Governments Hate Cryptocurrencies

A lot of people have written at length about the huge benefits and drawbacks of cryptocurrencies such as bitcoin. Ironically, I think the biggest advantage of bitcoin is also its fatal flaw — it’s mostly anonymous and mostly uncontrolled. It provides a universal freedom that hasn’t really been seen since gold started to get phased out, but with an ease of use and safety features previously unheard of. I’ve been a big fan of bitcoin and ethereum since I first heard of them a few years ago. I get really excited to think about a trade medium that can be unregulated and used for anything.

Here’s the deal though, governments hate cryptocurrencies. Governments hate anything that they can’t control. Have you read about the “war on cash”? I know a lot of people have doubts about it but you’d be insane to deny that governments wouldn’t be afraid of digital cash that isn’t issued by them. This isn’t just the SEC either; every government really has to hate cryptocurrencies and they will try to destroy it.

They probably won’t destroy it. I don’t think they really can. However, they won’t endorse them and will buy up coins to control the market. A lot of the time they even outlaw them.

The cryptocurrency utopia that we’ve been dreaming of with unlimited purchase and contracts being made on anything and everything across the globe at blazing speeds will probably never be achieves — at least not on a significant international level.

Prediction: Government Coins

The only way that I can realistically envision cryptocurrencies becoming hugely adapted is if they get publicly sponsored by a state or two. I imagine that ultimately a major entity will create their own cryptocurrency and issue it to its public. But wouldn’t that defeat the whole point? Yeah, it totally would. They would love to do it though, they’d be in total control of it, be able to monitor all of our spending, and even do it under the guise of a progressive and useful alternative to old school trading. It’s also the only way that average people will adopt is on a large scale.

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