The world of cryptocurrency is still in its infancy and we are just beginning to see the potential this technology offers. Recently, Bitcoin has exploded in value, and many other cryptocurrencies have sprung up along with it. Governments fear 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 in 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. Indeed, the problem with unregulated money is that it is a powerful tool for social movements.
Money has always been about control. When it comes to a form of controlled wealth, usually intended 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 an essential support in times of need. This is why governments have always tried to control money because it means controlling them. Through the use of taxes, licenses, or rules and regulations, a government can have complete control over its people. When money becomes too powerful and therefore essential for government, an ever-increasing amount of problems arise.
Governments find themselves restricting the use of money for their own gain and power. Social movements that rely on unregulated money cannot be as easily controlled as if they were using some form of regulated wealth. As the amount of money out of control grows, so does the diversity of social endeavors that can be supported by it. By these means, governments find themselves in a position where they can eventually lose power to people who really don’t 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 that’s not all Bitcoin has to offer. You can buy things with bitcoin. You can send money around the world quickly and easily, without having any problems with the bank or the local authority. Many large businesses are beginning to accept the currency; enormous amounts of market activity occur daily, 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 are looking for a way to invest in bitcoin, then BitcoinPro is an excellent choice.
What are the disadvantages of Bitcoin compared to existing currencies?
The disadvantages of Bitcoin are very few. Although there is no central authority or government, some of this power is lost. For example, Bitcoin cannot be stopped by the government of any country. But that doesn’t mean Bitcoin is unchecked. The “global” nature of cryptocurrency prevents it from becoming a truly global currency like gold and silver. Bitcoin can be printed and distributed at will, but at a price dictated by how much people are willing to pay for it. The biggest disadvantage of Bitcoin is that people have to invest a lot of time in studying the currency, knowing it and accepting it. Otherwise, Bitcoin will not replace any other currency.
Three myths about cryptocurrency:
Myth 1. Cryptocurrency is criminal money.
If you search the word “cryptocurrency” on Wikipedia, it says it is “an electronic payment method designed to be secure and anonymous.” This can lead people to think that cryptocurrency is mainly used for illegal activities. But financial crimes are usually handled by banks and governments, not cryptocurrency. There is no way for a person or company to steal or cheat someone with cryptocurrency once it is removed from the exchange or pool wallet.
Myth 2. Bitcoin is unregulated.
Governments want to control your money. In most countries, the government has the legal authority and power to regulate or shut down cryptocurrencies if they wish. Different laws in different countries can be confusing, but the basic idea is that you have to register with a government body or face penalties such as jail 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 working forever. It may be possible for a government to “disappear” a cryptocurrency for a period of time to prevent it from being used at certain sensitive times or in certain specific places. But the government crackdown won’t last very long because cryptocurrency is too powerful and too useful for people to ignore.
Like any other form of currency, 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 need to operate within the social movements that depend on it. Governments may try to control cryptocurrency and may even succeed in doing so for a time, but they won’t be able to stop all unregulated money forever.