” Since we’re all rich with bitcoin…….we ought to put some of this unearned wealth to good use “ – Hal Finney
Cryptocurrency serves as a medium of growth or support in the development process and also solves the scam problem on a global scale by removing the middleman from financial transactions it can be transferred anywhere in the world at almost no cost and with the help of crypto signals, Bitcoin can be traded but it is still illegal in numerous countries.
List of countries that banned bitcoin
- North Macedonia
- Saudi Arabia
Cryptocurrency is a subject that has loyal lovers and passionate haters too.
In the next few line, we will find out why cryptocurrencies are banned in these countries and why shouldn’t have bitcoins banned
But WHAT IS BITCOIN?
Bitcoin is a digital file where records of all transactions are in a decentralized system, it’s a digital currency created in January 2009. It doesn’t exist physically but individuals can have its access either on the cloud or on the user’s computer & stored as bits. There are numerous cryptocurrencies like bitcoin, with their price value and various protocols but BITCOIN is widely used and the most favored cryptocurrency.
But the supply is limited.
The total supply of each cryptocurrency in the protocol is authorized. Secondly, the main focus is on privacy each n every transaction is made in the absence or without the involvement of the middle man, Prices rely on market forces i.e. interaction of supply and demand. Neither any big institution/ a big investor nor state/ bureaucrats can decide or interrupt the market of bitcoins it is operated by a decentralized authority.
But WHY DECENTRALISED? WHY GOVERNMENT CANNOT INTERFERE OR WHAT IS THE NEED TO DEPART FROM CENTRAL INSTITUTIONS?
All these restrictions are the consequences of fraud and corruption, not all companies get financial support. Currencies in the world today are Fiat money and fully controlled by the state, authorities have a right to change or remove the legal status of money like demonetization, and also at the time to bank losses or bankrupt it would become difficult to recover our money, similarly during the recession in 2008, when Lehman brothers losses were skyrocketing subprime lending crisis happened in the U.S.
There are some risks associated with banking sectors, here, we are giving them control of our money in the hands of banks which creates a problem of transparency, tired of this dichotomy an anonymous techie under the pseudonym Satoshi Nakamoto published an 8 page, which solves the scam problem on a global scale by removing the middleman from financial transactions and gives an alternative of currency ( paper notes and coins)
HOW BITCOIN WORKS
Bitcoin is not a real coin. It is a purely digital phenomenon, a set of protocols and processes. It is a network of computers that maintains information of all transactions nodes are present which receives a challenging maths algorithm thousands of computers receive and the node that solves the problem first gets the reward.
At present there are 47,000 nodes all over the world, all transactions related to bitcoin are announced via nodes after every 10 minutes this process is known as mining and thousands of complex computers are considered miners. By the signature of the computer at the bottom of the transactions page, the particular page gets approved this approval process is proof of work.
The transaction + proof of work + previous transaction = blocks
Blocks stacked on with each other result in a blockchain. Bitcoins record transactions in a distributed ledger called a blockchain.
Due to the help of these blockchains peer to peer connection is possible.
ADVANTAGES OF BITCOINS
Bitcoins are neither a contrivance to astray people nor any business strategy, innumerable benefits are linked with cryptocurrencies. The demand and use of bitcoins are increasing by leaps and bounds after the innovation was introduced, day by day peoples are accepting this unique currency due to its unique attributes……., as it abates the risk of fraud and makes possible for buyers to pay or made transactions without mentioning their personal information own identity is hidden. Here, people can enjoy a high degree of autonomy which is quite rare among credit and debit cards.
Bitcoins can be used in any situation irrespective of place n time an individual can make payments. Transaction fees are also quite less. International transactions become easier as bitcoins are accepted everywhere around the world.
From an economist point of view inflation is a major concern for a country by increasing the money supply prices rise which result from inflation in the economy and reduces the purchasing power, but there is no connection between bitcoins and inflation with bitcoins there are zero risks of inflation, an individual can preserve coins Supply of bitcoins are limited, there will only be 21 million bitcoins can produce but the rate of interest keeps on changing.
Here transactions are peer to peer, no involvement of a third party, no one is allowed to tax or claim your coins.
Bitcoins also preserve people’s money from government failure, recession, bankruptcy. Here money is totally under your control sharing of ownership of money like we did in the bank is absent.
Even after having several advantages still countries banned bitcoins, as every coin has two sides the rapid acceleration coincides with some illegal activities also sometimes people invest their black money in bitcoins due to fear of paying tax, and sometimes it also crash but if we collate advantages will dominate.
We are living in a modern world and used to encounter with numerous innovations which have some merits and demerits too but still, we are using them, for instance, mobile phone, internet, social media, vehicles and many more similarly as cryptocurrency, But banning is not a solution that should be recommended.
Cryptocurrency is an encouragement to the new currency system, it showcases the future of money which cannot be veto or turn down
Countries banned bitcoins to cease the currency Market from attracting Criminals and people interested in tax evasion and money laundering but it will eventually cause more harm than good Cryptocurrencies affect the economic, political, cultural, and social life of mankind. The consequences of banning bitcoins may result in illegal transactions, so ban bitcoins restrictions on the internet are crucial.
Banned bitcoins could not bring down black money, tax evasion or money laundering substitutes are available everywhere, uncertainty, frauds will still prevail.
By banning bitcoins, particular countries’ citizens rely on fiat money which makes international trade or payment bit arduous. Before 1 year a bitcoin value was $5000 at present it rises to $42,000 and that’s huge in the future bitcoin is going to be immense.
We are living in a world full of science, technology, innovations, and changes, future is uncertain for the betterment of the country as a whole we should identify the opportunities and get the first-mover advantage and should cope up with rapid changes.