This has then led to huge interest from non-technical parties trying to figure out what the general rules are, based on what they currently have to go on, which isn't a great deal. The rules and regulations of Bitcoin are not as clear as they could be, considering how elite it is among all of the other digital currencies.
Investors, potential and actual, have been racing to understand the general regulations of Bitcoin and what the other prominent rules may be, before getting involved. Bitcoin has managed to become globally popular and capture the imagination of people who were not previously involved in trading or finance in general, who have become interested in Bitcoin news more recently. Let's take a look into how Bitcoin regulation actually works.
Bitcoin regulation
Social media has accelerated the level of interest in the regulation of Bitcoin and how it may grow in the future and as with anything Bitcoin [1]-related, there is a lot of speculation regarding the subject. There are essentially three main reasons that the regulators and authorities are wanting to delay the regulation of Bitcoin and in turn, allowing more time and freedom for blockchain technology to grow to its full potential. Here are some of the most important points to remember when it comes to Bitcoin regulation.
- Compared to other, more traditional transaction systems, Bitcoin is considered a newer form of currency. This also means that it hasn't had the time to develop completely, so it is considered to be currently inferior compared to other more established financial instruments. The total global value of Bitcoin traded daily completely pales in comparison to USD and the penetration of Bitcoin in the market as a method of payment, is a small fraction of the total money moved around the globe every 24 hours. Many Americans have heard of Bitcoin, but very few have bitcoins or used them for a transaction.
- Another imortant point to make is the fact that many other innovations have had plenty of time to develop before they became regulated but Bitcoin, has not yet had this chance. However, for a long time, we have had evidence that many inventions or industry sectors had plenty of time to develop before regulation became necessary and this applies to innovations such as phones, aircrafts, radios, cell phones, and of course, the internet.
- Bitcoin has many other areas of usage being explored that have not yet been properly developed, which means that there is a lot more growth to come. There is far more potential that could come out of Bitcoin, another reason why it isn't used as a form of normal currency throughout the world as of yet. However, there are high hopes that it will soon be seen as normal currency and be used daily, just as we use fiat currency [2].
There is one thing for certain and that is the fact that Bitcoin has seen a lot going on in terms of growth and value appreciation in the last few years and this looks set to continue. With revolutionary apps such Bitcoin Revolution [3] around, there is no doubt that Bitcoin will see substantial growth again in the coming years also.