Ever since its debut in 2009, Bitcoin has been absolutely revolutionary, in both concept and application. It is still renowned for being the very first cryptocurrency to hit the market and is based on blockchain technology, many other cryptos have also come upon the basis of this technology. It is a form of digital currency with no legit governing body.
It is based on the concept of mining, then how would it be regulated? Who decides the use it has?
Even now many tax authorities, digital law enforcement agencies, and other concerned bodies still discuss important aspects. These include the correct practices, the legislation required for regulation, and whether Bitcoin should be legal or illegal. This has been debated and the stand that the world has about Bitcoin depends from country to country.
Controversial Features Of Bitcoin
Why is the reception of Bitcoin varying across the globe? This is because of certain features of Bitcoin. Bitcoin makes transactions easier, there are no exchange rate variations for global transactions, and the users can retain anonymity. In fact, there is so much evolution in the use of Bitcoin.
There are now Bitcoin ATMs where you can withdraw money, you can buy with ease from online retailers and stores, and basic trading can be done. If you are curious to learn or interested in trading, go URL and explore the world of cryptos. Bitcoin, as a whole, has so many utilities! That’s why it was considered revolutionary once upon a time by Elon Musk himself. Now, the CEO of Tesla has set his sights on other cryptos.
Which Are The Countries That Have Not Banned This Crypto And Why
While this crypto has been recognized for its wide variety of uses in many countries like in the US, Canada, Australia, EU, and Finland, there have been lots of committees assigned to properly regulate the use of Bitcoin.
The reason Bitcoin banning is even considered by a few countries is only that there are no strict laws governing the use of crypto and the anonymity it gives its users. This can be dangerous considering it could be involved in illegal activities and maybe even plotting some harm to your country and breaking laws.
There have been drug cartels and weapon supply rings based on crypto. One thing is completely decided upon by the whole world: this can never be a replacement to the country’s actual currency that is in circulation.
The US has been very welcoming of Bitcoin, incorporating it in payments for Microsoft, Subway, and Overstock.com. This has been due to an innovative and strong approach to setting up the right guidelines for use of Bitcoin and its regulation. This has been done by the Financial Crimes Enforcement Network (FinCEN) since 2013.
It is not recognized as currency, but as a money service business. Canada also has similar rules regarding Bitcoin and here also it is treated as a commodity; like a barter exchange. This goes the same for Australia and Finland. The best aspect here is all about how they are trying to regulate this.
Where Is Bitcoin Banned?
Many countries have said a firm no to Bitcoin keeping in mind the implications it can have. It can pose a threat to their native currency and Bitcoin is very volatile, and the value changes a lot. Haven’t we seen this when Musk said Tesla would discontinue Bitcoin transactions? While some countries have banned cryptocurrency directly, other countries have just discouraged businesses dealing with crypto from using that as a means for transactions.
China has banned cryptocurrency, especially Bitcoin as it could lead to massive misuse. There could be many scams and frauds conducted to cheat their citizens of money using Ponzi schemes and crafty marketing. Every single institution is banned from using this crypto.
Russia is not that strict, it doesn’t have enforcement departments against Bitcoin. This country is relatively lax about Bitcoin but using BTC for payment of goods and commodities is banned.
Vietnam is yet another country that is relatively lax. They have allowed cryptocurrency to be an investment or asset, but its sanction as a currency was rejected. The Central Bank of Bolivia, Bolivia discourages the use of crypto. Even Columbia and Ecuador have a Bitcoin banking ban completely in the country. The status of the UAE in this aspect is quite interesting as it had a complete ban in 2017. However, in 2018, Dubai said it would incorporate crypto in its dealings. India had it banned and then had the ban revoked, and now is considering forming state-backed currencies and still has banned Bitcoin.
It Is Harmful To The Environment
Apart from the basic issues, even the non-eco-friendly working processes of Bitcoin were considered by a few countries. Blockchain takes a lot of power and hence, this can be detrimental to the environment. The blocks actually emit copious amounts of greenhouse gases and the efficiency is slow, compared to other altcoins.
Some altcoins that have been developed can actually counter these issues and are slowly growing in popularity. These cryptos have given amazing competition to Bitcoin. Whether the countries would accept the altcoins and retain their ban on crypto is left to be seen.
Bitcoin, being the first of its kind, has created ripples in the crypto world! While this has created a lot of unrest leading to widespread discussions in some countries about its legal status, Bitcoin has a huge reach now, globally. Musk also contributed a lot to boost the popularity of Bitcoin.
What can actually be observed is that Bitcoin is accepted as an asset or investment, like a stock. Countries are however hesitant to start using it directly as a currency as it could replace their native ones. This could massively affect the economy of the country. This is one of the major reasons for the Bitcoin ban in some countries.
Currently, the value of Bitcoin has dipped down, thanks to Musk, but it would stabilize and come up soon. It has a market cap right now of $715,878,736,523. While there is a slight increase in the prices, it remains to be seen if Bitcoin would continue to flourish or not in the future.