Why government and banks fears Bitcoin?

Amidst reports of various government and banks imposing ban on use of virtual currency, which lead to price of Bitcoin dropping below 6200 USD (while writing this article).

Government and banks cite that Bitcoins is used for illegal activities like tax evasion ,money laundering and drug trafficking.

But According to expert analysis less than one percent of Bitcoin transactions are used for illegal activities.

We know that Bitcoin is a peer to peer payment with no central authority or middle man. The lack of central authority is the prime reason the government and banks fear Bitcoin.

Lets discuss in detail why government and banks wants to curb the growth Bitcoin

Government-

Government favor the use of fiat over Bitcoin for the following reason

Fiat currency movement can be easily tracked and control, which helps them to dictate the economy of respective countries where as Bitcoin transaction are anonymous and and controlled by a single entity .Well which government wants loose their authority over money?

Banks-

Use of Bitcoin eliminates the need for banks as Bitcoin is digitally stored and passed without the need of any intermediary.If there is mass adoption of cryptocurrency, banks will eventually become obsolete

I personally believe that cryptocurrency is revolutionary technology .History teaches us that their is always been resistance to new technology in the initial stage and Bitcoin is not spared.

What’s your opinion on future of Bitcoin ? Let me know in the comment section.

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Thanks for reading.