The Biggest Obstacles For Bitcoin Legalization
Exactly 10 years ago from now, Bitcoin came into being. Laszlo Hanyecz made 10,000 Bitcoins and used them to pay for two slices of pizza in Florida. This single accident changed the tech world forever, it was kind of like when in the old ages, people used to trade gold for different objects.
After this, a lot of rich people started investing in cryptocurrency and used them to make more money by buying them and selling them. But the question is “Is this sustainable?” “Will it be legal around the world?” China – among many other countries – who is currently hoarding the consumer market has declared Bitcoin as illegal in their country.
According to countries where Bitcoin is illegal, they are concerned that with Bitcoin it is impossible to identity theft and hackers. To understand better the obstacles in Bitcoin legalization, we have compiled a comprehensive list of them.
Money laundering and the case of illegal transaction
Money laundering is the biggest fear of any government. They fear that people might use cryptocurrency in illegal activities. They fear that it might be used for money laundering. Even though people are already doing both these activities without the Bitcoin.
People who want to involve in money laundering will do irrespective of what currency they use. So this reason is not that valid. Actually, in reality, if people carry out such actions with cryptocurrency, it would be easier to track the transaction.
Therefore, money laundering with USD is riskier as compared to Bitcoin.
Value fluctuation “Volatility”
Bitcoin has been involved in numerous scandals throughout the past few years. The sex trafficking at the Silk Road has Bitcoin in the limelight, it was like sinister in the entire scenario. There were several other events such as the failure of Mt. Gox and some data breaches have also contributed to the bad aspect surrounding Bitcoin.
All this means that people who deal in Bitcoin are very few, therefore the value keeps on fluctuating. In comparison with the traditional currency, a very small event can bring about a huge hindrance in the value of Bitcoin.
People will keep their cash in crypto
There are a lot of public sector banks in each country where blockchain is illegal. Most banks rely on their clients. If people transition to Bitcoin, no one would keep their money in the bank and they would go bankrupt in a few weeks.
Banks are heavily dependent on clients, therefore they offer mobile banking, discounts and low transaction fees and other benefits to lure their customers in.
But with Bitcoin, they can keep their money and funds safe on a hardware wallet or paper wallet. The banks would have nothing to fall back on. Cryptocurrency eradicates the need for banks and educates clients on how they can keep their money safe without banks. And you can transition funds without any external help.
Lack of trust in Bitcoin
Even though Bitcoin is gaining popularity among individuals and online users. Most governments are not very fond of it. They are against the concept of crypto-currency.
They feel like the lack of a decentralized system and lack of authority responsible for the cryptocurrency will not be sustainable in the long run. They think that it will bring about a greater breach of security and will mark a hike in online crimes.
It has no set of terms and conditions, which means that it will result in an unstable financial system. There are plenty of insecurities for the government.
It’s not controlled by anyone
Adding to our heading above, this is one more hurdle which all the governments are scared of. This means that if someone uses your credit card or your account to make a transaction and later demands it to be reversed as he did not make it, there would be no higher authority to govern it and the government would have to pay you back.
This also has a downside, if you make even a small mistake while sending the money, it could go to the wrong address and you would lose the funds forever. Therefore, you need to be super careful will all money-related issues with the cryptocurrency.
With a back, they look after all this stud for you.
Bitcoins are highly dependent on technology. Even a small power outage can cause a huge dent in the traffic. If a system shuts down or fails, you could lose a whole lot of money and therefore, Bitcoin hosts wallets in numerous different locations.
Technical challenges associated with Bitcoin are several and cannot be taken care of properly.
Legal & Ethical Issues in Bitcoin
It is essential to realize the ethical issues related to Bitcoin, it is important to take care of all of these to fully take responsibility for it.
Governments are facing a challenge to best regulate their use, and are currently getting no legal security with it. Such problems arise with every new technology, and therefore, it is up to the citizens to take care of the.
In conclusion, cryptocurrencies are now going to be legal all over the world anytime soon as all these issues are very pressing and require deep skills to solve. Governments want their banks to perform well and not let them go bankrupt. They feel the need to control their people and cryptocurrency threatens their position.
The technology-related with Bitcoin is fragile and unsustainable, therefore, it does not fit in with many ideologies. Bitcoin is generally for people who are paranoid for privacy and keeps it on the top pedestal. Those people will keep on using it and other people will keep on relying on banks.
Lastly, to make Bitcoin legal worldwide, developers need to come up with better and sustainable solutions so that they can be adopted consistently on standards worldwide.