We live in a digital, technological world where the digital money market is thriving. In the cryptocurrency domain, the most successful venture is probably Bitcoin, which has made a larger than life name for itself. It happens to be a particularly one to one, decentralised network of transactions, in which the investors do not require the intervention of mediators. While it has been particularly beneficial for a lot of people, the government has happened to be constantly worried about the presence of cryptocurrency in the economic market of the world in this blog, we will discuss why the government has been repeatedly worried about this venture, but before that we will get into a few essentials without which we cannot drive the point home. To know more, have a look at digital currency.
Cryptocurrency as the Income Equaliser: The Associated Threats
Like we are perfectly aware of the idea that you may find it incredible, as popular opinions have recorded, cryptocurrency had primarily hit the market as the agent which could be an income equaliser? By calling it an income equaliser, the market possibly meant bringing the middle class in the same position as the rich people of the society. Bitcoin was meant to be providing people with equal opportunities, thus distressed by a hankering for a decentralised, unmediated transaction of money. We know, every venture has its own downsides, and something which is decently realised is bound to have a number of issues which can jeopardise the way in which things are supposed to function with respect to the economy. It will not be an exaggeration if we mentioned that as much as Bitcoin is making headlines, Bitcoin scams are making headlines as well, and it has over and over increased the possibility of the government being worried about Bitcoin destroying the global economy. While it will be essential to remember that superpower can make, it will be wise to remember that a superpower can break too. Let us now look at the possible ways in which it has posed the said threat.
Significance of Control:
We are officially going through the pandemic era for the last couple of years, which has only caused a huge amount of decline in the economic market of the entire world. It is now that the entire system has turned online, and the virtual economic market has started to make a killing. The government absolutely thinks that control is essential, which has been clear from their words and actions would stop it is only natural, given they have banks which perform as the agents of maker, or breaker of money, using the monetary policy. It is in their terms that currency transfer takes place in respective countries, and makes it possible for them to keep a track of the currency flow, and pose the due amount of tax on them. This also means that a centralised power like a bank will enable the bank authorities to keep record of illegal transactions, and it will be easy for the government to track down criminals. Such issues were completely missing from Bitcoin as an alternative, thus, as per certain people, posing a substantial threat on the global economic system. It is right here, that the need of centralised power, which has a certain degree of accountability involved in it to girls in. In order to maintain the quotidian way in which things have performed, as for a section of scholars, a centralised force is important.
Here, in this blog, we briefly discussed with you the general fear that a number of people have Palmer that Bitcoin can even destroy the world economy. However, it is also important to consider that there is another section, which views Bitcoin in a different light. One does not, cannot disagree with the fact that Bitcoin has earned a name for itself, and it will always have pros attached to it. It is only important for an investor to be careful, good luck!