People often ask that why Bitcoin is not used widely across the globe even after its successful emergence. Despite having so many positive sides, Bitcoin is still struggling to be an alternative to the conventional currency. With the waves of digitalization one by one, it is assumed that one day Bitcoin will also be one of the popular modes of transaction for many people as there is no hassle of managing hard cash, no limit of exchange, no bar for time and place and no problem with the accessibility. You can get instant access about bitcoin benefits.
In 2009, a person or organization with the alias Satoshi Nakamoto invented the digital currency known as “Bitcoin.” Satoshi Nakamoto’s true personality has never been established. There are no dollar bills nor Euro notes for actual bitcoins. They are used only in digital wallets on the Internet. Blockchains are recognized as Ledgers for keeping records of bitcoin life. It can be sent directly or obtained via peer-to-peer transaction by someone with a Bitcoin address. Bitcoin also exchanges worldwide, which is the way its price is determined.
It is possible to move Bitcoin without restriction from one country to another. The exchange rate for government-supported currencies will, however, be very unpredictable. This is because the price is mostly driven by greed. But also because Bitcoins have a very small demand than conventional currencies.
Legal and Regulatory Issues
The IRS has become increasingly involved in Bitcoin in the United States and provided guidance. The department released IRS Notice 2014-21, which provides details on virtual currency tax treatment in 2014. The term IRS uses for crypto-monetary purposes is a virtual currency. 1 The IRS created a new tax form in 2020 that required taxpayers to disclose if they were involved in transactions involving virtual currencies during 2019.
Bitcoin operates on the deregulated marketplace, but the issuing authority is not centralized. Bitcoin addresses do not include SSNs or any other personal information, such as regular US bank accounts. This sparked questions initially about the use of bitcoins for illicit activities.
The supposed anonymity of Bitcoin in its early years contributed to a lot of illegal applications. The most well-known example of this was the Silk Road market for drug smugglers. It was a part of the so-called dark web that allowed users to purchase illegal medicines. Bitcoins have been used for all purchases on Silk Road. In October 2013, the FBI ended up closing it down.
However, for those who want anonymity Bitcoin has some significant weaknesses. Bitcoin provides an ongoing online database of all transactions in particular. Once a person is connected to an address, he may be connected by means of that address with other transactions. Competitive cryptocurrencies like Monero and Zcash provide even stronger security of privacy. Because of this, illicit activity leaves Bitcoin.
Legalization in Countries
Talking about the countries, it should be said that Bitcoin can’t be used all over the world. It has several restrictions. After the invention of Bitcoin, many countries have nodded yes for the citizens to have ownerships of Bitcoin, but many countries rejected that offer and preferred to keep their countries away from this new digital currency. For them, the anonymity and the public accessibility is not a safe option. According to them, many illegal transactions will be processed after the legalization of Bitcoin. The computer-generated process of mining to confirm the transaction and generating coins don’t seem safe to them. On the other hand, some countries believe in giving the citizens complete control over their money and prevent any interference of any centralized organization.
Countries who said YES to Bitcoin are:
- The United States of America
- The European Union including Finland, Belgium, United Kingdom, Germany, Bulgaria, Cyprus etc.
Countries who said NO to Bitcoin are:
Although Bitcoin is 10 years old, the trust factor is still not at the place where it was expected to be. One of the main reasons behind it is the incomplete development of technology. Bitcoin is a Beta version. The future may be different when the entire process will be completed. Let’s see.