Should Governments Legalize Bitcoin?

Should Governments Legalize Bitcoin?

As a currency, Bitcoin is different from its predecessors. That’s because being a cryptocurrency means it exists digitally only. Ideally, Bitcoin is only virtual or electronic. Thus, you can’t go to an ATM and withdraw Bitcoin. What’s more, you can’t carry physical Bitcoins in your pocket. However, you can use this cryptocurrency to complete transactions.

Many people also use platforms like Bitcoin-Era to trade this virtual currency for profits. Such a system enables you to purchase and sell this cryptocurrency quickly. Perhaps, you can click on this link to learn more about Bitcoin-Era and how to use it to trade this cryptocurrency The Official Bitcoin Code App Website.

Nevertheless, Satoshi Nakamoto created Bitcoin to serve as a payment system that enables individuals and organizations to complete transactions securely and without disclosing personal data. What’s more, no government or central bank controls this cryptocurrency. That’s because it uses blockchain technology, a public ledger with a distributed database. That means different computers share data encompassed in this database instead of a single server.

To use Bitcoin, you have to download software called a digital wallet for storing the cryptocurrency. That way, you will have a Bitcoin address that you can use to track your funds. And you will need this address to complete all Bitcoin transactions.

If somebody wants to send Bitcoin to your wallet, you share your address with them or a QR code to scan and confirm the transaction. What’s more, a Bitcoin user can create several wallets.

Why Governments Should Legalize Bitcoin 

In some countries, governments have banned Bitcoin and other cryptocurrencies. However, some countries have a lukewarm response towards Bitcoin usage. Nevertheless, some people believe that governments should legalize this cryptocurrency. Here’s why.

Exchange Freedom 

Among the main reasons to legalize Bitcoin is that Bitcoin has not broken any strict laws. This cryptocurrency seems like an alternative currency that people use to purchase items and pay for services. Governments should legalize this virtual currency to allow people the freedom to choose their exchange medium.

Bitcoin is Unique 

This cryptocurrency doesn’t emulate the Liberty Dollars. Thus, it does not resemble the U.S tender. As such, people can’t mistake it for counterfeit U.S dollars. According to the United States Laws, alternative currencies can exist, provided they don’t claim the “legal tender” title. And Bitcoin doesn’t do this.

Bitcoin Containment

The United States and other governments are unlikely to target alternative, localized currencies than currencies with a wide distribution. That’s because there’s no law for addressing this subject. And this is evidence from the Liberty Dollar’s case and Ithaca HOUR. Ithaca HOUR is a legal, local currency. On the other hand, Liberty Dollar has a broader distribution in Puerto Rico and the United States. It’s also legal. Containing alternative currencies within a limited or defined geographical location minimizes the chances of passing off the alternative bills as counterfeit USD. What’s more, this containment makes controlling and regulating the alternative currency easier.

Bitcoin, therefore, compares to the Ithaca HOUR. Therefore, people can’t mistake Bitcoin for fiat currencies like the U.S Dollar since they exist within a network.

Why Governments Should Illegalize Bitcoin 

Some people think that this cryptocurrency should be illegal. Here are reasons for their opinion.

Black Markets

Since Bitcoin is not under the regulation of any central authority, many people argue that people can use it for black market transactions, as the sale and purchase of contraband goods.

Tax Evasion 

Some people argue that individuals can use Bitcoin transactions to evade taxations. That’s because many countries don’t have transparent systems for taxing Bitcoin transactions.

Final Thoughts 

Bitcoin can be a viable alternative exchange medium. However, this digital currency is still in its developmental stages. Consequently, the Bitcoin network still faces challenges that make some people feel their governments should illegalize it. Nevertheless, more people have realized the potential and benefits of this cryptocurrency and believe governments should legalize it.