If you can't beat them, join them.

Is this a situation that governments of the world are facing concerning Bitcoin? National governments are still at the point they think controlling digital assets are within their realm. We will have to see how effective this viewpoint is.

Lower forms of government, whether state or provincial, are starting to embrace cryptocurrency. They see the potential to revolutionize their economy by attracting companies that are involved in this emerging industry.

Many stated within the US are actually vying to become mining hubs, embracing the opening of miners there.

Of course, there is the flip side, such as a state like New York, which is working on banning crypto mining.

Either way, things are forging ahead.

Source

Government Mining

The cryptocurrency traditionalist will not like this but governments themselves should become Bitcoin miners.

Why should they do this?

It is rather simple: governments need money and starting mining operations should be profitable. This also provides a service, similar to a utility. Having the Bitcoin network expanded to include government miners would certainly add another layer of validity to the situation.

After all, do governments not ensure there is water and other services.

Of course, getting involved in the mining game does not mean they would control it. To the contrary, Bitcoin mining is diverse enough that achieving such as end is likely impossible.

Nevertheless, if state or provincial governments got into the mining game, they would be able to benefit from the long-term ascension of Bitcoin. While we are mired in a bear market, it is difficult to envision a time when BTC reaches new highs. That said, we know the bear will end at some point.

New Ways Of Generating Revenue

Governments should start developing new ways of generating revenue. The old ways of simply tax and spent will not work for much longer. As the digital world expands, people are going to have more options. Ultimately, this could lead to a large portion of each population becoming "digital nomads".

Bitcoin mining would be a rather simple way for governments to involved themselves in the cryptocurrency industry. After all, it was the start of how things originally worked. While this might not be profitable for a small town, a major city could easily afford a handful of mining rigs, giving them a chance to earn a decent return.

It is also a move that would open the door for other crypto ventures. As we know, once involved, the options expand greatly.

If governments do not get proactive in finding new ways of bringing in revenue, people are going to opt to leave. Perhaps it is not too much of a concern at the moment but give it another decade and this could be a reasonable proposition.

I fully expect there will be a time when governments have to compete for citizens just like they do now for companies. Over the last few decades, local governments gave many "handouts" to firms locating to their area. This is often in the form of reduced/elimination of real estate taxes.

In the future, this could move to the level of having to entice people to move to that city, state/province, or even country. This could be true in the developed world with the demographic situation only getting worse.

Being cryptocurrency friendly is certainly a starting point. Perhaps, if governments got aggressive in this realm, some would find themselves in position if being financially sustainable.

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