When Is The Bitcoin Becoming The New Euro- Part 2
What is the future prospect of Bitcoin and allied cryptocurrencies? Read the following part of the discussion continued form the earlier one.
Continuing From The Previous Post
Declaring that Bitcoin as a currency, a federal judge in Texas suggested it be regulated just like euros or US dollars whereby the decision threatened Bitcoin’s utopian concept. As Judge Amos Mazzant wrote the only limitation of Bitcoin is that it is limited to those places accepting it as currency which can, however, be exchanged for conventional currencies similar to the US dollar, Euro, Yen, and Yuan and therefore Bitcoin is a currency or form of money.
There Is A Possibility That Bitcoin Won’t Be Able To Remain An Unregulated Currency For Long
Similar to this, New York’s financial services stated that Bitcoin companies respect the current financial regulatory guidelines thereby making sure that these companies are all on the same page where they operate in the US necessarily to protect customers with the top banking regulator writing a new set of rules to decrease illegal Bitcoin activities. According to Financial Services superintendent Benjamin M. Lawsky, since in many of the instances, there is the cloak of anonymity it is provided by virtual currencies that helped support dangerous criminal activities including drug smuggling, money laundering, gun-running, and child pornography. He added that taking small steps to root out illegal activity is both a legal and business imperative for virtual currency firms.
Thereby following a parliamentary inquiry Germany has finally stated that Bitcoin should be considered as private money with many implications starting by paying sales tax (VAT), where the conclusions are simple thereby the execution is becoming more complicated as Germany is one of the mere members of the Eurozone and it wants to pursue this further probably having to lobby European institutions to change rules on a European level.
Proving one thing is these rulings that Bitcoin won’t be able to remain an unregulated currency for long as it won’t work similarly in every country of the world. The Bitcoin users and companies will soon have to find a way to avoid tax, and authorities having a say in what you are doing with your bitcoins, where it is not necessarily a bad thing as using unregulated currency that is unsustainable for many industries and use cases while Bitcoin’s true purpose is not what everyone originally expected.
Bitcoin Is The First Meta-Currency
Being a peer-to-peer payment network, the Bitcoin network where you don’t need any banking institution to make large transfers instead of replacing the euro, the cryptocurrency becoming the first meta currency which is a new currency sitting on top of traditional currencies for very specific use cases. The European Union member countries with the euro want to create a second world currency competing with US dollars having a dominant currency with many advantages. As said by the French historian Jacques Rueff, those countries use a major currency sustainably keeping a negative balance of payments calling that the deficit without tears.
Can Bitcoin Become The First Meta-Currency Sitting On Top Of Traditional Currencies?
The European Union in many ways was successful with the euro as it hasn’t become the universal currency and no one can deny that the euro is a major world currency with now two different currencies matter on a global scale. Economic agents needing a tool that sits between US dollars and euros. About 100 percent of foreign exchange transactions currently involve dollars where out of 200 percent because forex transactions involving two currencies when compared to 64 percent for euros.
Thus the Bitcoin can become the common language between USD and the EUR using bitcoins in Italy or Ecuador where you don’t have to pay any fees where you can exchange some bitcoins in dollars you’re investing in Ecuador or exchange some bitcoins in euros when you’re investing in Italy. Becoming a money transfer protocol as much as a currency, the Bitcoin, for now, has the aspect underused that could become bitcoin’s most interesting future prospect.
Wrapping Up The Discussion
While it is a fact that Bitcoin has a long way to go as the global currency, it will surely be the best bet for countries all over the world looking forward to cheaper money transfers that are also secure and reliable. Here is the necessary for a global currency that helps citizens invest in a common currency thereby doing away with transaction fees. So what are you waiting for? The ball is in your court. Hit it hard and gain some points before it is late. Bitcoin and the cryptocurrencies come with this promise as it is the only way to reach out to the financial sector looking for a common medium of transactions for the entire world.