Why are governments and big banks really afraid of bitcoin?

No other invention has garnered as much global internet attention as the Bitcoin case perch for a currency that was created to help with the problems plaguing banking.

The days of traditional banking are numbered due to the rise of bitcoin, which thanks to technology blocks intermediaries with their inflated fees and helps to secure transactions by decentralizing transactions at relatively low costs.

This proper lack of exchange puts governments at risk, which tax the money they trade, said John McAfee, head and chief technology engineer at MGT Capital Investments Inc.

“Our income taxes are the biggest source of revenue, but if everyone started using bitcoins, then the government wouldn't know what income people have. They can't tax him, and if someone wants to say he didn't earn anything, you can't prove anything. This is terrifying to any government, but no matter what they intend to do, there is no way to legislate to stop bitcoin or any other pseudo-currency."

However, this does not mean that the pseudo currency can become established in an environment where there are no legal norms. Today lots of crypto casinos online legally accept deposits and withdrawals with Bitcoin. According to McAfee, what is necessary is the kind of regulation that will protect people from embezzlement of money, as was the case with ICOs (virtual coins).


“China is not wrong about one thing regarding virtual coins, there is a lot of fraud, extortion and it should be stopped. But I don't think the government will succeed. We, as bitcoin users, have to create our own regulations," he added.

This branch is still young and still has many shortcomings from providing security and education to governments trying to reach people. Bitcoin users have nothing to fear according to McAfee.

“The concern is the domain of governments and central banks such as JPMorgan, which is the largest US bank. The CEO is so concerned that he has acted like a madman calling bitcoin a scam. Well, we should all be afraid, because they took control and power over the citizens hundreds of years ago. And it's high time we citizens took it back."