Bitcoin is traded on local exchanges that allow buying Bitcoin with fiat or vice versa. The government gets a share of the transactions we make on the exchanges. They see a good opportunity to increase the country's revenue from those taxes. Something that might have been overlooked in the past, and now they know how much they can make each year from crypto taxes on the exchanges.

The government of each country sees Bitcoin differently, some countries see Bitcoin as illegal, and some countries consider it illegal. But in countries where Bitcoin is legal, such as El Salvador, they know that Bitcoin is a legal currency and the people of their country will benefit from it. To be honest, I also think that people benefit from Bitcoin, but why does the government prevent it? Of course not for tax reasons. Basically, the Bitcoin trend is so that no illegal money is circulated from their country. However, apart from Bitcoin, people are circulating their money in other countries in various ways, which are illegal, so why is the government only thinking like this in the case of Bitcoin?

I think that decentralization is one of the top reasons why governments are hesitant to embrace Bitcoin. But I'd like to believe that avoiding taxes is not the only issue. The governments also are concerned about money laundering, consumer protection. Capital flight and control over monetary policy. Meanwhile several nations have discovered that it will be more effective to regulate and tax Bitcoin than to outlaw it. That's why we're seeing various strategies adopted internationally. Some governments consider Bitcoin as property. Others as an investment asset. And a few governments are little by little introducing it to their monetary frameworks rather than fighting against it altogether.

Countries are beginning to understand that banning or restricting the use of cryptocurrencies causes more harm than good. First, since some cryptos are decentralised, the goverment lacks the necessary tools to monitor transactions. Several reports show that crypto adoption increased drastically in Nigeria even after the restriction placed on banks. There was an increase in informal crypto platforms, which aided crypto users to evade the restrictions.

Second, strict crypto laws will simply make people seek foreign alternatives to local service providers. Creating a harsh condition for crypto businesses also has its consequences. The government would lose tax and license fees and job creation opportunities. Crypto businesses will slowly migrate to other friendly countries, which will cause a loss of job opportunities.

Apart from countries like El Salvador and Bhutan, I have not heard of any country that is committed to buying or mining Bitcoin. However, there have been some notable positive changes in the approach of some goverment. Although they are making laws that promote centralization, they are also creating a more viable business environment for crypto businesses. They are now aware that they cannot stop adoption. So they are making laws that will make them profit from the industry. Even Nigeria has opened up to crypto businesses.


Adding references to your post would have helped your arguments.

The trend is shifting very fast, especially for governments that understand the importance and the benefits of utilizing the taxing of Bitcoin rather than putting a complete strict ban on it. An example of what I mean is the Kazakhstan government; they have literally just made one of the friendliest mining environments for miners, and they also get to benefit from the opportunity as percentage of mined coins get to be sent to the countries National reserve.  if you ask me, I think it's just a matter of time before other nations start changing their narrative towards Bitcoin restrictions and Bans.

Government changing .

Thank god our gov still refuses to accept Bitcoin as a legal tender. If it's approved  by our govt then we would have needed to pay our taxes on bitoin. Since btc is a asset , don't know if we could not generate a 10% profit yearly then how we will pay a 10-30% tax on our holdings.
In our region btc mostly saw as gambling fund , that's why it's still prohibited on our country.


Since you would  have provided your Income tax and your source of funds, the government can easily track you down. There is also a thing  called chain analysis. Nothing can be unseen if they do chain analysis; remember, Bitcoin is not truly anonymous. It's psydonomous, so it's traceable. Although still a lot of people use btc in a way so gov can't impose tax on them. I have a friend in India , since they need to pay 30% tax on crypto, he always finds a workaround to trade his BTC into fiat.

I wish to know how religion affects Bitcoin. Do some religions condemn Bitcoin as something harmful? I am just curious to know.

Even as governments are beginning to recognise Bitcoin as something meaningful, the government will rather see it as taxable property than as a form of money. All of these regulations are not with the intention of making Bitcoin an alternative means of payment, but as an avenue for the government to generate income through taxation and through reserves. There is no point in restricting Bitcoin usage when people still use it despite government bans and restrictions, as it still is in some countries. More countries will join the trend, including Nigeria, but the aim will still be to tax Bitcoin whenever it is being spent, definitely not a currency that will compete with the country's local currency.

I think I've also read somewhere in my country that there are some tax placed on crypto, But I'm not sure how it works, however I feel it is an abuse on the side of the government to use such laws, especially when they want to categorize taxing crypto as income tax when you make gains. In as much as i understand the analysis you made concerning these, My problem still remains that the government is not supposed to tax crypto as income tax when you make gains, because you bear the risk alone. However this kind of situation makes me to ask, is the government only interested in my gains, what if the asset is liquidates in my hay days of investment, how helpful will the government be in recovery my assets, or are they just interested in what they have to gain regardless of how the the market affects me.

If income tax doesn't fair for the profits/gains you made, then when you feel it will be?

Taxing crypto on capital gains is fine but that becomes unfair when they don't allow offsets to loss, or have high tax rates with no exceptions, like it doesn't come under the regulated excepted limits for zero income tax. That is exactly what happens in my country, where the government applies a 30% tax on gains and 1% on source for every crypto trade then, finally, you will be exempted from zero tax limits when iut comes to crypto earnings.

There are governments that view bitcoin as friendly, there are also those who are "anti" It depends on the officials, I am sure there are countries that consider bitcoin negative and their past leaders to be replaced with new ones, especially those who are pro bitcoin are sure the rules will change.

In my country bitcoin is considered a commodity asset, it is regulated in such a way, several exchanges continue to grow and appear, which indicates a good increase, and then the government gets taxes from bitcoin and crypto.

Yep, including my country where there is a Ministry of religion banned from being a medium of exchange and legally a commodity asset.