How can Bitcoin be developed and popularized? Cryptocurrency education and government involvement are indispensable

A major factor in Bitcoin's mainstreaming is the community of users. However, the cooperation between the community and the government cannot be ignored.

Most of the potential users who could benefit most from the Bitcoin system come from countries where financial institutions are failing or where the fiat currencies are extremely unstable, including Latin America, Africa, Asia, and Eastern European countries such as Ukraine, Russia, and Greece.

Although cryptocurrencies have received a lot of exposure this year, it is far from easy for Bitcoin to truly go mainstream and gain official recognition.

The government is reluctant

Jonathan Chester, president of Bitwage, believes that the popularization of Bitcoin ultimately depends on the power of the people, and cannot rely on the government to intervene. He said that waiting for the government to popularize Bitcoin is like waiting for a train that will never come.

If a technology threatens the government's authority to issue currency, it will never be recognized, no matter what the public thinks.

Chester said that in early 2011, the market value of Bitcoin just exceeded $1.5 million. At that time, most of the users were technicians and cypherpunks. If the government had noticed Bitcoin at that time, it was only a small-scale attack. Chester pointed out that the Financial Crimes Enforcement Network (FinCEN) regulations on Bitcoin in 2014 and the subsequent taxation guidance of the Internal Revenue Service (IRS) proved that the government did not start to take corresponding measures until after 2013, when the price of Bitcoin soared from $250 to $1,000 in an instant.

Government response

Chester said that the government can see the rising support for Bitcoin from the rising price of the currency. The government has responded to the private chain research enthusiasm of financial institutions before, and now, as Bitcoin grows and develops, the government must once again come forward to express its attitude.

Chester said:

The government's response can point the way for the public, and the development of technology depends on the public. The popularization of Bitcoin can be said to be an educational process. The most important thing is people's understanding of specific use cases and Bitcoin security.

The Impact of Cryptography Education on Bitcoin

Chester stressed that for Western countries, the main value of Bitcoin lies in its investment or cross-border payment functions. For other countries, Bitcoin is a robust system for preserving value and a means of domestic payment. Once users understand the specific use case, security is the next focus.

Chester and Bitwage have been committed to cryptography education, aiming to convince companies and employees to choose Bitcoin cross-border salary payment services, which can save time and money compared to traditional models.

Although we do not force senders to register, when we communicate with outsourcers in Brazil, India or the Philippines, they always ask: Why is your fee so much lower than the traditional model? When they know the important role Bitcoin plays in it, they always lament their lack of knowledge about Bitcoin security. Bitcoin can not only improve the efficiency of the sales process but also avoid the loss of potential users.

Everyone who is new to Bitcoin wonders: Is Bitcoin a store of value or a payment network? Why is it so important to educate people about these two functions?

The need for collaboration

However, Chester believes that cooperation with the government is important and that the Bitcoin community must be emphasized to operate in good faith. This way, when it comes to legislation and law enforcement, the government will be willing to have open conversations with the Bitcoin industry, and the final regulatory rules will be fairer.

Chester said that the recent process of Bitcoin regulation in California is the best example of community and government cooperation. Under the premise of ensuring cooperation, the two sides repealed a bill that was so unfair that it could curb innovation in the entire industry.

He concluded that the recent petition initiated by the IRS is a real test for the community. The IRS’s request to review Coinbase’s user information can be seen as a test of the government’s integrity of companies in the Bitcoin industry.