Regulation of Bitcoin and Cryptocurrency Remains as the Biggest Uncertainty

The recent price fluctuation in the crypto market has made it clear that its not just traditional currencies that are susceptible to extreme changes in valuation. Despite this volatility, some people are still drawn to the pseudonymous nature of cryptocurrencies, seeing them as a more viable investment vehicles than fiat currencies.

But for most Americans, actually buying bitcoin or other cryptocurrencies is still extremely difficult. They are largely removed from the American banking system, and trading platforms like Coinbase do not currently offer services to U.S. users.in actual fact ,there are almost more than 30 countries that does not accept bitcoins legally .Although most countries don’t outright prohibit using Bitcoin, their regulations regarding it can vary widely.

Some countries have tried to limit the use of Bitcoin by placing restrictions on its banking customers. However, other countries have outright banned the use of Bitcoin and cryptocurrencies with harsh penalties in place for any citizens caught using the currency.

These are the countries that have a particularly fraught relationship with Bitcoin and other altcoins.

The regulatory framework around both bitcoin and the blockchain technology that underpins it is also still quite unclear in most countries around the world, with governments seeking to wait and see what happens before committing themselves wholeheartedly to anonymity-based currencies like bitcoin.

Recently ,there was a major Bitcoion related meeting conducted and it shed light on the risks underlying Bitcoin and cryptocurrency investments through a statement that is clarified stating Bitcoin and cryptocurrency don’t have any intrinsic value and they were determined as a risky asset.

Industry experts changed the outlook of Bitcoin and cryptocurrency

due to this uncertainty for investment purpose rather than being used as a medium of exchange globally.

Bitcoin has a lack of a regulator who can be accountable in case it faces problem with volatility . Bitcoin is decentralized which is not possible to regulate it in case its number of exchangers dealing with bitcoin is less which ensure that bitcoin cannot serve global medium for exchanges.

Bitcoin has been in the headlines ever since it burst onto the scene in 2009, with an underlying digital currency that is largely unregulated. Governments are scrambling to update their legislation — which many are calling insufficient — in order to respond to the volatility of Bitcoin prices.

With Bitcoin absent from mainstream commerce decisions made by banks and credit card companies to restrict usage for buying goods, Bitcoin’s impact on border control also remains uncertain for many for reasons not specified.

Just recently , a major U.S.-based Bitcoin exchange suspended its operations due to issues with state regulators over its anti-money-laundering obligations. This uncertainty surrounding Bitcoin leaves users wondering whether or not they should continue to invest in the volatile financial system.

Bitcoin developers hope that this uncertainty will be resolved eventually so that it can move towards wider adoption for everyday purchases while facing off against other cryptocurrencies like Ethereum.

Concerns over regulation of bitcoin and other cryptocurrency have been a guiding factor to their value as an asset. The value of bitcoin has fluctuated accordingly as a result of hype, fear, greed, and many other factors.

These trends have yet to be determined by regulatory bodies because so much is unknown about cryptocurrency. The uncertainty created by the regulation of bitcoin and other cryptocurrency this year remains as the biggest uncertainty.

Regulatory Concerns

In December 2017, South Korea proposed a ban on all initial coin offerings — where startups sell digital tokens to investors to finance their operations — from its turf.

China had been trying to tame crypto-traders with a peer-to-peer trading ban and blocking access to domestic and foreign cryptocurrency sites, which has helped fuel the rise in trade volumes at peer-to-peer trading venues and china has also since banned Crypto Mining but yet it has been rumoured that many miners has went underground and some shifted out and lower cost countries as long they can find cheaper electricity.

With the massive public interest in Bitcoin and cryptocurrency, there is no doubt that this is the next big technological movement. The recent regulation concerning cryptocurrencies, particularly Bitcoin, by various countries has been the biggest uncertainty as well as excitement for many investors.

Note : This article comes with a disclaimer , as it is meant for casual reading ,it is not meant as financial guidance , and any risks taken for investing with related products will be subjected to one personal’s understanding of investment risk and one’s own judgement , the author will not be held responsible