Well, of course, the “everyone” we refer to in the title is not literally everyone. There are many who embrace cryptocurrency and the technology behind it, and consider it to be one of the best directions finances can take in the future. But there are many who are not only reluctant to even consider a future financial system built around the blockchain but actively work to pull it back. Not long ago, even Google banned cryptocurrency ads – this decision has been saluted by many due to the large number of cryptocurrency scams but will probably hurt legitimate companies, too. So why is there so much hate surrounding crypto?
Why banks hate it
Banks frown upon cryptocurrencies because it is a threat to their existing business model. One of the most attractive features of the blockchain is that it cuts out the intermediaries – banks, that is – thus making transactions much faster and much more cost-effective. Banks charge fees for handling transactions and keeping the people’s (and companies’) money – even the transactions that seem free for one of the parties cost the other party money (like when you pay with your contactless card at the supermarket and the supermarket is charged a commission for the transaction). This pours a lot of money in their pockets. If the use of the blockchain spreads and supermarkets start accepting it as a valid means of payment, banks will see their revenues plummet. And in a business world driven by growth, this is not a path they want to take.
Why governments hate it
Governments are afraid of cryptocurrencies due to the same feature for which banks hate it: the fact that it needs no middleman. But their reasons are different: it’s not the profits they miss but control over the money. In the case of traditional currencies, governments are in control of their value. Central banks can issue and destroy money, influencing its value, and they control the ways currency is transferred, giving them a means of tracking currency movement, collect taxes, and trace criminal activity. When there is no governing body at play, like in the case of cryptocurrencies, keeping transactions under control is not possible.
Why people hate it
Actually, they don’t – they just don’t understand it. Society today is built around traditional currencies that can be “made” by selling our workforce and time to companies that give us cash in return, cash that we give to merchants and service providers to get goods – food, electronics, clothes, and such. For most, cryptocurrency mining is seen as creating money from thin air, a concept hard to embrace, especially when we consider the fact that governments and banks are against it. Cryptocurrency differs from what we are used to, and this makes it hard to embrace. And the average user doesn’t really understand the way cryptocurrency works, and as we all know, people are usually reluctant when facing the unknown.
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