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There are people who argue that, since cryptocurrency is not a conventional currency, it does not need any regulation. On the other hand, there are people who believe that the government should tighten regulations to ensure its security and stability. In this article, we will discuss some of these arguments.
Hunting Big Fish with a Fishing Rod
Cryptocurrency is not a new thing in the world. Therefore, many small countries have already introduced some kinds of regulations on it. For example, Estonia’s LHV Bank has launched a payment processor that converts fiat into cryptocurrency for its customers, and the government of Singapore announced that it will include cryptocurrency as part of its financial assets by 2018.
However, in developed countries like the US (which is a big fish), cryptocurrency is not as popular or as widely used. Therefore, regulating it will be difficult because the government doesn’t really know where to start and figure out how they can protect their citizens from its risks.
Opinions Vary Widely with Emotions on Cryptocurrency
One thing that cryptocurrency has in common with gold is that no one can predict its future security or stability. It’s a matter of opinion, and people who have invested their time, money, and effort into it think that cryptocurrency will be worth more in the long term than any other currency. On the other hand, those who trust conventional currencies and banking systems don’t have any confidence in cryptocurrency.
The two sides will never come to an agreement. However, cryptocurrency is a new technology that can be used in the future as more people become aware of its value. The only thing that we need to figure out now is how conventional countries can use cryptocurrency without compromising their long-time stability and security. Understanding some facts about Bitcoin Billionaire can be of great help when dealing with crypto assets.
To Regulate or Not to Regulate
Since cryptocurrency is such a controversial issue, it can easily be used for illegal activities like money laundering. Therefore, the biggest problem in managing and regulating this new form of money is how we can effectively fight these bad elements while keeping their benefits.
Many experts believe that as cryptocurrency becomes more widespread, the government will eventually step in to regulate it. But I don’t think this is necessary, as long as we can make all of its users understand that they are personally responsible for the cryptocurrency they own.
If you use cryptocurrency to invest or do business, you need to be smart about which exchanges and wallets you trust with your assets. You also have to take extra security steps against the hackers who target cryptocurrency.
Practice Makes Perfect
The government will eventually step in to regulate the use of cryptocurrency. However, before regulations are introduced, it is better for its users to practice due diligence and take responsibility for their own assets. If cryptocurrency gets popular enough, there will be more people who try to commit fraud and crime with this new currency. Therefore, regulation will be inevitable.
If you are going to use cryptocurrency, then check the background of your exchange or bank before you make a trade. If you don’t know which currency or company to trust with your money, ask your friends instead of making decisions quickly simply because you want to invest as soon as possible. When everyone starts thinking about these things, the government doesn’t need to intervene.
Final Thoughts
The technology behind cryptocurrency is still in its infancy, so we will have a lot of debates and discussions about it. However, when the moment of truth arrives, these arguments won’t matter anymore. Only one thing will count: how much you trust cryptocurrency and its technology, and your ability to check everything about it.
