We have heard about it profusely; I think more than enough, to be precise. Cryptocurrency has never been able to stay out of the mainstream media only because of its unprecedented dominance in the digital finance domain. The profound deliberations on the future of cryptocurrency are being done on a large scale across the countries. The central banks, governments & financial intermediaries have witnessed the one-sided dominance of the blockchain technology-oriented cryptocurrency. Visit at: http://lnroute.com/
Is it time for the conventional governments to go beyond the norm and embrace something that hasn’t ever been done before? Have the governments begun to realize that cryptocurrency is an inevitable scenario with or without the support from the governance systems of the country? Is it time to give in and rather redefine the structure of the online financial structure in alignment with the cryptocurrency? Well, Bitcoin Era will address these underlying aspects of the prominent digital assets to help you understand the intricacies associated with the matter.
Lingering questions that warrant answers
There are some of the prevalent questions that have sprouted, especially among the proponents of cryptocurrency. Such questions revolve around how the government will incorporate the concept of cryptocurrency and how will they regulate such enormous, gigantic digital assets? The decentralized characteristics of cryptocurrencies make them unfit for the government to condone, which is why such digital assets have faced fierce opposition from the governments. The supply of all the cryptocurrency tokens that usually make up the digital transactions possible does not fall under the purview of any government’s legislation or central authority.
As far as the medium of exchange is concerned, cryptocurrencies holistically serve that purpose and far beyond that. Millions of people rely on such an aerodynamic financial ecosystem, unlike traditional systems is, because cryptocurrencies make use of blockchain technology. Such technology provides impenetrable security to the users, and the subsequent transactions can easily be conducted, recorded, authenticated in public/distributed ledger. Moreover, this method is being hailed on a vast scale due to the non-involvement of any third party or financial intermediaries that charge hefty and unreasonable fees on the transactions conducted.
Will the government make or break the crypto industry?
When it comes to cracking down on cryptocurrencies, China unleashed a no-holds-barred tactic to shut down all the crypto exchanges operating inside its territory. If this wasn’t enough, they went considerably farther than this to decimate the cryptocurrency ecosystem by banishing the miners. Such miners were left without a country, and the communist party enforced laws & regulations to make it happen. Despite all this fiasco & chaos, the good news is that the prices of cryptocurrencies in the global landscape remained intact, and the speculative boom remained unaffected.
According to the insiders & crypto analysts, the only problem in regulating such digital assets, i.e., Bitcoin, Ethereum & thousands of other cryptocurrencies, is that all these operations are on the peer-to-peer mechanism. Governments might even be able to regulate the specific venues (For example, Silk Road & Pirate Bay), but there is still a plethora of cryptocurrencies that are outside of their reach. You might even wonder how the transactions take place in the crypto industry, which keeps it outside the realm of any government? Well, it is just because such transactions are usually conducted & carried out through the crypto exchanges. Also, crypto wallets make it incredibly easier for users to conduct transactions without being accountable to any central authority. Does that mean the governments are completely helpless & ineffective in this domain? Is there no way for the government to formulate cryptocurrency regulations? Well, the answer is Yes! Governments can regulate the cryptocurrency inside the geographical boundaries of their respective countries, but they will have to impose humongous restrictions on it.
Furthermore, they will also need to create new laws that are specifically meant to regulate cryptocurrencies. But, will it be effective? Will these laws that undermine & cripple the traders’ ability to invest and trade work? Wil the investors, traders, participants & other crypto users like that? The answer is a BIG NO! If that happens, then it will dilute the entire concept of decentralization that cryptocurrencies operate on, wouldn’t it? Food for thought!
