The massive growth of cryptocurrencies has caught the world by surprise. Most observers believed that virtual currencies were destined to remain on the fringes forever. But cryptocurrencies have thrived and pushed their way into the mainstream, with Bitcoin leading the way. Cryptocurrencies have a host of benefits for individuals: they allow people to make anonymous transactions from anywhere in the world. The blockchain technology that powers Bitcoin has become so successful that financial institutions are now using it to encrypt their own data. But the rise of cryptocurrencies isn’t viewed positively by everyone. National governments are often fearful of virtual currencies and have tried to restrict access to exchanges, forums, and other associated websites.
Why National Governments Are Looking To Restrict Access To Virtual Currencies
Cryptocurrencies make a lot of sense for individual buyers and sellers looking to protect their online activity. But for national governments, they are looked upon as a threat. That’s because cryptocurrencies can’t be taxed traditionally. The potential loss of tax revenue makes governments wary of virtual currencies. There’s also the issue of official currencies losing value over time if more residents switch to cryptocurrencies. Those fears have led to national governments across the world looking to restrict access to virtual currency forums and exchanges. This is done through geolocation restrictions based on IP address. When someone living in a country with blocks on cryptocurrency sites tries to access an exchange, they’ll see the content blocked. Fortunately, VPNs, or virtual private networks, allow users a workaround. With VPNs, users can access blocked content and change their IP address. VPN encryption allows users to browse the web without being tracked by government actors, hackers, or other third parties. This is key for cryptocurrency users who want to keep their online web browsing secure and anonymous.
What’s Next For Cryptocurrencies
In the future, national governments are likely to push even harsher restrictions on virtual currencies. That makes VPNs more important than ever. VPNs will be necessary to keep the web and cryptocurrency access open for internet users. Look for more limitations on virtual currency access, especially in countries like China, Iran, or Saudi Arabia.
