Bitcoin disrupts conventional financial systems. Central banks manage national currencies, controlling inflation, interest rates, and money supply. Bitcoin operates independently, making it harder for governments to enforce monetary policies. In nations with weak currencies, people turn to Bitcoin to protect savings from inflation.
This trend has led to stricter regulations in some regions. China escalated restrictions in 2021, banning all crypto transactions and mining. The government cited financial stability risks and the need to prevent capital outflows. Nigeria also imposed banking restrictions on crypto exchanges, aiming to curb Bitcoin’s growing influence on local markets.
Despite restrictions, Bitcoin is still traded on a peer-to-peer basis through decentralized networks. The worldwide attempts at regulation have only encouraged users to resort to different ways of trading.
