Bitcoin’s Mainstream Media Medicine: A Healthy Dose Of How Low Can We Go Is Coming
Bitcoin Is A Tool To Avoid Governmental Control And Store Value
Governments have always been trying to increase their control over their populations. Just let's have a look at China and how they have even created a credit rating for each individual. Most of the payments in China are processed using digital services that provide clear information to authorities what citizens do with their funds. In sum, they know more about their lives.
In the United States and other Western countries, governments tried several times to increase their control over people. However, this is a difficult task. Back in October 2001, just a few weeks after the 9/11 attacks, the United States passed the USA Patriot Act. Individuals were completely shocked about what happened after the terrorist attacks that accepted the controversial act.
Governments also try to crack down on money laundering and offshore investments. This allows them to eliminate the sources of financing of terrorists and drug cartels as well. However, money laundering affects elites rather than most of the common people.
Several times, parliamentarians that create these legislations are involved in reducing their tax burden by moving funds abroad such as Cyprus or Cayman Islands. That means that it is very important to have the right narrative for governments to be able to pass these laws and explain that to individuals.
States do have the need to finance their large deficits. This is something that the G7 experienced and knows what it means. With increasing debt, it is becoming highly difficult to finance these deficits.
Mr. Movchan, a Russian researcher that provides offshore services, commented about it:
“The hunt for the offshore money began. But it was impossible to start cracking down on major businessmen just like that, it would have faced strong opposition of the giant business lobby. That is why they came up with an ingenious plan, it was said that the crackdown is not on the businessmen who use offshores, but they are going after the terrorists.”
According to Movchan, these offshore accounts were accused of holding a lot of black money, thus, they requested them to provide the market with more transparency.
There are several governments and regulatory agencies that want to crack down on Bitcoin (BTC) because it works as a tool for criminals to launder money and to support terrorist activities around the world. Although Bitcoin has been used by criminals, is not mainly used by them. There are some reports that show that less than 1% of Bitcoin is used for illegal purposes.
Indeed, there have been several banks involved in criminal activities and money laundering. For example, Deutsche Bank, Wachovia, HSBC, and many others have been accused of performing illegal activities and facilitating services to criminals.
Bitcoin is currently helping individuals in countries such as Venezuela or Zimbabwe to process transactions and save money. Their currencies have experienced hyperinflationary policies that do not allow them to use them for small purchases or on a daily basis.