Bitcoin disrupts conventional financial systems. Central banks manage national currencies, inflation control, interest rates and money supply. Bitcoin works independently, which makes governments more difficult to apply monetary policies. In nations with weak currencies, people turn to Bitcoin to protect the economies of inflation.
This trend has led to stricter regulations in certain regions. China increased restrictions in 2021, prohibiting all cryptographic and mines transactions. The government has cited the risks of financial stability and the need to prevent capital outings. Nigeria has also imposed banking restrictions on the exchanges of cryptography, aimed at limiting the growing influence of Bitcoin on the local markets.
Despite the restrictions, Bitcoin is still exchanged on a basis between peers via decentralized networks. Global regulatory attempts have encouraged users to use different ways of negotiating.
