How the world views Bitcoin (Topic)

Recently, news about cryptocurrency, in particular about Bitcoin, has flooded the Internet space and media. The rapid growth in popularity and, accordingly, the rate of this cryptocurrency, especially since 2017, has made a stir around it.

How the world views Bitcoin

But the attitude towards Bitcoin is very ambiguous, and in many countries this cryptocurrency does not have a certain status.

This digital currency is classified in different ways: virtual currency, "monetary surrogate", intangible value, virtual goods, and the like. Our country belongs to such states.

What is Bitcoin?

Bitcoin is a cryptocurrency (digital currency) that has no centralized management and no issuer.

If we talk about the peculiarities of Bitcoin in our country, it should be noted that this cryptocurrency remains outside the legal field of the current domestic legislation.

It is because of the complexity of the qualification of this object from the point of view of the legal approach that this is the reason for the uncertainty of the status of this cryptocurrency. But despite this, the number of Bitcoin users is growing every year.

What is the profit and what are the risks of using bitcoin in USA

Therefore, it is worth considering directly the benefits and risks of using Bitcoin in our country.

Benefits of using Bitcoin:

• Complete anonymity (this feature is that all transactions between all electronic wallets are public);
• No commission . Comparing other payments and payments with cryptocurrency, it is worth noting that transactions with digital currency are carried out without commission payments, and with other types of payments, the commission reaches 3%;
• International turnover . Since Bitcoin does not have a specific issuer to issue and be responsible, "coins" are accepted internationally;
• Decentralized system . This characteristic lies in the fact that Bitcoin is not tied to the government of specific states, which, according to the laws, deprives users of some risks.

Of course, Bitcoin has disadvantages, and the main disadvantages of using them are as follows:

• Price volatility . If you analyze the fluctuations of this currency during 2009 and up to 2017, you can see the volatility of Bitcoin fluctuations in the range from $ 13 for 1 Bitcoin and up to $ 19,000 for 1 Bitcoin. Therefore, there is no certainty what will happen with this currency and its rate in the future;
• Fraud risk . Do not be discounted, Bitcoin is still a digital product and there is a high risk of losing this asset due to hacker attacks;
• Problematic of return . First, only the recipient of the payment can return the coins. Secondly, here it is worth remembering the instability of the exchange rate: after a while, the amount may return in a much smaller amount than it was in the previous period;
• Mistrust of users . One of the reasons for this process is the lack of knowledge about how to use Bitcoin and how the Blockchain system works;
• Risk of legal insecurity . It is due to the lack of a legal aspect of Bitcoin that there is a lot of speculation and abuse by law enforcement agencies. The insecurity of the ownership of this asset makes it vulnerable. It is these factors that once again stimulate the export of Bitcoin abroad. Thus, it hinders the development of this technology on the territory of our state.

The bottom line

So, Bitcoin has its disadvantages and advantages, but the biggest of them is precisely the legal uncertainty of this object. Therefore, the first step of the state to meet this technology is precisely the provision of a certain status for this cryptocurrency, as well as the creation of legal boundaries for users of this digital product.

And this, in turn, will lead to the disappearance of negative precedents with it, reduce the risks associated with its use, which will generally have a positive effect on the development of cryptocurrency in the legal and investment climate of our country, which will lead to expanding the boundaries for business activities.

The Topic of Article: How the world views Bitcoin.
Author: Jake Pinkman