that anything good can go to misuse in the wrong hands. However, we can see the value of cryptocurrency far outweighs the bad.
However, many of those who understand cryptocurrency that work in government, banking and competitive industries have nothing nice to say about it. Most governments are seeking ways to regulate Bitcoin and other cryptocurrencies. Some countries have banned its use altogether.
Hating is a Full Time Job
For most in the cryptocurrency community, it’s as simple as a hip hop slang term. Most cryptocurrency critics are “haters,” with no valid foundations for their beliefs other than the desire to compete against a perceived/imaginary rival. Some critics do have valid arguments.
However, people with common sense can see that cryptocurrency doesn’t have to be in competition with traditional financial markets, and that it’s possible for citizens to use both fiat and cryptocurrency.
Though most legislators will say that they’re concerned about cryptocurrency because they want to protect citizens; most people in power are simply threatened by it.
Some people in government view cryptocurrency as a form of anarchism, where citizens aren’t safe; and dangerous people roam free. However, again, most people like this in government are concerned about cryptocurrency because they want to control the people they govern.
Most people in the government seek to control people, ultimately to control their own financial interests, (be they job security or to appease lobbyists and other organizations). Bitcoin and cryptocurrency are disruptive to governmental controls and the current financial structure.
However, certain governments like the one in Japan has taken strides in a more progressive direction. They have passed legislation that protects the rights of their citizens, yet allow the free exchange of Bitcoin and other digital currency.
Bitcoin Not Accepted Here
There are certain countries that have completely banned cryptocurrency. It’s important to know which countries these are.
When it comes to accepting cryptocurrency, countries that don’t respect human freedoms and basic human rights, have typically banned citizen use of cryptocurrency. When people are found using cryptocurrency in these countries, they’re accounts are frozen and their assets are seized. Some people face incarceration. Though governments can’t stop the Blockchain from growing, they can keep their citizens from being able to use it.
Just like people in certain countries can’t stream Netflix or access the same things online that people in the free world can; governments can shut their citizens out of the doors of opportunity through cryptocurrency.
Countries like these have typically banned most of the Internet from their citizens, along with drugs and alcohol.
Though it seems ludicrous that governments would ban these things outright, instead of simply acting when a person does or attempts to do something harmful to themselves or someone else because of these things, or using these things; that’s just what Bolivia, Bangladesh, Kyrgyzstan, Nepal and Ecuador have done.
In Nepal, almost almost 12 cryptocurrency proponents have been jailed. The latest two that were arrested, were simply guilty of operating a small Bitcoin exchange platform. In Venezuela, many people have turned to cryptocurrency because of the failed local economy and inflation.
In many ways, Venezuela is South America’s strongest government in terms of centralization, which could be one major reason its leaders are so threatened by decentralized currency. After the 2014 Bank of Bolivia ban on Bitcoin, the government simply followed suit.
There Was Always a Speakeasy
If there was one thing we learned from prohibition, it’s that vice doesn’t stop when the government tells folks not to do it. Underground providers simply come out of the woodwork. When people deal with providers like this for drugs, alcohol or even for Bitcoin, this can expose them to unnecessary risk.
In 2016, a Bolivian scam promised investors 300% profits within two month’s time. However, it was a pyramid scheme that fell apart quickly. Investors were furious and protested in the streets in El Alto.
Bolivia’s neighbor, Ecuador, has banned Bitcoin completely. They aren’t opposed to cryptocurrency. They simply want to be able to control it and back it with Ecuadorian currency. A government affiliated economist explained that the government feels electronic money should support fiat currency.
Kyrgystan, a small state in the middle of Bangladesh and Central Asia has also banned cryptocurrency. Anyone caught using Bitcoin or any cryptocurrency could face jail time.
Politics and Cryptocurrency
In a way, strict regulations can backfire on third world governments. Citizens become frustrated because their options are limited. They fight back against the government. Chaos follows.
When things become chaotic, the government can no longer monitor small matters like the exchange of cryptocurrency. More pressing issues are at the forefront. Bitcoin regulation becomes tedious and unimportant.
In first world countries, we’re lucky enough to be able to speak our mind about cryptocurrency legislation. Sometimes it’s worthwhile to just take a moment to appreciate the life and the freedoms that we have.
Which country do you think is the most hostile to cryptocurrency? Why do you think that is? Please chime in with a comment below!