Should governments accept cryptocurrencies and if yes, then why?
I don’t think it’s likely to happen. First of all: crypto’s are ridiculously volatile. The government is not an investor. If the price drops 10%, they have a huge budget problem. And that could only be fixed by taxhikes. Not quite what people are waiting for.
Apart from that, there’s the no influence thing… The Euro has already made governments very worried about handing over their monetary powers. And that was to a central bank they have influence on.
Governments that adopt cryptocurrencies may thrive and become some of the richest countries in the future. We are already seeing small countries like Malta become very crypto friendly.
Malta? That’s tiny. What works in a small group may work because people trust eachother. You know, the kind of trust that comes with “if you screw me over, I am going to pound you in the face”.
I’ve been with some alt currencies in my own community, and those worked for a while. Until we reached the point where the group became so big that people felt there were strangers involved. The currency failed rapidly.
Sure, you can make a lot of money. But you can lose it fast as well.
Imagine the US joining Bitcoin at 12K, and then suddenly, it’s only worth 8K… it would be a (financial) massacre…
I think in order to get governments to get involved, the advantages for them have to be much clearer. Because the risks ARE clear. And we all know civil servants…
Yes because more are more people are opting on it.
The only reason they aren’t as volatile is beacuse they are used by a tinier and irresponsible group. If worldwide adoption were to take place it would be as volatile as any other currency, Supply and demand control everything.