Bitcoin has a broad definition as a digital asset for intelligent contracts. However, this virtual currency is decentralized, meaning that no financial institution or government can regulate or manipulate the currency. Therefore, legally defining this electronic currency can be challenging. This virtual currency is experiencing mass adoption, whereby private and public institutions are now opting for this electronic currency as a store of value and hedge against inflation. Because of this increased mass adoption, there are concerns about whether or not the US government or any other government can exert control over the use of this digital currency. Start your trading journey by visiting http://bitcoin-motion.software, the most recommended trading platform.
On the other hand, this digital money regulation has sometimes been confusing. Some nations feel staunch that rules on this virtual currency must become stricter before digital currencies get out of hand and become impossible to control.
Is it Possible to Regulate Bitcoin?
Satoshi Nakamoto did create this virtual currency to create a decentralized and distributed currency. Because of this spread and decentralized nature of this electronic currency, it makes it hard to regulate the money. By being decentralized, this virtual currency does not have a single controlling entity, including a government or an individual. If there are changes that these digital money users propose, they should be agreed upon by more than 51% of computer nodes that run the Bitcoin network.
Moreover, the control of this virtual currency is shared among several independent entities globally, making it impossible for a single entity to dispute complete control wishes. This digital money has an underlying blockchain technology that helps record and validate transactions. Due to this distributed nature, this electronic money exists at many different locations simultaneously. Therefore, it is difficult for a single regulatory authority to enforce its will and orders across borders. Also, no government or financial institution can raid a Bitcoin office and shut everything down.
How to Approach Bitcoin Regulation
The government can influence the price of this digital currency in multiple ways. For instance, the government can affect the price of this virtual money through trading actions in international marketplaces. Also, the government can influence the price of this virtual currency through buying and selling activities at global marketplaces. Through the few instances that the government can influence the price of this electronic currency, the government has the potential to make some changes that would likely not affect this virtual currency on a larger scale. This digital money is bought and sold internationally through genuine exchanges. Hence regulation would need considerable efforts across several countries.
This digital money regulation aims to protect investors, prevent fraud and reduce speculation among these digital money investors. Eventually, this regulation would encourage more confidence among these digital money investors.
How Bitcoin Regulation Will Affect Its Value
This digital money is constantly changing from time to time. Digital money enthusiasts and experts worry that these electronic money regulations will add too many restrictions on the Bitcoin marketplace. On the other hand, if the government regulates virtual currency correctly, regulations might be the solution to add stability and security among these digital money investors.
Nevertheless, if institutions impose bans on selling this digital money, Bitcoin will respond negatively and slowly. But if regulations support innovation within limits, then the price of this electronic currency will be stable.
Some investors believe that this electronic currency might be the future. On the other hand, a population of investors is still quite reserved about leaping into investing in this electronic currency. Despite bans and strict regulations on this virtual currency, it cannot be shut down and is not going anywhere.