The world of cryptocurrency is still in its infancy, and we are just starting to see the potential that this technology offers. Recently Bitcoin has exploded in value, and many other cryptocurrencies have sprung up with it. Governments are scared of a new era of unregulated money that can fund any cause, and banks fear the erosion of their power. The future is unknown, but we can be sure that blockchain will disrupt our entire economy, one way or another. However, if we look at the history of money, we can see that when money becomes more widely accepted in society, it becomes a problem for governments. This is because the problem with unregulated money is that it makes a powerful tool for social movements.
Money has always been about control. When it is a controlled form of wealth, usually to serve some form of leadership or government, it becomes almost inseparable from its purpose. It can become a means of oppression as well as critical support in times of need. This is why governments have always tried to control money because it means to control them. Through the use of taxes, licences, or rules and regulations, a government can have complete control over its people. When money becomes too powerful and thus essential to the government, an ever-increasing amount of problems arise.
Governments find themselves restricting the use of money for their own gains and power. The social movements that rely on unregulated money cannot be as easily controlled as if they used a regulated form of wealth. As the amount of uncontrolled money grows, so does the diversity of social efforts that can be supported by it. Through these means, governments find themselves in a position where they may eventually lose power to people who really do not care about the wishes of politicians and those in power.
What are the advantages of Bitcoin over existing currencies?
Most people know that Bitcoin has no central authority, no government, and no banks. But this is not all that Bitcoin has to offer. You can buy things with Bitcoin. You can send money around the world quickly and easily, without getting in trouble with the local bank or authority. Many big businesses are starting to accept the currency; huge amounts of merchant activity are happening on a daily basis, many of which cannot be done with any other form of currency. Many people have made millions of dollars investing in cryptocurrency instead of gold or stocks. And If you’re looking for a way to invest in bitcoin, then Bitcoin Pro is an excellent choice.
What are the disadvantages of Bitcoin compared with existing currencies?
The disadvantages to Bitcoin are very few. While there isn’t a central authority and government, some of that power is lost. For example, Bitcoin cannot be stopped by any country’s government. But this does not mean that Bitcoin is not controlled. The “global” nature of the cryptocurrency keeps it from becoming a true world currency like gold and silver. Bitcoin can be printed and distributed at will, but at a price that is dictated by how much people are willing to pay for it. The biggest disadvantage Bitcoin has is that people must invest a great deal of time into studying the currency, learning about it, and accepting it. Otherwise, Bitcoin will not replace any other currency.
Three myths about cryptocurrency:
Myth 1. Cryptocurrency is criminal money.
If you look up the word “cryptocurrency” on Wikipedia, it says that it’s “an electronic form of payment that is designed to be secure and anonymous.” This may lead people to think that cryptocurrency is mostly used for illegal activity. But financial crimes are usually handled by banks and governments, not by cryptocurrency. There is no way for a person or business to steal or cheat someone with cryptocurrency once it’s withdrawn from the exchange or the pool wallet.
Myth 2. Bitcoin is not regulated.
Governments want to control your money. In most countries, the government has legal authority and power to regulate or stop cryptocurrencies if they wish. The various laws in different countries can be confusing, but the basic idea is that you must register with a government agency or face penalties like prison time, fines, or even loss of property. If you use Bitcoin, you can avoid all of these things.
Myth 3. The government will shut down Bitcoin.
Governments cannot stop Bitcoin from operating forever. It may be possible for a government to “disappear” a cryptocurrency for a period of time in order to keep it from being used during certain sensitive times or in certain specific places. But government suppression won’t last for very long because the cryptocurrency is too powerful and too useful for people to ignore.
Like any other form of money, cryptocurrency poses a threat to governments and banks. But the way it can be used to support social movements is more powerful than any other economic tool. Cryptocurrency has enormous potential, but it will have to operate within the social movements that rely on it. Governments may try to control cryptocurrency and may even succeed in doing so for a time, but they will not be able to stop all unregulated money forever.