Over the past 12 years, we’ve experienced the most disruptive threat to finance as we know it: The first decentralized cryptocurrency known as “Bitcoin” took the world by storm, but not without some criticism from individuals and institutions who fear unregulated phenomena. Money in its purest form is something that is used as a medium of exchange and usually has a tangible and universal value associated with it in some way or another, like the dollar, the pound, and even the Indian rupee.
Some people criticize the potential illegal activities that could be carried out on the Internet, and others criticize the possibility of large losses due to the fact that no company controls this currency, so in the event of a technological incident in the wallet where your the cryptocurrency is stored, you will simply operate at a loss. Warren Buffet, the hugely successful investor in 2018, described Bitcoin as likely squared rat poison. One could argue that there has been illegal activity since the beginning of time and it is more than likely that it will continue until the end of time.
What these types of reviews reveal is that people are uncomfortable with new, innovative, and unproven things. With the advent of the internet, there were a multitude of naysayers and non-believers who didn’t know how cryptocurrency would work and thought it was the worst thing in the world. These opinions were based solely on the advice of internet critics, as they were not sold over the capacities of the internet. Today, we are rapidly advancing 37 years and the Internet plays a prominent role in many lives around the world. The internet has affected the way we do business and communicate with each other.
Cryptocurrency has the potential to have the same effect on the world. With features like immediate and secure transfer of ownership without the approval of a major financial institution, all you need is the address of the other person’s cryptocurrency wallet. Cryptocurrency technology allows payments to be 100% encrypted and will prevent personal information leakage. This is in contrast to now, where when making purchases from merchants you are required to provide credit card information along with your PIN, which exposes you to the possibility of a data breach if that merchant’s data is in. particular have been hacked. Governments are taking note and have different views on the issue. El Salvador has accepted crypto as a currency, and other major economies like the United States have refused to recognize it as a form of legal tender, fearing that without government intermediaries, the cryptocurrency could potentially destabilize the financial infrastructure system. current.
Once the government does their due diligence, cryptocurrency will become legal tender here in the United States. There are many financial apps that allow people to buy, sell and trade cryptocurrency, and legislation has already been proposed regarding cryptocurrency. US Federal Reserve Chairman Jerome Powell and SEC Chairman Gary Gensler concerned about lack of regulation Jerome Powell said he has no plans to ban cryptocurrencies , but said stablecoins need more regulatory oversight. For cryptocurrency to have a future in the United States, it will need to be regulated in one way or another, which crypto enthusiasts aren’t too excited about, as the decentralized nature of digital currency is a big attraction.