Everyone of us have heard about Crypto Currency or BITCOIN as an investment alternative or a digital currency.
But it has been seen as a threat to FIAT CURRENCY ( EXAMPLE OF FIAT CURRENCY IS US DOLLAR). As number of investors in Crypto Currencies are increasing day by day, Governments are getting more worried.
WHY GOVERNMENT THINKS CRYPTO IS A THREAT?
One of the power of CENTRAL BANK or Government is they can control supply of currency that is US DOLLAR. To control Inflation or to overcome deflation ( Inflation and Deflation is altogether a wider area for discussion) Government prints currency’s accordingly
However, if the world adopts BITCOIN as FIAT Currency, it will replace USD eventually. And government won’t be able to control the supply anymore. Which is a very big reason for Government to BAN crypto currencies.
As it might increase the GAP between Rich and Poor.
A detailed analysis of impact of Crypto on Inflation will be in next blog.
NEWS 