Why can’t the government crackdown on Bitcoin?

08/13/2023 08:51 • Metaverse & Beyond • 85 views

Why can’t the government crackdown on Bitcoin? Editor’s note: This article comes from Odaily Planet Daily and is authorized to be reposted.

After the recent plunge and subsequent recovery in the Bitcoin and cryptocurrency market, many people believe that this decline is a “national financial crisis”. However, for those Bitcoin investors who have been proven wrong, this news is not new, as they are already aware of the price trends of Bitcoin and have started to worry about the government using this method to hedge risks. So, why can’t the government crackdown on Bitcoin? Let’s take a look at why the government cannot control Bitcoin based on historical data. 1. The government cannot control the accounting unit of Bitcoin on the blockchain, which is processed by computers instead of individuals holding it. This means that anyone can send or receive funds (including encrypted assets in wallets) through a network by accessing an address. However, currently all transactions on the Bitcoin network are completed through electronic signatures (usually executed by smart contracts) or cryptographic programs. If a user hands over their private key to someone else, it becomes an immutable and verifiable data type, which can change the way its value is stored. 2. Since Bitcoin is a peer-to-peer protocol, people can use Bitcoin as a payment method without the need for a central authority and without the need for a bank account. 3. Although Bitcoin is not as anonymous as other things, it also has the characteristics of decentralization: it records all transactions between participants completely openly and transparently, and it is almost impossible to duplicate any file. 4. Most people only focus on Bitcoin itself and don’t know how to solve their problems. However, now many people consider BTC as an alternative, and some even say that Bitcoin is better than gold, so the government cannot intervene. 5. When we consider what Bitcoin may be used for in the future, we need to study some concepts behind Bitcoin. The first thing to clarify is whether it belongs to a particular group or some organizations. The second concept is the “distributed ledger”, also known as a notary. This means that as long as you have the permission of someone’s notary, you can prove its legitimacy even if you own the code. For example, if you have a private server, you can interact with it and then sign a contract to confirm whether you agree to accept this application. 6. If a company wants to purchase more goods and services, it must go through registration to be listed for sale. 7. Bitcoin is not a legal currency. Jerome Powell, the chairman of the Federal Reserve, once said, “I will not let companies issue legal tender on their own.” He further stated, “Although the US dollar is still one of the world’s main sources of savings, so is Bitcoin-its quantity is limited and not subject to the control of the central bank. Bitcoin is just one of its technologies. Over time, some forms of currency may be gradually eliminated.” 8. Bitcoin is a system without borders.{Keywords}: government crackdown, Bitcoin, control.

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Why can’t the government crackdown on Bitcoin?

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