They never appreciate competition that may threaten their market positioning or the piece of cake they are having from their target market. Repositioning and restructuring have always been a challenge to the existing organizations. This is the same thing happening with the existence of Bitcoin.
Since the government bodies have no check and balance on Bitcoin, they are always striving to devalue Bitcoin and its business in the digital market. The Banking sector and the Government sector wants to devalue the Bitcoin trading, as this digital business has become a great threat to the fiat currency and it’s trading throughout the world and may threat to the economic stability of the countries.
Existence and Tangibility
A person traveling from one place to another and soon he felt hungry and wanted to eat apples. He saw a small stall on the road side and he bought the apples. He ate a few and left with dozens more. Soon he needed to rest a bit to travel more. He parked his car to the Inn found near the roadside and said the owner to take some apples which cost the same amount of the rent.
But the owner says I already have ample apples they are not of my use. Those apples did not worth to him at that time of need because they were not exchangeable.
In the same way if the Bitcoin is not exchangeable to the commodities, then what’s their use?
There is nobody in the world that is doing some business for not getting the profits. The same is happening to the Bitcoin. People think that to invest in Bitcoin they will earn more money. The miners or the valuators are not working because they want to get expertise to solve hard mathematic problems but they want Bitcoin for trading to earn money. Bitcoin is having the money value but lack tangibility.
Worth of money
The reason on which people do value money is because it has some worth for exchange. The guy who was solving hard problems of mathematics doesn’t want Bitcoin but the money that he will be getting after selling the Bitcoin and from that money he can anything, a house or he can pay rent or do shopping.
Being digital have consequences
Till the time Bitcoin doesn’t allow easy exchange with the commodities. It will face difficulty in the eye of Government sector and the Banking sector. Bank transactions of the fiat money do cost the markup rate. Where the transfer of Bitcoin from one country to the other country has become easy which reduces the share of these organizations.
If you want to transfer 100.000 dollars from one country to another, they charge 10 percent of it. The transfer of Bitcoin doesn’t cost anything (up to 0.01 BTC). It may leads to the profit. But the liquidity of the Bitcoin is not as viable as the fiat money due to the acceptability and exchange factor.
Controversies of Banks VS Bitcoin
The people have started storing their big amounts in the Banks through saving accounts where people do get markups every month. The more you store the money in the saving account the more markups one will get. The liquidity and the rotation of money started to get lower in the market.
Banks stated to have less transaction. The banks started limiting the storage of money in the banks while putting the negative charges to the vendors if they are storing the money than desired. The customer is always a boss when comes to business. The advent of Bitcoin in 2009 changed the perspective to the Banks as people started taking out money from the accounts and started investing in Bitcoin digital market.
The techniques of the banks failed again and for that matter the Bitcoin got popularity because of the high exchange rate. There has developed a big market for the digital people.
Banks are feeling worthless when people have become their own banks for the transactions and sharing of money. If someone doesn’t have money he can become a miner and earn Bitcoin and for that he can exchange that for the money. But if you talk about earning from a bank you can unless you are an employee of the bank.
People are closing their bank accounts and started inventing in Bitcoin which is a big threat to the Banks and the Government. It may leads to the depreciation of banking system which the governments can’t afford at any instant. The way economy proceeds will change. These are the few reasons the Banking and the Government wants to crush the Bitcoin market.