There is now a growing interest in the bitcoin, which is defined as a cryptocurrency and a worldwide payment system. It is very much different from other currencies, as it is considered a decentralized digital currency that simply works without a central bank or a single administrator that is unusual in the terms of other functioning and accepted world traditional and digital currency. Bitcoin value is now estimated at $19,850. Bitcoin is fast catching world attention specially those who fancy taking risks for their money and of great profits.
Fast rising value
All currencies are used as a store of value that makes saving, investing and banking a lot easier. Bitcoin does it all except that it is not controlled by a central bank. However it has a set rules that is transparent and through a decentralized network. Bitcoin value derives from being a medium of exchange and as of a store value. Surprisingly, the crazy-like adoption to bitcoin has driven its value. Another reason is the speculative interest of people toward bitcoin and such reaction plays crucial for its bubble-like characteristic in terms of value. People may ask what is bitcoin specially those doubting its legitimacy. It has gained the interest of many sectors in the society like the law enforcement, tax authority and legal regulators as it paused great money risks. There are many assumptions to why bitcoin is priced high and one of them is the media craze over bitcoin. However, no matter how fast raising its value is, bitcoin is still considered a volatile cryptocurrency.
Is Bitcoin legal?
With high bitcoin value, many doubt its legitimacy. Authorities are now stepping in for the oversight of its use and trading. However, there are only a few countries that are declaring it as illegal. In contrast, Japan has given bitcoin a legal tender tag. With not being a “legal tender” does not limit bitcoin for being used as payment. It only does not enjoy protection for consumers or investors as well as merchants. The use of bitcoin as payment is completely discretionary. Countries are still debating and contemplating whether it’s time to step in for bitcoin legitimacy and in regulating bitcoin price. IN US, authorities are questioning which has the right authority and Europeans are still looking at it as still not matured enough for regulations. In Australia, cryptocurrency exchange has to register with Austract, the country’s financial regulatory agency while the central bank has declared regulation is not needed for cryptocurrency used as payment. With such world reactions, investors are into creating business opportunities such as bitcoin mining, which is fast gaining interest.
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