US is threatened of Bitcoin’s sudden rise.
The United States has gotten used to being the top dog in the world’s economic system, thanks to the wide adoption of US dollar as reserve currency. The US economic system was probably responsible for the creation of Bitcoin as well. The digital currency was first introduced during the aftermath of US financial crisis brought upon the world by the country’s banking system. Now, the increasing popularity of Bitcoin has threatened the dominance of US dollar and the country’s hold on the global economy.
The government has employed hundreds, if not thousands of experts across various agencies, think tanks and more to find out the potential effect of Bitcoin and other virtual currencies on the country’s long-standing ability to disrupt financial networks. The country Is known to hold others to ransom by implementing sanctions on those who don’t share the same vision and interests(thanks to US dollar – the global reserve currency). Be it Cuba, Iran, Russia or many other countries, the US has been actively pursuing sanctions against these countries.
In addition to the country’s economic diplomacy, the United States is also concerned about the creation and use of uncrackable virtual currencies by criminals and terrorists. While these concerns seem to be legitimate, the likelihood of them using a dedicated cryptocurrency within their network is highly unlikely. According to a report on one of the reputed online magazine, the researchers are actively looking for ways to enable the government to disrupt the development and deployment of new virtual currencies by terrorists, non-state actors or insurgents for everyday use.
Ironically, at the time when the world’s most popular cryptocurrency, Bitcoin is struggling to gain widespread adoption, the government is spending thousands of taxpayers’ money on finding ways to prevent the adoption of a brand new hypothetical cryptocurrency by terrorists and criminals. Also, the processing power and the number of users required to maintain the network is another aspect to be considered as well.
The article also dismisses the notion of Bitcoin becoming the go-to cryptocurrency for criminals and terrorists in the long run due to its transparency. There is a strong resistance against the cryptocurrency movement building within many governments. In the near future, it won’t be a surprise if few of them introduce draconian regulations overnight against Bitcoin and cryptocurrencies.