Its 2019 and we’re 10 years since Bitcoin was created. The world was changed a bit by the technology behind it, a lot of people got rich by buying some in the early years and selling in 2017; But one of the main questions is – when will Bitcoin become legal worldwide?
According to Wikipedia, Bitcoin is legal in most of North America, South America and Europe. The European Union offered a way of legalization for Bitcoin, claiming its a “convertible decentralized virtual currency”. The G7 also recognized it as an “Internet-based payment services”. But countries like China doesn’t want to recognize Bitcoin as a way of payment, commodity or a virtual currency. So, what are the main reasons?
Money laundering & illegal transaction
This is among the biggest fears of any government. That people may use Bitcoin or crypto to do money laundering or other illegal transaction. But the fact is, that even without Bitcoin or crypto, people were doing this anyway.
If someone wants to do it, it will do it. It doesn’t matter if they’ll do it with Bitcoin or USD. Crypto is here for almost 10 years but still most of the illegal transactions are done with USD. So this reason is not so valid as you may think. Using Bitcoin, the person would have the transaction on the blockchain forever and someone could even track that transaction. Therefore, I think USD has lower risks here as you can exchange it almost anywhere.
People will keep their cash in crypto
Banks depends on their clients. This is probably something you don’t believe in – but its actually true. If all the clients would leave a bank, they will go bankrupt in a few days or weeks – at best. So, they offer bonuses, better mobile apps, low transaction fees and many others to lure their clients there.
But what if someone would use crypto and keep the funds safe on a hardware wallet or a paper wallet? What would you need to bank for then? Nothing. You want to transfer some money to a friend? It takes less than an hour or even less than a minute – even if he’s on the other side of the globe.
Crypto eliminates the need for banks and educate the people on how they can keep their money safe in a personal wallet. And yes, you can even use those funds daily as you wish. For example, more and more casinos started accepting bitcoin deposits.
Its not controlled by anyone
This may be great for us, common people, but it scared the government. If someone uses your credit card to buy something – you can issue a claim that you didn’t make that transaction and probably you can get your money back. You can’t do the same with crypto as the transactions are irreversible. This is a plus but it’s also a downside, as if you sent the cash to the wrong address, those funds are mostly lost forever.
Therefore, you need to be careful on how you send the money and also careful on how you protect them. With a bank, you don’t have this stress – unless the bank goes bankrupt – then there’s a possibility to lose everything.
Banks and Bitcoin can work together, in my opinion. But Bitcoin won’t probably be fully legal everywhere too soon. Governments wants to control their people and the little freedom that Bitcoin is offering could harm their plans. The fact is, this is completely normal. Bitcoin is a cryptocurrency that grow from $0 to over $10,000 based on the people’s desire to have a bit of financial freedom. They could probably ban it – and people would still use it. Because bitcoin was created for the people that are obsessed with privacy and financial freedom. They will keep using it. The other people will just keep their money in banks.
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