Bitcoin: A Revolution or A Money-Making Scheme? 
Markets MilkywayBlogs 17-Nov-2022 Comments (0) 2

Bitcoin: A Revolution or A Money-Making Scheme? 

“I don’t have the time to try to convince you if you don’t believe it and understand it. Sorry”. This is how Satoshi Nakamoto, a person who goes by the pseudonym, who created bitcoin and wrote its white paper, helped people comprehend the significance of cryptocurrencies. Warren Buffet, a renowned investor, cautioned people against investing in cryptocurrencies, calling them a mirage and foretelling a dismal future for them. The globe is still plagued by the “to be or not to be” choice about this “decentralized money.” 

While China has outright banned cryptocurrencies and declared them to be illegal, a recent study showed that India now has the biggest number of cryptocurrency owners in the world, 10.7 crore. Cryptocurrency assets, which are largely unregulated, have increased by 200% this year alone, from a little under $800 billion to $2.3 trillion, without having any physical assets or fiat money to back them up. 

According to the latest bitcoin news, the exponential growth of bitcoin ownership raises the question of why governments are tolerating it when there is no direct control from a central body. Why don’t they regulate cryptocurrencies if they are letting their citizens trade it? Both concerns have foggy answers because control is the main concern that central banking authorities throughout the world have. This is because controlling money (legal tenders) serves various macroeconomic and geopolitical goals that may be jeopardized if cryptocurrency is made legal. 

Decentralized currencies will avoid capital controls and wealth exports due to their statelessness. With the potential to avoid the current financial system, this currency will be a haven for criminals, particularly those engaged in money laundering. The fact that cryptocurrencies are unregulated is one of the main factors preventing the crypto-juggernaut from becoming a major component of the global financial system. This gave rise to a lot of confusing prepositions, such as whether bitcoin should be utilized as a medium of exchange or a primary store of value. When the economy is in a recession or financial crisis, is Bitcoin a safe haven asset? Nobody has the precise solutions. 

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Can a “peer to peer version of electronic cash” qualify to be referred to as money? is another important but unanswered subject. The world is still looking for an answer to these questions. President of Russia Vladimir Putin recently pushed the world’s central banks to accept cryptocurrencies, and his words served as a bright spot for the industry’s future. Mr. Putin added that there is still a long way to go before these currencies can be utilized as digital currencies for international commerce. This was undoubtedly a happy time for cryptocurrency owners. As huge investors, hedge funds, and banks have become more active recently, ties between cryptocurrencies and the conventional financial system have gotten stronger. Cryptocurrency can legitimately be a component of the monetary system if concerns regarding investor safety and the availability of systematic clearing houses for stable cryptocurrency coins are resolved. It is important to note that cryptocurrency addresses three fundamental issues with the central bank-dominated financial infrastructure system. 

1. Because it is impossible to counterfeit cryptocurrency, the issue of double spending would be solved. 

2. Transactions on the Bitcoin network must be approved by nodes dispersed throughout the world in order to be added to its ledger, which is why it is still considered trustworthy despite being a decentralized system. The entire transaction may be ineligible due to a single objection. 

3. With cryptocurrency, there is no longer any need to print or distribute money. Peer-to-peer cryptocurrency blockchain transfers between two addresses don’t need intermediaries. 

All these options do, however, have limitations because it will be difficult to ensure that cryptocurrencies are accepted in all countries. While some countries, such as China and the United States, have outlawed cryptocurrencies, others like El Salvador have made them legal tender. Despite all of these problems, according to the latest bitcoin news, cryptocurrency has a good chance of becoming the currency of the future if the government assists by creating a new framework for regulating digital assets that is distinct from the traditional financial system, including the protection of holders of digital assets from fraud, market manipulation, and disclosures to promote transparency. This is because revolutions never go backward, it is important to remember. 

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