Should BTC be Legalised?

Should Bitcoin Be Legalized? | Should Bitcoin Be Illegalised?

After reading about the lucrative profits associated with Bitcoins, are you thinking to buy some of them? I would first recommend you to check the status of cryptocurrency in your country.

If Bitcoin Is Legalised!

  • Smooth Cross Border Transaction: Less transaction time and lower transaction fees -results in a smooth cross border transaction of Bitcoins. Many of the nations advocated that they just need to strengthen their digital infrastructure to easily send and receive crypto across the country or world.
  • Counterfeiting: Counterfeiting of fiat currency is one of the major issues faced by most nations. This further results in more intensive problems like financial terrorism, cross-border illicit activities, etc. Bitcoin is immutable and thus can be treated as the solution against the issue of counterfeit fiat currency. Each transaction of crypto is recorded on the blockchain. Any alteration in the transaction is being informed to all the nodes or systems involved within that particular block of transaction. Thus, duping the whole system is highly impossible.
  • Privacy: When the transaction takes place on a blockchain network, the identity of both sender and receiver remains completely anonymous. Only the wallet addresses(a combination of random numbers and alphabets) are being shared between them. Thus, privacy can be assured when people transact in crypto coins.
  • Security: Bitcoin transactions are secured by following cryptographic techniques. The information related to the transaction amount, wallet addresses, and other data which need to be filled during the transaction, all remains encrypted. Cryptography ensures that the network is secured and thereby safeguard the money from getting stolen.
  • Infrastructure: Bitcoin follows a decentralized model based on blockchain technology. All the transactions are verified by the participants or miners on their systems connected to this network, and the transaction gets completed. Thus, cryptos need not be minted and stored up in bank lockers. There is barely a need to set up the huge physical infrastructure or maintain the manpower for crypto transactions.

If Bitcoin Is illegalized!

  • The decentralized nature of cryptocurrency makes the government skeptical and made them feel like losing control over the financial system. Besides the concern of the security of citizens, authorities are also concerned about the notorious crypto exchanges involved in promoting a decentralized payment structure.
  • Semi anonymous behavior of the Bitcoin transaction is a big question mark to many governments. Anonymity in transactions can result in money laundering, tax evasion, and giving birth to a haven for black markets, as per the nations who banned the digital currency.
  • Tax evasion is also one of the main bones of contention for the authorities. The transaction path of crypto can be traced but not the amount which is being transacted, which can result in evading the taxes. This can ultimately create difficulty for the legal and financial systems of the nation.
  • Money can be laundered easily with the help of cryptocurrency or Bitcoin. A person needs two crypto accounts to launder the money, and the transfer looks perfectly legitimate. The lack of central authority, proper regulations, and anonymity can help in easy evasion.

Summing Up

Making crypto either completely legalized or completely illegalized might be difficult for most of the nations. Thus, some of the countries have found the middle path of introducing crypto in their country.

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Tarulika Jain

Tarulika Jain

23 Followers

Latest technologies like Blockchain, Artificial Intelligence, Internet of Things and many more amuse my mind to read and my fingers to write.