Take a thought buying a house and other properties with your crypo-currency Wallet. Imagine going to an ATM to cash out your Bitcoin and other Altcoin.
It is believed that crypto currency has so many advantages over fiat currency, however it has so many risks.
The main disadvantage of crypto currency is its anonymity. You are not really the owner of your coins - the actual owner is the person holding the encryption of the coins, thus nothing in its coding states the coin actually belongs to you.
Therefore the anonymity aspect means that once the is stolen it is almost impossible to get the coins back.
Luckily new start-ups , aimed at tracing bitcoin owners are emerging and the algorithm they are creating will actually help authorities to see the actual owners.
Demand for regulations appeared when the price of Bitcoin soared, and while it was predicted to soar the more.
Institution like bank stepping in to regulate the currency, would serve as a safety pin for those wanting to invest in and start using bitcoin in their day-to-day activities. This is also good for retail investors who wish for some legitimacy.
Regulating crypto currency is important for the government. It would ensure transparency, thus making people choices safer and more transparency allows for better judgment.
Regulations would help tracing those using bitcoin illegally.
Regulating Bitcoin would help in taxing Bitcoin owners.
It is yet unclear to some people what Bitcoin really is. Some call it money, others an asset, while some are unclear what it is. So having institution like bank to impose regulations and international consensus on Bitcoin would make things clear to the people.
Countries like Venezuela among others prefer Bitcoin to their national currency because of the unstable state of their economy. So having regulatory body to regulate Butcoin would make most countries recognize Bitcoin.
In conclusion crypto-currency are becoming more popular everyday and the main hiccup still remains. In order to curb it all, it is essential to introduce a regulatory body to make it more secure to trading, use and spend Bitcoin.
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